Report into power problems too optmistic, says Hodgson

12.45 pm

Energy Minister Pete Hodgson says a report questioning the seriousness of the current electricity situation is too optimistic and people still need to conserve power to avoid a crisis.

The report by Dunedin-based consultants Energy Link – titled "Crisis, What Crisis?" - concluded there was sufficient water in the South Island hydro lakes for New Zealand to make it through the winter without conservation measures

Mr Hodgson said the country did not yet have an electricity crisis, but was "looking down the barrel of one".

"If inflows to the hydro lakes stay low, as they have been all year, and we do not save power, we face the prospect of blackouts in late September or early October.

"Lake inflows this year are the lowest they have been since records began 75 years ago and there are no signs of a break in the weather pattern."

He said the Energy Link analysis was effectively saying we could run the hydro lakes down and trust spring rain and snowmelt would arrive in time to avoid blackouts.

"It is the sort of prediction you can make with comfort only if you have no responsibility to act in the national interest and no accountability if you turn out to be wrong," he said.

Mr Hodgson also said the report ignored the risk of further difficulties arising next year if the country ended the year with near-empty hydro lakes and then had another dry period.

"My plea to New Zealanders is not to gamble on the weather. Saving power now will save the much greater inconvenience, expense and danger of blackouts later."

Power savings of 10 per cent for 10 weeks would almost certainly mean we avoid blackouts, said the Energy Minister.

"It will be seriously bad news for New Zealand if reports like today's deter people from saving electricity."

Feature: Electricity

Energy Efficiency and Conservation Authority