River plans could hit power

Consumers face higher power bills and an increased risk of electricity shortages in winter under a plan that would restrict the use of Waitaki River water for hydro generation.

The plan has horrified the Government, which says it would threaten security of electricity supply and affect the quality of the river itself.

Irrigators, power companies, big electricity consumers and business lobby groups are also opposed.

The draft plan is the work of the Waitaki Catchment Water Allocation Board which the Government established under special legislation last year to draw up a regime to manage the river in the face of competing claims on it.

Critics say the plan is rushed, scientifically rickety and cavalier about the likely impact on power consumers.

The Waitaki provides about a quarter of the country's power and represents more than 60 per cent of its hydro storage.

That storage capacity is vital to reducing the risk of shortages in winter in years that are even a bit drier than normal.

The plan would increase the minimum amount of water state-owned Meridian Energy has to send down the river at all times, reducing its ability to store it for times when it would be more valuable.

It would also reduce the extent to which Meridian could lower lake levels, again reducing the effective storage capacity.

The effect would be higher wholesale power prices in winter - reflecting the increased risk of a shortage - and on average over the year.

The Government's submission to the board is scathing.

It recommends a minimum flow rate which is the same as that set by Meridian's existing resource consents and little more than half of what the board proposes.

It says the flows the board wants would change the character of the braided river.