We are saving energy ... but some question if crisis exists

Electricity consumers across the country made a 15 per cent energy saving on Wednesday as arguments continued over whether a power crisis existed.

A leaked report questioning the need to conserve power was criticised by Energy Minister Pete Hodgson yesterday.

"We do not yet have an electricity crisis, but we are looking down the barrel of one," he said.

The report, by Dunedin-based consultant Energy Link, said its modelling indicated there was a reasonable amount of water in the South Island hydro lakes without conservation measures.

The report was dated July 31, four days after Mr Hodgson called for 10 per cent power savings for 10 weeks to avoid rolling blackouts in September or October if lake levels did not rise.

Mr Hodgson said it would be "seriously bad news for New Zealand" if reports such as Energy Link's deterred people from saving electricity.

The Major Electricity Users Group agreed, calling the debate over the extent or closeness of an electricity crisis tragic.

Chairman Terrence Currie said high electricity prices and the curtailment of industrial production were firm proof a major crisis did exist.

"The economy is in code red because the country is losing millions of dollars daily through cuts to production - predominantly exports," he said.

"We're code amber in terms of supply because hydro inflows are fragile, no one can guarantee when it will rain and our conservation measures are not enough yet."

The understandable cynicism of consumers about the electricity industry needed to be set aside.

"If each of us doesn't take personal action, then we will end up with a full blown crisis," he said.

Figures from national electricity monitoring company M-Co show New Zealanders made a 15 per cent energy saving on Wednesday, the highest since figures began last week.

Meanwhile, Meridian Energy said yesterday that it would give its customers a $20 credit each if the country reached its 10 per cent target in the 10-week period to October 5.

Meridian joined Mercury Energy in offering people incentives to cut their power use.

Two of the four big electricity retailers, Genesis and TrustPower, have rejected the idea of rebates.

- NZPA

Feature: Electricity

Energy Efficiency and Conservation Authority