Transpower warns electricity sector ‘less resilient’ if lake limits eased

The Lake Pūkaki debate is over how low it should go. (Image: NZME)

Mon, 08 Dec 2025

Transpower says that giving generators more freedom to run South Island hydro lakes lower would cut wholesale electricity costs in normal years, but would leave the electricity system more vulnerable to dry years and other extreme events.The state-owned grid operator said allowing generators to use more lake water before reaching the existing thresholds, rather than holding it in reserve under current rules, would reduce wholesale prices. This, in turn, reduces the commercial margins that support thermal back-up plant, including the Huntly Rank...

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