There is concern over whether New Zealand has got enough power to get through winter.
There is already talk that the industry may have to start cutting electricity consumption and on Tuesday, questions arose in parliament about just how reliable the power supply really is.
The long dry summer means levels in North and South Island lakes are about two thirds of what they would normally be.
Lake levels have now dropped below a key water mark and there is concern the situation will worsen.
Compounding the problem, several power stations have also been out of action.
"The country's economy is under some stress as it is and the last thing we need is a power crisis", says National Party MP Gerry Brownlee.
However, the government is downplaying the blackout threat, saying there is only a 5% chance of power cuts.
"For that low probability to become a reality, we'd need severe drought to continue into autumn and the unexpected failure of a major plant would have to occur," says Energy Minister David Parker.
But Brownlee thinks a 5% chance is very optimistic.
"The fact is, the track has looked bad for a long time, for a
number of months," he says.
If the situation doesn't improve by the end of the month,
industrial users will be asked cut back power consumption, which
they are not happy about.
"As time goes on, the frustration level grows, and this adds to a number of other things, and sooner or later, we'll start to see activity drift away for from New Zealand," says John Walley of the Manufacturers and Exporters Association.
One proposal is for a buy back scheme where businesses would be paid to reduce their electricity use, in the event of a power shortage. The scheme use could also be extended to households.
Transpower Chief Executive Patrick Strange says Transpower has begun talking to businesses that are big users of electricity to gauge their reaction to reducing their electricity use for a fee.
But the Major Electricity Users Group says a lot of New Zealand manufactured goods are enjoying high prices overseas, so the cost of turning down production could be high.
