The country's largest electricity generator believes that poor management is to blame for some electricity companies considering raising their power prices.
Meridian Energy says low hydro lake levels are pushing up the price of wholesale electricity, but power retailers should have been better prepared for the winter electricity demand.
Wholesale electricity prices have risen to six times their normal level this winter, partly because of low hydro lake levels and recent cold weather.
Alan Seay of Meridian Energy, which generates a third of the country's electricity, says power retailers should have managed their risk better.
He says Meridian's retail customers will not have to pay more for their electricity this winter, despite contrary indications from some other companies.
While water levels in South Island hydro lakes are low, he says they are still above the levels that caused a power crisis in 1992.
Seay says other companies should have seen the situation coming and better hedged the prices on their large contracts.
However, some retail companies say the costs are too high to absorb and may pass them onto consumers.
Latest Breakfast Video
-
te-karere-121111-fri - te-karere-121111-fri (0:22:30)
-
Marae Investigates - Series 2012, Episode 13
-
Marae Investigates - Series 2011, Episode 15 (0:29:10)
