Energy Minister Simeon Brown 'incredibly concerned' amid warnings of power cuts

Energy Minister Simeon Brown is blaming the previous Labour-led Government's ban on oil and gas exploration for the increase in energy shortage notices. 

Kiwis are being urged to conserve electricity usage or they could face power cuts on Friday. 

National grid operator Transpower warned there is a potential for a shortfall of electricity supply between 7am and 9am because of an "unseasonal cold snap" and low wind generation. 

Major industrial electricity consumers have also been asked to reduce use during the same period. 

Energy Minister Simeon Brown told Newshub the potential energy shortfall is a direct result of the last Government's actions leaving "our electricity system less secure". 

"We have seen a significant increase in these types of warnings since 2018, when the last Government banned oil and gas exploration," Brown said. 

"Without that gas to back up when the sun's not shining and the wind's not blowing, we don't have the energy we need as a country. This is incredibly concerning." 

The Coalition Government plans to repeal the present oil and gas exploration ban, which was introduced by the Labour-led Government in 2018. The move has been criticised by Opposition Parties, particularly the Greens who have said it will "pour more fuel on the climate crisis". The decision to repeal the ban also earned New Zealand its first "Fossil of the Day" award at COP28, which is given to counties who are "doing the most to achieve the least" in terms of progress on climate change. 

In the House on Thursday, Brown held up a chart showing the number of Transpower notices issued warning of shortages had increased from zero since 2018.  

"If we had a choice, I'd much rather we had the gas being burnt to keep the lights on than what's happened, because of oil and gas exploration [ban], is we are having more and more coal being burnt at Huntly - which has twice the carbon intensity," Brown said. 

Simeon Brown holding up a chart that shows the number of Transpower notices issued warning of shortages had increased from zero since 2018.
Simeon Brown holding up a chart that shows the number of Transpower notices issued warning of shortages had increased from zero since 2018. Photo credit: Parliament TV

Brown encourages New Zealanders to listen to Transpower's instructions. 

The state transmission company suggests households should avoid charging appliances or electric vehicles and using the washing machine, dryer or dishwasher on Friday morning. People should also turn off heaters and lights in rooms they aren't using until 9am. 

A warning notice has been sent advising the industry of the situation and Transpower is working with electricity lines companies to switch off controllable load like hot water systems on Friday to reduce demand, it said. Transpower said hot water systems are regularly switched on and off during the day, so most people won't notice. 

It comes after the Coalition Government said earlier this week low gas production was threatening New Zealand's energy security.   

Figures released by the Gas Industry Company show production reduced by 12.5 percent during 2023 and by 27.8 percent in the first three months of this year - beyond what was projected.  

The figures are concerning for those who rely on gas - such as schools, hospitals, universities, food and chemical processors and electricity generators.  

It's causing companies such as Genesis Energy to resort to importing coal, which has higher emissions. 

In response to the report, the Ministry of Business, Innovation and Employment has set up a Gas Security Response Group to coordinate producers, users and Government agencies while supply is tight. The group will assess measures needed to ensure the gas supply is available for its most critical users.