Electricity pylon. Photo: AFP
Auckland's electricity and gas provider, Vector says there are users on its network that are looking at cutting back on consumption, due to rising costs.
Wholesale power prices have doubled recently, partly due to Aotearoa's hydro lakes storage being at only 47 percent of what it would normally be at this time of year.
Associate Energy Minister Shane Jones says the government is exploring the option of intervening into the market and accused big power companies of profiteering.
Vector chief executive Simon Mackenzie told Nine to Noon the minister was expressing concerns echoed by customers.
He said a number of its users have expressed concern about prices, including the Penrose paper mill, which announced it was considering closing.
The situation was indicative of the challenges with the energy system going through a massive transition, he said.
This included the increase in demand, climate change and gas market challenges.
"We have long been calling for the minister of energy to set a whole of system plan because we don't see any entity has overall stewardship or custodianship of the energy system."
This was critical, he said.
Prices in the electricity market were a challenge, as was the quantity of gas available.
"We've got two things going on."
"The industry since the Bradford reforms has been served OK by those reforms but we've been saying for probably about the last five or six years that's past its used by date and we need to have a different kind of conversation now about how should the industry be structured so we can take advantage of our natural resources..."
Labour calls on govt to explain policy to ensure enough power generation
Roger Sutton is a former chief executive of two different South Island lines companies, now with industry consultancy Deta.
He said the government did not have many choices to fix this problem.
"There's been talk that because of the oil and gas exploration ban, that's actually had an impact. I actually think that impact has been overstated.
"The gas industry spent about a billion dollars in the last three years looking for has and it just happens that nearly all those wells they drilled were dry so there's just a perfect storm - we've got a very dry year, in the last few weeks it hasn't been very windy...and we've had this gas issue as well."
Photo: RNZ / Samuel Rillstone
The Labour Party is calling on the government to explain exactly what its policy is to ensure the country has enough power generation.
Labour's Energy spokesperson and former Energy Minister Megan Woods told Midday Report the government was huffing and puffing but has no vision on how to fix the long term problem.
"One of the things that I really challenge not only Shane Jones but also Simeon Brown is to tell us what's their plan around the longterm future of the New Zealand electricity market is.
"They bowed to industry and they cancelled the New Zealand battery project, the very thing that could have given the security of supply an into the longterm, cheaper electricity prices, they've scrapped that and eight months in we're yet to see an alternative."