Wairoa District Mayor Craig Little. Photo: RNZ / Samuel Rillstone
High power prices are hurting not just manufacturers, but councils too.
Wairoa District Council said its energy costs had gone up 40 percent in the past three months.
Mayor Craig Little told RNZ the town relied on electrical pumps to get water to residents, and the price increases had been scary.
"I think it's hit everyone by surprise right across the country as with us. You try and predict it and you can't get that one right - we've got pumps with massive electrical motors and it's going to be huge for us," he said.
Ministers met with several manufacturing companies this week, after Winstone Pulp International proposed closing down because of the high wholesale energy prices.
That closure would result in the loss of 230 jobs.
Little said the power increase could end up hitting residents in the pocket.
"We'll have to look at the rates people pay for water, but at the end of day it has to be paid and hopefully we can absorb it somehow."
The mayor was also worried about big employers in the area, such as meat processor Affco.
"Businesses like Affco that buy the water off us, they're paying extra power as well.. it's pretty scary across the country what's happening out there at the moment.
"It's really hard and we have to look at other alternatives for power."
Little wanted to see the government develop strong incentives for solar power so that homes and businesses could afford to put panels on their roofs.
"I'm not telling the government what to do by any means, but look at Australia and what they did over there."