Photo: RNZ
The major electricity companies are in discussions to create a longer term back-up fuel supply after last year's dry year.
Genesis, Mercury, Meridian and Contact have entered into discussions over buying a strategic fuel reserve to cover shortages - such as what happens in a dry year when the country's hydroelectric dams are at low levels.
Last year's dry year combined with tight gas supply as well as intermittent supply from wind farms - to create an energy shortage that pushed electricity spot prices to a level that caused some industrial operators to shut down their operations.
It also led to Genesis and Contact going to the country's biggest gas user Methanex to buy its gas supply to alleviate the fuel pressures last year.
In a note to the NZX this morning, Genesis says it is working on a deal with the other generators to keep its coal-burning Huntly Power Station operating as the back up electricity source for the country.
Genesis chief executive Malcolm Johns speaks to Kathryn.
