Meridian Energy has received final approval from the government's fast-track panel to draw on contingent storage at Lake Pūkaki for a three-year period. The consent allows the company to access water held in reserve below normal permitted levels.
Meridian CEO Mike Roan said the reserve water access would help reduce dry-year risk and related pricing effects through winter 2028. Roan said Meridian would draw on the contingent storage in the remainder of 2026 only if there is heightened risk to security of supply.
The company has 5 metres of storage available at Lake Pūkaki this year. Roan said Meridian does not expect to use more than half of that volume given current lake levels.
Hydro generation provides around 60% of New Zealand's electricity, but only 23% of hydro generation capacity can be stored in lakes. The company's lake storage capacity equals 15 weeks of Meridian's average generation.
The fast-track panel's decision also gives Meridian permission to permanently install rock armouring at Pūkaki Dam to protect against wave erosion.
Roan said the climbing cost of power would be short-lived. He said Meridian was investing heavily in electricity regeneration, which would eventually bring costs down.
New rules now require major power companies to offer households and small businesses cheaper rates for off-peak electricity. Energy Minister Simeon Brown said gentailers' use of a blanket price had been unfair on customers.