Blackouts are "very possible" in the North Island and probable in the South Island if huge power savings are not made now, according to a business group.

With a winter power shortage looming, storage is down to 56 per cent of average, the worst since the 1992 power crisis.

Wholesale power prices were up to 10 times higher than normal yesterday.

The Employers and Manufacturers Association is urging its members to make all the workplace savings possible to avoid blackouts and is calling for greater political leadership.

Some industry experts say drought has left hydro power lake levels so low that there is a risk of blackouts in about six weeks, repeating the crisis of 1992. ... Read full article