WELLINGTON - The New Zealand government has moved to address the serious risk to energy security and affordability.

"New Zealand currently has an energy shortage. The lakes are low, the sun hasn't been shining, the wind hasn't been blowing, and we have an inadequate supply of natural gas to meet demand," Energy Minister Simeon Brown said on Monday.

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That has led to New Zealand currently having the highest wholesale electricity prices of any of the countries New Zealand normally compared itself to, Brown said, adding that it is devastating for New Zealand's manufacturing and export sectors.

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The cabinet has committed to reverse the ban on offshore oil and gas exploration, with legislation passed by the end of 2024, and remove regulatory barriers to the construction of critically needed facilities to import Liquefied Natural Gas (LNG) as a stopgap.

Other measures include easing restrictions on electricity lines companies owning generation, ensuring access for generastopgaptor-retailers to hydro contingency, and improving electricity market regulation.

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Brown said New Zealand's natural gas production dropped by 12.5 percent in 2023 and by a further 27.8 percent for the first three months of 2024, creating a nationwide shortage and resulting in reductions in manufacturing output, and electricity generators resorting to more coal and diesel to power the country's electricity system.