With the prospect of power blackouts in the winter, electricity retailers are being encouraged to help their customers save power.

Demand in the North Island, and low hydro levels in the South Island are putting pressure on the country's electricity supply.

Ralph Mathes, executive director of The Major Electricity Users' Group says power cut threats teamed with high spot prices, mean people should try to save power. He says in the past, retailers have adopted initiatives such as choosing a community and donating money to charity if the community can save a certain amount of power. He says that has worked well.

Alasdair Thompson, CEO of the Employers and Manufacturers Association, says staff at his workplace use the stairs instead of the lift and wear pedometers to compare how far they have walked in a day. He says the power situation is quite serious and if everyone saves a bit, a power crisis could be averted.