The Major Electricity Users' Group warns limited energy supply will continue to hamper our economy

Meridian Energy's allowing Tiwai Point aluminium smelter to ramp up production, reversing a previous agreement to limit energy use.

It says hydro lake levels have risen enough to ease fears of stretched power supplies this winter.

Major Electricity Users' Group Chair John Harbord says without more supply, power affordability will continue to be a pressing issue.

He says one in four businesses have cut production and let staff go because of high energy prices.