Meridian Energy says inflows into its hydro lakes in March were the second lowest on record for that month and the situation has not improved yet.
Inflows in March were only 52 percent of the historical average. Nevertheless, inflows this financial year are running at 106 percent of the historical average, largely due to high spring inflows.
Meridian's Waitaki catchment storage at the end of March was 83 percent of the historical average and four percent higher than in March last year.
Meridian wholesale markets manager Mike Roan says the recent rain affecting much of the country has not been falling in his company's catchments.
He says inflows into hydro catchments across the country continue to be lower than average and hydro storage continues to fall.
Mr Roan says the situation is in some ways similar to what happened last year.