Power prices on New Zealand"s South Island almost halved after heavy rain on the southern ranges helped restore hydroelectric reserves.

Power at Benmore, the pricing reference point for some of the largest dams operated by Meridian Energy Ltd., cost NZ$62 ($42) a megawatt-hour at 4 p.m. local time. It cost NZ$107 the same time a day earlier and averaged NZ$177.25 on Sept. 1.

South Island power prices have been above average most of the year because low rainfall drained hydro dams and reduced transmission capacity limited supplies sent from the North Island. The region from Fox Glacier to Otira may receive as much as 250 millimeters (9.8 inches) in the next 24 hours, Metservice Ltd. said. Heavy rain in Fiordland should ease today.

``We are getting some water in the right places,"" Meridian spokesman Alan Seay said in a telephone interview. ``It"s falling in both of our catchments and it looks like we may get some more yet. There"s another front looming at the weekend.""

New Zealand usually sources more than 60 percent of its power from dams on lakes and rivers, the largest of which are on the South Island. Since June, the island"s power prices have remained almost double those in Auckland on the North Island, where new generation and ample rainfall have cut energy costs.

Reduced capacity on the power lines linking the two islands limited supplies from the north and compounded the problem, slowing plans by Rio Tinto Alcan to resume full production at the country"s Tiwai Point aluminum smelter. Output was cut 11 percent in May to conserve water as power prices soared.

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