Federated Farmers has accused State-owned Meridian Energy of stonewalling on a deal to share water in the Waitaki catchment area of the South Island.
Federated Farmers chief executive Conor English says the Electricity Industry Bill will reverse agreements on water allocation that came out of legislation passed in 2004.
He says the bill, which transfers the Tekapo A and B power stations from Meridian to Genesis Energy, could create problems for farmers in the area.
He told Parliament's Finance and Expenditure Select Committee, which is considering the bill, that agreements reached as a consequence of 2004 law, need to be honoured.
