A possible review of Mighty River Power's management of Lake Taupo water levels could be held as early as next year.
Waikato Regional Council has called for submissions on whether to review consents that allow the power company to operate Taupo between maximum and minimum levels.
The state-owned enterprise was granted the 30-year consents in 2006.
Calls for a review have already been backed by Taupo District Council.
Critics accuse the firm of breaching an undertaking to maintain Taupo at close to natural levels and say it has contributed to lake-shore erosion.
Regional council spokesman Stephen Ward said the erosion was caused by "a variety of factors, including lake levels".
Mr Ward said the council was engaging with stakeholders on whether to review the power company's consents, which could happen next year.
He said company's activities could result in the lake level being higher than it naturally would be, and the council was happy to receive comments on that possibility.
A possible review of the company's consents could present as another fish-hook for the Government's planned part-privatisation of the state-owned enterprise later this year.
The Maori Council has already called on the Government to halt the planned sale as it seeks to clarify Maori water rights.
In a statement in July last year, the regional council said analysis showed the lake level had operated near its “natural” range over much of the past 70 years, during which the lake level has been influenced by electricity generation.
The council said foreshore erosion was largely a natural process and there was no evidence to suggest that it was primarily attributable to Mighty River Power keeping the lake level too high. firstname.lastname@example.org
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