Some people woke to a cold shower and others had to wait until 10am for a caffeine fix yesterday when power was cut just after 8.30am to about 11,000 customers between Gibbston and Glenorchy.
Transpower communications manager Rebecca Wilson said the piece of equipment which caused the power outage between Cromwell and Queenstown had been removed and would be tested before it was reinstalled.
Shopkeepers waited in the doorways of their darkened premises, relayed what they had heard was the cause of the failure - which varied from a car accident to road works - and made mobile phone calls while they waited between 8.37am and 9.50am.
Banks were not able to open and ATMs also went down.
Some staff played cards to pass the time.
Queenstown Airport was not affected by the outage as it had its own back-up generator.
A Queenstown police spokeswoman said a back-up generator kicked in to supply emergency lighting there and one computer was functioning.
The outage did not affect police communications systems, she said.
About 180 guests, including 30 conference delegates, were affected in the Crowne Plaza Queenstown hotel, but emergency generators illuminated public areas, access ways and one of the two lifts.
The other, unoccupied, lift was grounded.
Crowne Plaza check-ins and check-outs were done manually.
General manager Matt Anderson said guests were "fine with it" and the hotel allowed one woman and her daughters to use a back-up power point to "dry their hair".
Prescriptions were on hold at Unichem Wilkinsons Pharmacy, in The Mall, because computers went down.
Shop assistant Tania Panagiotidis said everything else was being done manually.
The tills were silent in O'Connells Shopping Centre, and McDonald's staff brought out a torch.
Bidvest storeman-driver Jefferson Ceo continued making food deliveries in downtown Queenstown and said a generator was powering the refrigerator at the company's Glenda Dr base.
Mr Ceo said the outage "affects everybody".
"We get orders by internet and phone and if there's no power, there's no orders."
Department of Conservation (Doc) Queenstown Regional Visitor Centre supervisor Andrew Evans said the department switched to basic phones and radios to communicate.
"Hut wardens have still called through and if there was a request for medical help from the field, we could respond," he said.
Patagonia Chocolates duty manager Eduardo Tomas said he would have to consider loading tens of thousands of dollars worth of ice cream from the three large freezers into a refrigerated truck if the outage went on for much more than an hour.
"No coffees, no ice creams, no breakfasts, no business.
"We can't run the business without power," Mr Tomas said.
Staff at The Good Food Company, on Steamer Wharf, worked by candlelight.
Chef Nadine Stephens said the reaction from tourists to the power cut had been "understanding".
"We've got no till and no coffee, but we can still serve hot food from the oven and you've got to have the right change."
It was much the same story at Brazz, as chef Lorraine Marshall prepared breakfast for two diners by candlelight.
Duty manager Christel Shaw said a few regulars had still come in for breakfast but they had to have instant coffee "or wait for the water to boil for tea".
Southland District Health Board chief operating officer Lexie O'Shea said Lakes District Hospital was affected, but the generator kicked in after 15 seconds.
"The mains power was out for approximately one and a-quarter hours at Lakes District Hospital.
"Staff did a great job and ensured that service delivery to patients was not [affected]."
