An Aurora Energy spokeswoman said in a statement power was restored to all customers in the Wakatipu area except in Glenorchy by 4pm.
A total of 360 customers in Glenorchy remained without power, with road access to the area limited.
Council contractors spent much of the day working to clear the road.
Traffic initially opened to one lane, buthad to be stopped shortly after due to dangerous trees and power lines/poles. Traffic is hoped to be flowing again at 6pm. Further information will be provided as it becomes available.
"Response crews are repairing power lines and poles damaged by fallen trees at Bob's Cove on the road to Glenorchy,'' the Aurora spokeswoman said.
The line was inspected by helicopter yesterday morning, confirming damage was limited to the one area at Bob's Cove.
"Every effort is being made to complete repairs and restore power to the Glenorchy township by nightfall.
"Given the extent of the damage Glenorchy customers currently without power should prepare for the power to remain off overnight. Even with these repairs, approximately 90 customers beyond Glenorchy may remain without power overnight.''
Further updates would be provided as the situation developed, she said
All power was restored to 285 affected customers in Fernhill, Sunshine Bay and surrounding areas by 11:15am.
People were reminded to stay away from fallen power lines and damaged electrical equipment.
The spring snowfall brought both chaos and cheer to the district and beyond. About 15cm settled in some suburbs of Queenstown.
Lines company Aurora Energy confirmed there were 650 people that didn't have power earlier today.
Aurora external relations adviser Karen Melville said a helicopter would be used to inspect and assess damage. Ground crews were on standby as soon as access was possible.
"Until the extent of the damage is known, we are unable to estimate when repairs will be completed and when we will be able to get power back on."
Earlier today crews worked to restore power to eight customers in Arrowtown, Frankton and Kingston Rd in Queenstown.
Aurora said it battled "extreme conditions'' on Monday to restore power to 3000 properties and at 5.30pm, 1436 households were told to prepare "to be without power overnight''.
"Power will be restored as quickly as is safely possible but extreme conditions are hampering our response,'' Ms Melville said. Crews worked in treacherous off-road conditions where "tracks [were] hidden and very slippery''.
All schools in the Queenstown Lakes district were closed on Monday.
At least 16 arrivals were cancelled at Queenstown Airport. Five flights landed and two more were due in the evening. Seventeen departures were cancelled, four
managed to fly out, and two more flights were due to leave.
Further afield, snow fell in both Manuherikia and Maniototo.
MILFORD RD CLOSED
The Milford Road (SH94) remained closed from the Park Boundary (45km from Te Anau) due to extensive tree falls and snow on the road, the Milford Road Alliance advised.
The road was likely to reopen late tomorrow morning to Milford and was expected to be open to Knobs Flat by 5pm today.
Snow warnings for the Crown Range Road and the Lindis Pass (SH8 Tarras to Omarama) were lifted about 8.30am today, but extra care should be taken on the Lindis and rod users should drive to winter conditions.
Both the Lindis and Haast Pass (SH6 Haast to Makarora) closed late yesterday morning but reopened in the afternoon.
The Mountain Safety Council warned against backcountry travel in several South Island regions; it is not recommended today and into Tuesday.
"There's a possibility this elevated danger rating, the second-highest of the five danger scale ratings, could continue into the week and will depend on how the snowpack changes with the clearer weather,'' MSC chief executive Mike Daisley said.
'EPIC POWDER DAYS ON SKI FIELDS'
The Remarkables, Coronet Peak, Cardrona and Treble Cone skifields were closed yesterday, but staff predicted "epic powder days'' today and tomorrow, when the forecast is for better weather.
The Remarkables operations manager Michel Le Page said a helicopter with snow safety experts aboard would check heavy snow areas and remove avalanche hazards.
NZSki chief executive Paul Anderson said there are no plans to extend the season at The Remarkables and Coronet. In Wanaka a white carpet lay on the streets for the morning, but was rapidly disappearing by mid-afternoon.
Lake Hawea and Luggate got a light coating, and Cardrona had no snow on the ground at all when the Otago Daily Times passed through mid-morning.
MetService is predicting more snow next Monday.