Wholesale electricity prices decline in June

Wholesale electricity prices decline in June

Average wholesale electricity prices continued to fall during June as a result of the improving hydrological situation, the Target 10% savings campaign and mild air temperatures (June was 2°C warmer than average, source: NIWA).

The average half-hour wholesale electricity price for the South Island reference point, Benmore, was 6.34 c/kWh in June, down from 12.64 c/kWh the previous month. Haywards, the North Island reference point, recorded an average price of 6.56 c/kWh, a decrease from 12.76 c/kWh in May. Otahuhu, an indicator of upper North Island prices, also decreased from 12.25 c/kWh in May to 6.68 c/kWh in June.

The effects of the Target 10% campaign were noticeable during June, with savings peaking at 10.3% on 6 June. The daily average demand was 99.23 GWh, compared to 104.16 GWh in June 2002 and 95.48 GWh in May 2003.

Hydro lake storage levels improved significantly during the month. On 1 June total storage was 2443 GWh (83% of average). By 30 June, as a result of total inflows that were 125% of average for the month, storage was 2941 GWh (103% of average).

The higher storage levels resulted in an increase in output from hydro generators, up from 39% of generation in May to 43% in June.

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