Wholesale electricity prices increase in December

27 January 2005

Wholesale electricity prices increase in December

While daily demand in December continued the decline from the winter peak below average hydro inflows and hydro storage resulted in an increase in wholesale market prices over the month.

December monthly average prices at the Haywards, Otahuhu, and Benmore reference nodes increased by varying degrees in comparison with November. The average Haywards prices increased to 4.02c/kWh in December from 3.61c/kWh in November and Otahuhu prices increased to 4.37c/kWh from 3.80c/kWh respectively. The monthly average price at Benmore increased from 3.40c/kWh in November to 3.46c/kWh in December.

Flows over the HVDC inter-island link were restricted throughout December. Originally to a maximum northward flow of 886MW and then to 870MW from 09 December. Between 05:00 on 03 December until 22:00 on 06 December the HVDC inter-island link was removed from service for planned maintenance. During this outage there was a noticeable impact on price differentials between the North and South Island.

Daily demand during December was at a lower level than that recorded during November. Average daily demand in December was 96.1GWh compared to 100.2GWh in November and 95.9GWh in December 2003.

Hydro inflows in December were 83% of average for the month and at 31 December total national storage stood at 103% of average for that time of the year. National Storage had declined throughout December to a low of 88% of average however large inflows between 29 and 31 December resulted in the month end figure of 103% of average.

For more information on electricity prices and hydrological conditions, visit: www.comitfree.co.nz

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