Spot Market electricity prices increase in May

13 June 2005

Spot Market electricity prices increase in May

Spot Market electricity prices increased in May with the increased demand resulting from the approach of winter and the continuation of weak inflows being the main drivers. In comparison to April prices South Island prices in May increased at a higher rate than North Island prices due to the increase in southward flows over the HVDC inter-island link.

Average monthly prices at the Haywards, Otahuhu, and Benmore reference nodes increased in May from their respective April figures. The average Haywards prices increased from 6.09c/kWh in April to 7.05c/kWh in May, Otahuhu prices increased from 6.45c/kWh to 7.09c/kWh, and Benmore prices from 5.68c/kWh to 6.89c/kWh.

Flows over the HVDC inter-island link were not restricted during May. Southward flows over the HVDC occurred daily in May. The daily amount of electricity flowing south over the HVDC varied from 2MWh to 2708MWh, the average northward flow over the HVDC during May was 4415MWh. Southward flows occurred mainly in the early morning and late at night trading periods.

New Zealand hydro inflows over the month of May were 88% of average. National daily inflows were above average on only 9 days during May. National hydro storage in May was below average for the entire month, varying between 95% and 99% of average. National hydro storage stood at 97% of average at 31 May.

Daily demand in May was at a higher level than that recorded during April 2005 and May 2004. Average daily demand in April 2005 was 105.8GWh compared to 101.7GWh in April 2005 and.1GWh in May 2004.

For background information, please contact: Steve Gregan, ph 04 473 5240 (bus)

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

Summary of Spot Market Electricity Prices

All figures quoted are in cents per kilowatt hour (c/kWh) as this is the unit measure used in domestic consumers’ power bills.

Dec 2004 / Jan 2005 / Feb 2005 / Mar 2005 / Apr 2005 / May 2005

Otahuhu

Average price 4.36 / 3.46 / 8.02 / 6.96 / 6.45 / 7.09

Highest price 31.32 / 52.30 / 114.29 / 46.47 / 13.54 / 13.98

Lowest price 0.23 / 0.01 / 1.03 / 1.52 / 2.90 / 1.31

Average weekday 4.22 / 3.81 / 8.70 / 7.46 / 6.71 / 7.29

Average weekend 4.67 / 2.92 / 6.31 / 5.92 / 5.93 / 6.58

Haywards

Average price 4.02 / 3.12 / 7.31 / 6.26 / 6.09 / 7.05

Highest price 20.24 / 50.72 / 93.89 / 37.17 / 12.66 / 12.48

Lowest price 0.21 / 0.01 / 1.06 / 1.34 / 3.02 / 1.36

Average weekday 3.84 / 3.41 / 7.83 / 6.67 / 6.28 / 7.21

Average weekend 4.41 / 2.65 / 6.03 / 5.39 / 5.70 / 6.66

Benmore

Average price 3.46 / 2.85 / 6.50 / 5.44 / 5.68 / 6.89

Highest price 16.76 / 6.93 / 29.2 / 11.46 / 9.57 / 11.63

Lowest price 0.20 / 0.01 / 1.06 / 0.01 / 2.61 / 1.39

Average weekday 3.51 / 3.20 / 6.81 / 5.83 / 5.81 / 7.03

Average weekend 3.35 / 2.29 / 5.72 / 4.64 / 5.40 / 6.55

Please note: the average prices quoted in this release are the time-weighted half-hour wholesale electricity prices at the location indicated. Wholesale prices tend to fluctuate in the short term and are set by competitive behaviour in the market. Half-hourly and annual averages are published on www.comitfree.co.nz.

The wholesale electricity price differs from the retail electricity price, which is the price domestic consumers pay retailers for electricity and is the price consumers see on their electricity bill. There are a number of factors, including the wholesale price, that influence retail prices.

ENDS

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