Spot Market electricity price decrease continues

07 September 2005

Spot Market electricity price decrease continues in August

As in July Spot Market electricity prices decreased in August with the ongoing temperate weather that New Zealand is experiencing and a two week period of South Island hydro inflows that were 50% above average being contributing factors. Average monthly prices at the Haywards, Otahuhu, and Benmore reference nodes decreased in August from their respective July figures.

The average Haywards price decreased from 7.89c/kWh in July to 7.35c/kWh in August, Otahuhu prices decreased from 7.70c/kWh to 7.36c/kWh, and Benmore prices from 7.87c/kWh to 7.20c/kWh. Daily demand in August was at a lower level than that recorded during July 2005 and August 2004. Average daily demand in August 2005 was 111.6GWh compared to 111.8GWh in July 2005 and 116.5GWh in August 2004. Average daily demand in August 2004 was affected by a week long cold snap.

There were planned outages on components of the HVDC inter-island link during August, but these did not have any price impacts due to the transmission flows in effect during the outages being less than the revised capacity. Southward flows over the HVDC occurred most days in August. The average daily southward flow over the HVDC in August was 694MWh, substantially down from the July figure of 3707MWh. The average daily northward flow over the HVDC during August was 3785MWh, up from the July figure of 1949MWh. In August 2004 the average daily northward flow was 9734MWh.

New Zealand hydro inflows over the month of August were 97% of average. National daily inflows were above average on 11 days during August, 2 of those days being above 150% of average. National hydro storage in August was below average for the entire month and storage levels decreased slightly over the month. National storage at 01 August was 84% of average and it ended August at 81% of average.

Summary of Spot Market Electricity Prices

Physical Market Daily Average Energy Prices 0 2 4 6 8 10 12 1-Jun 1-Jul 1-Aug c/kWh Otahuhu Haywards Benmore All figures quoted are in cents per kilowatt hour (c/kWh) as this is the unit measure used in domestic consumers’ power bills. Mar 2005 Apr 2005 May 2005 June 2005 July 2005 August 2005

Otahuhu Average price 6.96 6.45 7.09 7.89 7.70 7.36 Highest price 46.47 13.54 13.98 13.65 15.08 12.40 Lowest price 1.52 2.90 1.31 3.05 4.53 2.37 Average weekday 7.46 6.71 7.29 8.06 7.84 7.49 Average weekend 5.92 5.93 6.58 7.51 7.42 6.99 Haywards

Average price 6.26 6.09 7.03 8.01 7.89 7.35 Highest price 37.17 12.66 12.48 13.75 14.60 11.85 Lowest price 1.34 3.02 1.36 3.09 4.95 2.45 Average weekday 6.67 6.28 7.21 8.09 7.97 7.46 Average weekend 5.39 5.70 6.66 7.81 7.73 7.04 Benmore Average price 5.44 5.68 6.89 7.91 7.87 7.20 Highest price 11.46 9.57 11.63 12.96 14.02 11.41 Lowest price 0.01 2.61 1.39 3.02 6.63 2.50 Average weekday 5.83 5.81 7.03 7.98 7.90 7.30 Average weekend 4.64 5.40 6.55 7.74 7.79 6.92 page 3 of 3 The above information has been prepared for the purposes of media release only. All due care has been taken in the production of this information; however, M-co accepts no responsibility or liability for the accuracy of the information contained in this media release.

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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