Contact takes top spot in industry survey

8 April 2008

Contact takes top spot in industry survey

New research has confirmed that Contact is rated number one in the delivery of electricity hedge market services.

Electricity hedges involve selling large volumes of electricity, at fixed prices, to commercial and industrial users, and other electricity generators and retailers, in order to give long-term price certainty and to smooth fluctuations in the wholesale spot market.

Research conducted by the Electricity Commission through UMR Research shows that Contact is the number one electricity hedge seller of choice for commercial and industrial electricity purchasers, and other generator / retailers. The survey involved 43 market participants, including hedge contract purchasers and the main generator / retailers.

Contact Chief Executive, David Baldwin, said the acknowledgement of Contact’s performance in the operation of the electricity hedge market went hand-in-hand with the company securing the number one position in terms of market share in the important ‘time of use’ market.

Mr Baldwin said the electricity hedge market is a critical part of the broader electricity market, and it was pleasing to be recognised by customers and the industry for playing a constructive role in this market.

“Most commercial and industrial electricity consumers, including the generator / retailers, require hedges to manage their exposure to the spot market and to provide long-term pricing certainty to underpin their operations and investment decisions,” said Mr Baldwin.

“Given the importance of this market to commercial and industrial customers, and in turn to the New Zealand economy, Contact is committed to a responsive and innovative approach to creating and delivering hedge contracts.

“We’re committed to ensuring this market works as efficiently as possible and we’ll always try and come up with a solution to meet a customers’ supply and price requirements,” he said.

Mr Baldwin said Contact’s position as industry’s preferred provider of electricity hedge solutions positioned the company well as it offered similar solutions in the area of carbon trading and other risk management solutions.

ENDS

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