Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Meridian suffers low SI wholesale prices in Dec 1/4

Meridian suffers low South Island wholesale prices in Dec quarter

By Pattrick Smellie

Feb. 1 (BusinessDesk) - Meridian Energy achieved barely half the average price for wholesale electricity as its Auckland-based competitor, MightyRiverPower, the state-owned power company's update for the December quarter shows.

The average price per Megawatt hour per customer for Meridian over the three months was $31.21 per Megawatt hour, while MRP said in its quarterly update earlier this week it had outperformed the market and achieved an average price of $66.25 per MWh.

Both state-owned generator-retailers are slated for partial privatisation, possibly both this year. The timing depends on the outcome of a Supreme Court hearing that wraps up in Wellington today, in which the New Zealand Maori Council is seeking to block the sales.

While both are large-scale hydro generators, Meridian's assets are in the South Island while MRP's are all on the Waikato River, fed by Lake Taupo.

During the period, South Island catchments were at times full to overflowing, while Taupo was never as full, suggesting some explanation for better prices from North Island hydro assets.

Meridian also suffered 20 days in the quarter when work on upgrading the high voltage direct current link across Cook Strait had caused "periods of high price separation between the North and South Islands."

Price separation is where the national wholesale market for electricity is broken in two by constraints on the link between the two islands. Completion of the $672 million Transpower upgrade been delayed twice. It is now expected to commission in late April.

The commentary confirms Meridian is one of the few participants in the wholesale electricity market pleased with an unexpectedly radical solution from the Electricity Authority to redistribute the costs of the national grid among users.

"Meridian is particularly pleased that the EA's analysis supports a change to pricing for the HVDC link."

The existing charging regime loads the whole cost of the north-south link on southern generators, even though northern generators get benefit from it.
In the same quarter a year earlier, Meridian's average price per MWh ran at $60.88.

Total customer numbers at 284,673 were steady, and retail churn is dropping at around 18 percent.

Meridian also confirmed it is considering the future of its A$500 million investment in the Macarthur wind farm in a joint venture in Victoria, Australia.

The bond-like structure of the arrangement could make it profitable for Meridian to exit while interest rates are low. However, "no decision is imminent," the company said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news