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

 

High demand for electricity during January

Unseasonably high demand for electricity during January

Average wholesale electricity prices remained high during January, a month when prices are typically low due to reduced demand.

The national average daily energy demand for the month was approximately 7% higher than in January 2002. Climate has a major influence on demand. In January 2003, temperatures were below average in many areas and the national average temperature of 16.4°C was 0.6°C less than the 1961-90 normal (source: NIWA). Demand is also directly linked with GDP growth, therefore some of the year-on-year growth in demand will be directly related to the growing domestic economy

In addition to increased demand, other factors contributed to the upward pressure on prices during January. For most of the month inflows into key hydro catchments were below average, prompting some hydro generators to conserve water at times. Also, maintenance continued at Otahuhu B (Contact Energy's 380 megawatt combined cycle gas turbine station) throughout the majority of January. Otahuhu B began generating again on January 29.

The average half-hour wholesale electricity price for the South Island reference point, Benmore, increased to 4.52 c/kWh in January, up from 3.65 c/kWh the previous month. Haywards, the North Island reference point, recorded 5.55 c/kWh, a steady increase from 4.94 c/kWh in December. Otahuhu, often used as an indicator of upper North Island prices, also increased to 6.61 c/kWh from 6.12 c/kWh in December.

Low inflows combined with the unseasonably high demand levels contributed to a decline in hyrdo storage levels during January. At month's end, national storage was 82% of average for this time of year, down from 92% of the average at the end of December 2002.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>