Spot Market electricity prices decrease in July

The Marketplace Company Limited

media release

11 August 2005

Spot Market electricity prices decrease in July

Spot Market electricity prices decreased in July with the lower demand being the main driver linked to the temperate July that New Zealand experienced. As in June the high output of the upper North Island thermal generators can be seen by the lowest reference node average monthly price being at Otahuhu.

Average monthly prices at the Haywards, Otahuhu, and Benmore reference nodes decreased slightly in July from their respective June figures. The average Haywards prices decreased from 8.01c/kWh in June to 7.89c/kWh in July, Otahuhu prices decreased from 7.89c/kWh to 7.70c/kWh, and Benmore prices from 7.91c/kWh to 7.87c/kWh.

Daily demand in July was at a lower level than that recorded during June 2005 and July 2004. Average daily demand in July 2005 was 111.8GWh compared to 114.4GWh in June 2005 and 114.5GWh in July 2004.

There were 3 unplanned and 2 planned outages of components of the HVDC inter-island link during July. These outages did not have any price impacts due to the transmission flows in effect during the outages being less than the revised limits. Southward flows over the HVDC occurred daily in July. The total daily amount of electricity flowing south over the HVDC varied from 611MWh to 6551MWh, the average northward flow over the HVDC during July was 1949MWh. In July 2004 the average daily northward flow was 13,029MWh and there were only 2 days on which southward flows occurred.

New Zealand hydro inflows over the month of July were 97% of average. National daily inflows were above average on 12 days during July, 2 of those days being above 150% of average. While national hydro storage in July was below average for the entire month storage levels were relatively steady over the month. National storage at 01 July was 85% of average and it ended July at 84% of average.

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

Summary of Spot Market Electricity Prices

Physical Market Daily Average Energy Prices

Feb 2005 Mar 2005 Apr 2005 May 2005 June 2005 July 2005

Otahuhu

Average price 8.02 6.96 6.45 7.09 7.89 7.70
Highest price 114.29 46.47 13.54 13.98 13.65 15.08
Lowest price 1.03 1.52 2.90 1.31 3.05 4.53
Average weekday 8.70 7.46 6.71 7.29 8.06 7.84
Average weekend 6.31 5.92 5.93 6.58 7.51 7.42

Haywards

Average price 7.31 6.26 6.09 7.03 8.01 7.89
Highest price 93.89 37.17 12.66 12.48 13.75 14.60
Lowest price 1.06 1.34 3.02 1.36 3.09 4.95
Average weekday 7.83 6.67 6.28 7.21 8.09 7.97
Average weekend 6.03 5.39 5.70 6.66 7.81 7.73

Benmore

Average price 6.50 5.44 5.68 6.89 7.91 7.87
Highest price 29.2 11.46 9.57 11.63 12.96 14.02
Lowest price 1.06 0.01 2.61 1.39 3.02 6.63
Average weekday 6.81 5.83 5.81 7.03 7.98 7.90
Average weekend 5.72 4.64 5.40 6.55 7.74 7.79

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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