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


Mighty River Power Quarterly Operational Update

Mighty River Power Quarterly Operational Update

Three months ended 30 June 2016

Quarterly Highlights

• Record geothermal generation for FY16, up 2% on the previous year

• Energy price down 4% in Q4, reflecting the renewal price of commercial contracts

• LWAP/GWAP of 1.03 for FY16 reflected low wholesale price volatility and locational price differences


Geothermal generation for FY16 was the Company’s highest ever at 2,830GWh (up 2% on FY15) due to availability of 95.5% over the year and the impact of the turbine replacement at Nga Awa Purua. For the quarter, geothermal generation was down slightly on pcp to 702GWh, due to maintenance activity at Ngatamariki.

Total hydro generation for FY16 was up 16% from FY15 to 3,866GWh – this however was below the annual average of 4,000GWh due to inflows being 34th percentile for the year. During the quarter, national storage increased to 29% above average at 30 June, which contributed towards flat wholesale prices.

The LWAP/GWAP ratio for the 12 months ended 30 June was 1.03, with lower wholesale price volatility impacting both generation prices (GWAP) and purchase prices (LWAP). The relative difference between LWAP and GWAP is also impacted by locational price differences which are not expected to return to historic levels due to recent thermal plant closures in the upper North Island.


A lift in overall sales volumes reflected higher commercial contracting activity as prices temporarily improved from levels earlier in the year. However new sales contracts contributed to a fall in the average energy price to customers by 4% to $117.58/MWh as these new commercial contracts replaced those that matured. As previously communicated, a large proportion of these higher-priced contracts were signed between FY2011 and FY2013.

The Company’s focus on rewarding customer loyalty, with initiatives such as free electricity days (Good Energy Days), contributed towards higher customer satisfaction scores compared to other major retailers. The average percentage of Mercury customers rating as ‘highly satisfied’ over the last 12 months was 61%. Customer churn was favourably impacted by the proportion of Mercury residential customers on fixed price contracts increasing to 42% at year-end (up from 35% at the same time last year), as some customers took up the offer of a 2-year fixed-price offer in preference to an increase in energy pricing.


When adjusted for warmer temperatures, national demand for electricity was flat (-0.1%) for the quarter compared with pcp. Adjusted demand for the financial year was up 0.6% on FY15. This is the second consecutive financial year that demand has increased.

Mighty River Power will release its financial results for the 12 months ended 30 June 2016 on 23 August 2016. The analyst briefing will be held at 11am on the day – more details to come.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Federated Farmers: NAIT Levy Increases Must Achieve Accurate, User-friendly System
Nobody welcomes extra costs but if OSPRI is to catch-up on under investment in the NAIT platform and deliver on its workability and farmer support, levy increases are probably necessary, Federated Farmers says... More>>

Westpac: More Job Opportunities, But Growth In Workers’ Earnings Remains Subdued

The Westpac McDermott Miller Employment Confidence Index rose 1.2 points in the December quarter, to a level of 106.9. This was the sixth straight rise in the index since the Covid-19 lockdown in 2020. Michael Gordon, Acting Chief Economist for Westpac, noted that the rise in the index has largely been driven by perceptions... More>>

Statistics: Card Spending Continues To Increase As COVID-19 Restrictions Ease

The busy Christmas period combined with easing COVID-19 restrictions helped to increase card spending in December 2021, Stats NZ said today... More>>

TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>

Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>

Statistics: Building Consents Hit New Highs In November
There were a record 48,522 new homes consented in the year ended November 2021, Stats NZ said today. This was up 26 percent compared with the year ended November 2020... More>>