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

 

Mercury Quarterly Operational Update

Mercury Quarterly Operational Update
Three months ended 30 September 2016

Quarterly Highlights

- Successful launch of the new Mercury brand in July

- Lowest customer switching rate of the major retailers

- Hydro generation forecast up 100GWh for FY2017 on higher inflows

Commentary

Customer Numbers Lift And Churn Reduces with Brand Launch

Following the well-received launch of the new Mercury brand in July, customer gains reached a four-year high in August with a net increase of more than 5,000 for the three months ended 30 September. Overall customer numbers at 30 September 2016 were flat compared to the same time last year.

While customer switching rates across the industry continued at near-record levels, Mercury’s focus on rewarding loyalty has resulted in high customer engagement around campaigns such as Free Power Days with almost 100,000 taken up during the period. Such loyalty initiatives contributed to the company’s switching rate (churn) for the quarter being 1.0% lower than the average of 5.4% for all other major retailers.

As guided with the release of Mercury’s FY2016 results, the average energy price to customers was down 1.5% to $117.46/MWh reflecting the continued roll-off of higher priced commercial contracts.

FAVOURABLE HYDRO CONDITIONS; LIFT IN EXPECTED ANNUAL HYDRO GENERATION

Similar to the same time last year, hydrological conditions have been favourable in the Waikato catchment with Taupo storage ending the quarter at 140%. Total hydro generation was above average for the quarter at 1,256GWh, though 52GWh lower than the prior year.

LWAP/GWAP was 1.04, slightly favourable to the prior comparable period of 1.05. This ratio continues to reflect above average hydro generation in the market and the consequential dampening of wholesale price volatility.

Due to the favourable hydrological conditions experienced throughout the quarter, Mercury has updated its mid-point FY2017 hydro generation forecast to 4,250GWh (up 100GWh on earlier guidance).

INDUSTRIAL DOWN, OTHER SEGMENT GROWTH CONTINUES

The closure of several industrial users of electricity within the last twelve months has extended a decade long trend of falling demand from this segment. However, growth continues across all other segments driven by strong underlying fundamentals, such as GDP growth and record net migration. After adjusting for temperature, national demand was down 0.2% but up 0.8% across all segments excluding industrial.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO: