Spot electricity prices slide as lakes fill and temperature warm

By NZPA

Tuesday 5th June 2007

Spot electricity prices fell sharply last week as water poured into hydro lakes and demand remained lower than a year earlier.

Prices at the North Island reference point of Haywards dropped to 2.96c per kilowatt hour (c/kWh) on Saturday, having been at 7.50c on Monday.

Following the rapid slide prices did bounce back on Sunday, to 4.10c/kWh, but Saturday's price was the lowest since February.

The seven-day rolling average electricity price index was down to 5.43c/kWh yesterday, having been at 7.13 a week earlier.

Figures from M-co also show hydro lake storage up to 86 percent of average for the time of year and rising, with inflows having reached 238% of average on Friday. Levels had been down to 71% of average in early May.

In keeping with last month being the warmest May on record, for the past four weeks electricity demand was below that for the same period a year earlier.

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