In this issue:

• Spot Market Commentary
• Spot Market Prices
• Hydro Storage

Spot Market Commentary

Spot market prices for the month of September averaged $49.42 at Haywards. Overall New Zealand storage rose 19% to 51% of maximum capacities. September spot prices fell dramatically this month, the result of the increased hydro lake levels in the South Island, up 26% to 45% of capacity. The increase in storage has been particularly timely, and shows in no uncertain terms the correlation between South Island hydro levels and the spot price of electricity.

Niwa indicate that the La Nina pattern that has brought lack of rain to hydro catchments has ended, but that rainfall is likely to continue to be normal or below normal in the south-west of the South Island for the next 3 months.

Spot Market Prices

The Spot Market averaged $49.42 at Haywards for September 2008, a large decrease from $118.05 for August 2008. Half-hour spot prices at Haywards remained volatile this month, with a high of $231.62 for periods 33 on the 8th of September, and a low of $0.03 for period 3 on the 25th of September.

Spot Price Statistics

Average Daily Prices

Average Half Hour Prices

Hydro Storage

Inflows for August for New Zealand were above average for 14 days of the month. Overall South Island storage fell 11% to 19% of maximum capacity, whilst North Island storage rose 18% to 89% of maximum capacity.

The overall NZ level rose 19% to 51% of maximum capacity.

National Storage

The South Island storage level has moved well above the S.I. Minzone, indicating no short-term threat to supply:

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