Highlights

• The national storage situation is thirteen percent above seasonal average.
• The national average temperature was 16C, 0.3C above seasonal average.
• Spot prices were lower in March as Huntly river heating constraints experienced in February were no longer affecting North Island Energy supply.

Price Changes

At the three main reference nodes monthly average prices on the NZ Electricity Market were:

The South Island inflows were above seasonal average during the month (119% of normal) leaving South Island storage at 110% of normal. North Island storage is at 151% of historical average though Taupo is only 61 percent full (but still above average levels for this time of year).

The two charts below show that prices through March stabilised after the fluctuations in February 2005. Less than 80% of prices were higher than 8.00 c/kWh. 63% of prices were between 5.00 c/kWh and 10.00 c/kWh.

The chart below shows that most high prices occurred in the evening when the demand increases.

The rolling one year price continues to move higher and now stands at 4.39 c/kWh up 0.30 c/kWh.

Prices in April are expected to remain firm due to a combination of HVDC restrictions (the link connecting the North and South Island) and conservative hydro offering ahead of winter. Price volatility is expected to continue in the evening as this demand peak continues to condense due to the end of daylight saving.

Disclaimer: Every effort has been made to ensure the accuracy of the above information, but no liability is accepted for any error or omission.