Highlights for February

• National storage levels remain below seasonal average
• South Island storage is down at levels last seen in 1992
• Spot prices were higher than January
• Temperatures were in the normal range for February

Spot Market Prices

Spot prices moved higher through February, reflecting continuing low lake levels in the South Island, with some downward pressure due to high North Island lake levels. Hydro generators are continuing to use water conservatively which is maintaining upward pressure on prices.

The unavailability of two units from Huntly (500MW) towards the end of the month resulted in the daily average spot price reaching 15.75 c/kWh in Auckland.

A DC link pole outage on Sunday 26 Feb resulted in South Island prices rising to 19 c/kWh average for the day.

The national average monthly spot price was 9.99 c/kWh in February compared to 9.16 c/kWh in January 2006.

Average Daily Prices

Hydrology

National Storage

North Island storage levels have remained above average through February.

South Island lake levels have receded after a strong recovery in early January. At the end of February, South Island storage levels were approximately 50% full or 60% of average for this time of year.

Nationally, storage is 55% of maximum and 73% of average.

Outlook

Prices are expected to stay firm through March due to lower than average storage levels.