Highlights for March

• National storage levels remain below seasonal average.
• Rainfall for parts of inland South Canterbury were less than a quarter of normal.
• Spot prices were higher than in February.
• Temperatures were below average for March.

Spot Market Prices

Spot prices continued to climb through March as South Island hydro lakes used water conservatively in the approach to winter. March saw the start of extended running of the government’s standby generation at Whirinaki.

Forced outages and grid constraints around New Plymouth put additional upward pressure on prices.

The national average monthly spot price was 16.08 c/kWh (in Wellington) in March compared to 9.90 c/kWh in February 2006.

Average Daily Prices

Hydrology

National Storage

National hydro storage continued to drop through March. South Island inflows for March were less than a quarter of normal in Nelson and inland South Canterbury, resulting in South Island storage being 43% of maximum or 54% of average for the end of March.

Outlook

April prices are expected to remain elevated as lake levels continue to fall and water is rationed.