close
MENU
Hot Topic NBR Focus: GMO
Hot Topic NBR Focus: GMO
1 mins to read

MightyRiver benefits from high prices, weather gods


The weather gods treated MightyRiverPower kindly in the third quarter, with higher wholesale prices and increased total generation offsetting falling retail customer numbers.

Mon, 23 Apr 2012

BUSINESSDESK: The weather gods treated Auckland-based electricity generator-retailer MightyRiverPower kindly in the third quarter, with higher wholesale prices and increased total generation offsetting falling retail customer numbers.

With its partial privatisation slated for later in the year, MRP made no change to previous earnings guidance.

But it said generation volumes in the three months to March 31 were up 14% on the corresponding period a year earlier, while electricity sales rose 7%.

Average electricity prices were much higher than in the same period a year earlier, at $89.91 per Megawatt hour, compared with $57.72 per MWh a year earlier.

For the nine months to March 31, the average volume weighted average energy price (VWAP) has clocked in at $83.33 per MWh, compared to $56.65 per MWh for the same period the previous year.

“Wholesale market prices were significantly elevated during the quarter, reflecting very dry conditions in the South Island,” the company said.

“Conversely, strong rainfall in the Waikato hydro system catchment resulted in inflows into Lake Taupo at 38% above average, supporting higher generation and good storage levels.”

MRP controls a string of dams on the Waikato River, while its major hydro-electricity competitors are more exposed to South Island catchments.

As a result, trading in Contracts for Difference was up 54% on the same time last year, reflecting “new short-term inter-generator contracts as competitors sought to manage their risk due to the adverse national hydrology conditions”.

MRP warned its geothermal output would show a permanent drop of around 30 Gigawatt hours from the current quarter, following its sale of 10% of its interest in the Nga Awa Purua geothermal power station to its Maori joint venture partner.

Tough retail competition continued, with the VWAP gained from customers rising just 1% over the previous year to $111.45 per MWh.

While retail customer numbers fell by a further 2000 over the quarter, and are down 18,000 on March 2011, MRP said sales volumes were unchanged.

The company benefited from a 14% rise in sales to commercial customers in the quarter under review, compared to the same period last year.
 

© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
MightyRiver benefits from high prices, weather gods
20231
false