KEY POINTS:
New Zealand spot power prices rose last week as cold weather pushed up demand.
Prices at the North Island reference point of Haywards rose 13.3 per cent to an average $69.06 per megawatt hour (MWh), while at the South Island reference point of Benmore prices were 12.3 per cent higher at an average $68.77 per MWh.
Hydro lake levels fell because of lower inflows, analysts said, but the jump in demand was the main driver behind rising prices.
"The bigger impact has been the cold snap we're experiencing at the momement and so demand has jumped up quite considerably," said an analyst.
"The expectations are that this weather will continue and if so, prices between $70 to $80 would be more appropriate."
National demand rose 7 per cent to 118,273 megawatts.
Wholesale market operator M-Co said New Zealand's stored energy over the past seven days was at 79 per cent of average, down 8 percentage points from a week ago.
National inflows were markedly lower at 44 per cent of average over the week to Tuesday from 65 per cent in the previous week. In the South Island inflows were just 35 per cent of average.
Around two-thirds of New Zealand's electricity is produced by hydro power stations, most of which are in the South Island.
But the analyst said the hydro situation was not a major concern for the market.
"Inflows are down a bit but it's not having a huge impact on lake levels and we're well away from any crisis point," he said.
- REUTERS
