Meridian Energy sold more electricity in the first six months of the current financial year than in the previous year, but prices achieved were significantly lower, despite what the company says are signs that growth in demand emerging after a long period of weakness.
In its monthly operating report for December, the government-controlled power company, whose installment receipts covering 49 per cent of the company's shares listed on the NZX on Oct. 29, Meridian shows higher than average hydro lake storage levels contributing to low wholesale prices.
Although inflows were lower than average in the month of December, storage at mid-January is 129 per cent of average and inflows over the full six months were the seventh highest on record.
That resulted in Meridian achieving lower average prices for electricity generated at its hydro and wind power installations in five of the first six months of the current financial year, compared to the year before.
The average generation price in the six months to Dec. 31 was $39.70 per Megawatt hour, down 17 per cent from the $47.70 per MWh achieved the previous year. Both are less than half the $80 to $100 per MWH regarded as the trigger for justifying the construction of new generation capacity, owing to prolonged weak electricity demand following the global financial crisis.