Quarterly Operational Update

CONNECTION
GROWTH IN
TELCO
PRODUCTS
Market summary
Lower national inflows during the quarter resulted in higher spot electricity prices averaging $195/MWh
inௗAuckland.ௗForward prices remained high averaging $180/MWh in Auckland forௗfinancial years 2024 to
2026 as at 31 March 2024. Forward price escalation reflects increased gas supply uncertainty.
Above average Waikato inflows and increased portfolio diversity sees strong generation output
64
th
percentile inflows in the Waikato catchment over the quarter saw 1006GWh of hydro generation
(214GWh, 18% lower than PCP). This was supported by 664GWh of geothermal generation (68GWh, 10%
higher than PCP) and 517GWh of wind generation (196GWh, 61% higher than PCP). Despite 44
th
percentile
inflows in the Waikato catchment during March, effective portfolio management activity across the quarter
enabled a high starting storage level for Q4FY24. We are forecasting average hydrology conditions for the
remainder of the year and 4,067GWh of hydro generation for the full year.
Strong yields in both C&I and Mass Market
Commercial & Industrial yields (physical and end-user CDs) remained strong, increasing by $7/MWh (6%) to
$126/MWh versus the PCP, and reflecting repricing of contract renewals into the high electricity forward
curve. Mass Market yields also saw strong growth, up $9/MWh (6%) vs PCP, due to the impact of price
changes and reduced acquisition and retention activity.
National demand higher from increased South Island irrigation demand
National demand was 4.6% higher for the quarter relative to PCP, with normalised demand increasing
3.5%, adjusting for 2024 being a leap year. Higher demand was a largely result of increased South Island
irrigation demand and PCP negatively impacted by flooding.
THROUGH MASSMARKET
PRICING AND C&I RENEWALS
EFFECTIVE PORTFOLIO
MANAGEMENT DELIVERING
VOLUME AT HIGH PRICES
13,000 NEW TELCO AND
MOBILE CONNECTIONS

22%
33%
21%
13%
2%
9%
23%
32%
19%
15%
3%
8%
16%
84%
18%
82%

⁰