MRP sales gain as wholesale prices fall

JASON KRUPP
Last updated 10:19 29/01/2013

Relevant offers

National business

Mexican grapes pulled from shelves after venomous spiders found Wholly Bagels closes for second time in Palmerston North Phil & Teds recall more than 15,000 teddy bears over choking hazard fears China's stocks plunge again Ex-Fonterra chief executive Craig Norgate dies Sky the limit for Safe Air and Airbus #SAMvNZL: Sky Go hit by disruptions during All Blacks versus Samoa test Auckland academic wants no fossil fuel for KiwiSaver NZers work through All Blacks vs Samoa Health insurer nib buys World Nomads

Mighty River Power, the country's fourth biggest power generator saw electricity sales and its market share grow in the last quarter of 2012, even as wholesale electricity prices fell.

The state owned electricity company said in a statement filed with the NZX sales volumes in the three months ending December rose 12 per cent to 1272 gigawatt-hours compared to the same period last year.

The gains came predominantly from business customers, with volumes up 22 per cent to 682GWh, with prices consistent with a year ago at $110.53 per MWh.

The firm said total electricity purchase costs fell 27 per cent in the period to $61.14 per MWh, reflecting lower wholesale prices and increased transmission capacity.

Wholesale pricing fell due to high inflows into South Island catchments operated by other power firms in the sector, denting the average price the company earned from its generation plants by 19 per cent to 66.25/MWh compared to last year.

MRP said this level still beat the market average, with its flexible portfolio of hydro, geothermal, and gas fired plants allowing it to respond to wholesale price movements quickly.

Total generation capacity rose 6 per cent into the period to 1154GWh, with hydro up 13 per cent, gas fired down 48 per cent and geothermal up by 0.6 per cent.

The sales figures come as the Government prepares to list MRP on the stock exchange in the first half of this year.

However, the process could run into headwinds from local iwi, who are seeking to overturn a High Court ruling which dismissed their objections to the sale of the state owned asset.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content