Electricity Contract Index June 2024, Issue 183
The index took a big step up this month. Unfortunately, the rain the hydro lakes needed did not eventuate and levels are on the low side as we go into the coldest period of the year.
On 22nd May the market also got the news that a new well into the Kupe gas field failed to deliver any gas, which makes the gas market tighter for the next two to four years, putting more upward pressure on electricity contract prices. Then on 31st May we learned the Tiwai Pt aluminium smelter is staying, under new 20-year agreements with Meridian Energy, Contact Energy and Mercury NZ.