Energy Link was recently engaged by the Electricity Authority to undertake an independent review of the progress the five major generators have made toward achieving the Government’s expectations concerning a liquid electricity hedge market, to assess the liqudity of the hedge market, and to make recommendations for further development of the futures market.

A lot of progress has been made in a relatively short time, but we have recommended that the spread between bid and offer prices in the electricity futures market run on ASX needs to come down from 7% - 8% on average, to under 5% and preferably into the 2% - 3% range. Achievemet of this is likely to attract new futures traders into the market.

The report is available at:

http://www.ea.govt.nz/our-work/programmes/market/hedge-market-development/

Greg Sise, Managing Director

Spot prices for  Wednesday 29th June  2011 - South Island prices averaged in the High $60’s while prices in the North Island averaged in the High $60’s to Low $70’s for the day. There is a continued northward flow on the HVDC link . Patricia Joseph, Management Support 30/06/11

Spot prices for Tuesday 28th June  2011 - Prices averaged in the Low to High $50’s for both the South and North Island for the day. There is a continued northward flow on the HVDC link . Patricia Joseph, Management Support 29/06/11

Spot prices for  Monday 27th  June  2011 - South Island prices averaged in the High $40’s while prices in the North Island averaged in the Low to High $50’s for the day. There is a continued northward flow on the HVDC link . Patricia Joseph, Management Support 28/06/11

Spot prices for  Sunday 26th  June  2011 - South Island prices averaged in the High $20’s while prices in the North Island averaged in the Mid to High $30’s for the day. There is a continued northward flow on the HVDC link . Patricia Joseph, Management Support 27/06/11