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In New Zealand the contract-for-differences (aka CFD) is the most common off-exchange method for hedging the price of electricity traded on the wholesale market for a specified quantity and time period. In other words, the CFD is a fundamental tool in the hedging toolbox.

Spot prices at Otahuhu spiked at $319 yesterday. Wind generation averaged 412 MW. 

Prices yesterday averaged $177 at Benmore, $178 at Haywards, and $187 at Otahuhu. Wind generation averaged 447 MW. 

Average prices decreased by 3.2% at Benmore, decreased by 2.8% at Islington, decreased by 3.8% at Haywards and decreased by 4.1% at Otahuhu over the last week. Total Storage decreased to 1,735 GWh. NI storage decreased by 32 %  to 69 GWh while SI storage decreased by 3% to 1,666 GWh.

"Electricity prices are high at present. Gas prices are also high. Who’s setting these prices?”

Total storage decreased 88.7 GWh over the last week. South Island controlled storage decreased 4.6% to 1,309 GWh; South Island uncontrolled storage increased 1.7% to 357 GWh; with Taupo storage decreasing 32% to 69 GWh. 

Prices yesterday averaged $277 at Benmore and Otahuhu, and $274 at Haywards. Wind generation averaged 243 MW. 

Average prices increased by 11.9% at Benmore, increased by 12.1% at Islington, increased by 12.3% at Haywards and increased by 11.7% at Otahuhu over the last week. Total Storage decreased to 1,824 GWh. NI storage decreased by 19 %  to 101 GWh while SI storage increased by 0% to 1,723 GWh.

There were 8 contracts traded that were eligible to include in the index calculations this month, but the last of these was on the 6th April, and since then nothing has traded in the OTC market (or at least not that meets the index criteria for size and duration).

Average prices decreased by 7.5% at Benmore, decreased by 7.9% at Islington, decreased by 8.2% at Haywards and decreased by 9.6% at Otahuhu over the last week. Total Storage decreased to 1839 GWh. NI storage decreased by 6 %  to 142 GWh while SI storage decreased by 8% to 1697 GWh.

Averages yesterday were in line with the month-to-date, with $266 at Benmore, $271 at Haywards, and $274 at Otahuhu. Wind generation averaged 132 MW. 

Spot price averages exceeded $247/MWh yesterday. Wind generation averaged 108 MW. 

Prices yesterday averaged $291 at Benmore, $297 at Haywards, and $309 at Otahuhu. Wind generation averaged 245 MW. 

Spot price averages at Benmore were $206 on Friday, $245 on Saturday, and $202 on Sunday. 

 This blog post follows on from Hedging Fundamentals Part 1 and answers "Why are spot prices in the NZ wholesale electricity market so volatile?"

Spot prices continued their upward trend.

Spot prices at Otahuhu spiked at $616 yesterday. Wind generation averaged 278 MW. 

Average prices increased by 21.4% at Benmore, increased by 21.6% at Islington, increased by 22.9% at Haywards and increased by 23.8% at Otahuhu over the last week. Total Storage decreased to 1,839 GWh.

Prices yesterday averaged $344 at Benmore, $351 at Haywards, and $359 at Otahuhu. Wind generation averaged 82 MW.