News

“Are there any risks in using CFDs to hedge wholesale electricity prices?”    

Spot price averages at Otahuhu were $354 on Tuesday, and $404 yesterday. Wind generation averaged 123 MW yesterday.

Average prices increased by 0.2% at Benmore, increased by 0.1% at Islington, increased by 1% at Haywards and increased by 3.8% at Otahuhu over the last week.  Total Storage increased to 2,020 GWh. NI storage increased by 13% to 77 GWh while SI storage increased by 5% to 1,944 GWh.

Spot prices at Otahuhu spiked to $490 yesterday. Wind generation averaged 199 MW. 

Spot price averages exceeded $234/MWh yesterday. Wind generation averaged 406 MW. 

Prices yesterday averaged $248 at Benmore, $249 at Haywards, and $261 at Otahuhu. Wind generation averaged 482 MW.  

Spot price averages at Haywards were $351 on Friday, $210 on Saturday, and $219 on Sunday. 

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.