CONNECTION GROWTH IN TELCO PRODUCTS
THROUGH MASS MARKET PRICING AND C&I RENEWALS
EFFECTIVE PORTFOLIO MANAGEMENT DELIVERING VOLUME AT HIGH PRICES
13,000 NEW TELCO AND MOBILE CONNECTIONS
Market summary Lower national inflows during the quarter resulted in higher spot electricity prices averaging $195/MWh in Auckland. Forward prices remained high averaging $180/MWh in Auckland for financial years 2024 to 2026 as at 31 March 2024. Forward price escalation reflects increased gas supply uncertainty. Above average Waikato inflows and increased portfolio diversity sees strong generation output 64th percentile inflows in the Waikato catchment over the quarter saw 1006GWh of hydro generation (214GWh, 18% lower than PCP). This was supported by 664GWh of geothermal generation (68GWh, 10% higher than PCP) and 517GWh of wind generation (196GWh, 61% higher than PCP). Despite 44th percentile inflows in the Waikato catchment during March, effective portfolio management activity across the quarter enabled a high starting storage level for Q4FY24. We are forecasting average hydrology conditions for the remainder of the year and 4,067GWh of hydro generation for the full year. Strong yields in both C&I and Mass Market Commercial & Industrial yields (physical and end-user CDs) remained strong, increasing by $7/MWh (6%) to $126/MWh versus the PCP, and reflecting repricing of contract renewals into the high electricity forward curve. Mass Market yields also saw strong growth, up $9/MWh (6%) vs PCP, due to the impact of price changes and reduced acquisition and retention activity. National demand higher from increased South Island irrigation demand National demand was 4.6% higher for the quarter relative to PCP, with normalised demand increasing 3.5%, adjusting for 2024 being a leap year. Higher demand was a largely result of increased South Island irrigation demand and PCP negatively impacted by flooding.