The Blog

What's up with the market? 11 February 2019

Tēnā koutou, Flicksters! We’re well and truly into 2019 now, with summer starting to draw to a close (heatwaves not withstanding!). There are some noteworthy goings-on that have us gazing into the power oracle A.K.A. the market to help you make the most of your product choices. Foremost among them is the scheduled work on the Pohokura pipeline, which starts from today - more on that below!

Ridin’ the heat wave

You’re probably sick of hearing about the heatwave by now, but we bet you haven’t yet heard about the impact on electricity economics. Tell me more, tell me more!

As you know, we were breaking temperature records all over the show over the last two weeks and this had an inevitable impact on our electricity grid. Several summer electricity demand records were also broken, “as we increased power usage to cool ourselves down and irrigate land” (as Transpower put it).

While spot prices were still slightly higher because of it, we didn’t go breaking any overall records, and demand was well below typical demand during any given day in winter. However, it pays to remember that we all still have an impact even so.

See your impact, make your CHOICE

If you get our CHOICE carbon alerts, you’ll have seen that we have had quite a few periods of relatively high carbon loading on the grid. And when things are drier, the demand and supply balance can quickly change, which can have an impact on final prices. So, it pays to think about the ways in which we use electricity, even outside of winter or other times when we’re typically more careful about our bills.

Hydro’s still below normal

Hydro storage isn’t too much out of the ordinary for this time of year. NZX Energy data tells us that it’s sitting a bit below normal, however - the big South Island lakes are at 92% of average for this time of year, which is around 68% full.

What’s out, what’s in

Work on the Pohokura gas pipeline kicked off today, with 30 days of downtime scheduled between February and April. As you may know by now, it’s one heck of a pipeline and provides a fair whack of energy, so there’s a likelihood that it will have an impact on spot prices. However, as you’ll also likely know, the final spot price is down to a huge range of factors and - as we cover off below - we’ve got some electricity coming back online.

The Stratford combined cycle plant has been having its routine post-winter maintenance and is due back later this week. The coal/gas fired Unit 2 at Huntly has also just been made available, while Huntly Unit 1 is being recertified. This will make around 600MW of thermal generation available to be called upon if we need it.

Products, please

Y’all know we love giving folks power over their power, and we’re stoked to be able to offer genuine choice depending on what kind of power user you are - whether you’re the type who saves for a rainy day, one who loves to ride the market and reap the rewards or someone whose after some set and forget price certainty.

We have a range of pricing plans and payment options available to suit your needs - head on over to our website for a browse, or give us a call on 08004FLICK so we can chat about the best options for you. We’re always here to help!