Analysts warn unrealistic electricity future prices could hit earnings

Electricity futures prices seem to ignore that new generation is being built. (Image: NZME)

Mon, 09 Oct 2023

Contact and Meridian’s shares dipped on Friday after analysts warned that unrealistic wholesale electricity future prices could lead to lower earnings than expected.Forsyth Barr said the opening futures contracts for the 2027 calendar year at $143 a megawatt-hour (MWh) did not reflect the new generation coming on stream or likely future demand. The analysts said a more realistic price was about $100MWh and expected actual earnings to reflect that.Contact slipped 9 cents to $7.98 on turnover of almost $4.5 million and Meridian was down 6.5...

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