High power prices in NZ – what's the 'new normal'?

Soaring coal prices from mines like this one in Indonesia are helping drive up NZ's electricity prices. (Image: Getty)

Thu, 30 Jun 2022

Despite healthy hydro lake levels and a return to reasonable gas supply, wholesale electricity prices are still well above historical averages, with one sector analyst saying the high international coal prices are driving the market up and may do so for some time.Recent heavy rain events have pushed hydro levels up to near normal after a dry spell at the beginning of the year.This lack of stored water had pushed wholesale spot electricity prices up beyond the $200 a megawatt-hour (MWh) mark.The historical average is closer to $80MWh.After the r...

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