Uncertainty may be driving high future electricity prices

The cost of Huntly power station being needed to keep the lights on may be driving future electricity prices, says the regulator. (Image: Getty)

Ian Llewellyn

Mon, 20 Feb 2023

Very high future wholesale electricity prices may be due to concerns that planned new generation may be delayed and insufficient to meet demand with potentially higher prices for carbon and coal, the Electricity Authority says.Forsyth Barr energy analysts recently said they were perplexed at the futures prices for electricity and said it implied mispricing which should fall at some point.Prices for future winters are all above $200 a megawatt hour (MW), much higher than past average winter prices and above what many would consider a reflection...

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