Contact Energy thinks it knows where power prices are going

Contact benefited from rain in the Clutha catchment. (Image: Getty)

Tue, 20 Feb 2024

The price of wholesale electricity is likely to settle around the $110 to $120 a megawatt range as generators absorb the increasing cost of building new generation and the need to use more costly thermal generation to back up renewable energy, says Contact Energy's chief executive, Mike Fuge.Contact reported its half-yearly result on Monday morning with a net profit of $153 million for the six months ended Dec 31 and operating earnings (Ebitdaf) of $354m.This includes a $29m reduction in the onerous contract provision of the Ahuroa Gas Stor...

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