Mercury's mixed quarter due to high electricity prices

Mercury has reported a mixed quarter, with high electricity prices impacting demand and fuel response.

The company's quarterly operational update for the three months ended September 30, 2024, revealed that the tight electricity market in July and early August, caused by near record low national hydro storage and persistent gas supply constraints, resulted in record high spot electricity prices.

However, the situation eased from mid-August, leading to a significant reduction in wholesale spot prices.

Mercury's hydro generation was lower due to dry Waikato catchment conditions, but this was partially offset by higher wind generation and improved geothermal performance.

The company is forecasting hydro generation of 3,900GWh for the financial year, an increase of 100GWh from its August guidance.