Power Deals 4 U

The electricity sector in New Zealand uses mainly renewable energy sources including hydro, gas, wind & coal. Each of these methods have a different generation profile & costs at throughout the year. 

The cost of hydro generation is generally low through the summer months when the lake levels are higher, but will rise in the winter months, especially if storage levels are low. In contrast gas & coal may be less competitive over the summer months, but more cost effective at generation in the winter months when demand is high & the supply of alternative options ( hydro/ wind) is low.

A retailer can either be a generator/ retailer who generates their own energy before selling it onto the market or a retailer who has to purchase energy off the open market before on selling it.

Both of these options have advantages & disadvantages, but in general when the supply of energy is good the cost of the energy is relatively low. In contrast when the supply of energy is low the market price is high, which will advantage the generator/retailer.

As a rule the big retailers Meridian, Genesis, Contact, Mercury & Nova are all generator/retailers, whereas the smaller retailers need to procure their electricity off the open market.