Power shares

[Balance]

https://www.stuff.co.nz/business/116...-tiwai-smelter

Power generators will be hit hard - Genesis and Contact most exposed to the closure.

Rest of NZ - cheaper power on the way.

[Panda-NZ-]

Microsoft moved a datacentre here recently, wonder how much those consume.

Electric cars still will need some hydro-juice

[Raz]

https://www.stuff.co.nz/business/116...-tiwai-smelter

Power generators will be hit hard - Genesis and Contact most exposed to the closure.

Rest of NZ - cheaper power on the way.

That article is October..want the price down a nudge do we?

[black knat]

https://www.interest.co.nz/business/...it-closing-its

Smelter to close..!

[LaserEyeKiwi]

bad news for Power companies, but this is great news for the rest of New Zealand’s companies and consumers (outside of Southland), assuming power prices drop due to the big excess in supply this will create.

[LaserEyeKiwi]

I would have thought power prices would go up? Who's going to replace all that lost revenue?

Thats not how supply and demand works. If power companies could simply raise there prices to increase revenue, then they would be doing that already. The only way that happens is if there is zero competition, or collusion with competitors to rise prices (which is illegal).

[stoploss]

I would have thought power prices would go up? Who's going to replace all that lost revenue?

The cost to generate water going down a river isn’t going up . There will be an excess of supply so prices lower ...
That said , they do have to get it North where the population is . Until other sources of demand arise . Plenty of dairy factories converting from coal to electricity . If the power is cheaper it could stimulate demand .Govt will be able to cut the winter energy grant too ....

[LaserEyeKiwi]

Although it should be noted they announced this in the middle of election season, so its possible they are hoping for a Hail Mary subsidy offer from one or more political parties to keep the smelter going.

[Panda-NZ-]

Weren't tiwai being given very low cost energy? If this portion of the grid can be sold elsewhere at higher prices it could have no overall effect on revenue etc.

[stoploss]

Weren't tiwai being given very low cost energy? If this portion of the grid can be sold elsewhere at higher prices it could have no overall effect on revenue etc.

12-15% of nz power consumption if my memory serves me correctly . So hard to replace that ....