24 Oct 2013

Mighty River well set up for summer

7:53 am on 24 October 2013

Mighty River Power says it is well set up for entering the summer period, with hydro volumes in Taupo above average for this time of year.

Electricity sales fell 5% for the first quarter, compared with the same period last year, partly due to an 8% drop in commercial volumes, largely because of when commercial contracts fall.

Overall generation volumes fell 18%, with hydro generation at its lowest level for a first quarter in the company's history.

Mighty River Power chief executive Doug Heffernan says the weak inflow into the Waikato catchment made it a challenging quarter, but that was offset by the geothermal contribution, which made up more than 40% of the total supply.

He says the last quarter's performance has vindicated the company's diversification strategy which it launched five years ago, with the $1.4 billion investment in geothermal, which provided Mighty River Power with resilience during a time of low hydro inflows.