Why Winter 2024 Sent Wholesale Electricity Prices Skyrocketing… and How We Can Stay Ahead?

Rest assured; you’re protected against highly volatile prices with Ecotricity!

So, what happened in August in the electricity sector? Why have wholesale prices now dropped so sharply? And what we’re doing about it?

A wild winter ride

This winter was a wild ride when it came to electricity prices in New Zealand. We saw new record prices in July, but that record in August was broken again and became the highest it’s ever been by some margin.

Electricity Authority - EMI (market statistics and tools) (ea.govt.nz)

Many large-scale users felt the pinch as wholesale electricity prices surged to new heights causing concern for many businesses and jobs.

The sharp increase in prices this winter was driven by a mix of factors.
• Colder-than-usual weather driving up demand.
• Very low rainfall and therefore low hydro lake levels.
• Much lower wind generation.
• Low gas reserves.

But there’s good news… the sun is coming out.

What we’re doing about it (and have been doing for the last 10 years) - Future-Proofing NZ with Solar Energy

Solar generation has been ramping up for a number of years with the vast majority of our Ecotricity customers, be they residential, commercial and now industrial… and it’s unlinked to all the above conditions.
Solar energy isn't just about saving money—it's about making a real difference for our planet. By investing in solar, you're helping to build a cleaner, greener future for New Zealand. You’re also helping yourself and New Zealand become a much more resilient country.
With solar technology becoming more affordable and efficient, there's never been a better time to consider making the switch. Check out our solar partner map to find an installer near you, and get a quote.
On top of the environmental benefits, solar can help save you money by reducing your reliance on grid electricity, and also make you money when you export your excess back to the grid.
At Ecotricity, we're here to help you every step of the way, so let's work together to ensure we're ready for whatever next winter brings.

PS, things are starting to settle down.

As we head into spring, prices are gradually returning to normal. Improved weather conditions mean more hydro generation, reduced demand, and the return of some generation capacity that was offline for maintenance—all helping to ease the pressure.

This winter has been a wake-up call, highlighting the importance of being proactive with our energy use. So, if you already have solar, thank you! If your friends and family don’t yet have solar, get them into it!