Electricity Financial Market Power

We have the experience to guide you through the power markets

The New Zealand power market has been identified as one of the most volatile commodity markets around.  The high levels of volatility exposes both consumers and generators to a high level of risk. At OMF, we provide facilities to help mitigate those risks in an unpredictable market. Since 2011 OMF has been helping generators, retailors, industrial users and speculators alike with their hedging and trading requirements.

In New Zealand electricity is traded at a wholesale level in the spot market; operating 24 hours a day, seven days a week. This is the market mechanism that facilitates generation of power and consumption of power.  OMF provides our customers access to derivative products for the purpose of hedging or speculating expected changes in the underlying spot market.  OMF provides direct access to both the over-the-counter (OTC) and Exchange Traded Futures market for the purpose of trading and hedging New Zealand Power markets.

Factors that influence the Electricity market include:

  • Seasons - spot prices are on average higher in winter when demand for power increases, and lower in summer
  • Daily demand - prices are lower at night when the use of electricity is reduced and higher during the day during morning and evening peaks
  • Hydrology - spot prices are impacted when there are droughts, as hydro power generation is reduced and the market needs to look to more expensive generation sources. Approximately 60% of power generation in New Zealand comes from hydro sources, with only a small capacity of storage. If New Zealand were to become solely reliant on hydro power generation, at full capacity there is only enough storage for six weeks’ worth of the country’s electricity needs.

OMF clients have access to an experienced team of dealers that can provide advice, market analysis and commentary so that you can stay full informed of market movements. Contact a power dealer to learn more :

Nigel Brunel
Director of Institutional Commodities
Karl Arns
Institutional Commodities Dealer
Daniel Tetro
Institutional Commodities Dealer