New Zealand Exchange-listed Contact Energy has reported increased earnings but a decrease in net profit as last winter’s energy crunch hit the bottom line and new generation came on stream.

Contact chief executive Mike Fuge said it was a solid result in difficult operating conditions. The company, as well as the sector, was now better placed to get through the coming winter, he believed.

Fuge also predicted wholesale electricity prices would return an average of around $115 to $125 per megawatt (MW) once the sector weaned itself off unreliable and expensive gas. Currently, wholesale futures markets are picking prices above $200MWh, putting pressure on major users seeking to get contracts at sustainable prices and overall retail prices.