Contact Energy (ASX: CEN) has released its monthly operating report for August 2026, highlighting robust performance in its customer business and significant efficiencies within its wholesale segment. Contact Energy is a leading New Zealand electricity generator and retailer, operating a diverse portfolio of generation assets including hydro, geothermal, and thermal, serving a broad customer base across the country. The report shows an increase in mass market electricity and gas sales, coupled with an improved netback, while the wholesale business recorded notable reductions in generation costs.
In August 2026, Contact Energy’s customer business saw mass market electricity and gas sales rise to 550 GWh, up from 454 GWh in August 2025. The mass market netback also experienced a slight uptick, reaching $148.57/MWh compared to $148.36/MWh in the prior corresponding period. The wholesale business reported contracted electricity sales of 1,087 GWh, a marginal decrease from 1,090 GWh year-on-year. However, electricity and steam net revenue improved to $164.59/MWh, up from $164.24/MWh. A key highlight was the substantial decrease in unit generation cost, including acquired generation, which fell to $40.90/MWh from $57.52/MWh in August 2025, with own generation costs also declining.
Hydro storage levels as at 13 September 2026 indicate South Island controlled storage at 166% of mean and North Island at 84% of mean. Inflows into Contact’s Clutha catchment for August 2026 were 164% of mean. The Otahuhu futures settlement wholesale price for the fourth quarter of 2026 was $45.50/MWh as at 15 September 2026. The company also provided an update on its renewable development projects under construction, which include the Te Mihi Stage 2 geothermal plant, Glenbrook-Ohurua Battery 2, and the Glorit Solar project, with expected online dates extending into late 2028. Contact’s contracted gas volume for the next 12 months stands at 8.2 PJ.
