Price spike drives electrical utilities' sales to record high

Electricity, gas, water, and waste services industry sales rose 32 percent, ($1.7 billion) in the June 2021 quarter, Stats NZ said today.

"The utilities industry is largely dominated by electricity generation sales, and the high electricity index prices in the June quarter drove this industry to a record high for seasonally adjusted quarterly sales," business statistics manager Sue Chapman said.

The output price index for electricity and gas supply reached a record high in the June 2021 quarter, off the back of large increases in the March 2021 quarter.

See Increase in power prices drives June 2021 quarter producers price indexes higher for more information.

Sales increase across the board

"All 26 industries had increases in quarterly sales in the June 2021 quarter, up from the COVID-affected June 2020 quarter. Construction led the way with the highest percentage rise, up over 50 percent this June 2021 quarter compared to last June," Ms Chapman said.

Construction sales rose $7.2 billion (54 percent) in the June 2021 quarter, from the June 2020 quarter, after adjusting for seasonal effects. Construction sales increased $326 million (1.6 percent) from the March 2021 quarter.

"There has been a flurry of construction activity since the lockdown in April last year. Other key industries that flow into construction have also seen sales increases this quarter, such as glass, timber, concrete, and steel producers, as well as engineering and architectural services," Ms Chapman said.