Ostrich investing can work - just do not pay too much for any stock.
Leaving the argument between the industry insiders aside, all I am trying to do is temper some peoples expectations that the current high spot prices equates to massively larger profits for Genesis.
Do Your Own Research as usual.
Best Wishes
Paper Tiger
Some figures that maybe make some sense
So if Transpower revenue was about $800M and NZ (excluding Tiwai) uses about 32,000GWh of electricity a year then Transpower are clipping the ticket (on average) to the tune of
$25,000/GWh or
$25/MWh or
$0.025/KWh.
I assume in that in the real world that Tiwai adds in a few thousand GWh, Transpower clip the ticket on that and thus that cost is actually lower.
Contact sold 8,378GWh of retail+wholesale electricity in FY14 for $2,175M
$0.260/KWh
Contact had a cost of $596M for "Electricity transmission, distribution and levies"
$0.069/KWh (upto 2.5c for Transpower and 4.4c or more not for Transpower).
Presumably similar numbers would come of the works for Genesis et al (to give it some relevance to this thread).
Best Wishes
Paper Tiger
Disc: Fixed charges are amortized, does not cover the cost of generation or other expenses, etc, errors and omissions..., more etc, roll your own, look both ways before crossing.