September 2017 Operating Report

Monthly Operating Report
September 2017

»For the month of September 2017 Contact recorded¹:
•Electricity and gas sales of 697 GWh (September
2016: 709 GWh)
•Netback of $82.30/MWh (September 2016:
$83.20/MWh)
•Cost of energy was $27.47/MWh (September 2016:
$28.74/MWh) with renewable generation for the
month of 614 GWh up 98 GWh, or 19% up on
September 2016
»Otahuhu futures settlement wholesale price for the 4
th
quarter of 2017 (ASX):
•As at 16 October 2017: $52/MWh
•As at 30 September 2017: $52/MWh
•As at 31 August 2017: $61/MWh
»As at 16 October 2017, South Island storage was 113%
of mean (30 September 2017: 120%) and North Island
storage was 126% of mean (30 September 2017:
122%)
•As at 16 October, total Clutha scheme storage was
77% of mean
September overview
Operating reportContact Energy Limited
2
»Record geothermal generation in the first quarter of
FY18, up 6% on Q1 FY17 as Contact obtained a
variation to the Wairakei mass take resource consent
which allows for more flexibility in the extraction of
geothermal fluid
¹ Operating statistics have been restated see pages 9-12

Hydro storage and forward prices
New Zealand controlled hydro storage against mean
Operating reportContact Energy Limited
Benmore ASX futures settlement
Otahuhu ASX futures settlement
3
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Oct
16
Nov
16
Dec
16
Jan
17
Feb
17
Mar
17
Apr
17
May
17
Jun
17
Jul
17
Aug
17
Sep
17
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201631/08/201729/09/2017
0
10
20
30
40
50
60
70
80
CY17CY18CY19CY20
$/MWh
30/06/201631/08/201729/09/2017

Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Sep 17Sep 16Aug 17
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Sep 17Sep 16Aug 17
0
20
40
60
80
100
120
140
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY17 BENFY18 BENFY17 OTAFY18 OTA

Electricity demand
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Operating reportContact Energy Limited
Regional demand change (%) on September 2016
Total national demand (FY16, 17 and 18)
»New Zealand electricity demand was up 0.3% on September 2016 (down
2.2% on September 2015).
»Cumulative 12 months demand for October 2016 to September 2017 of
40,942 GWh is 0.3% lower than the prior comparative period.
5
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1%
(0%)
0%
(3%)
1%
(2%)
2%
2%
%
(1%)
(1%)
1%
(1%)
Year
6%
1%
1%
11%
0%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
151617151617151617151615161516161716171617161716171617
GWh
North IslandSouth IslandNZAS

10
15
20
25
30
35
40
45
50
55
60
-
100
200
300
400
500
600
700
800
900
16 17 16 17 16 17 16 16 16 17 17 17 17 17 17
$/MWh
GWh
GeothermalHydroThermalCost of Energy
Contact’s Generation business performance
Generation mix and cost of energy (FY17 and 18)
Operating reportContact Energy Limited
6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year

60
65
70
75
80
85
90
95
100
105
110
0
100
200
300
400
500
600
700
800
900
16 17 16 17 16 17 16 16 16 17 17 17 17 17 17
$/MWh
GWh
Commercial & industrial electricity salesMass market electricity sales
Retail gas salesNetback
Retail sales volumes and netback (FY17 and 18)
Contact’s Customer business performance
7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited

Contact’s operational performance
8
Operating reportContact Energy Limited
DataMeasureThe month ended
September 2017
The month ended
September 2016
The month ended
August 2017
Three months ended
September 2017
Three months ended
September 2016
CustomerMass market electricity salesGWh332 330 365 1,107 1,119
Commercial & industrial electricity salesGWh280 302 293 853 923
Retail gas salesGWh85 77 87 272 230
Total electricity and gas salesGWh697 709 746 2,232 2,273
Average electricity sales price$/MWh191.54 185.71 194.48 194.93 193.53
Electricity direct pass through costs$/MWh(90.01) (81.29) (82.23) (84.91) (81.10)
Electricity and gas cost to serve$/MWh(11.68) (14.58) (10.33) (10.95) (13.34)
Netback$/MWh82.30 83.16 92.86 90.36 91.87
Electricity line losses%6%5%6%6%5%
Retail gas salesPJ0.3 0.2 0.3 0.9 0.8
LPG sales tonnes6,558 6,477 7,371 21,678 21,244
Electricity customer numbers
1
#423,000 423,000 423,500
Gas customer numbers
1
#64,500 62,500 64,500
LPG customer numbers (includes franchises)
1
#82,000 76,000 81,500
GenerationThermal generationGWh41 148 215 621 466
Geothermal generationGWh290 257 300 890 843
Hydro generationGWh325 260 270 779 974
Spot market generationGWh655 664 785 2,290 2,283
Spot electricity purchasesGWh647 664 698 2,084 2,153
CfD sales / (purchases)GWh(55)(45)16(6)20
Steam salesGWh67 66 58 151 169
Commercial & industrial electricity salesGWh9 10 8 21 23
GWAP $/MWh53.29 50.08 82.29 94.55 52.00
LWAP $/MWh(59.43) (53.57) (87.50) (101.69) (57.45)
LWAP/GWAP%112%107%106%108%110%
Gas used in internal generationPJ0.6 1.5 2.0 5.7 4.7
Gas storage net movement
2
PJ0.5 (0.5) (0.2) (0.7) (1.2)
Unit generation cost$/MWh(28.07) (35.85) (36.51) (35.77) (32.13)
Cost of energy$/MWh(27.47) (28.74) (32.30) (35.34) (26.29)
1
Data has been rounded to the nearest 500 and reflects numbers as at month end.

CfDand direct Te Rapa electricity sales have been
reclassified from the Customer segment to the
Generation segment
8
Operating reportContact Energy Limited
Restated FY2016 operating statistics
»All CfDsincluded in the Generation segment
»Direct electricity sales from Te Rapa included in the Generation segment, aligning with steam sales
MeasureJul-15Aug-15Sep-15Oct-15Nov-15Dec-15Jan-16Feb-16Mar-16Apr-16May-16Jun-16
CustomerMass market electricity salesGWh418 404 359 309 283 278 251 245 279 284 321 360
Commercial & industrial electricity salesGWh312 313 305 311 306 306 312 311 335 317 329 304
Retail gas salesGWh87 84 69 56 44 37 26 25 32 40 51 67
Total electricity and gas salesGWh817 801 733 676 633 621 589 581 645 641 701 731
Average electricity sales price$/MWh196.55 195.15 187.21 177.61 172.15 173.23 175.66 175.78 179.33 184.13 192.83 199.47
Electricity direct pass thru costs$/MWh(80.81)(78.72)(79.85)(79.51)(79.92)(77.56)(78.75)(76.28)(76.31)(76.41)(76.80)(84.86)
Electricity and gas cost to serve$/MWh(12.86)(13.45)(15.07)(16.43)(14.02)(12.13)(14.56)(14.51)(15.55)(14.43)(11.47)(11.40)
Netback$/MWh94.28 95.37 85.89 78.02 74.51 82.00 80.59 83.17 85.34 89.46 99.19 97.09
Actual electricity line losses%8%5%4%4%6%3%4%8%3%3%8%7%
Retail gas salesPJ0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.2 0.2
LPG sales tonnes7,677 7,158 6,502 5,451 5,265 5,327 4,269 4,533 4,984 5,472 5,976 7,005
Electricity customer numbers #428,500 427,000 424,500 423,000 422,000 421,000 420,500 421,000 422,000 423,500 424,000 425,000
Gas customer numbers #61,500 61,500 61,000 61,000 61,000 60,500 60,500 60,500 61,000 61,500 61,500 62,000
LPG customer numbers (includes franchises)#70,500 71,000 71,500 72,000 72,000 72,500 73,000 73,500 73,500 74,000 74,500 75,500
GenerationThermal generationGWh231 236 254 89 170 56 90 74 137 65 86 126
Geothermal generationGWh276 293 264 262 239 290 295 268 269 274 284 285
Hydro generationGWh384 339 250 357 314 366 252 298 358 351 420 401
Spot market generationGWh890 868 768 708 723 712 638 639 764 691 790 812
Spot electricity purchasesGWh795 751 692 646 630 603 586 607 634 621 706 714
CfD salesGWh23 18 26 -27 13 30 19 75 26 23 47
Steam salesGWh38 70 67 69 66 67 59 50 44 46 36 14
Commercial & industrial electricity salesGWh5 9 10 10 10 10 10 9 7 7 5 1
GWAP $/MWh51 53 57 56 64 68 68 64 57 62 54 53
LWAP $/MWh(56)(56)(60)(61)(70)(76)(73)(70)(63)(69)(61)(61)
LWAP/GWAP%108%105%106%109%109%111%108%110%111%110%112%115%
Gas used in internal generationPJ2.0 2.0 2.2 1.1 1.7 0.8 1.1 0.9 1.3 0.8 1.0 1.1
Gas storage net movementPJ(0.4)(0.4)(0.4)-(0.7)(0.1)-0.1 0.2 0.6 0.5 0.3
Unit generation cost $/MWh(35.56)(37.84)(43.99)(30.46)(38.52)(26.25)(30.46)(29.64)(30.89)(25.89)(25.35)(25.77)
Cost of Energy $/MWh(33.37)(31.57)(37.77)(22.14)(34.83)(13.90)(27.77)(28.24)(23.44)(21.49)(23.79)(19.06)

Restated FY2017 operating statistics
8
Operating reportContact Energy Limited
MeasureJul-16Aug-16Sep-16Oct-16Nov-16Dec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17
CustomerMass market electricity salesGWh396 393 330 301 261 260 254 233 265 289 338 382
Commercial & industrial electricity salesGWh304 317 302 301 299 282 280 288 319 287 302 281
Retail gas salesGWh81 72 77 72 50 39 37 29 38 47 71 70
Total electricity and gas salesGWh781 783 709 673 611 582 572 551 621 623 711 734
Average electricity sales price$/MWh199.09 195.02 185.71 181.20 171.41 179.35 180.34 180.25 182.84 184.33 193.54 200.56
Electricity direct pass thru costs$/MWh(81.49)(80.55)(81.29)(81.99)(80.71)(82.80)(82.10)(81.50)(76.85)(81.55)(79.81)(83.89)
Electricity and gas cost to serve$/MWh(12.46)(13.10)(14.58)(13.71)(14.87)(16.34)(14.31)(14.79)(14.84)(14.69)(13.44)(13.66)
Netback$/MWh97.17 94.48 83.16 79.57 72.01 76.45 80.86 81.50 88.02 83.80 92.96 96.67
Actual electricity line losses%7%4%5%5%6%6%6%6%6%2%8%5%
Retail gas salesPJ0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.2 0.2 0.3
LPG sales tonnes7,433 7,334 6,477 5,623 5,882 5,363 4,676 4,535 5,293 5,339 7,124 7,622
Electricity customer numbers #425,500 423,500 423,000 423,000 422,500 421,000 420,500 421,000 421,500 422,000 422,500 423,000
Gas customer numbers #62,000 62,000 62,500 62,500 62,500 62,500 62,500 62,500 63,000 63,000 63,500 64,000
LPG customer numbers (includes franchises)#76,000 75,500 76,000 75,500 76,000 76,500 77,000 77,000 77,500 78,000 78,500 80,000
GenerationThermal generationGWh148 171 148 128 54 37 39 50 197 120 320 332
Geothermal generationGWh293 294 257 205 208 295 282 253 290 287 287 282
Hydro generationGWh395 319 260 343 369 388 355 314 255 206 195 163
Spot market generationGWh835 783 664 676 632 720 676 617 741 614 802 777
Spot electricity purchasesGWh749 740 664 633 594 574 572 554 620 590 694 699
CfD salesGWh44 21 (45)32 20 89 132 97 141 41 99 44
Steam salesGWh34 69 66 65 60 55 55 51 58 50 29 10
Commercial & industrial electricity salesGWh4 9 10 10 9 9 10 8 9 7 4 1
GWAP $/MWh54 51 50 45 42 38 43 44 49 44 65 110
LWAP $/MWh(63)(56)(54)(50)(47)(44)(51)(53)(53)(47)(70)(121)
LWAP/GWAP%115%109%107%110%114%118%118%119%108%107%107%110%
Gas used in internal generationPJ1.4 1.7 1.5 1.3 0.7 0.6 0.6 0.6 1.7 1.2 2.7 2.8
Gas storage net movementPJ(0.2)(0.5)(0.5)(0.1)0.3 0.3 0.1 0.2 (0.6)(0.3)(1.1)(0.6)
Unit generation cost $/MWh(27.81)(33.59)(35.85)(33.84)(32.60)(25.80)(24.74)(28.62)(33.01)(35.18)(38.39)(41.44)
Cost of Energy $/MWh(22.75)(27.60)(28.74)(26.82)(27.18)(16.74)(18.89)(23.24)(21.41)(28.56)(32.40)(43.68)

Restated FY2018 operating statistics
8
Operating reportContact Energy Limited
MeasureJul-17Aug-17Sep-17
CustomerMass market electricity salesGWh409 365 332
Commercial & industrial electricity salesGWh280 293 280
Retail gas salesGWh100 87 85
Total electricity and gas salesGWh790 746 697
Average electricity sales price$/MWh198.37 194.48 191.54
Electricity direct pass thru costs$/MWh(82.94)(82.23)(90.01)
Electricity and gas cost to serve$/MWh(10.86)(10.33)(11.68)
Netback$/MWh95.11 92.86 82.30
Actual electricity line losses%7%6%6%
Retail gas salesPJ0.3 0.3 0.3
LPG sales tonnes7,749 7,371 6,558
Electricity customer numbers #423,500 423,500 423,000
Gas customer numbers #64,000 64,500 64,500
LPG customer numbers (includes franchises)#80,500 81,500 82,000
GenerationThermal generationGWh365 215 41
Geothermal generationGWh300 300 290
Hydro generationGWh185 270 325
Spot market generationGWh850 785 655
Spot electricity purchasesGWh739 698 647
CfD salesGWh33 16 (55)
Steam salesGWh26 58 67
Commercial & industrial electricity salesGWh3 8 9
GWAP $/MWh138 82 53
LWAP $/MWh(152)(87)(59)
LWAP/GWAP%110%106%112%
Gas used in internal generationPJ3.1 2.0 0.6
Gas storage net movementPJ(1.0)(0.2)0.5
Unit generation cost $/MWh(41.02)(36.51)(28.07)
Cost of Energy $/MWh(45.15)(32.30)(27.47)

Glossary of terms
Netback
Measures the performance of
the Customer business.
This enables the performance of
the retail channels to be
measured without using an
energy cost. The netback is
meant to cover, inter alia, the net
purchase cost, capital return,
risk margin and a retail margin.
Electricity revenue from mass market and C&I customers
Add: Revenue from gas sales
Add: Revenue from steam sales and direct electricity sales from Te Rapa
Less: Electricity distribution network costs, meter costs and electricity levies
Less: Gas distribution network costs, meter costs and gas levies
Less: Operating costs to serve the customer, including head office allocation
Cost of Energy
Measures the performance of
the Generation business.
Cost of energy reflects the total
operational costs of generating
and procuring electricity sold to
customers. It does not include
any capital return expectations.
Wholesale electricity revenue from our generating assets
Less: Electricity purchase costs from the wholesale market to supply customers
Less: Electricity transmission costs and levies
Less: Gas and diesel purchase costs (excluding gas purchases for retail gas sales)
Less: Gas transmission costs and levies
Less: Carbon emissions costs
Less: Generation operating costs and head office allocation
Netback and cost of energy is divided by the total retail sales volumes (electricityand gas sales) to be expressed as $/MWh

Keep in touch
Operating reportContact Energy Limited
10
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Investor Relations
Matthew Forbes -Investor Relations Manager
Contact Energy