August 2018 Operating Report

Monthly Operating Report
August 2018

»For the month of August 2018 Contact recorded:
•Electricity and gas sales of 736 GWh (August 2017:
746 GWh)
•Netback of $89.96/MWh (August 2017:
$92.57/MWh)
•Cost of energy was $20.08/MWh (August 2017:
$32.41/MWh)
»Otahuhu futures settlement wholesale price for the 3
rd
quarter of 2018 (ASX):
•As at 11 September 2018: $89/MWh
•As at 31 August 2018: $82/MWh
•As at 31 July 2018: $70/MWh
»As at 11 September 2018, South Island controlled
storage was 86% of mean (31 August 2018: 98%) and
North Island controlled storage was 125% of mean (31
August 2018: 114%)
•As at 11 September 2018, total Clutha scheme
storage (including uncontrolled storage) was 22% of
mean
•Inflows into Contact’s Clutha catchment for August
2018 was 99% of mean (July 2018: 154%, June
2018: 59%, May 2018: 110%)
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»The independent Electricity Price Review Panel
released their initial issues paper in the month.
Submissions due by end of October

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
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
Feb
18
Mar
18
Apr
18
May
18
Jun
18
Jul
18
Aug
18
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201731/07/201831/08/2018
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201731/07/201831/08/2018

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
Aug-18Aug-17Jul-18
0%
20%
40%
60%
80%
100%
<$35$36-$45$46-$55$56-$65$66-$75$76-$85>$85
% of trading periods
Aug-18Aug-17Jul-18
0
20
40
60
80
100
120
140
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY18 BENFY19 BENFY18 OTAFY19 OTA

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1617181617181617161716171617171817181718171817181718
GWh
North IslandSouth IslandNZAS
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Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on August 2017
Total national demand (FY17, 18 and 19)
»New Zealand electricity demand was up 1.3% on August 2017 (down 1% on
August 2016)
•Cumulative 12 months demand for September 2017 to August 2018 of
41,301 GWh is 0.9% higher than the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(1%)
1%
(1%)
2%
0%
1%
1%
1%
1%
5%
3%
2%
Year
3%
(2%)
1%
6%
(9%)

Generation mix and cost of energy (FY18 and 19)
Operating reportContact Energy Limited
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Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
10
15
20
25
30
35
40
45
50
55
60
-
100
200
300
400
500
600
700
800
900
17 18 17 18 17 18 17 18 17 18 17 18 18 19 18 19 18 19 18 19 18 19 18 19
$/MWh
GWh
GeothermalHydroThermalCost of Energy

60
65
70
75
80
85
90
95
100
105
110
0
100
200
300
400
500
600
700
800
900
17 18 17 18 17 18 17 18 17 18 17 18 18 19 18 19 18 19 18 19 18 19 18 19
$/MWh
GWh
Commercial & industrial electricity salesMass market electricity sales
Retail gas salesNetback
Retail sales volumes and netback (FY18 and 19)
7
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Operating reportContact Energy Limited

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Operating reportContact Energy Limited
Measure
The month ended The month ended The month ended
Two months
ended
Two months
ended
August 18August 17July 18August 18August 17
CustomerMass market electricity salesGWh365 365 400 765 775
Commercial & industrial electricity saleGWh267 293 262 528 573
Retail gas salesGWh104 87 108 212 187
Total electricity and gas salesGWh736 746 769 1,505 1,535
Average electricity sales price$/MWh196.39 194.61 200.91 198.70 196.54
Electricity direct pass thru costs$/MWh(84.96)(82.23)(88.38)(86.71)(82.59)
Electricity and gas cost to serve$/MWh(11.17)(10.73)(10.32)(10.73)(10.96)
Netback$/MWh89.96 92.57 91.57 90.78 93.72
Actual electricity line losses%6%6%4%5%6%
Retail gas salesPJ0.4 0.3 0.4 0.80.6
LPG sales tonnes7,511 7,371 7,813 15,324 15,120
Electricity customer numbers #410,500 423,500 414,500
Gas customer numbers #65,000 64,500 65,000
LPG customer numbers (includes
franchises)
#90,000 81,500 89,000
GenerationThermal generationGWh201 215 198 399 580
Geothermal generationGWh291 300 273 564 600
Hydro generationGWh322 270 317 639 455
Spot market generationGWh813 785 788 1,601 1,635
Spot electricity purchasesGWh671 698 691 1,362 1,437
Net CfDsalesGWh80 16 95 175 49
Steam salesGWh73 58 30 103 84
Commercial & industrial electricity salesGWh9 8 4 13 11
GWAP $/MWh82.85 82.29 78.88 80.90 111.08
LWAP $/MWh(89.04)(87.50)(83.22)(86.09)(120.73)
LWAP/GWAP%107%106%105%106%109%
Gas used in internal generationPJ1.8 2.0 1.8 3.65.1
Gas storage net movementPJ(0.7)(0.2)(0.3)(1.07)(1.24)
Unit generation cost $/MWh(32.68)(36.53)(35.46)(34.04)(39.37)
Cost of Energy $/MWh(20.08)(32.41)(26.19)(23.20)(39.11)
At the FY18 results, Contact announced new operating reporting segments. New operating performance metrics will be rolled outinthe coming months

Netback and cost of energy is divided by the total retail sales volumes (electricityand gas sales) to be expressed as $/MWh
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

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Investor Relations
Matthew Forbes -Investor Relations Manager
Contact Energy