Investor Roadshow presentation – September 2018

United States, Toronto, London, Tokyo, Hong Kong, Singapore

Not financial product advice: This presentation is for information purposes only and is not financial or investment advice or a recommendation to acquire Contact Energy's (Contact)
securities, and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors
should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult an NZX Firm, or solicitor, accountant or other
professional adviser if necessary.
Past performance: Past performance information given in this presentation is given for illustrative purposes only and should not be relied uponas (and is not) an indication of future
performance.
Future performance: This presentation may contain projections or forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current
expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks.
Although management may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or
incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realised.
Investment risk: An investment in securities in Contact is subject to investment and other known and unknown risks, some of which are beyond the control of Contact. Contact does
not guarantee any particular rate of return or the performance of Contact.
Financial data: All dollar values are in New Zealand dollars (NZ$ or NZD) unless otherwise stated. Any financial information provided in thispresentation is for illustrative purposes only
and is not represented as being indicative of Contact's views on its future financial condition and/or performance.
Disclaimer: Contact and its affiliates, related bodies corporate, directors, officers, partners, employees and agents: (i) exclude and disclaim all liability, for any expenses, losses,
damages or costs incurred by you as a result of any information in this presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise and
(ii) make no representation or warranty, express or implied, as to the adequacy, accuracy, reliability, fairness or completenessof information, statements, opinions, forecasts, reports or
other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation including, without limitation, any financial information, any estimates
or projections and any other financial information derived there from. Statements made in this presentation are made only asthe date of this presentation. The information in this
presentation remains subject to change without notice. Contact has no responsibility or obligation to inform you of any matter arising or coming to its notice, after the date of this
presentation, which may affect any matter referred to in this presentation.
Recipient's agreement: Each recipient, by reading this presentation, irrevocably agrees (i) to be bound by the limitations set out in this presentation; (ii) that it waives, and will not take
any action in relation to, any rights (if any) it may now or at any time in the future have against any or all of Contact andits respective, affiliates, related bodies corporate, directors,
officers, partners, employees and agents; and (iii) to conduct its own independent analysis of Contact and the presentation.
2

Chief Executive Officer
Dennis Barnes has been Chief Executive Officer of Contact since 2011.
Dennis has completed Contact’s NZD2bn investment programme in
renewable energy, flexible generation and companywide systems. Over
his time at Contact Dennis has provided industry leadership on topics as
wide ranging as wholesale electricity market structures and health and
safety reform. During 2015, Dennis successfully led Contact as its
majority shareholder exited and Contact diversified its shareholding base
and listed on the ASX. Prior to joining Contact, he was General Manager
Energy Risk Management at Origin where he oversaw Origin's significant
and expanding operations in wholesale markets. Prior to Origin, Dennis
held a number of positions operating in international energy markets;
including managerial roles at Scottish and English electricity companies.
Dennis' career began as a Metallurgist with Alcan and he holds a
BSc(Hons), GradDip(Marketing) and MBA.
3

New Zealand economy

New Zealand's stable economy and political system, reputation for innovation and
the ease of doing business make it an attractive place to invest
»Safe, stable and secure business environment
»Ease of doing business
»Comparatively low developed-country business costs
»Simple tax system
»Market orientated economy
»Innovative and entrepreneurial culture
»Policies to promote skills immigration
»Abundant natural resources
»Strong international transport links
»Stable banking sector with Reserve Bank supervision
»Modern telecommunications infrastructure
Sources: World Bank, 'Doing Business' 2018, MilkinInstitute 'Global Opportunity Index' 2016, 2016-17 World Economic Forum Global
Competitiveness index, Global Finance World's Safest Banks index, Heritage Foundation Index of Economic Freedom,Transparency
InternationalCorruption Perceptions index
5

6

Market dynamics

5
Major
generators
1
State-owned
national
transmission grid
operator
29
Distribution
businesses
33
Retailers
(44
brands)
2.1
Million
consumers
Hourly
wholesale
spot market
1/2
8

New Zealand enjoys a reliable, affordable and environmentally sustainable electricity system
“New Zealand
serves as a model
for effective energy
markets and secure
power system
operation”
International Energy
Agency (IEA)
New Zealand 2017 Review
Quality
renewable
resources
Progressive
regulatory
settings
Stable political
environment
Rational
market
competition
»Regulatory settings
have historically been
focused on creating a
progressive, efficient
market structure
»Industry dominated
by five integrated
companies
supplying 90% of
the market.
Capable new
entrant retailers
ensure the retail
market remains
competitive.
»Low cost, long-life
renewable
resources
including hydro,
wind and
geothermal, which
are cost
competitive with
gas and coal
»Strong bipartisan
support to reduce
greenhouse gas
Electrification of
transport
»Geothermal energy for
industrial process
9

40,399
40,041
41,067
41,18140,92741,254
FY13FY14FY15FY16FY17FY18
Annual demand
(GWh)
Financial year
Source: EMI
National electricity demand
7,507
7,380
7,280
7,265
7,046
6,997
201320142015201620172018
Annual usage
(KWh)
Year ending 31 March
Annual consumption per household (kWh)
Source: MBIE Quarterly Survey of Domestic Electricity Prices
National electricity demand of around 41,000 GWh
10
Agriculture,
forestry,
6%
Industrial,
38%
Commercial,
25%
Residential,
31%
Electricity consumption breakdown
Source: MBIE quartely electricity generation and consumption survey
»Despite the continued growth in new customer connections, lower residential
demand per connection and industrial closures have contributed to flat demand
»Currently ~10,000 EVs in the total light passenger fleet of ~3 million and currently
at 2% of vehicle registrations per month. Government target of 64,000 by 2021.

Electricity generation mix for 2017
11
58%
17%
5%
3%
15%
2%
Source: MBIE quartely electricity generation and consumption survey
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20072008200920102011201220132014201520162017
New Zealand electricity supply 2007 -2017
»New Zealand has added subsidy free renewable generation, which, in a period of
flat demand, has displaced fossil fuels, with the percentage of generation from
renewables up from 65% in 2007
Hydro
Geothermal
Wind
Gas
Coal
Hydro
Geothermal
Wind
Gas
Coal
»Distributed generation (e.g. solar) comprises approximately 0.2%
of the total annual generation
Other
Other

12
National hydro storage against mean storage (controlled only)
Source: NZX hydro
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Sep-98Sep-99Sep-00Sep-01Sep-02Sep-03Sep-04Sep-05Sep-06Sep-07Sep-08Sep-09Sep-10Sep-11Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Sep-18
GWh
North Island - ActualSouth Island - ActualNorth Island mean (1926 - 2017)South Island mean (1926 - 2017)

13
&
5TWh
per annum of
renewables firming
required
10TWh
43
7
5
10
24
7
2
2
0.4
0
5
10
15
20
25
30
35
40
45
Total Generation
(=demand + losses)
Mean Hydro
Geothermal
Wind
Co-Generation
"Mean Year"
Residual Thermal
Requirement
"Wet Year" Residual
Thermal
Requirement
"Dry Year" Residual
Thermal
Requirement
Demand Growth of
1% pa
Generation (TWh)

20
40
60
80
100
120
140
14/07/200914/07/201014/07/201114/07/201214/07/201314/07/201414/07/201514/07/201614/07/201714/07/2018
$/MWh
7-day simple moving average spot priceShort-datedLong-dated
14
Long term prices impacted by the fundamental supply and demand balance
Source: EMI

15
Long term prices impacted by the fundamental supply and demand balance
Demand
Industrial demand
New technologyFuel
»Average household
consumption falling through
energy efficiency
»Estimated population growth
of 320k by 2020 (+7%)
»Electrification of transport
»Tiwai-early termination option
(Tiwaielectricity demand is
around ~13% of the annual New
Zealand electricity demand)
»The Tiwaifourth potlineprovides
medium term demand strength
»Material demand growth from the
conversion of carbon based
energy to electricity
»New products and services
through a deeper customer
relationship and managing
complexity
»Consented and scalable renewable
development projects
»Geothermal energy for direct use in
industrial process
»Improving solar and storage
economics but the transition is likely
to be slow
»Deploying capital into the evolution
of digital and data
»Only one natural gas
producing basin, with a
reserves / production ratio
of 12 years
»Carbon price increasing,
currently at the cap

Network costs rising, energy component falling; real cost to
households flat
»Residential electricity price increases remain below inflation
»Residential prices rose by 1.5% for the quarter ended March 2018
(line costs up 5.6% offset by a 1.5% reduction in energy related
charges)
»Competition and energy efficiency have seen reducing real electricity
expenditure for households
Average real residential expenditure (including GST)
Source: MBIE quarterly Survey of Domestic Electricity Prices
Year on year quarterly change in residential electricity prices
Source: MBIE Quarterly Survey of Domestic Electricity Prices
All retailers competing
-10,000
-5,000
0
5,000
10,000
Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18
ICP changes
"Tier 1" electricity retailers"Tier 2" electricity retailers
Source: EA, ICP market share
(2%)
0%
2%
4%
6%
8%
Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18
Year on year quarterly
change
Quarter ended
Lines componentEnergy and other component
$853
$863
$900
$891
$886
$891
$1,274
$1,272
$1,246
$1,207
$1,175
$1,140
$0
$500
$1,000
$1,500
$2,000
201320142015201620172018
$ per household per year (real)
Lines componentEnergy and other component
16

Company strategy

A service and value focussed retailer,
connecting customers and communities
to smart solutions that make living easier
for them now, and in the future
Underpinned by a disciplined and transparent approach to operating and capital expenditure
while continuing to investigate ways to optimise our portfolio of assets
An innovative, safe and efficient generator
working with business customers, partners
and suppliers to decarbonise New
Zealand’s energy sector
CustomerGeneration
18

While directionally the environment remains broadly similar the momentum driving the market is increasing
Electricity demand
and supply
Regulatory settings
Decarbonisation
Retail competition
»National demand for electricity
is relatively flat with long term
wholesale prices holding firm on
no significant change to net
supply
»The Tiwai fourth potline
provides medium term demand
strength
»Material demand growth from
the conversion of carbon based
energy to electricity
»Regulatory settings have
historically been focused on
creating a progressive, efficient
market structure
»Electricity pricing review initial
issues paper has been
published with comments due
end October
»The Government's
decarbonisation agenda and the
speed of movement to act on
climate change has increased
»Retail sector competition
continues with 10 new entrants
in the last 2 years -growing Tier
2 market share has seen
pressure on retail gross
margins
»Increased competition for C&I
load from integrated generator /
retailers looking to match load
with their generation assets
Brand refresh and new customer propositions
to mitigate these headwinds
19

FY16 FY17 FY18
NEAR TERM DESCRIPTION OF SUCCESS
High-performing, efficient retailer with the lowest cost to serve and best customer experience of the tier 1 retailers in New Zealand,
with an ability to execute consistently
79%53%36%
Employee
engagement
Net promoter
score (final qtr.)
+20+15+3
Churn variance to
market (12 mth avg)
1.3% below0.7% belowat market
Electricity and gas
cost to serve
$97m$110m$113m
Debt write-offs
$5.5m$6.6m$9.3m
Number of calls
0.9m1.0m1.1m
Mass market
electricity netback
$99.5/MWh$97.9/MWh$99.2/MWh
»Executing on continuous
improvement initiatives
»Digitising and streamlining
highest-priority customer
journeys
»New products and services
deliver smart customer solutions
»Adapting the IT operating model
to rapidly respond to customer
needs
Delivering on our strategy
20

Operational performance metrics continue to improve
1
2
3
Mass market earnings up
marginally on cost
improvements
C&I prices trending to ASX
LPG product and carbon costs
increasing faster than pass through
to customers
FY18 EBITDAF Keys to extracting value
$65m
($49m electricity, $12m gas,
$4m meters and other
income)
$12m
$32m
Best-in-class retailer, reducing
CTS while growing customer
advocacy –vital to expand
margins in a competitive market
with limited tariff growth
Maintaining a multi-fuel offering to
support our ability to compete in
the electricity market
Assisting with the conversion of
C&I customers with high carbon
footprint to renewable energy
21

NEAR TERM DESCRIPTION OF SUCCESS
Focus on operational excellence and investment in digital approaches with clear payback to accelerate continuous improvement
68%65%60%
Employee
engagement
TRIFR
5.23.33.2
Cash costs
1
$165m$185m$214m
3 year average
forward price
$78.60 / MWh$77.80 / MWh$77.00 / MWh
Plant availability
89%92%90%
Geothermal and
hydro volumes
3,323 GWh
3,479 GWh
3,233 GWh
3,562 GWh
3,297 GWh
4,090 GWh
Cost of energy
$28.00/MWh$27.61/MWh$26.71/MWh
»Executing on continuous
improvement initiatives
»Geothermal efficiency gains
greater than all solar installed in
New Zealand
»Innovating to lead the world in
lowering the cost of geothermal
energy
»Initiatives to support further
decarbonisation of New
Zealand’s energy sector
Delivering on our strategy
1
Cash cost includes generation operating costs and SIB Capex
FY16 FY17 FY18
22

Strong operational performance delivering cost reduction and improving resource utilisation, short term earnings
impacted by hydrology. Long term growth dependent on the disciplined development of renewable generation
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jul-13Jan-14Jul-14Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Jan-18
GWh
Rolling 12 month ended
Geothermal generation volumesHydro generation volumes
Mean geothermal generationMean renewable generation
1
2
3
Delivering on the continuous
improvement programme
Lowering the cost of geothermal and
refining deployable development options
Grow demand for renewables by
partnering with customers on
decarbonisation solutions and further
thermal substitution
12 month rolling renewable generation vs mean
Keys to extracting value
23

Sold to a higher value owner (GSNZ)
Reduces gas storage costs
Independent owner of storage
Monetises unused capacity
Monetises scale advantages
Eliminates commodity exposure
Strengthens balance sheet
Preserves dual fuel value
1
2
3
4
1
2
3
4
Sale of Ahuroa gas storage for $200m
Sale of Rockgas LPG for $260m
Strategic rationale
Strategic rationale
»Divesting Rockgas will enable greater focus and allow for accelerated
transformation in the Customer business, ultimately creating value for
shareholders
»Contact identified a higher value owner for this long life infrastructure
asset. Contact has retained access to competitive long term gas
storage services compatible with its requirements for flexible thermal
generation. Contact benefits from the committed expansion.
»GSNZ has a lower cost of capital
»Existing Taranaki operations present operational synergies
»Committed expansion reduces the cost per unit of storage
»Effective share of operating costs reduce with additional users
»Without upstream or downstream interests, the new owner will
likely be seen as a more independent counterparty facilitating
new users
»The AGS reservoir is larger than Contact’s requirements and is
capable of supporting storage services to other customers
»The marketing alliance allows Contact to continue to offer LPG
as part of its product suite. Lower churn benefits retained
»The services agreement will preserve our scale advantage to
enhance returns from digital transformation
»The sale proceeds will improve our balance sheet strength
and facilitate improved distributions to shareholders
»The sale will eliminate Contact’s exposure to the variability in
international LPG prices, exchange rates and domestic LPG
supply and demand dynamics
24

Outlook

CustomerGeneration
»Move to a simple, lean operating model centred on the
customer experience reinventing key customer experiences
and processes
»Capable employees, identifying and driving performance
initiatives with ownership and accountability
»Transform technology to drive both efficiency and better
automated customer experiences
»Reposition the brand and reputation from a strong operational
retailer to a smart customer solutions provider
»Sustainable cost reduction balanced against risk
»Strengthen geothermal capability to remain as a recognised world
leader
»Partner with customers on mutually beneficial decarbonisation
opportunities
»Develop options to enable the economic substitution of thermal
generation with renewables
»Lower the cost of geothermal to ensure Contact development options
are cost competitive with firmed intermittent renewables
Framework for
new investment
»Value defined by customers
»Scalable
»Leverages existing capabilities and cost structures
»Short paybacks
»Complementary partnerships
»Sustainable new demand
»New geothermal development cost competitive with new firmed
renewables and thermal life extensions
26

0
20
40
60
80
100
120
FY16FY17FY18FY19FY20
$m
Generation -Plant maintanence and continous improvementCustomer and Corporate
Capital expenditure and targets
»FY18 accounting capex of $69m, $32m lower than FY17 (32%). Cash spend
on SIB capex of $78m, $38m down on FY17 (33%).
SIB capital expenditure
Sustainable capital expenditure, post financial
close of AGS and Rockgas is between $60 -$65m
per annum and includes:
»Thermal plant refurbishment
»Geothermal well drilling to maintain geothermal
generation at 3,350 GWh per annum
»Transformation and continuous improvement
initiatives
»Plant and systems maintenance
»Excludes capex associated with Wairakei
extension post 2026
27
Guided range

27%
1%
9%
18%
0
50
100
150
200
250
300
350
400
450
FY15FY16FY17FY18FY19 (f)
$m
Other operating costsAGS operating costsTransition costsCapital expenditure
FY15FY16FY17FY18
SIB
FY19 (f)²FY20 (f)
Other operating
costs
$263m$247m$243m$223m$205m$190m
Costsexcluded
from underlying
$24m$10m$12m---
AGS operating
costs
$5m$6m-
1
---
Capital
expenditure
$105m$128m$102m$69m$65-75m$60-65m
Controllable
costs
$397m$391m$357m$292m
$275 –
280m
$250 –
260m
Improvement on
prior year
$146m$6m$34m
$65m
(guidedrange
$46m –66m)
$12 -
17m
$15 -
35m
1
From FY17, AGS operating costs have been included in other operating costs
2
Includes an assumption of the completion of the sale of AGS and Rockgas
4-6%
Controllable costs down by over $100m since the delivery of the geothermal and SAP capex programmes
28

With the sale of AGS and Rockgas due to complete in 1H19 a normalised FY20 EBITDAF is provided
Bridge illustrating FY18 EBITDAF to FY20 operating free cash flow (excludes movement in working capital)
Key assumptions:
»Hydro generation at 3,900 GWh (mean), geothermal generation at 3,350 GWh (average)
»ASX electricity futures and electricity retail margins stable
»Delivery on Customer transformation
29
30
32
2
14
20
7
60-65
55
70
481
480
290-295
200
250
300
350
400
450
500
550
FY18 EBITDAFMean hydrologySale of RockgasRockgas services
revenue
Sale of AGSMinimum
operating
improvements
Inflation and STI
reversion
Normalised FY20
EBITDAF
CapexNet interestTaxationNormalised FY20
operating free
cash flow
$m
FavourableUnfavourable

Target ordinary dividend of between
once the S&P net debt / EBITDAF ratio is below
2.8x
80-90%
of Operating Free CashFlow
Distribution policy
Interim
dividend
Final
dividend
40%
of expected total
AprilSept
35cps
up
+9%
on FY18
FY19Target ordinary dividend
60%
Net debt
Borrowings at 30 June
2018
$1,448m
Reduction in net debt from
proceeds of asset sales
(after tax)
($410m)
S&P net debt
Estimated at 30 June
2018
$1,480m
Reduction in S&P net debt
from proceeds of asset
sales
($257m)
30

Appendix
Operational and financial performance FY18

Operational performance improves, cash discipline enables increasing dividends
MAINTAINING FINANCIAL DISCIPLINE
Strong cost control with other operating costs down by $20m (8%). Cash spent on
SIB capital expenditure down by $38m (33%). $99m cash reduction in borrowings.
ENHANCED CUSTOMER EXPERIENCE
Net promoter score (NPS) for final quarter of FY18 of +20, up from the +15
recorded for the same period in FY17 on the implementation of operational
improvements. Below market churn.
SAFE AND ENGAGED EMPLOYEES
Increasing employee engagement with 77% of employees engaged, 9% up on FY17
and 36% up on FY15. Maturing safety culture.
FY18 dividend of 32 cents per share, up 6 cents per share on FY17. Target FY19
dividend of 35 cents per share, up 9% on FY18
REWARDING SHAREHOLDERS
Comparison against FY17
+16%
Reduction in total cash
operating costs and
capital spend
+5
Improvement
in NPS
+9%
+23%
Increase in employee
engagement
Increase to the FY18 full
year dividend
32

Underlying profit down 8% from $142m in FY17 to $130m
Contact’s statutory profit
»Underlying profit of $130m, was down by
$12m (8%) reflecting:
»$20m reduction in EBITDAF
»Depreciation and amortisation up by
$12m with a full year of depreciation
from the ICT change and transition
programme and higher TCC
depreciation post the major
refurbishment
»Net interest costs reduced by $9m on
marginally lower interest rates and a
reduction in average debt over the
period
»Lower tax expense
»The only item excluded from underlying profit
in the current period was the increase in the
fair value of financial instruments of $2m (net
of tax).
Financial performance compared to FY17
9
20
12
9
11
2
151
142
130
132
0
20
40
60
80
100
120
140
160
FY17
statutory
profit
Net items
excluded
from
underlying
profit
FY17
underlying
profit
EBITDAFDepreciation
&
amortisation
Net interest
costs
TaxFY18
underlying
profit
Net items
excluded
from
underlying
profit
FY18
statutory
profit
$m
FavourableUnfavourable
33

Customer EBITDAF of $109m, $9m lower than FY17
Generation EBITDAF of $372m, $11m lower than FY17
Customer EBITDAF movement on FY17
8
4
2
1
118
109
90
95
100
105
110
115
120
125
FY17
EBITDAF
Mass market
electricity
Mass market
gas
C&I electricityLPGFY18
EBITDAF
$m
FavourableUnfavourable
Generation EBITDAF movement on FY17
34
2
9
4
383
372
360
365
370
375
380
385
390
FY17 EBITDAFElectricity and steam
sales revenue
Wholesale market
volitility
Claims against
contractors
FY18 EBITDAF
$m
FavourableUnfavourable

»Contact is not integrated into upstream LPG supply and is exposed to
the fluctuations in oil linked commodity prices
»FY18 has seen a sustained and sharp increase to oil linked LPG
product costs which are up by $4m (10%). Carboncosts were also
$1m higher than FY17
»LPG price changes were implemented in the year, tariff up 2%,
volumes flat
International LPG pricing (50% propane, 50% butane) in NZ$
FY18
C&I electricity EBITDAF of $12m, $8m lower than FY17 LPG EBITDAF of $32m, $4m lower than FY17
C&I sales volume changes on FY15
0%
1%
2%
3%
4%
5%
-1,000
-500
0
500
1,000
FY16FY17FY18
C&I EBITDAF / revenue
C&I sales volumes (GWh)
C&I incumbents (lhs)Genesis (lhs)Contact C&I retail margin (rhs)
»Competition for C&I sales has increased, which has led to a reduction
in the C&I retail margin above ASX reference from 4.6% in FY16 to
2.8% in FY18
»Contact C&I sales volumes down by 6% with lower re-signs as
Contact was unwilling to match the lower prices from competitors
35
250
350
450
550
650
750
850
950
Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Oct-17Jan-18Apr-18
NZ$
LPG priceLPG price (average FY)

Mass market electricity tariffs up 0.5%, network costs up
2%, cost to serve down 10%
2.1
2.5
1.2
97.9
99.5
90
91
92
93
94
95
96
97
98
99
100
FY17 netbackSales PriceElectricity Network,
Meter & Levy costs
Cost to serveFY18 netback
Netback ($/MWh)
FavourableUnfavourable
6
4
47
49
30
35
40
45
50
55
FY17 EBITDAFNetbackEnergy costsVolumeFY18 EBITDAF
$m
UnfavourableFavourable
EBITDAF from mass market electricity sales was $49m in
FY18, up $2m (4%) from the prior period despite lower sales
volumes and rising energy prices
Mass market electricity netback ($/MWh) year on year movementMass market electricity EBITDAF year on year movement
36

Hydro generation volumes 10% below mean for the second
consecutive financial year
»Clutha hydro inflows during FY18 were 19% below mean for the first
three quarters (5% above mean for the last quarter)
»The scheduled major refurbishment of the Taranaki Combined Cycle
plant (TCC) during November and December meant Contact could not
take full advantage of higher wholesale prices
Source: NZX hydro
Clutha inflows vs mean inflows (variance)
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Jul-16
Aug-16Sep-16
Oct-16
Nov-16Dec-16
Jan-17
Feb-17Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17Sep-17
Oct-17
Nov-17Dec-17
Jan-18
Feb-18Mar-18
Apr-18
May-18
Jun-18
%
Contact hydro generation by quarter for FY15 –18
Thermal utilisation by month and wholesale electricity price
Source: Contact
Source: Contact, EA –Wholesale energy prices
0
200
400
600
800
1,000
SepDecMarJun
GWh
Quarter ended
FY15FY16FY17FY18Mean Generation
0
20
40
60
80
100
120
140
160
0%
20%
40%
60%
80%
Jan
17
Feb
17
Mar
17
Apr
17
May
17
Jun
17
Jul
17
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
Feb
18
Mar
18
Apr
18
May
18
Jun
18
$/MWh
%
Thermal capacity factor (%)National wholesale electricity price ($/MWh)
37

Efficiency gains and maximum fuel use at Wairakei. Ohaaki
generation impacted by injection constraints
Operating cost reduction offset by rising gas and carbon costs
56
137
9
83
68
8,629
8,704
8,450
8,500
8,550
8,600
8,650
8,700
8,750
FY17
generation
volumes
Geothermal
-Ohaaki
field
Geothermal
-Wairakei
field
Geothermal
-Tauhara
field
HydroThermalFY18
generation
volumes
Generation (GWh)
FavourableUnfavourable
Generation volumes (GWh) year on year movement
Generation costs year on year movement
38
0.6
2.4
0.8
6.7
6.1
5.0
283
288
283
275
277
279
281
283
285
287
289
291
293
295
FY17
generation
costs
Electricity
transmission
& levies
Gas costs
(net of gas
sales)
Gas
Transmission
Costs
Carbon CostsOther
operating
costs
FY18
generation
costs
Gain on
acquired
generation
(change on
FY17)
FY18
generation
costs
$m
UnfavourableFavourable