September 2018 Operating Report

Monthly Operating Report
September 2018

»For the month of September 2018 Contact recorded:
•Electricity and gas sales of 664 GWh (September
2017: 697 GWh)
•Netback of $86.40/MWh (September 2017:
$81.96/MWh)
•Cost of energy was $24.34/MWh (September2017:
$27.48/MWh)
»Otahuhu futures settlement wholesale price for the 4
th
quarter of 2018 (ASX):
•As at 15 October 2018: $236/MWh
•As at 30 September 2018: $87/MWh
•As at 31 August 2018: $77/MWh
»As at 15 October 2018, South Island controlled storage
was 74% of mean (30 September 2018: 76%) and
North Island controlled storage was 83% of mean (30
September 2018: 99%)
•As at 15 October 2018, total Clutha scheme
storage (including uncontrolled storage) was 56% of
mean
•Inflows into Contact’s Clutha catchment for
September 2018 was 72% of mean (August 2018:
99%, July 2018: 154%, June 2018: 59%)
Operating reportContact Energy Limited
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»Contact invites you to join us at our Annual Meeting
of Shareholders at: Intercontinental Hotel, 2 Grey
Street, Wellington or online at
www.virtualmeeting.co.nz/cen18on Wednesday 14
November 2018, commencing at 10am

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
17
Nov
17
Dec
17
Jan
18
Feb
18
Mar
18
Apr
18
May
18
Jun
18
Jul
18
Aug
18
Sep
18
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201731/08/201828/09/2018
0
20
40
60
80
100
CY18CY19CY20CY21
$/MWh
30/06/201731/08/201828/09/2018

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

-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
161718161718161718161716171617171817181718171817181718
GWh
North IslandSouth IslandNZAS
Operating reportContact Energy Limited
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Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on September 2017
Total national demand (FY17, 18 and 19)
»New Zealand electricity demand was up 1.0% on September 2017 (up 1.1%
on September 2016)
•Cumulative 12 months demand for October 2017 to September 2018 of
41,336 GWh is 1.0% higher than the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(1%)
2%
2%
2%
1%
(2)%
3%
4%
2%
2%
1%
1%
Year
2%
4%
5%
4%
(17%)

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
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

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
Three months
ended
Three months
ended
September 18September 17August 18September 18September 17
CustomerMass market electricity salesGWh320 332 365 1,084 1,107
Commercial & industrial electricity saleGWh255 280 267 783 853
Retail gas salesGWh89 85 104 301 272
Total electricity and gas salesGWh664 697 736 2,169 2,232
Average electricity sales price$/MWh191.00 191.54 196.39 196.33 194.98
Electricity direct pass thru costs$/MWh(84.17)(90.01)(84.96)(85.93)(84.91)
Electricity and gas cost to serve$/MWh(11.38)(12.01)(11.17)(10.93)(11.29)
Netback$/MWh86.40 81.96 89.96 89.44 90.04
Actual electricity line losses%7%6%6%6%6%
Retail gas salesPJ0.3 0.3 0.4 1.10.9
LPG sales tonnes6,396 6,558 7,511 21,720 21,678
Electricity customer numbers #410,000 423,000 410,500
Gas customer numbers #65,000 64,500 65,000
LPG customer numbers (includes
franchises)
#90,500 82,000 90,000
GenerationThermal generationGWh216 41 201 615 621
Geothermal generationGWh295 290 291 858 890
Hydro generationGWh243 325 322 882 779
Spot market generationGWh754 655 813 2,355 2,290
Spot electricity purchasesGWh620 647 671 1,982 2,084
Net CfDsalesGWh79 (55)80 254 (6)
Steam salesGWh68 67 73 171 151
Commercial & industrial electricity salesGWh10 9 9 22 21
GWAP $/MWh86.60 53.29 82.85 82.72 94.55
LWAP $/MWh(90.97)(59.43)(89.04)(87.62)(101.69)
LWAP/GWAP%105%112%107%106%108%
Gas used in internal generationPJ1.9 0.6 1.8 5.55.7
Gas storage net movementPJ(1.0)0.5 (0.7)(2.10)(0.71)
Unit generation cost $/MWh(35.94)(28.16)(32.68)(34.65)(36.15)
Cost of Energy $/MWh(24.34)(27.48)(20.08)(23.55)(35.48)
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

Operating reportContact Energy Limited
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investor.centre@contactenergy.co.nz
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+64 21 072 8578
Investor Relations
Matthew Forbes -Investor Relations Manager
Contact Energy