January 2019 Operating Report

Monthly Operating Report
January 2019

For the month of January 2019
»The Customer business recorded:
•Mass market electricity and gas sales of 281 GWh
(January 2018: 282 GWh)
•Mass market electricity and gas netback of
$92.25/MWh (January 2018: $96.50/MWh)
»The Wholesale business recorded:
•Contracted Wholesale electricity sales, including
that sold to the Customer business, totalled 654
GWh (January 2018: 660 GWh)
•Electricity and steam net revenueof $71.68/MWh
(January 2018: $70.03/MWh)
•Electricity generated (or acquired) in the month of
738 GWh (January 2018: 790 GWh)
•The unit generation cost, which includes acquired
generation was $37.53/MWh (January 2018:
$44.07/MWh)
January overview
Operating reportContact Energy Limited
2
»Otahuhufutures settlement wholesale price for the 1
st
quarter of 2019 (ASX):
•As at 13 February 2019: $195/MWh
•As at 31 January 2019: $146/MWh
•As at 31 December 2018: $125/MWh
»As at 13 February 2019, South Island controlled
storage was 88% of mean (31 January 2019: 96%) and
North Island controlled storage was 84% of mean (31
January 2019: 95%)
•As at 13 February 2019, total Clutha scheme
storage (including uncontrolled storage) was 72%
of mean
•Inflows into Contact’s Clutha catchment for January
2019 were 102% of mean (December 2018: 69%
November 2018: 106%, October 2018: 89%)
The Electricity Price Review Panel are
releasing an options paper for consultation in
week commencing 18 February

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
0
20
40
60
80
100
120
140
CY19CY20CY21CY22
$/MWh
29/06/201831/12/201831/01/2019
0
20
40
60
80
100
120
140
CY19CY20CY21CY22
$/MWh
29/06/201831/12/201831/01/2019
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Feb
18
Mar
18
Apr
18
May
18
Jun
18
Jul
18
Aug
18
Sep
18
Oct
18
Nov
18
Dec
18
Jan
19
GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean

Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
FY18 BENFY19 BENFY18 OTAFY19 OTA
0%
20%
40%
60%
80%
100%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Jan-19Jan-18Dec-18
0%
20%
40%
60%
80%
100%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Jan-19Jan-18Dec-18

Electricity demand
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 January 2018
Total national demand (FY17, 18 and 19)
»New Zealand electricity demand was up 1.9% on January 2018 (up 3.3% on
January 2017)
•Cumulative 12 months demand for February 2018 to January 2019 of
41,229 GWh is flat on the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
(1%)
(4%)
(1%)
6%
4%
3%
5%
4%
(2%)
3%
(2%)
(1%)
Year
1%
(4%)
13%
(2%)
11%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
16171816171816171816171816171816171817181917181718171817181718
GWh
North IslandSouth IslandNZAS

Contact’s Wholesale business performance
Generation mix, gross sales position and unit generation cost (FY18 and 19)
Operating reportContact Energy Limited
6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
-
10
20
30
40
50
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
GeothermalHydroThermalAcquired generationAcquired generationContracted electricity salesUnit generation cost (RHS)

-
20
40
60
80
100
0
100
200
300
400
500
600
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
Mass market electricity salesRetail gas salesNetback
Retail sales volumes and netback (FY18 and 19)
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
Measure
The month ended The month ended The month ended
Seven months
ended
Seven months
ended
January 19January 18December 18January 19January 18
CustomerMass market electricity salesGWh
239 248 246 2,113 2,154
Retail gas salesGWh
42 34 50 527 486
Mass market electricity and gas salesGWh
281 282 296 2,640 2,640
Average electricity sales price$/MWh
256.56 255.99 250.48 244.16 242.21
Electricity direct pass thru costs$/MWh
(131.89)(125.13)(129.49)(118.83)(118.88)
Cost to serve$/MWh
(23.52)(25.21)(23.04)(17.72)(18.30)
Customer netback$/MWh
92.25 96.50 89.16 91.72 90.60
Energy cost$/MWh
(73.27)(68.74)(58.52)(71.77)(70.80)
Actual electricity line losses%
10%7%7%7%8%
Retail gas salesPJ
0.2 0.1 0.2 1.8 1.6
Electricity ICPs (rounded to the nearest 500)#
406,000 415,500 406,000
Gas ICPs (rounded to the nearest 500)#
65,500 64,500 65,000
WholesaleElectricity sales to Customer businessGWh
267 267 266 2,284 2,336
Electricity sales to Commercial and IndustrialGWh
270 285 260 1,842 2,021
Electricity CFD salesGWh
117 109 116 825 767
Contracted electricity salesGWh
654 660 641 4,951 5,123
Steam salesGWh
55 44 56 406 373
Total electricity and steam net revenue$/MWh
71.68 70.03 74.10 77.03 73.53
C&I netback (at the ICP)$/MWh
76.71 75.52 77.31 82.06 81.87
C&I line losses%
3%1%4%4%4%
Thermal generationGWh
63 305 38 899 1,271
Geothermal generationGWh
269 257 227 1,920 1,983
Hydro generationGWh
336 191 365 2,381 1,826
Spot electricity salesGWh
668 753 631 5,200 5,081
Electricity sales -DirectGWh
9 10 9 60 59
Acquired generationGWh
61 27 59 232 412
Electricity generated (or acquired)GWh
738 790 699 5,492 5,552
Unit generation cost (including acquired generation)$/MWh
(37.53)(44.07)(41.67)(34.90)(37.99)
Spot electricity purchasesGWh
(528)(542)(516)(4,066)(4,297)
CFD salesGWh
(117)(109)(116)(825)(767)
Spot exposed purchases / CFD settlementGWh
(645)(651)(632)(4,891)(5,064)
Spot revenue and settlement on acquired generation
(GWAP)
$/MWh
126.52 118.44 102.49 133.50 96.07
Spot purchases and settlement on CFDs sold (LWAP)$/MWh
(133.08)(126.11)(107.42)(137.70)(100.86)
LWAP/GWAP%
105%106%105%103%105%
Gas used in internal generationPJ
0.8 2.7 0.6 8.9 12.2
Gas storage net movement (extraction) / injectionPJ
(0.0)(0.5)0.2 (2.0)(1.3)

Keep in touch
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@ContactEnergy
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investor.centre@contactenergy.co.nz
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+64 4 462 1323
+64 21 072 8578
Investors
Matthew Forbes -Investor Relations Manager
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