July 2019 Operating Report

Monthly Operating Report
July 2019

For the month of July 2019
»The Customer business recorded:
•Mass market electricity and gas sales of 478 GWh
(July 2018: 508 GWh)
•Mass market electricity and gas netback of
$91.75/MWh(July 2018: $91.59/MWh)
»The Wholesale business recorded:
•Contracted Wholesale electricity sales, including
that sold to the Customer business, totalled 790
GWh(July 2018: 791 GWh)
•Electricity and steam net revenueof $91.80/MWh
(July 2018: $90.08/MWh)
•Electricity generated (or acquired) of 878 GWh
(July 2018: 808 GWh)
•The unit generation cost, which includes acquired
generation was $35.00/MWh (July 2018:
$33.98/MWh)
•Own generation cost in the month of
$32.35/MWh(July 2018: $32.69/MWh)
July overview
Operating reportContact Energy Limited
2
»Otahuhufutures settlement wholesale price for the 1
st
quarter of 2020 (ASX):
•As at 18 August 2019: $155/MWh
•As at 31 July 2019: $149/MWh
•As at 28 June 2019: $126/MWh
»As at 18 August 2019, South Island controlled storage
was 109% of mean (31 July 2019: 118%) and North
Island controlled storage was 87% of mean (31 July
2019: 83%)
•As at 18 August 2019, total Clutha scheme storage
(including uncontrolled storage) was 36% of mean
•Inflows into Contact’s Clutha catchment for July
2019 were 145% of mean (June 2019: 104%, May
2019: 160%, April 2019: 124%)

0
20
40
60
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120
140
CY19CY20CY21CY22
$/MWh
29/06/201828/06/201931/07/2019
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80
100
120
140
CY19CY20CY21CY22
$/MWh
29/06/201828/06/201931/07/2019
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500
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3500
4000
Aug
18
Sep
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Dec
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Feb
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Mar
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Apr
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Jul
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GWh
South Island ActualNorth Island Actual
South Island MeanNational Mean
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
50
100
150
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250
300
$/MWh
FY19 BENFY20 BENFY19 OTAFY20 OTA
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Jul-19Jul-18Jun-19
0%
20%
40%
60%
<$35$36-$60$61-$85$86-$110$111-$135$136-$160>$160
% of trading periods
Jul-19Jul-18Jun-19
Wholesale market
Wholesale electricity pricing
Operating reportContact Energy Limited
Distribution of wholesale market price by trading periods
Benmore node
Otahuhu node
4

(3%)
(13%)
(2%)
(3%)
2%
(3%)
1%
(2%)
(1%)
0%
(1%)
(4%)
(3%)
(2%)
0%
2%
1%
2%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
17181917181718171817181718181918191819181918191819
GWh
North IslandSouth IslandNZAS
Electricity demand
Operating reportContact Energy Limited
5
Source: Contact and Electricity Authority grid demand (reconciled) http://www.emi.ea.govt.nz
Regional demand change (%) on July 2018
Total national demand (FY18, 19 and 20)
»New Zealand electricity demand was down 1.1% on July 2018 (down
1.1% on July 2017):
•Cumulative 12 months demand for August 2018 to July 2019 of
41,306 GWh is up by 0.1% on the prior comparative period.
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year
Excluding NZAS

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1,000
18 19 18 19 18 19 18 19 18 19 18 19 19 20 19 20 19 20 19 20 19 20 19 20
$/MWh
GWh
GeothermalHydroThermalAcquired generationContracted electricity salesUnit generation cost (RHS)
Contact’s Wholesale business performance
Generation mix, gross sales position and unit generation cost (FY19 and 20)
Operating reportContact Energy Limited
6
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Year

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0
100
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18 19 18 19 18 19 18 19 18 19 18 19 19 20 19 20 19 20 19 20 19 20 19 20
$/MWh
GWh
Mass market electricity salesRetail gas salesNetback
Retail sales volumes and netback (FY19 and 20)
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
July 19July 18June 19
CustomerMass market electricity salesGWh372 400 356
Retail gas salesGWh106 108 97
Mass market electricity and gas salesGWh478 508 453
Average electricity sales price$/MWh237.24 235.88 237.44
Electricity direct pass thru costs$/MWh(112.39)(112.86)(106.83)
Cost to serve$/MWh(14.58)(13.26)(11.30)
Customer netback$/MWh91.75 91.59 90.98
Energy cost$/MWh(92.12)(84.65)(92.99)
Actual electricity line losses%6%5%8%
Retail gas salesPJ0.4 0.4 0.4
Electricity ICPs#410,500 411,500 410,500
Gas ICPs#66,500 65,000 66,500
WholesaleElectricity sales to Customer businessGWh395 423 387
Electricity sales to Commercial and IndustrialGWh197 254 207
Electricity CFD salesGWh198 115 241
Contracted electricity salesGWh790 791 834
Steam salesGWh22 30 10
Total electricity and steam net revenue$/MWh91.80 90.08 94.83
C&I netback (at the ICP)$/MWh97.09 96.37 86.54
C&I line losses%5%3%5%
Thermal generationGWh190 198 188
Geothermal generationGWh286 273 279
Hydro generationGWh367 317 430
Spot electricity salesGWh843 788 897
Electricity sales -DirectGWh3 4 1
Acquired generationGWh31 17 34
Electricity generated (or acquired)GWh878 808 932
Unit generation cost (including acquired generation)$/MWh(35.00)(33.98)(33.68)
Spot electricity purchasesGWh(590)(673)(593)
CFD sale settlementsGWh(198)(115)(241)
Spot exposed purchases / CFD settlementGWh(787)(788)(833)
Spot revenue and settlement on acquired generation (GWAP)$/MWh103.74 79.26 101.07
Spot purchases and settlement on CFDs sold (LWAP)$/MWh(109.79)(80.78)(103.40)
LWAP/GWAP%106%102%102%
Gas used in internal generationPJ1.6 1.8 1.4
Gas storage net movement (extraction) / injectionPJ0.3 (0.3)(0.1)

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