Meridian Energy monthly operating report for October 2019

PG 1

Meridian Energy monthly operating report for October 2019
15 November 2019
Attached is Meridian Energy Limited's monthly operating report for the month of October 2019.
Highlights this month include:
▪ In the month to 11 November 2019, national hydro storage increased from 81% to 111% of historical average
▪ South Island storage sat at 108% of average and North Island storage at 120% of average on 11 November
2019
▪ Meridian’s October 2019 monthly total inflows were 97% of historical average
▪ Meridian’s Waitaki catchment storage at the end of October 2019 was 91% of historical average
▪ Storage in Meridian’s Waiau catchment was above average at the end of October 2019
▪ National electricity demand in October 2019 was 1.5% higher than the same month last year
▪ Meridian made calls under the Genesis Swaption in October 2019
▪ October 2019 saw near average temperatures, with the exception of cooler conditions in the lower South
Island. Rainfall was variable and soil moisture was near normal across most of the country
▪ New Zealand Aluminium Smelter's load during October 2019 was below the contract level of 622MW
▪ Meridian’s New Zealand retail sales volumes in October 2019 were 12.6% higher than October 2018
ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Claire Shaw
External Communications Manager
021 370 677

M O N T H LY O P E R AT I N G R E P O RT
O C TO B ER 2 0 1 9

O C T O B E R H I G H L I G H T S
In the month to 11
November 2019, national
hydro storage increased
from 81% to 111% of
historical average
South Island storage sat
at 108% of average and
North Island storage at
120% of average on 11
November 2019
Meridian’s October 2019
monthly total inflows
were 97% of historical
average
October 2019 saw near
average temperatures, with
the exception of cooler
conditions in the lower
South Island. Rainfall was
variable and soil moisture
was near normal across
most of the country
New Zealand Aluminium
Smelter's load during
October 2019 was below
the contract level of
622MW
Meridian’s New Zealand
retail sales volumes in
October 2019 were 12.6%
higher than October 2018
Meridian’s Waitaki
catchment storage at the
end of October 2019 was
91% of historical average
Storage in Meridian’s
Waiaucatchment was
above average at the end
of October 2019
National electricity
demand in October 2019
was 1.5% higher than the
same month last year
Meridian made calls
under the Genesis
Swaptionin October 2019
Meridian Energy Limited Monthly Operating Report for October 20192
15 November 2019

MARKET DATA
▪National electricity demand in October
2019 was 1.5% higher than the same
month last year
▪October 2019 saw near average
temperatures, with the exception of cooler
conditions in the lower South Island.
Rainfall was variable and soil moisture was
near normal across most of the country
▪Demand in the last 12 months was 0.2%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter's load
during October 2019 was below the
contract level of 622MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 7.4% at the
end of September 2019
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.2% at the end
of September 2019
Source: Electricity Authority
Source: Electricity Authority
3
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
2,600
2,800
3,000
3,200
3,400
3,600
3,800
4,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL DEMAND
Range (2009-2018)201420152016201720182019
5%
7%
9%
11%
13%
15%
Sep 14Mar 15Sep 15Mar 16Sep 16Mar 17Sep 17Mar 18Sep 18Mar 19Sep 19
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

70
80
90
100
110
120
130
140
150
160
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
$/MWh
OTAHUHU ASX FUTURES SETTLEMENT PRICE
31 May 201928 June 201931 July 2019
30 August 201930 September 201931 October 2019
MARKET DATA
▪October 2019 saw ASX prices decline
▪National storage increased from 81% of
average on 9 October 2019 to 111% of
average on 11 November 2019
▪South Island storage increased to 108% of
historical average on 11 November 2019.
North Island storage increased to 120% of
average
Source: ASX
Source: ASX
Source: NZX
4
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
70
80
90
100
110
120
130
140
150
160
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
Q4
2023
$/MWh
BENMORE ASX FUTURES SETTLEMENT PRICE
31 May 201928 June 201931 July 2019
30 August 201930 September 201931 October 2019
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (11 November 2019)
85yr Average199220042008
2012201720182019

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.8% during
October 2019 and have risen 3.1% since
June 2019
▪Retail sales volumes in October 2019 were
12.6% higher than October 2018
▪Compared to October 2018,
residential/SMB sales volumes increased
by 0.5% (increases in all segments except
Agri) and corporate sales volumes
increased by 35.9%
▪To date this financial year, retail sales
volumes are 16.0% higher than the same
period last year
▪This reflects a 5.0% increase in
residential/SMB sales volumes and a
36.8% increase in corporate sales volumes
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian
operating
information
110
112
112
112
00000000
119
119
119
120
76
77
78
79
107
107
108
108
108
109
109
109
109
109
109109
119
119
119
119
119
119
119
119
119
119
119
119
66
66
67
68
69
69
70
71
72
73
74
74
0
50
100
150
200
250
300
350
JulAugSepOctNovDecJanFebMarAprMayJune
ICPs ('000)
MERIDIAN'S NZ CUSTOMER CONNECTIONS
FY20 Meridian NIFY20 Meridian SIFY20 Powershop
FY19 Meridian NIFY19 Meridian SIFY19 Powershop
350
376
349
347
00000000
248
254
233
243
336
347
326
345
301
280
359
345
334
289
310
329
185
182
171
178
180
168
196
189
223
219
228
219
0
100
200
300
400
500
600
700
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S RETAIL SALES VOLUMES*
FY20 Residential/SMBFY20 CorporateFY19 Residential/SMBFY19 Corporate

NEW ZEALAND STORAGE
▪October 2019 monthly inflows were 97%
of historical average
▪To date this financial year, inflows are 96%
of historical average
▪Meridian’s Waitaki catchment storage
moved from 948GWh to 982GWh during
October 2019
▪Waitaki storage at the end of October
2019 was 91% of historical average and
21% higher than the same time last year
▪Storage in Meridian’s Waiaucatchment
was above average at the end of October
2019
6
15 November 2019
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian
operating
information
0
1,000
2,000
3,000
4,000
5,000
6,000
200620072008200920102011201220132014201520162017201820192020
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
October YTD86 year average
0
500
1,000
1,500
2,000
2,500
1-Jan1-Mar1-May1-Jul1-Sep1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-201320152016201720182019

NEW ZEALAND GENERATION
▪Meridian’s New Zealand generation in
October 2019 was 11.9% higher than the
same month last year, reflecting higher
hydro generation and wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 5.5% higher than the
same period last year, reflecting higher
hydro generation and wind generation
▪The average price Meridian received for its
generation in October 2019 was 57.3%
lower than the same month last year
▪The average price Meridian paid to supply
customers in October 2019 was 57.9%
lower than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 6.4% lower than the same period last
year and the average price paid to supply
customers is 10.3% lower
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian
operating
information
0
200
400
600
800
1,000
1,200
1,400
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S NEW ZEALAND GENERATION
FY20 HydroFY20 WindFY19 HydroFY19 Wind
101
123
122
121
72
77
87
285
149
99
125
153
171
100
96
95
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY20FY19

AUSTRALIAN RETAIL
▪Australian retail electricity sales volumes
in October 2019 were 18.7% higher than
the same month last year
▪To date this financial year, Australian retail
electricity sales volume is 14.1% higher
than the same period last year
▪Powershop Australia electricity customer
connection numbers rose 3.1% during
October 2019 and have risen 8.1% since
June 2019
▪Gas customer connection numbers rose
5.0% during October 2019, with total sales
in the month of 119TJ
Source: Meridian
Source: Meridian
8
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian
operating
information
63
66
55
49
58
57
48
41
37
39
44
38
45
41
49
58
0
10
20
30
40
50
60
70
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
AUSTRALIAN RETAIL ELECTRICITY SALES VOLUMES
FY20FY19
176
192
171
119
4
20
40
41
20
17
99
13
25
102
64
0
50
100
150
200
250
JulAugSepOctNovDecJanFebMarAprMayJun
TJ
AUSTRALIAN RETAIL GAS SALES VOLUMES
FY20FY19

AUSTRALIAN GENERATION
▪Meridian’s Australian generation in
October 2019 was 12.6% lower than the
same month last year, reflecting higher
wind generation and lower hydro
generation
▪To date this financial year, Meridian’s
Australian generation is 15.5% lower than
the same period last year, reflecting lower
hydro generation and wind generation
Source: Meridian
9
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian
operating
information
61
56
44
44
3
7
19
17
74
64
43
40
37
36
33
30
33
36
49
49
10
11
25
30
26
23
29
21
16
11
1
3
0
10
20
30
40
50
60
70
80
90
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S AUSTRALIAN GENERATION
FY20 WindFY20 HydroFY19 WindFY19 Hydro

NEW ZEALAND
OCTOBER
2019
MONTH
OCTOBER
2018
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2019
MONTH
4 MONTHS
TO OCTOBER
2019
4 MONTHS
TO OCTOBER
2018
New Zealand sales
Retail contracted sales volume (GWh)5905245836302,4012,070
Average retail contractedsales price
1
($NZ/MWh)$102.7$98.3$109.5$115.4$110.4$107.2
NZAS sales volume (GWh)4634394474631,8361,701
Financial contract sales volumes
2
(GWh)129149148176603871
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$67.0$65.9$68.4$70.9$69.1$61.8
Retail customer supply volumes (GWh)6235545816622,5102,184
Cost to supplyretail customers ($NZ/MWh)$130.2$309.8$129.3$135.6$126.4$146.3
Cost to supply wholesale customers ($NZ/MWh)$118.7$284.1$126.1$120.5$115.7$130.6
Cost of financial contracts ($NZ/MWh)$112.6$267.7$120.5$118.2$113.5$113.8
TotalNew Zealand customer connections
4
311,694294,695309,372307,798
New Zealand generation
Hydro generation volumes (GWh)9808971,0151,1064,2124,048
Wind generation volumes (GWh)143107126135521439
Total generation volumes (GWh)1,1231,0041,1411,2414,7334,487
Average generationprice
5
($NZ/MWh)$121.4$284.6$121.9$122.7$116.5$124.5
New Zealand hedging
Hedging volume
6
(GWh)145200132139561594
Hedging costs ($NZ/MWh)$64.4$77.7$62.2$63.2$63.7$67.9
Hedging spot revenue average price ($NZ/MWh)$122.6$290.6$124.0$130.5$120.2$142.1
Future contract close outs ($NZ m)-$1.5-$0.5-$1.4-$0.6-$3.7-$1.5
10
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian operating information

AUSTRALIA
OCTOBER
2019
MONTH
OCTOBER
2018
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2019
MONTH
4 MONTHS
TO OCTOBER
2019
4 MONTHS
TO OCTOBER
2018
Australian contracted sales
Retail contracted electricity sales volume (GWh)49415566233204
Average electricity contractedsales price
1
($A/MWh)$168.0$150.4$131.2$147.0$148.4$157.4
Retail contracted gas sales volume (TJ)11941171192658106
Average gas contractedsales price
1
($A/GJ)$13.8$15.7$13.4$14.0$13.8$15.1
Financial contract sales volumes
2
(GWh)656043222
Financial contractedsales average price ($A/MWh)$80.1$90.1$86.1$84.7
Cost to supplyelectricity customers ($A/MWh)$119.9$108.7$118.0$126.4$117.4$107.5
Cost to supplygas customers ($A/GJ)$8.6$6.8$9.8$11.4$10.6$11.3
Cost of financial contracts ($A/MWh)$100.1$103.6$101.0$98.0
Powershopelectricity customer connections
7
118,72197,514115,099112,995
Powershopgas customer connections
8
27,8589,57726,52925,240
11
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian operating information

AUSTRALIA
12
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
OCTOBER
2019
MONTH
OCTOBER
2018
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2019
MONTH
4 MONTHS
TO OCTOBER
2019
4 MONTHS
TO OCTOBER
2018
Australian generation
Wind generation volumes (GWh)44404456205223
Average wind generationprice
5
($A/MWh)$128.2$178.3$125.9$124.7$125.0$156.3
Hydro generation volumes (GWh)17301974675
Average hydro generationprice
5
($A/MWh)$99.4$92.0$99.2$104.0$98.6$90.3
PPA generation received (GWh)3113303413042
Average PPA generationprice [net of costs] ($A/MWh)$45.2-$65.5$38.4$30.3$33.7-$66.3
Australian hedging
Hedging volume
6
(GWh)503639160
Hedging costs ($A/MWh)$95.5$94.3$93.1$93.4
Hedging spot revenue average price ($A/MWh)$107.7$111.4$105.4$106.2
Future contract close outs ($A M)-$0.5-$0.6-$0.4$0.0-$1.2-$1.6
Meridian operating information

MERIDIAN GROUP
Footnotes
1.Contracted sales volumes and volume weighted average price received from
contracted customers less distribution costs
2.Derivatives sold excluding the sell-side of virtual asset swaps
3.Average price of both NZAS sales volume and derivative sales volumes
4.Meridian Retail and Powershop New Zealand installation control points (ICPs),
excluding vacants
5.Volume weighted average price received for Meridian’s physical generation
6.Over the counter and ASX contract volumes excluding the buy-side of virtual asset
swaps
7.Financially responsible market participants, excluding vacants
8.Meter installation registration numbers
13
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
OCTOBER
2019
MONTH
OCTOBER
2018
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2019
MONTH
4 MONTHS
TO OCTOBER
2019
4 MONTHS
TO OCTOBER
2018
Meridian Group
Employee and Operating Costs ($m)252225249891
Stay in Business Capital Expenditure ($m)45431516
Investment Capital Expenditure ($m)112264
Total Capital Expenditure ($m)56652120
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201920192019201920192019202020202020202020202020
New Zealand contracted sales
Retail contracted sales volume (GWh)599630583590
Average retail contracted sales price ($NZ/MWh)$113.5$115.4$109.5$102.7
NZAS sales volume (GWh)463463447463
Financial contract sales volumes (GWh)150176148129
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0
Retail customer supply volumes (GWh)645662581623
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7
Cost of financial contracts ($NZ/MWh)$101.9$118.2$120.5$112.6
Total New Zealand customer connections304,993307,798309,372311,694
New Zealand generation
Hydro generation volume (GWh)1,1111,1061,015980
Wind generation volume (GWh)116135126143
Total generation volume (GWh)1,2271,2411,1411,123
Average generation price ($NZ/MWh)$100.7$122.7$121.9$121.4
New Zealand hedging
Hedging volume (GWh)145139132145
Hedging costs ($NZ/MWh)$65.0$63.2$62.2$64.4
Hedging spot revenue average price ($NZ/MWh)$104.4$130.5$124.0$122.6
Future contract close outs ($NZm)-0.3-0.6-1.4-1.5
Australia contracted sales
Retail contracted electricity sales volume (GWh)63665549
Average electricity contracted sales price
1
($A/MWh)$149.8$147.0$131.2$168.0
Retail contracted gas sales volume (TJ)176192171119
Average gas contracted sales price
1
($A/GJ)$13.9$14.0$13.4$13.8
Financial contract sales volumes
2
(GWh)54436065
Financial contracted sales average price ($A/MWh)$83.3$86.1$90.1$80.1
Cost to supply electricity customers ($A/MWh)$105.5$126.4$118.0$119.9
Cost to supply gas customers ($A/GJ)$11.8$11.4$9.8$8.6
Cost of financial contracts ($A/MWh)$86.9$101.0$103.6$100.1
Powershop electricity customer connections
7
111,373112,995115,099118,721
Powershop gas customer connections
8
24,09625,24026,52927,858
Australia generation
Wind generation volume (GWh)61564444
Average wind generation price ($A/MWh)$122.3$124.7$125.9$128.2
Hydro generation volume (GWh)371917
Average hydro generation price ($A/MWh)$81.0$104.0$99.2$99.4
PPA generation received (GWh)35343031
Average PPA generation price [net of costs] ($A/MWh)$22.9$30.3$38.4$45.2
Australia hedging
Hedging volume (GWh)36393650
Hedging costs ($A/MWh)$89.6$93.1$94.3$95.5
Hedging spot revenue average price ($A/MWh)$99.6$105.4$111.4$107.7
Future contract close outs ($A M)-$0.3$0.0-$0.4-$0.5
Meridian Group
Employee and Operating Costs ($NZ m)24242525
Stay in Business Capital Expenditure ($NZ m)4344
Investment Capital Expenditure ($NZ m)1221
Total Capital Expenditure ($NZ m)5565
FY20 OPERATING INFORMATION
14
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201820182018201820182018201920192019201920192019
New Zealand contracted sales
Retail contracted sales volume (GWh)521529497524481448555534557508538548
Average retail contracted sales price ($NZ/MWh)$113.1$110.7$106.7$98.3$98.5$95.5$98.2$102.0$101.3$105.4$112.7$113.9
NZAS sales volume (GWh)426426411439444463463418463448463448
Financial contract sales volumes (GWh)386196140149146217157196187168168129
Average wholesale & financial contracts sales price ($NZ/MWh)$63.9$58.5$58.0$65.9$72.7$68.9$69.4$80.6$80.3$73.0$72.3$69.6
Retail customer supply volumes (GWh)541560528554509468581572587538578592
Cost to supply retail customers ($NZ/MWh)$87.1$90.0$95.0$309.8$183.0$115.5$141.3$171.6$186.0$113.4$113.3$102.8
Cost to supply wholesale customers ($NZ/MWh)$68.9$74.4$88.7$284.1$137.1$98.1$125.8$153.6$168.2$97.5$93.1$89.7
Cost of financial contracts ($NZ/MWh)$71.8$93.1$94.3$267.7$152.7$116.5$126.1$156.8$163.0$104.4$96.3$103.0
Total New Zealand customer connections292,091292,906293,386294,695296,064296,532297,621299,351299,905301,230301,508302,277
New Zealand generation
Hydro generation volume (GWh)1,0701,1239598979059721,0221,0151,0461,0601,1251,132
Wind generation volume (GWh)1269011510799831161048199123100
Total generation volume (GWh)1,1961,2131,0741,0041,0041,0551,1381,1191,1281,1591,2481,232
Average generation price ($NZ/MWh)$72.1$77.2$86.8$284.6$149.5$98.8$125.3$153.1$171.5$99.8$96.5$95.2
New Zealand hedging
Hedging volume (GWh)170167147200190177155142186144149138
Hedging costs ($NZ/MWh)$65.7$63.1$62.5$77.7$74.7$61.7$69.3$66.6$71.2$65.0$66.3$63.9
Hedging spot revenue average price ($NZ/MWh)$74.5$80.8$87.9$290.6$180.8$104.6$127.7$157.7$168.4$103.1$101.9$97.5
Future contract close outs ($NZm)-0.1-0.3-0.6-0.5-0.5-0.5-0.4-0.7-2.8-1.1-0.4-0.1
Australia contracted sales
Retail contracted electricity sales volume (GWh)585748413739443845414958
Average electricity contracted sales price
1
($A/MWh)$149.6$168.9$159.4$150.4$162.2$159.7
Retail contracted gas sales volume (TJ)4204041201799132510264
Average gas contracted sales price
1
($A/GJ)$16.1$15.5$14.2$15.7$15.4$19.4
Financial contract sales volumes
2
(GWh)5142
Financial contracted sales average price ($A/MWh)$64.1$80.7
Cost to supply electricity customers ($A/MWh)$103.1$105.7$114.1$108.7$112.4$133.7
Cost to supply gas customers ($A/GJ)$14.8$12.8$15.0$6.8$11.7$29.4
Cost of financial contracts ($A/MWh)$70.1$100.2
Powershop electricity customer connections
7
96,74396,80196,65797,51498,61899,368101,020102,730104,450106,240108,332109,804
Powershop gas customer connections
8
1,1374,7767,5589,57711,33312,50814,30916,75118,22519,99021,42622,612
Australia generation
Wind generation volume (GWh)746443403736333033364949
Average wind generation price ($A/MWh)$153.0$148.0$154.1$178.3$143.9$126.1
Hydro generation volume (GWh)1011253026232921161113
Average hydro generation price ($A/MWh)$37.3$46.0$128.6$92.0$79.3$77.4
PPA generation received (GWh)11107133331
Average PPA generation price [net of costs] ($A/MWh)-$66.0-$63.9-$71.3-$65.5$40.4$34.2
Australia hedging
Hedging volume (GWh)8051
Hedging costs ($A/MWh)$65.6$95.9
Hedging spot revenue average price ($A/MWh)$58.2$99.0
Future contract close outs ($A M)-$0.1-$0.1-$0.8-$0.6$0.0$0.1
Meridian Group
Employee and Operating Costs ($NZ m)222324222222222223222629
Stay in Business Capital Expenditure ($NZ m)534543333459
Investment Capital Expenditure ($NZ m)111111121121
Total Capital Expenditure ($NZ m)6456544545710
FY19 OPERATING INFORMATION
15
15 November 2019
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian operating information

Hedging volumesbuy-side electricity derivativesexcludingthe buy-side of virtual asset swaps
Average generation pricethe volume weighted average price received for Meridian’s physical generation
Average retail contracted sales pricevolume weighted average electricity price received from retail customers, less distribution costs
Average wholesale contracted sales pricevolume weighted average electricity price received from wholesale customers(including NZAS) and financial contracts
Combined catchment inflowscombined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes
Cost of hedgesvolume weighted average price Meridian pays for derivatives acquired
Cost to supply contracted salesvolume weighted average price Meridian pays to supply contracted customer sales and financial contracts
Contracts for Difference (CFDs)an agreement betweenparties to pay the difference between the wholesale electricity price and an agreed fixed price for
a specified volume of electricity. CFDs do not result in the physical supply of electricity
Customer connections (NZ)number of installation control points, excluding vacants
FRMPfinancially responsible market participant
GWhgigawatt hour. Enough electricity for 125 average New Zealand households for one year
Historic average inflowsthe historic average combined water inflows into Meridian’s Waitaki and Waiau hydro storage lakes over the last 85 years
Historic average storagethe historic average level of storage in Meridian’s Waitaki catchment since 1979
HVDChigh voltage direct current link between the North and South Islands of New Zealand
ICPNew Zealand installation control points, excluding vacants
ICP switchingthe number of installation control points changing retailer supplier in New Zealand, recorded in the month the switch was
initiated
MWhmegawatt hour. Enough electricity for one average New Zealand household for 46 days
NationaldemandElectricity Authority’s reconciled grid demand www.emi.ea.govt.nz
NZASNew Zealand Aluminium SmeltersLimited
Retail sales volumescontract sales volumes to retail customers, including both non half hourly and half hourly metered customers
Financial contract salessell-side electricity derivatives excluding thesell-side of virtual asset swaps
TJTerajoules
Virtual Asset Swaps(VAS)CFDs Meridian has with Genesis Energy and Mercury New Zealand. They do not result in the physical supply of electricity
16
15 November 2019
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for October 2019
Meridian operating information