Meridian Energy monthly operating report for December 2019

PG 1

Meridian Energy monthly operating report for December 2019
15 January 2020
Attached is Meridian Energy Limited's monthly operating report for the month of December 2019.
Highlights this month include:
▪ In the month to 13 January 2020, national hydro storage decreased from 175% to 123% of historical average
▪ South Island storage sat at 121% of average and North Island storage at 132% of average on 13 January 2020
▪ Meridian’s December 2019 monthly total inflows were 204% of historical average
▪ Meridian’s Waitaki catchment storage at the end of December 2019 was 136% of historical average
▪ Storage in Meridian’s Waiau catchment was well above average at the end of December 2019
▪ Meridian made calls under the Genesis Swaption in early January 2020
▪ National electricity demand in December 2019 was 4.9%

higher than the same month last year
▪ December 2019 saw wet and cool South Island conditions, while the North Island was warmer and drier than
average
▪ New Zealand Aluminium Smelter's load during December 2019 was below the contract level of 622MW
▪ Meridian’s New Zealand retail sales volumes in December 2019 were 45.0% higher than December 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 E R I D I A N E N E R G Y L I M I T E D
M O N T H LY O P E R AT I N G R E P O R T
April 2019
M O N T H LY O P ER AT I N G R EP O RT
D EC E M B E R 2 0 1 9

D E C E M B E R H I G H L I G H T S
In the month to 13
January 2020, national
hydro storage decreased
from 175% to 123% of
historical average
South Island storage sat
at 121% of average and
North Island storage at
132% of average on 13
January 2020
Meridian’s December
2019 monthly total
inflows were 204% of
historical average
December 2019 saw wet
and cool South Island
conditions, while the North
Island was warmer and
drier than average
New Zealand Aluminium
Smelter's load during
December 2019 was below
the contract level of
622MW
Meridian’s New Zealand
retail sales volumes in
December 2019 were
45.0% higher than
December 2018
Meridian’s Waitaki
catchment storage at the
end of December 2019
was 136% of historical
average
Storage in Meridian’s
Waiaucatchment was
well above average at the
end of December 2019
National electricity
demand in December
2019 was 4.9%higher
than the same month last
year
Meridian made calls
under the Genesis
Swaptionin early January
2020
Meridian Energy Limited Monthly Operating Report for December 20192
15 January 2020

MARKET DATA
▪National electricity demand in December
2019 was 4.9% higher than the same
month last year
▪December 2019 saw wet and cool South
Island conditions, while the North Island
was warmer and drier than average
▪Demand in the last 12 months was 1.3%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter's load
during December 2019 was below the
contract level of 622MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.9% at the
end of November 2019
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.3% at the end
of November 2019
Source: Electricity Authority
Source: Electricity Authority
3
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
5%
7%
9%
11%
13%
15%
Nov 14May 15Nov 15May 16Nov 16May 17Nov 17May 18Nov 18May 19Nov 19
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches
2,600
2,800
3,000
3,200
3,400
3,600
3,800
4,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL DEMAND
Range (2009-2018)201420152016201720182019

MARKET DATA
▪December 2019 saw declines in near-term
ASX prices
▪National storage decreased from 175% of
average on 10 December 2019 to 123% of
average on 13 January 2020
▪South Island storage decreased to 121% of
historical average on 13 January. North
Island storage increased to 132% of
average
Source: ASX
Source: ASX
Source: NZX
4
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 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
OTAHUHU ASX FUTURES SETTLEMENT PRICE
28 June 201930 August 201930 September 2019
31 October 201929 November 201931 December 2020
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
28 June 201930 August 201930 September 2019
31 October 201929 November 201931 December 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (13 January 2020)
86yr Average199220042008
2012201820192020

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.1% during
December 2019 and have risen 3.7% since
June 2019
▪Retail sales volumes in December 2019
were 45.0% higher than December 2018
▪Compared to December 2018,
residential/SMB sales volumes increased
by 43.2% (increases in all segments,
notably higher Agri sales) and corporate
sales volumes increased by 47.9%
▪To date this financial year, retail sales
volumes are 22.1% higher than the same
period last year
▪This reflects a 12.9% increase in
residential/SMB sales volumes and a
38.7% increase in corporate sales volumes
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
Meridian
operating
information
110
112
112
112
113
112
000000
119
119
119
120
120
120
76
77
78
79
80
82
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
363
401
000000
248
254
233
243
247
248
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
▪December 2019 monthly inflows were
204% of historical average
▪To date this financial year, inflows are
136% of historical average
▪Meridian’s Waitaki catchment storage
moved from 1,593GWh to 2,213GWh
during December 2019
▪Waitaki storage at the end of December
2019 was 136% of historical average and
39% higher than the same time last year
▪Storage in Meridian’s Waiaucatchment
was also well above average at the end of
December 2019
6
15 January 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for December 2019
Meridian
operating
information
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
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
200620072008200920102011201220132014201520162017201820192020
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
December YTD86 year average

NEW ZEALAND GENERATION
▪Meridian’s New Zealand generation in
December 2019 was 20.5% 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 9.8% higher than the
same period last year, reflecting higher
hydro generation and wind generation
▪The average price Meridian received for its
generation in December 2019 was 48.0%
lower than the same month last year
▪The average price Meridian paid to supply
customers in December 2019 was 48.5%
lower than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 18.5% lower than the same period last
year and the average price paid to supply
customers is 20.8% lower
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 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
94
51
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 December 2019 were 27.6% higher
than the same month last year
▪To date this financial year, Australian retail
electricity sales volume is 17.6% higher
than the same period last year
▪Powershop Australia electricity customer
connection numbers rose 2.5% during
December 2019 and have risen 13.5%
since June 2019
▪Gas customer connection numbers rose
4.4% during December 2019, with total
sales in the month of 51TJ
Source: Meridian
Source: Meridian
8
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
Meridian
operating
information
63
66
55
49
46
50
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
64
51
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
December 2019 was 3.8% 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 12.5% lower than
the same period last year, reflecting lower
wind generation and lower hydro
generation
Source: Meridian
9
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
Meridian
operating
information
61
56
44
44
44
41
3
7
19
17
15
16
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
DECEMBER
2019
MONTH
DECEMBER
2018
MONTH
NOVEMBER
2019
MONTH
OCTOBER
2019
MONTH
6 MONTHS TO
DECEMBER
2019
6 MONTHS TO
DECEMBER
2018
New Zealand sales
Retail contracted sales volume (GWh)6504486105903,6612,999
Average retail contractedsales price
1
($NZ/MWh)$100.0$95.6$99.8$102.7$106.8$104.1
NZAS sales volume (GWh)4634634484632,7462,608
Financial contract sales volumes
2
(GWh)1642171351299021,234
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$62.3$68.9$65.3$67.0$67.3$64.7
Retail customer supply volumes (GWh)6694686506233,8293,160
Cost to supplyretail customers ($NZ/MWh)$57.1$115.5$112.7$130.2$112.0$147.7
Cost to supply wholesale customers ($NZ/MWh)$45.4$98.1$89.6$118.7$99.6$125.9
Cost of financial contracts ($NZ/MWh)$81.6$116.5$92.8$112.6$104.6$118.8
TotalNew Zealand customer connections
4
313,599296,583313,150311,694
New Zealand generation
Hydro generation volumes (GWh)1,1479721,0499806,4085,925
Wind generation volumes (GWh)12583133143779621
Total generation volumes (GWh)1,2721,0551,1821,1237,1876,546
Average generationprice
5
($NZ/MWh)$51.4$98.8$93.7$121.4$101.2$124.2
New Zealand hedging
Hedging volume
6
(GWh)1821771481458911,051
Hedging costs ($NZ/MWh)$64.4$61.7$67.3$64.4$64.5$68.1
Hedging spot revenue average price ($NZ/MWh)$63.1$104.6$104.1$122.6$105.8$142.8
Future contract close outs ($NZ m)-$0.9-$0.5-$0.2-$1.5-$4.8-$2.6
10
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
Meridian operating information

AUSTRALIA
DECEMBER
2019
MONTH
DECEMBER
2018
MONTH
NOVEMBER
2019
MONTH
OCTOBER
2019
MONTH
6 MONTHS TO
DECEMBER
2019
6 MONTHS TO
DECEMBER
2018
Australian contracted sales
Retail contracted electricity sales volume (GWh)50394649329280
Average electricity contractedsales price
1
($A/MWh)$161.1$165.9$174.0$168.0$153.9$157.8
Retail contracted gas sales volume (TJ)511764119773143
Average gas contractedsales price
1
($A/GJ)$20.0$24.7$18.9$13.8$14.6$17.0
Financial contract sales volumes
2
(GWh)686365353
Financial contractedsales average price ($A/MWh)$79.2$80.1$80.1$82.8
Cost to supplyelectricity customers ($A/MWh)$82.2$111.4$89.2$119.9$108.1$108.8
Cost to supplygas customers ($A/GJ)$9.9$14.0$14.0$8.6$10.8$11.3
Cost of financial contracts ($A/MWh)$58.2$68.3$100.1$85.1
Powershopelectricity customer connections
7
124,66899,368121,575118,721
Powershopgas customer connections
8
30,46512,50829,18227,858
11
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
Meridian operating information

AUSTRALIA
12
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
DECEMBER
2019
MONTH
DECEMBER
2018
MONTH
NOVEMBER
2019
MONTH
OCTOBER
2019
MONTH
6 MONTHS TO
DECEMBER
2019
6 MONTHS TO
DECEMBER
2018
Australian generation
Wind generation volumes (GWh)41364444290296
Average wind generationprice
5
($A/MWh)$101.9$134.9$110.3$125.5$117.9$151.0
Hydro generation volumes (GWh)1623151777123
Average hydro generationprice
5
($A/MWh)$64.4$94.8$66.9$99.4$85.5$91.2
PPA generation received (GWh)2911303119065
Average PPA generationprice [net of costs] ($A/MWh)$7.8$20.8$16.5$45.2$27.0$17.4
Australian hedging
Hedging volume
6
(GWh)504850258
Hedging costs ($A/MWh)$89.9$89.9$95.5$92.1
Hedging spot revenue average price ($A/MWh)$58.6$72.3$107.7$90.7
Future contract close outs ($A M)-$0.1$0.0-$0.3-$0.3-$1.1-$0.2
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 January 2020
Meridian Energy Limited Monthly Operating Report for December 2019
DECEMBER
2019
MONTH
DECEMBER
2018
MONTH
NOVEMBER
2019
MONTH
OCTOBER
2019
MONTH
6 MONTHS TO
DECEMBER
2019
6 MONTHS TO
DECEMBER
2018
Meridian Group
Employee and Operating Costs ($m)22222425144135
Stay in Business Capital Expenditure ($m)43442423
Investment Capital Expenditure ($m)112187
Total Capital Expenditure ($m)54653230
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201920192019201920192019202020202020202020202020
New Zealand contracted sales
Retail contracted sales volume (GWh)599630583590610650
Average retail contracted sales price ($NZ/MWh)$113.5$115.4$109.5$102.7$99.8$100.0
NZAS sales volume (GWh)463463447463448463
Financial contract sales volumes (GWh)150176148129135164
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0$65.3$62.3
Retail customer supply volumes (GWh)645662581623650669
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2$112.7$57.1
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7$89.6$45.4
Cost of financial contracts ($NZ/MWh)$101.9$118.2$120.5$112.6$92.8$81.6
Total New Zealand customer connections304,993307,798309,372311,694313,150313,599
New Zealand generation
Hydro generation volume (GWh)1,1111,1061,0159801,0491,147
Wind generation volume (GWh)116135126143133125
Total generation volume (GWh)1,2271,2411,1411,1231,1821,272
Average generation price ($NZ/MWh)$100.7$122.7$121.9$121.4$93.7$51.4
New Zealand hedging
Hedging volume (GWh)145139132145148182
Hedging costs ($NZ/MWh)$65.0$63.2$62.2$64.4$67.3$64.4
Hedging spot revenue average price ($NZ/MWh)$104.4$130.5$124.0$122.6$104.1$63.1
Future contract close outs ($NZm)-0.3-0.6-1.4-1.5-0.2-0.9
Australia contracted sales
Retail contracted electricity sales volume (GWh)636655494650
Average electricity contracted sales price
1
($A/MWh)$149.8$147.0$131.2$168.0$174.0$161.1
Retail contracted gas sales volume (TJ)1761921711196451
Average gas contracted sales price
1
($A/GJ)$13.9$14.0$13.4$13.8$18.9$20.0
Financial contract sales volumes
2
(GWh)544360656368
Financial contracted sales average price ($A/MWh)$83.3$86.1$90.1$80.1$80.1$79.2
Cost to supply electricity customers ($A/MWh)$105.5$126.4$118.0$119.9$89.2$82.2
Cost to supply gas customers ($A/GJ)$11.8$11.4$9.8$8.6$14.0$9.9
Cost of financial contracts ($A/MWh)$86.9$101.0$103.6$100.1$68.3$58.2
Powershop electricity customer connections
7
111,373112,995115,099118,721121,575124,668
Powershop gas customer connections
8
24,09625,24026,52927,85829,18230,465
Australia generation
Wind generation volume (GWh)615644444441
Average wind generation price ($A/MWh)$115.7$124.7$127.3$125.5$110.3$101.9
Hydro generation volume (GWh)3719171516
Average hydro generation price ($A/MWh)$81.0$104.0$99.2$99.4$66.9$64.4
PPA generation received (GWh)353430313029
Average PPA generation price [net of costs] ($A/MWh)$22.9$30.3$38.4$45.2$16.5$7.8
Australia hedging
Hedging volume (GWh)363936504850
Hedging costs ($A/MWh)$89.6$93.1$94.3$95.5$89.9$89.9
Hedging spot revenue average price ($A/MWh)$99.6$105.4$111.4$107.7$72.3$58.6
Future contract close outs ($A M)-$0.8$0.0-$0.5-$0.3-$0.3-$0.1
Meridian Group
Employee and Operating Costs ($NZ m)242425252422
Stay in Business Capital Expenditure ($NZ m)434444
Investment Capital Expenditure ($NZ m)122121
Total Capital Expenditure ($NZ m)556565
FY20 OPERATING INFORMATION
14
15 January 2020
Meridian Energy Limited Monthly Operating Report for December 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$151.5$165.9$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$20.7$24.7$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$113.3$111.4$112.4$133.7
Cost to supply gas customers ($A/GJ)$14.8$12.8$15.0$6.8$8.9$14.0$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$163.9$178.3$123.2$134.9$143.9$126.1
Hydro generation volume (GWh)1011253026232921161113
Average hydro generation price ($A/MWh)$37.3$46.0$128.6$92.0$90.9$94.8$79.3$77.4
PPA generation received (GWh)111071312113331
Average PPA generation price [net of costs] ($A/MWh)-$66.0-$63.9-$71.3-$65.5$121.3$20.8$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-$1.2-$0.6$1.9$0.0$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 January 2020
Meridian Energy Limited Monthly Operating Report for December 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 January 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for December 2019
Meridian operating information