Meridian Energy Monthly Operating Report for March 2020

PG 1

Meridian Energy monthly operating report for March 2020
15 April 2020
Attached is Meridian Energy Limited's monthly operating report for the month of March 2020.

Highlights this month include:
▪ In the month to 9 April 2020, national hydro storage decreased from 111% to 94% of historical average
▪ South Island storage sat at 96% of average and North Island storage at 71% of average on 9 April 2020
▪ Meridian’s March 2020 monthly total inflows were 79% of historical average
▪ Meridian’s Waitaki catchment storage at the end of March 2020 was 107% of historical average
▪ Storage in Meridian’s Waiau catchment was below average at the end of March
▪ National electricity demand in March 2020 was 2.0%

lower than the same month last year
▪ COVID-19 lockdown has reduced weekly demand in April 2020 by around 16% compared to the same period
last year
▪ Meridian made calls under the Genesis Swaption in March 2020
▪ Pohokura offshore gas wells and the HVDC link returned to full operation in late March/early April 2020
respectively
▪ March 2020 was dry across much of the country, with the exception of the lower North Island and Northern
Canterbury. Temperatures were near to below average
▪ New Zealand Aluminium Smelter's load during March 2020 was below the contract level of 622MW
▪ In early April 2020 the 4
th
potline at Tiwai Point was suspended for up to six months in response to COVID-19
▪ Meridian’s New Zealand retail sales volumes in March 2020 were 14.7% higher than March 2019
▪ April 2020 is seeing significantly lower business and commercial sales, higher residential sales

PG 2
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:
Polly Atkins
Senior Communications Specialist

021 174 1715

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
M A RC H 2 0 2 0

M A R C H H I G H L I G H T S
In the month to 9 April
2020, national hydro
storage decreased from
111% to 94% of historical
average
South Island storage sat at
96% of average and North
Island storage at 71% of
average on 9 April 2020
Meridian’s March 2020
monthly total inflows were
79% of historical average
Meridian’s Waitaki
catchment storage at the
end of March 2020 was
107% of historical average
Storage in Meridian’s Waiau
catchment was below
average at the end of March
March 2020 was dry across
much of the country, with the
exception of the lower North
Island and Northern
Canterbury. Temperatures were
near to below average
New Zealand Aluminium
Smelter's load during March
2020 was below the contract
level of 622MW
In early April 2020 the 4
th
potline at TiwaiPoint was
suspended for up to six months
in response to COVID-19
Meridian’s New Zealand retail
sales volumes in March 2020
were 14.7% higher than March
2019
April 2020 is seeing significantly
lower business and commercial
sales, higher residential sales
National electricity demand
in March 2020 was 2.0%
lower than the same month
last year
COVID-19 lockdown has
reduced weekly demand in
April 2020 by around 16%
compared to the same
period last year
Meridian made calls under
the Genesis Swaptionin
March 2020
Pohokuraoffshore gas wells
and the HVDC link returned
to full operation in late
March/early April 2020
respectively
Meridian Energy Limited Monthly Operating Report for March 20202
15 April 2020

▪National electricity demand in March 2020 was
2.0% lower than the same month last year
▪March 2020 was dry across much of the country,
with the exception of the lower North Island
and Northern Canterbury. Temperatures were
near to below average
▪Demand in the last 12 months was 0.6% higher
than the preceding 12 months
▪COVID-19 lockdown has reduced weekly
demand in April 2020 by around 16% compared
to the same period last year
▪New Zealand Aluminium Smelter's load during
March 2020 was below the contract level of
622MW
▪In early April 2020 the 4
th
potline at TiwaiPoint
suspended operation
1
in response to COVID-19
▪12-month average switching rate of customers
changing retailers but not moving (“trader”
switch) was 6.7% at the end of February 2020
▪12-month average switching rate of customers
moving and changing retailers (“move-in”
switch) was 13.4% at the end of February 2020
MARKET DATA
Source: Electricity Authority
Source: Electricity Authority (final pricing demand)
3
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
5%
7%
9%
11%
13%
15%
Feb 15Aug 15Feb 16Aug 16Feb 17Aug 17Feb 18Aug 18Feb 19Aug 19Feb 20
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches
600
650
700
750
800
850
900
05-Jan05-Mar05-May05-Jul05-Sep05-Nov
GWh
NATIONAL DEMAND (WEEKLY)
Range (2015-2019)5 year average20192020
1
for up to six months

MARKET DATA
▪March 2020 saw changes in near-term ASX
prices and across the Benmore curve
▪Pohokuraoffshore gas wells and the HVDC
link returned to full operation in late
March/early April 2020 respectively
▪National storage decreased from 111% of
average on 10 March 2020 to 94% of
average on 9 April 2020
▪South Island storage decreased to 96% of
historical average on 9 April 2020. North
Island storage decreased to 71% of average
Source: ASX
Source: ASX
Source: NZX
4
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (9 April 2020)
86yr Average199220042008
2012201820192020
50
60
70
80
90
100
110
120
130
140
150
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 201929 November 201931 December 2020
31 January 202028 February 202031 March 2020
50
60
70
80
90
100
110
120
130
140
150
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 201929 November 201931 December 2020
31 January 202028 February 202031 March 2020

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.6% during
March 2020 and have risen 5.8% since
June 2019
▪Retail sales volumes in March 2020 were
14.7% higher than March 2019
▪Compared to March 2019,
residential/SMB sales volumes increased
by 10.7% (increases in all segments) and
corporate sales volumes increased by
20.7%
▪To date this financial year, retail sales
volumes are 21.4% higher than the same
period last year
▪This reflects a 13.0% increase in
residential/SMB sales volumes and a
36.4% increase in corporate sales volumes
▪April 2020 is seeing significantly lower
business and commercial sales, higher
residential sales from the level 4 lockdown
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian
operating
information
110
112
112
112
113
112
113
113
114
000
119
119
119
120
120
120
119
120
120
76
77
78
79
80
82
83
85
86
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
421
381
370
000
248
254
233
243
247
248
272
264
269
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
▪March 2020 monthly inflows were 79% of
historical average
▪To date this financial year, inflows are
124% of historical average
▪Meridian’s Waitaki catchment storage
moved from 2,229GWh to 2,002GWh
during March 2020
▪Waitaki storage at the end of March 2020
was 107% of historical average and
consistent with the same time last year
▪Storage in Meridian’s Waiaucatchment
was below average at the end of March
2020
6
15 April 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian
operating
information
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
200620072008200920102011201220132014201520162017201820192020
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
March YTD86 year average
0
500
1,000
1,500
2,000
2,500
3,000
1-Jan1-Mar1-May1-Jul1-Sep1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-201520162017201820192020

NEW ZEALAND GENERATION
▪Meridian’s New Zealand generation in
March 2020 was 5.9% higher than the same
month last year, reflecting higher hydro and
wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 8.9% higher than the
same period last year, reflecting higher
hydro and wind generation
▪April has seen lower market generation,
with reduced thermal generation in
response to decreased demand, lower spot
prices and completion of HVDC outages
▪The average price Meridian received for its
generation in March 2020 was 69.6% lower
than the same month last year
▪The average price Meridian paid to supply
customers in March 2020 was 68.7% lower
than the same month last year
▪To date this financial year, the average price
Meridian received for its generation is
34.8% lower than the same period last year
and the average price paid to supply
customers is 35.7% lower
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
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
77
43
52
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 March 2020 were 18.9% higher than
the same month last year
▪To date this financial year, Australian retail
electricity sales volume is 19.2% higher
than the same period last year
▪Powershop Australia electricity customer
connection numbers rose 2.1% during
March 2020 and have risen 22.4% since
June 2019
▪Gas customer connection numbers rose
5.9% during March 2020, with total sales
in the month of 52TJ
▪April 2020 electricity sales are higher,
reflecting Powershop Australia’s
predominately residential customer base
Source: Meridian
Source: Meridian
8
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian
operating
information
63
66
55
49
46
50
51
50
53
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
22
37
52
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 March
2020 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 12.8% lower than
the same period last year, reflecting
higher wind generation and lower hydro
generation
▪Grid demand in the Australian market fell
7% in March 2020 compared to the prior
year, and has fallen further in April 2020
with COVID-19 policy measures
Source: Meridian
9
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian
operating
information
61
56
44
44
44
41
38
32
39
3
7
19
17
15
16
14
9
8
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
MARCH
2020
MONTH
MARCH
2019
MONTH
FEBRUARY
2020
MONTH
JANUARY
2020
MONTH
9 MONTHS
TO MARCH
2020
9 MONTHS
TO MARCH
2019
New Zealand sales
Retail contracted sales volume (GWh)6395576466945,6404,645
Average retail contractedsales price
1
($NZ/MWh)$108.3$101.3$109.5$103.3$106.8$102.8
NZAS sales volume (GWh)4634634334634,1053,951
Financial contract sales volumes
2
(GWh)3541872831701,7081,774
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$66.7$80.3$68.7$66.5$67.3$68.7
Retail customer supply volumes (GWh)6665876827335,9104,900
Cost to supplyretail customers ($NZ/MWh)$67.4$186.0$67.9$95.1$99.8$154.3
Cost to supply wholesale customers ($NZ/MWh)$44.7$168.2$36.6$76.8$84.2$133.8
Cost of financial contracts ($NZ/MWh)$45.7$163.0$47.0$86.7$81.1$128.3
TotalNew Zealand customer connections
4
319,778299,905317,784315,225
New Zealand generation
Hydro generation volumes (GWh)1,0851,0471,0771,0959,6659,009
Wind generation volumes (GWh)109811081221,118921
Total generation volumes (GWh)1,1941,1281,1851,21710,7839,930
Average generationprice
5
($NZ/MWh)$52.1$171.5$43.4$77.1$86.7$132.9
New Zealand hedging
Hedging volume
6
(GWh)4281863422961,9561,533
Hedging costs ($NZ/MWh)$106.4$71.2$100.7$96.1$84.7$68.4
Hedging spot revenue average price ($NZ/MWh)$59.8$168.4$75.1$100.0$89.5$145.7
Future contract close outs ($NZ m)-$0.1-$2.8-$0.2-$0.2-$5.3-$6.5
10
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian operating information

AUSTRALIA
MARCH
2020
MONTH
MARCH
2019
MONTH
FEBRUARY
2020
MONTH
JANUARY
2020
MONTH
9 MONTHS TO
MARCH
2020
9 MONTHS TO
MARCH
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)53455051484406
Average electricity contractedsales price
1
($A/MWh)$142.0$157.2$150.4$130.0$149.7$158.1
Retail contracted gas sales volume (TJ)52133722884173
Average gas contractedsales price
1
($A/GJ)$18.7$45.1$22.2$33.4$15.6$21.7
Financial contract sales volumes
2
(GWh)464346489
Financial contractedsales average price ($A/MWh)$122.0$122.0$122.0$93.7
Cost to supplyelectricity customers ($A/MWh)$53.6$152.3$111.9$257.6$118.3$137.5
Cost to supplygas customers ($A/GJ)$13.6$38.8$20.4$41.1$12.1$15.0
Cost of financial contracts ($A/MWh)$45.8$52.2$138.8$83.5
Powershopelectricity customer connections
7
134,399104,450131,647127,847
Powershopgas customer connections
8
35,39218,22533,42832,387
11
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian operating information

AUSTRALIA
12
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
MARCH
2020
MONTH
MARCH
2019
MONTH
FEBRUARY
2020
MONTH
JANUARY
2020
MONTH
9 MONTHS TO
MARCH
2020
9 MONTHS TO
MARCH
2019
Australian generation
Wind generation volumes (GWh)39333238398392
Average wind generationprice
5
($A/MWh)$77.8$175.3$474.6$225.9$152.6$150.7
Hydro generation volumes (GWh)816914108189
Average hydro generationprice
5
($A/MWh)$43.8$123.1$56.4$153.1$88.3$113.1
PPA generation received (GWh)30232829276132
Average PPA generationprice [net of costs] ($A/MWh)-$8.9$42.0$1.4$59.5$23.8$24.1
Australian hedging
Hedging volume
6
(GWh)424339383
Hedging costs ($A/MWh)$185.1$197.7-$23.1$107.7
Hedging spot revenue average price ($A/MWh)$43.5$58.6$130.3$85.8
Future contract close outs ($A M)-$0.1$0.1$0.5$0.0$1.1$0.1
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 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
MARCH
2020
MONTH
MARCH
2019
MONTH
FEBRUARY
2020
MONTH
JANUARY
2020
MONTH
9 MONTHS TO
MARCH
2020
9 MONTHS TO
MARCH
2019
Meridian Group
Employee and Operating Costs ($m)24232422215203
Stay in Business Capital Expenditure ($m)43333331
Investment Capital Expenditure ($m)21211312
Total Capital Expenditure ($m)64544643
Meridian operating information

FY20 OPERATING INFORMATION
14
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian operating information
JulAugSepOctNovDecJanFebMarAprMayJun
201920192019201920192019202020202020202020202020
New Zealand contracted sales
Retail contracted sales volume (GWh)599630583590610650694646639
Average retail contracted sales price ($NZ/MWh)$113.5$115.4$109.5$102.7$99.8$100.0$103.3$109.5$108.3
NZAS sales volume (GWh)463463447463448463463433463
Financial contract sales volumes (GWh)150176148129135164170283354
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0$65.3$62.3$66.5$68.7$66.7
Retail customer supply volumes (GWh)645662581623650669733682666
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2$112.7$57.1$95.1$67.9$67.4
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7$89.6$45.4$76.8$36.6$44.7
Cost of financial contracts ($NZ/MWh)$101.9$118.2$120.5$112.6$92.8$81.6$86.7$47.0$45.7
Total New Zealand customer connections304,993307,798309,372311,694313,150313,599315,225317,784319,778
New Zealand generation
Hydro generation volume (GWh)1,1111,1061,0159801,0491,1471,0951,0771,085
Wind generation volume (GWh)116135126143133125122108109
Total generation volume (GWh)1,2271,2411,1411,1231,1821,2721,2171,1851,194
Average generation price ($NZ/MWh)$100.7$122.7$121.9$121.4$93.7$51.4$77.1$43.4$52.1
New Zealand hedging
Hedging volume (GWh)145139132145148182296342428
Hedging costs ($NZ/MWh)$65.0$63.2$62.2$64.4$67.3$64.4$96.1$100.7$106.4
Hedging spot revenue average price ($NZ/MWh)$104.4$130.5$124.0$122.6$104.1$63.1$100.0$75.1$59.8
Future contract close outs ($NZm)-0.3-0.6-1.4-1.5-0.2-0.9-0.2-0.2-0.1
Australia contracted sales
Retail contracted electricity sales volume (GWh)636655494650515053
Average electricity contracted sales price
1
($A/MWh)$149.8$147.0$131.2$168.0$174.0$161.1$130.0$150.4$142.0
Retail contracted gas sales volume (TJ)1761921711196451223752
Average gas contracted sales price
1
($A/GJ)$13.9$14.0$13.4$13.8$18.9$20.0$33.4$22.2$18.7
Financial contract sales volumes
2
(GWh)544360656368464346
Financial contracted sales average price ($A/MWh)$83.3$86.1$90.1$80.1$80.1$79.2$122.0$122.0$122.0
Cost to supply electricity customers ($A/MWh)$105.5$126.4$118.0$119.9$89.2$82.2$257.6$111.9$53.6
Cost to supply gas customers ($A/GJ)$11.8$11.4$9.8$8.6$14.0$9.9$41.1$20.4$13.6
Cost of financial contracts ($A/MWh)$86.9$101.0$103.6$100.1$68.3$58.2$138.8$52.2$45.8
Powershop electricity customer connections
7
111,373112,995115,099118,721121,575124,668127,847131,647134,399
Powershop gas customer connections
8
24,09625,24026,52927,85829,18230,46532,38733,42835,392
Australia generation
Wind generation volume (GWh)615644444441383239
Average wind generation price ($A/MWh)$115.7$124.7$127.3$125.5$110.3$101.9$225.9$474.6$77.8
Hydro generation volume (GWh)37191715161498
Average hydro generation price ($A/MWh)$81.0$104.0$99.2$99.4$66.9$64.4$153.1$56.4$43.8
PPA generation received (GWh)353430313029292830
Average PPA generation price [net of costs] ($A/MWh)$22.9$30.3$38.4$45.2$16.5$7.8$59.5$1.4-$8.9
Australia hedging
Hedging volume (GWh)363936504850394342
Hedging costs ($A/MWh)$67.2$98.6$107.3$95.5$89.9$89.9-$23.1$197.7$185.1
Hedging spot revenue average price ($A/MWh)$99.6$105.4$111.4$107.7$72.3$58.6$130.3$58.6$43.5
Future contract close outs ($A M)$0.0$0.2-$0.1$0.0$0.7-$0.1$0.0$0.5-$0.1
Meridian Group
Employee and Operating Costs ($NZ m)242425252422222424
Stay in Business Capital Expenditure ($NZ m)434444334
Investment Capital Expenditure ($NZ m)122121122
Total Capital Expenditure ($NZ m)556565456

FY19 OPERATING INFORMATION
15
15 April 2020
Meridian Energy Limited Monthly Operating Report for March 2020
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$103.0
Total New Zealand customer connections292,091292,906293,386294,695296,064296,532297,621299,351299,905301,230301,508302,277
New Zealand generation
Hydro generation volume (GWh)1,0701,1239598979059721,0221,0151,0471,0601,1251,132
Wind generation volume (GWh)1269011510799831161048199123100
Total generation volume (GWh)1,1961,2131,0741,0041,0041,0551,1381,1191,1281,1591,2481,232
Average generation price ($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$160.0$159.2$157.2$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$39.2$45.2$45.1$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$332.0$108.0$152.3$112.4$133.7
Cost to supply gas customers ($A/GJ)$14.8$12.8$15.0$6.8$8.9$14.0$19.3$35.6$38.8$11.7$29.4
Cost of financial contracts ($A/MWh)$70.1$100.2
Powershop electricity customer connections
7
96,74396,80196,65797,51498,61899,368101,020102,730104,450106,240108,332109,804
Powershop gas customer connections
8
1,1374,7767,5589,57711,33312,50814,30916,75118,22519,99021,42622,612
Australia generation
Wind generation volume (GWh)746443403736383033364949
Average wind generation price ($A/MWh)$153.0$148.0$163.9$178.3$123.2$134.9$225.9$151.6$175.3$143.9$126.1
Hydro generation volume (GWh)1011253026231421161113
Average hydro generation price ($A/MWh)$37.3$46.0$128.6$92.0$90.9$94.8$153.1$86.3$123.1$79.3$77.4
PPA generation received (GWh)111071312112922233331
Average PPA generation price [net of costs] ($A/MWh)-$66.0-$63.9-$71.3-$65.5$121.3$20.8$59.5$34.3$42.0$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$0.1-$0.1$0.0$0.0$0.0$0.2$0.1$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

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 April 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for March 2020
Meridian operating information