Meridian Energy monthly operating report for May 2020

PG 1

Meridian Energy monthly operating report for May 2020
18 June 2020
Attached is Meridian Energy Limited's monthly operating report for the month of May 2020.

Highlights this month include:
▪ In the month to 11 June 2020, national hydro storage decreased from 103% to 80% of historical average
▪ South Island storage sat at 84% of average and North Island storage at 52% of average on 11 June 2020
▪ Meridian’s May 2020 monthly total inflows were 90% of historical average
▪ Meridian’s Waitaki catchment storage at the end of May 2020 was 91% of historical average
▪ Storage in Meridian’s Waiau catchment was below average at the end of May 2020
▪ National electricity demand in May 2020 was 0.5%

lower than the same month last year
▪ Weekly demand continued its strong rebound as New Zealand moved down through Alert Levels 2 and 1
▪ Except for the upper part of the South Island, rainfall was below average in May 2020. Temperatures were
mostly above average and soil moisture levels are lower than average in many parts of the country
▪ Meridian made calls under the Genesis swaption during May 2020 and June 2020
▪ New Zealand Aluminium Smelter’s average load during May 2020 was 563MW as the 4
th
potline at Tiwai Point
remains suspended in response to COVID-19
▪ Meridian’s New Zealand retail sales volumes in May 2020 were 10.7% higher than May 2019
▪ Compared to May 2019, Meridian saw increased segment sales in residential (+16.2%), agricultural (+25.5%)
and corporate (+11.6%), with decreased sales in small medium business (-2.2%) and large business (-2.6%)

ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

PG 2
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 AY 2 0 2 0

M AY H I G H L I G H T S
In the month to 11 June
2020, national hydro
storage decreased from
103% to 80% of historical
average
South Island storage sat at
84% of average and North
Island storage at 52% of
average on 11 June 2020
Meridian’s May 2020
monthly total inflows were
90% of historical average
Meridian’s Waitaki
catchment storage at the
end of May 2020 was 91%
of historical average
Storage in Meridian’s Waiau
catchment was below
average at the end of May
2020
New Zealand Aluminium
Smelter’s average load during
May 2020 was 563MW as the
4
th
potline at TiwaiPoint
remains suspended in response
to COVID-19
Meridian’s New Zealand retail
sales volumes in May 2020
were 10.7% higher than May
2019
Compared to May 2019,
Meridian saw increased
segment sales in residential
(+16.2%), agricultural (+25.5%)
and corporate (+11.6%), with
decreased sales in small
medium business (-2.2%) and
large business (-2.6%)
National electricity demand
in May 2020 was 0.5%lower
than the same month last
year
Weekly demand continued
its strong rebound as New
Zealand moved down
through Alert Levels 2 and 1
Except for the upper part of
the South Island, rainfall was
below average in May 2020.
Temperatures were mostly
above average and soil
moisture levels are lower
than average in many parts
of the country
Meridian made calls under
the Genesis swaption during
May 2020 and June 2020
Meridian Energy Limited Monthly Operating Report for May 20202
18 June 2020

▪National electricity demand in May 2020 was
0.5% lower than the same month last year
▪Except for the upper part of the South Island,
rainfall was below average in May 2020.
Temperatures were mostly above average and
soil moisture levels are lower than average in
many parts of the country
▪Demand in the last 12 months was 0.4% lower
than the preceding 12 months
▪Weekly demand continued its strong rebound as
New Zealand moved down through Alert Levels
2 and 1
▪New Zealand Aluminium Smelter’s average load
during May 2020 was 563MW as the 4
th
potline
at TiwaiPoint remains suspended in response to
COVID-19
1
▪12-month average switching rate of customers
changing retailers but not moving (“trader”
switch) was 6.5% at the end of April 2020
▪12-month average switching rate of customers
moving and changing retailers (“move-in”
switch) was 12.7% at the end of April 2020
MARKET DATA
Source: Electricity Authority
Source: Electricity Authority (reconcileddemand)
3
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
1
for up to six months from April 2020
5%
7%
9%
11%
13%
15%
Apr 15Oct 15Apr 16Oct 16Apr 17Oct 17Apr 18Oct 18Apr 19Oct 19Apr 20
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 (2009-2019)201520162017201820192020

MARKET DATA
▪May 2020 saw increases in near-term ASX
prices and lower 2022 and 2023 Otahuhu
prices
▪National storage decreased from 103% of
average on 11 May 2020 to 80% of average
on 11 June 2020
▪South Island storage decreased to 84% of
historical average on 11 June 2020. North
Island storage decreased to 52% of average
Source: ASX
Source: ASX
Source: NZX
4
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
50
60
70
80
90
100
110
120
130
140
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
60
70
80
90
100
110
120
130
140
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 201931 January 202028 February 2020
31 March 202030 April 202029 May 2020
60
70
80
90
100
110
120
130
140
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 201931 January 202028 February 2020
31 March 202030 April 202029 May 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (11 June 2020)
86yr Average199220042008
2012201820192020

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.4% during
May 2020 and have risen 6.7% since June
2019
▪Retail sales volumes in May 2020 were
10.7% higher than May 2019
▪Compared to May 2019, Meridian saw
increased segment sales in residential
(+16.2%), agricultural (+25.5%) and
corporate (+11.6%), with decreased sales
in small medium business (-2.2%) and
large business (-2.6%)
▪To date this financial year, retail sales
volumes are 18.5% higher than the same
period last year
▪This reflects increases across all segments;
residential (+8.4%), small medium
business (+7.6%), agricultural (+19.6%),
large business (+11.6%) and corporate
(+30.1%)
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian
operating
information
110
112
112
112
113
112
113
113
114
114
114
0
119
119
119
120
120
120
119
120
120
120
120
76
77
78
79
80
82
83
85
86
87
88
107
107
108
108
108
109
109
109109
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
165
166
140
129
101
98
97
92
111
124
151
0
97
99
95
89
85
81
86
87
88
57
85
42
65
76
89
138
181
200
163
131
71
65
46
45
38
40
39
40
38
39
41
33
40
248
254
233
243
247
248
272
264
269
222
255
163
153
133
115
102
95
90
83
94
111
130
160
92
92
84
79
77
72
73
71
79
76
87
94
38
64
73
114
88
82
162
158
126
66
52
36
42
38
37
37
34
32
34
33
35
36
41
39
185
182
171
178
180
168
196
189
223
219
228
219
0
100
200
300
400
500
600
700
JulAugSepOctNovDecJanFebMarAprMayJune
GWh
MERIDIAN'S RETAIL SALES VOLUME*
FY20 ResidentialFY20 SMBFY20 AgriFY20 Large Bus
FY20 CorporateFY19 ResidentialFY19 SMBFY19 Agri

NEW ZEALAND STORAGE
▪May 2020 monthly inflows were 90% of
historical average
▪To date this financial year, inflows are
117% of historical average
▪Meridian’s Waitaki catchment storage
moved from 1,815GWh to 1,560GWh
during May 2020
▪Waitaki storage at the end of May 2020
was 91% of historical average and 27%
lower than the same time last year
▪Storage in Meridian’s Waiaucatchment
was also below average at the end of May
2020
6
18 June 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for May 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
May 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 May
2020 was 2.7% higher than the same
month last year, reflecting higher hydro and
lower wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 6.5% higher than the
same period last year, reflecting higher
hydro and wind generation
▪The average price Meridian received for its
generation in May 2020 was 20.2% higher
than the same month last year
▪The average price Meridian paid to supply
customers in May 2020 was 15.0% higher
than the same month last year
▪To date this financial year, the average price
Meridian received for its generation is
31.9% lower than the same period last year
and the average price paid to supply
customers is 33.1% lower
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 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
42
116
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 May 2020 were 39.7% higher than the
same month last year
▪To date this financial year, Australian retail
electricity sales volume is 22.9% higher
than the same period last year
▪Powershop Australia electricity customer
connection numbers rose 0.3% during
May 2020 and have risen 23.5% since June
2019
▪Gas customer connection numbers rose
2.4% during May 2020, with total sales in
the month of 231TJ
Source: Meridian
Source: Meridian
8
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian
operating
information
63
66
55
49
46
50
51
50
53
57
68
58
57
48
41
37
39
44
38
45
41
49
58
0
10
20
30
40
50
60
70
80
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
AUSTRALIAN RETAIL ELECTRICITY SALES VOLUMES
FY20FY19
176
192
171
119
64
51
22
37
52
108
231
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 May
2020 was 1.2% higher than the same
month last year, reflecting higher wind
generation and higher hydro generation
▪To date this financial year, Meridian’s
Australian generation is 10.8% lower than
the same period last year, reflecting
higher wind generation and lower hydro
generation
▪Demand in the Australian market in May
2020 was 2% lower than May 2019
▪May 2020 average wholesale prices were
55% lower than the same month last year
Source: Meridian
9
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian
operating
information
61
56
44
44
44
41
38
32
39
43
49
3
7
19
17
15
16
14
9
8
4
1
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

MAY
2020
MONTH
MAY
2019
MONTH
APRIL
2020
MONTH
MARCH
2020
MONTH
11 MONTHS
TO MAY
2020
11 MONTHS
TO MAY
2019
New Zealand sales
Residential sales volume (GWh)
1511301241111,3771,270
Small medium business sales volume (GWh)
85875787949882
Agricultural sales volume (GWh)
6552711311,2221,022
Large business sales volume (GWh)
40413341438399
Corporate and industrial sales volume (GWh)
2552282222692,7572,119
Retail contracted sales volume (GWh)5965385076396,7435,692
Average retail contractedsales price
1
($NZ/MWh)$106.8$112.7$109.2$108.3$107.0$104.0
NZAS sales volume (GWh)4264634164634,9464,863
Financial contract sales volumes
2
(GWh)3181682223542,2482,111
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$65.4$72.3$64.8$66.7$66.9$69.4
Retail customer supply volumes (GWh)6245785376667,0706,016
Cost to supplyretail customers ($NZ/MWh)$132.3$113.3$50.1$67.4$98.9$146.7
Cost to supply wholesale customers ($NZ/MWh)$113.4$93.1$43.4$44.7$83.3$126.6
Cost of financial contracts ($NZ/MWh)$98.9$96.3$52.1$45.7$80.7$123.9
TotalNew Zealand customer connections
4
322,448301,508321,051319,778
NEW ZEALAND
10
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian operating information

MAY
2020
MONTH
MAY
2019
MONTH
APRIL
2020
MONTH
MARCH
2020
MONTH
11 MONTHS
TO MAY
2020
11 MONTHS
TO MAY
2019
New Zealand generation
Hydro generation volumes (GWh)1,1761,1259591,08511,80011,194
Wind generation volumes (GWh)1061231161091,3391,143
Total generation volumes (GWh)1,2821,2481,0751,19413,13912,337
Average generationprice
5
($NZ/MWh)$116.0$96.5$41.9$52.1$85.9$126.1
New Zealand hedging
Hedging volume
6
(GWh)2181492394282,4131,827
Hedging costs ($NZ/MWh)$70.1$66.3$77.4$106.4$82.7$68.0
Hedging spot revenue average price ($NZ/MWh)$101.9$101.9$51.5$59.8$86.9$138.8
Future contract close outs ($NZ m)-$4.3-$0.4-$2.0-$0.1-$11.6-$7.9
NEW ZEALAND
11
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian operating information

AUSTRALIA
MAY
2020
MONTH
MAY
2019
MONTH
APRIL
2020
MONTH
MARCH
2020
MONTH
11 MONTHS
TO MAY
2020
11 MONTHS
TO MAY
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)68495753608495
Average electricity contractedsales price
1
($A/MWh)$146.5$162.2$121.1$142.0$146.7$158.1
Retail contracted gas sales volume (TJ)231102108521,222300
Average gas contractedsales price
1
($A/GJ)$15.4$15.4$12.5$18.7$15.3$20.0
Financial contract sales volumes
2
(GWh)1951746515
Financial contractedsales average price ($A/MWh)$69.5$64.1$176.6$122.0$93.9
Cost to supplyelectricity customers ($A/MWh)$67.5$112.4$56.8$53.6$106.9$132.1
Cost to supplygas customers ($A/GJ)$11.2$11.7$13.4$13.6$12.1$13.7
Cost of financial contracts ($A/MWh)$39.8$70.1$87.4$45.8$82.0
Powershopelectricity customer connections
7
135,628108,332135,205134,399
Powershopgas customer connections
8
36,95521,42636,07735,392
12
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian operating information

AUSTRALIA
13
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
MAY
2020
MONTH
MAY
2019
MONTH
APRIL
2020
MONTH
MARCH
2020
MONTH
11 MONTHS
TO MAY
2020
11 MONTHS
TO MAY
2019
Australian generation
Wind generation volumes (GWh)49494339491476
Average wind generationprice
5
($A/MWh)$61.4$133.2$54.2$77.8$134.8$148.0
Hydro generation volumes (GWh)1148113201
Average hydro generationprice
5
($A/MWh)$39.9$79.3$39.1$43.8$86.3$111.8
PPA generation received (GWh)32333030339194
Average PPA generationprice [net of costs] ($A/MWh)-$13.1$40.4-$14.5-$8.9$16.9$26.7
Australian hedging
Hedging volume
6
(GWh)40803642465
Hedging costs ($A/MWh)$49.6$65.6$79.3$185.1$100.4
Hedging spot revenue average price ($A/MWh)$42.9$58.2$41.7$43.5$78.6
Future contract close outs ($A M)$0.7$0.0$0.8-$0.1$2.7$0.0
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
14
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
MAY
2020
MONTH
MAY
2019
MONTH
APRIL
2020
MONTH
MARCH
2020
MONTH
11 MONTHS
TO MAY
2020
11 MONTHS
TO MAY
2019
Meridian Group
Employee and Operating Costs ($m)22262324259251
Stay in Business Capital Expenditure ($m)34343635
Investment Capital Expenditure ($m)11121413
Total Capital Expenditure ($m)45465048
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201920192019201920192019202020202020202020202020
New Zealand contracted sales
Residential sales volume (GWh)165166140129101989792111124151
Small medium business sales volume (GWh)9799958985818687885785
Agricultural sales volume (GWh)426576891381812001631317165
Large business sales volume (GWh)4645384039403839413340
Corporate and industrial sales volume (GWh)249254233243247248272264269222255
Retail contracted sales volume (GWh)599630583590610650694646639507596
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$109.2$106.8
NZAS sales volume (GWh)463463447463448463463433463416426
Financial contract sales volumes (GWh)150176148129135164170283354222318
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0$65.3$62.3$66.5$68.7$66.7$64.8$65.4
Retail customer supply volumes (GWh)645662581623650669733682666537624
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2$112.7$57.1$95.1$67.9$67.4$50.1$132.3
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7$89.6$45.4$76.8$36.6$44.7$43.4$113.4
Cost of financial contracts ($NZ/MWh)$101.9$118.2$120.5$112.6$92.8$81.6$86.7$47.0$45.7$52.1$98.9
Total New Zealand customer connections304,993307,798309,372311,694313,150313,599315,225317,784319,778321,051322,448
New Zealand generation
Hydro generation volume (GWh)1,1111,1061,0159801,0491,1471,0951,0771,0859591,176
Wind generation volume (GWh)116135126143133125122108109116106
Total generation volume (GWh)1,2271,2411,1411,1231,1821,2721,2171,1851,1941,0751,282
Average generation price ($NZ/MWh)$100.7$122.7$121.9$121.4$93.7$51.4$77.1$43.4$52.1$41.9$116.0
New Zealand hedging
Hedging volume (GWh)145139132145148182296342428239218
Hedging costs ($NZ/MWh)$65.0$63.2$62.2$64.4$67.3$64.4$96.1$100.7$106.4$77.4$70.1
Hedging spot revenue average price ($NZ/MWh)$104.4$130.5$124.0$122.6$104.1$63.1$100.0$75.1$59.8$51.5$101.9
Future contract close outs ($NZm)-0.3-0.6-1.4-1.5-0.2-0.9-0.2-0.2-0.1-2.0-4.3
Australia contracted sales
Retail contracted electricity sales volume (GWh)6366554946505150535768
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$121.1$146.5
Retail contracted gas sales volume (TJ)1761921711196451223752108231
Average gas contracted sales price
1
($A/GJ)$13.9$14.0$13.4$13.8$18.9$20.0$33.4$22.2$18.7$12.5$15.4
Financial contract sales volumes
2
(GWh)544360656368464346719
Financial contracted sales average price ($A/MWh)$83.3$86.1$90.1$80.1$80.1$79.2$122.0$122.0$122.0$176.6$69.5
Cost to supply electricity customers ($A/MWh)$105.5$126.4$118.0$119.9$89.2$82.2$257.6$111.9$53.6$56.8$67.5
Cost to supply gas customers ($A/GJ)$11.8$11.4$9.8$8.6$14.0$9.9$41.1$20.4$13.6$13.4$11.2
Cost of financial contracts ($A/MWh)$86.9$101.0$103.6$100.1$68.3$58.2$138.8$52.2$45.8$87.4$39.8
Powershop electricity customer connections
7
111,373112,995115,099118,721121,575124,668127,847131,647134,399135,205135,628
Powershop gas customer connections
8
24,09625,24026,52927,85829,18230,46532,38733,42835,39236,07736,955
Australia generation
Wind generation volume (GWh)6156444444413832394349
Average wind generation price ($A/MWh)$115.7$124.7$127.3$125.5$110.3$101.9$225.9$474.6$77.8$54.2$61.4
Hydro generation volume (GWh)3719171516149841
Average hydro generation price ($A/MWh)$81.0$104.0$99.2$99.4$66.9$64.4$153.1$56.4$43.8$39.1$39.9
PPA generation received (GWh)3534303130292928303032
Average PPA generation price [net of costs] ($A/MWh)$22.9$30.3$38.4$45.2$16.5$7.8$59.5$1.4-$8.9-$14.5-$13.1
Australia hedging
Hedging volume (GWh)3639365048503943423640
Hedging costs ($A/MWh)$67.2$98.6$107.3$95.5$89.9$89.9-$23.1$197.7$185.1$79.3-$49.6
Hedging spot revenue average price ($A/MWh)$99.6$105.4$111.4$107.7$72.3$58.6$130.3$58.6$43.5$41.7$42.9
Future contract close outs ($A M)$0.0$0.2-$0.1$0.0$0.7-$0.1$0.0$0.5-$0.1$0.8$0.7
Meridian Group
Employee and Operating Costs ($NZ m)2424252524222224242322
Stay in Business Capital Expenditure ($NZ m)43444433433
Investment Capital Expenditure ($NZ m)12212112211
Total Capital Expenditure ($NZ m)55656545644
FY20 OPERATING INFORMATION
15
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201820182018201820182018201920192019201920192019
New Zealand contracted sales
Residential sales volume (GWh)16315313311510295908394111130160
Small medium business sales volume (GWh)929284797772737179768694
Agricultural sales volume (GWh)3864731148882162158126665236
Large business sales volume (GWh)423837373432343335364139
Corporate and industrial sales volume (GWh)185182171178180168196189223219228219
Retail contracted sales volume (GWh)521529497523480448555534557508538548
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$153.2$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$27.2$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$101.2$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$13.1$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$138.9$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$91.2$79.3$77.4
PPA generation received (GWh)11107131211292223293331
Average PPA generation price [net of costs] ($A/MWh)-$66.0-$63.9-$71.3-$65.5$121.3$20.8$59.5$34.3$42.0$22.8$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$0.1-$0.1$0.0$0.0$0.0$0.2$0.1-$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
FY19 OPERATING INFORMATION
16
18 June 2020
Meridian Energy Limited Monthly Operating Report for May 2020
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
17
18 June 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for May 2020
Meridian operating information