Meridian Energy monthly operating report for June 2020

PG 1

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

Highlights this month include:
▪ In the month to 20 July 2020, national hydro storage decreased from 103% to 75% of historical average
▪ South Island storage sat at 75% of average and North Island storage at 76% of average on 20 July 2020
▪ Meridian’s June 2020 monthly total inflows were 78% of historical average
▪ Meridian’s Waitaki catchment storage at the end of June 2020 was 73% of historical average
▪ Storage in Meridian’s Waiau catchment was below average at the end of June 2020
▪ National electricity demand in June 2020 was 1.1%

lower than the same month last year
▪ Weekly demand continued its relatively strong levels through Alert Level 1
▪ June 2020 was a warm start to winter across much of the country. While most of the North Island saw above
average rainfall, southern and western parts of the South Island were comparatively dry
▪ Meridian made calls under the Genesis swaption during June 2020 and July 2020
▪ New Zealand Aluminium Smelter’s average load during June 2020 was 565MW as the 4
th
potline at Tiwai
Point remains suspended in response to COVID-19
▪ Meridian’s New Zealand retail sales volumes in June 2020 were 15.6% higher than June 2019
▪ Compared to June 2019, Meridian saw increased segment sales in all segments: residential (+6.0%), small
medium business (+4.3%) agricultural (+19.4%), large business (+18.8%) and corporate (+26.3%)

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
J U N E 2 0 2 0

J U N E H I G H L I G H T S
In the month to 20 July
2020, national hydro
storage decreased from
103% to 75% of historical
average
South Island storage sat at
75% of average and North
Island storage at 76% of
average on 20 July 2020
Meridian’s June 2020
monthly total inflows were
78% of historical average
Meridian’s Waitaki
catchment storage at the
end of June 2020 was 73%
of historical average
Storage in Meridian’s Waiau
catchment was below
average at the end of June
2020
New Zealand Aluminium
Smelter’s average load during
June 2020 was 565MW as the
4
th
potline at TiwaiPoint
remains suspended in response
to COVID-19
Meridian’s New Zealand retail
sales volumes in June 2020
were 15.6% higher than June
2019
Compared to June 2019,
Meridian saw increased
segment sales in all segments:
residential (+6.0%), small
medium business (+4.3%)
agricultural (+19.4%), large
business (+18.8%) and
corporate (+26.3%)
National electricity demand
in June 2020 was 1.1%lower
than the same month last
year
Weekly demand continued
its relatively strong levels
through Alert Level 1
June 2020 was a warm start
to winter across much of the
country. While most of the
North Island saw above
average rainfall, southern
and western parts of the
South Island were
comparatively dry
Meridian made calls under
the Genesis swaption during
June 2020 and July 2020
Meridian Energy Limited Monthly Operating Report for June 20202
22 July 2020

▪National electricity demand in June 2020 was
1.1% lower than the same month last year
▪June 2020 was a warm start to winter across
much of the country. While most of the North
Island saw above average rainfall, southern and
western parts of the South Island were
comparatively dry
▪Demand in the last 12 months was 0.3% lower
than the preceding 12 months
▪Weekly demand continued its relatively strong
levels through Alert Level 1
▪New Zealand Aluminium Smelter’s average load
during May 2020 was 565MW 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 6.4% at the end of June 2020
▪12-month average switching rate of customers
moving and changing retailers (“move-in”
switch) was 12.6% at the end of June 2020
MARKET DATA
Source: Electricity Authority
Source: Electricity Authority (reconcileddemand)
3
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
1
for up to six months from April 2020
2,600
2,800
3,000
3,200
3,400
3,600
3,800
4,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL DEMAND
Range (2009-2019)201520162017201820192020
5%
7%
9%
11%
13%
15%
Jun 15Dec 15Jun 16Dec 16Jun 17Dec 17Jun 18Dec 18Jun 19Dec 19Jun 20
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

30
40
50
60
70
80
90
100
110
120
130
140
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 February 202031 March 202030 April 2020
29 May 202030 June 202020 July 2020
30
40
50
60
70
80
90
100
110
120
130
140
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 February 202031 March 202030 April 2020
29 May 202030 June 202020 July 2020
MARKET DATA
▪June 2020 saw decreases in ASX prices
following the Tiwaismelter contract
termination notice announced by Rio Tinto
▪National storage decreased from 80% of
average on 11 June 2020 to 75% of average
on 20 July 2020
▪South Island storage decreased to 75% of
historical average on 20 July 2020. North
Island storage increased to 76% of average
Source: ASX
Source: ASX
Source: NZX
4
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (20 July 2020)
86yr Average199220042008
2012201820192020

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.6% during
June 2020 and have risen 7.3% since June
2019
▪Retail sales volumes in June 2020 were
15.6% higher than June 2019
▪Compared to June 2019, Meridian saw
increased segment sales in all segments:
residential (+6.0%), small medium
business (+4.3%) agricultural (+19.4%),
large business (+18.8%) and corporate
(+26.3%)
▪This financial year, retail sales volumes are
18.2% higher than the same period last
year
▪This reflects increases across all segments;
residential (+8.1%), small medium
business (+7.3%), agricultural (+19.6%),
large business (+10.6%) and corporate
(+29.8%)
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian
operating
information
110
112
112
112
113
112
113
113
114
114
114
115
119
119
119
120
120
120
119
120
120
120
120
120
76
77
78
79
80
82
83
85
86
87
88
89
107
107
108
108
108
109
109
109109
109
109
109
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
170
97
99
95
89
85
81
86
87
88
57
85
98
42
65
76
89
138
181
200
163
131
71
65
43
46
45
38
40
39
40
38
39
41
33
40
46
248
254
233
243
247
248
272
264
269
222
255
276
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
▪June 2020 monthly inflows were 78% of
historical average
▪To date this financial year, inflows are
115% of historical average
▪Meridian’s Waitaki catchment storage
moved from 1,560GWh to 1,173GWh
during June 2020
▪Waitaki storage at the end of June 2020
was 73% of historical average and 39%
lower than the same time last year
▪Storage in Meridian’s Waiaucatchment
was also below average at the end of June
2020
6
22 July 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian
operating
information
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
200620072008200920102011201220132014201520162017201820192020
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
June 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 June
2020 was 12.0% higher than the same
month last year, reflecting lower hydro and
higher wind generation
▪This financial year, Meridian’s New Zealand
generation is 4.8% higher than the same
period last year, reflecting higher hydro and
wind generation
▪The average price Meridian received for its
generation in June 2020 was 60.4% higher
than the same month last year
▪The average price Meridian paid to supply
customers in June 2020 was 55.9% higher
than the same month last year
▪This financial year, the average price
Meridian received for its generation is
26.2% lower than the same period last year
and the average price paid to supply
customers is 23.7% lower
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 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
153
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 June 2020 were 28.5% higher than the
same month last year
▪This financial year, Australian retail
electricity sales volume is 23.5% higher
than the same period last year
▪Powershop Australia electricity customer
connection numbers rose 0.4% during
June 2020 and have risen 24.0% since
June 2019
▪Gas customer connection numbers rose
2.5% during June 2020, with total sales in
the month of 270TJ
Source: Meridian
Source: Meridian
8
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian
operating
information
63
66
55
49
46
50
51
50
53
57
68
75
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
270
4
20
40
41
20
17
99
13
25
102
64
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
TJ
AUSTRALIAN RETAIL GAS SALES VOLUMES
FY20FY19

AUSTRALIAN GENERATION
▪Meridian’s Australian generation in June
2020 was 27.3% lower than the same
month last year, reflecting lower wind
generation and higher hydro generation
▪To date this financial year, Meridian’s
Australian generation is 11.9% lower than
the same period last year, reflecting
higher wind generation and lower hydro
generation
▪Demand in the Australian market in June
2020 was 1% lower than June 2019
▪June 2020 average wholesale prices were
52% lower than the same month last year
Source: Meridian
9
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian
operating
information
61
56
44
44
44
41
38
32
39
43
49
37
3
7
19
17
15
16
14
9
8
4
1
0
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

JUNE
2020
MONTH
JUNE
2019
MONTH
MAY
2020
MONTH
APRIL
2020
MONTH
12 MONTHS
TO JUNE
2020
12 MONTHS
TO JUNE
2019
New Zealand sales
Residential sales volume (GWh)
1701601511241,5471,431
Small medium business sales volume (GWh)
989485571,046975
Agricultural sales volume (GWh)
433665711,2651,058
Large business sales volume (GWh)
46394033484438
Corporate and industrial sales volume (GWh)
2772192552223,0342,338
Retail contracted sales volume (GWh)6345485965077,3766,240
Average retail contractedsales price
1
($NZ/MWh)$116.5$113.9$106.8$109.2$107.8$104.9
NZAS sales volume (GWh)4124484264165,3585,310
Financial contract sales volumes
2
(GWh)2801293182222,5272,240
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$67.4$69.6$65.4$64.8$66.9$69.4
Retail customer supply volumes (GWh)7245926245377,7946,608
Cost to supplyretail customers ($NZ/MWh)$159.4$102.8$132.3$50.1$104.5$142.8
Cost to supply wholesale customers ($NZ/MWh)$155.4$89.7$113.4$43.4$88.8$123.5
Cost of financial contracts ($NZ/MWh)$130.6$103.0$98.9$52.1$86.3$122.7
TotalNew Zealand customer connections
4
324,253302,277322,448321,051
NEW ZEALAND
10
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian operating information

JUNE
2020
MONTH
JUNE
2019
MONTH
MAY
2020
MONTH
APRIL
2020
MONTH
12 MONTHS
TO JUNE
2020
12 MONTHS
TO JUNE
2019
New Zealand generation
Hydro generation volumes (GWh)9581,1321,17695912,75812,326
Wind generation volumes (GWh)1261001061161,4651,244
Total generation volumes (GWh)1,0841,2321,2821,07514,24413,570
Average generationprice
5
($NZ/MWh)$152.7$95.2$116.0$41.9$91.0$123.3
New Zealand hedging
Hedging volume
6
(GWh)3171382182392,7301,964
Hedging costs ($NZ/MWh)$87.6$63.9$70.1$77.4$83.3$67.7
Hedging spot revenue average price ($NZ/MWh)$134.9$97.5$101.9$51.5$92.5$135.9
Future contract close outs ($NZ m)-$2.3-$0.1-$4.3-$2.0-$13.9-$8.0
NEW ZEALAND
11
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian operating information

AUSTRALIA
JUNE
2020
MONTH
JUNE
2019
MONTH
MAY
2020
MONTH
APRIL
2020
MONTH
12 MONTHS
TO JUNE
2020
12 MONTHS
TO JUNE
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)75586857683553
Average electricity contractedsales price
1
($A/MWh)$147.6$159.7$146.5$121.1$146.8$158.3
Retail contracted gas sales volume (TJ)270642311081,491364
Average gas contractedsales price
1
($A/GJ)$12.5$19.4$15.4$12.5$14.8$19.9
Financial contract sales volumes
2
(GWh)2242197537612
Financial contractedsales average price ($A/MWh)$59.8$80.9$69.5$176.6$92.5$78.2
Cost to supplyelectricity customers ($A/MWh)$78.1$133.7$67.5$56.8$103.7$132.3
Cost to supplygas customers ($A/GJ)$11.6$29.4$11.2$13.4$12.0$16.5
Cost of financial contracts ($A/MWh)$42.3$100.5$39.8$87.4$80.3$101.8
Powershopelectricity customer connections
7
136,202109,804135,628135,205
Powershopgas customer connections
8
37,87822,61236,95536,077
12
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian operating information

AUSTRALIA
13
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
JUNE
2020
MONTH
JUNE
2019
MONTH
MAY
2020
MONTH
APRIL
2020
MONTH
12 MONTHS
TO JUNE
2020
12 MONTHS
TO JUNE
2019
Australian generation
Wind generation volumes (GWh)37494943528525
Average wind generationprice
5
($A/MWh)$79.2$125.3$61.4$54.2$130.8$145.9
Hydro generation volumes (GWh)0314113203
Average hydro generationprice
5
($A/MWh)$58.5$77.4$39.9$39.1$86.2$111.4
PPA generation received (GWh)28313230367225
Average PPA generationprice [net of costs] ($A/MWh)-$9.1$34.2-$13.1-$14.5$14.9$27.7
Australian hedging
Hedging volume
6
(GWh)37514036496514
Hedging costs ($A/MWh)$80.6$94.7$49.6$79.3$99.0$98.7
Hedging spot revenue average price ($A/MWh)$55.0$98.5$42.9$41.7$76.9$106.9
Future contract close outs ($A M)$0.0$0.1$0.7$0.8$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
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 2020
JUNE
2020
MONTH
JUNE
2019
MONTH
MAY
2020
MONTH
APRIL
2020
MONTH
12 MONTHS
TO JUNE
2020
12 MONTHS
TO JUNE
2019
Meridian Group
Employee and Operating Costs ($m)28312223288282
Stay in Business Capital Expenditure ($m)69334548
Investment Capital Expenditure ($m)31111916
Total Capital Expenditure ($m)910446464
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJun
201920192019201920192019202020202020202020202020
New Zealand contracted sales
Residential sales volume (GWh)165166140129101989792111124151170
Small medium business sales volume (GWh)979995898581868788578598
Agricultural sales volume (GWh)42657689138181200163131716543
Large business sales volume (GWh)464538403940383941334046
Corporate and industrial sales volume (GWh)249254233243247248272264269222255277
Retail contracted sales volume (GWh)599630583590610650694646639507596634
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$116.5
NZAS sales volume (GWh)463463447463448463463433463416426412
Financial contract sales volumes (GWh)150176148129135164170283354222318280
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0$65.3$62.3$66.5$68.7$66.7$64.8$65.4$67.4
Retail customer supply volumes (GWh)645662581623650669733682666537624724
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2$112.7$57.1$95.1$67.9$67.4$50.1$132.3$159.4
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7$89.6$45.4$76.8$36.6$44.7$43.4$113.4$155.4
Cost of financial contracts ($NZ/MWh)$101.9$118.2$120.5$112.6$92.8$81.6$86.7$47.0$45.7$52.1$98.9$130.6
Total New Zealand customer connections304,993307,798309,372311,694313,150313,599315,225317,784319,778321,051322,448324,253
New Zealand generation
Hydro generation volume (GWh)1,1111,1061,0159801,0491,1471,0951,0771,0859591,176958
Wind generation volume (GWh)116135126143133125122108109116106126
Total generation volume (GWh)1,2271,2411,1411,1231,1821,2721,2171,1851,1941,0751,2821,084
Average generation price ($NZ/MWh)$100.7$122.7$121.9$121.4$93.7$51.4$77.1$43.4$52.1$41.9$116.0$152.7
New Zealand hedging
Hedging volume (GWh)145139132145148182296342428239218317
Hedging costs ($NZ/MWh)$65.0$63.2$62.2$64.4$67.3$64.4$96.1$100.7$106.4$77.4$70.1$87.6
Hedging spot revenue average price ($NZ/MWh)$104.4$130.5$124.0$122.6$104.1$63.1$100.0$75.1$59.8$51.5$101.9$134.9
Future contract close outs ($NZm)-0.3-0.6-1.4-1.5-0.2-0.9-0.2-0.2-0.1-2.0-4.3-2.3
Australia contracted sales
Retail contracted electricity sales volume (GWh)636655494650515053576875
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$147.6
Retail contracted gas sales volume (TJ)1761921711196451223752108231270
Average gas contracted sales price
1
($A/GJ)$13.9$14.0$13.4$13.8$18.9$20.0$33.4$22.2$18.7$12.5$15.4$12.5
Financial contract sales volumes
2
(GWh)54436065636846434671922
Financial contracted sales average price ($A/MWh)$83.3$86.1$90.1$80.1$80.1$79.2$122.0$122.0$122.0$176.6$69.5$59.8
Cost to supply electricity customers ($A/MWh)$105.5$126.4$118.0$119.9$89.2$82.2$257.6$111.9$53.6$56.8$67.5$78.1
Cost to supply gas customers ($A/GJ)$11.8$11.4$9.8$8.6$14.0$9.9$41.1$20.4$13.6$13.4$11.2$11.6
Cost of financial contracts ($A/MWh)$86.9$101.0$103.6$100.1$68.3$58.2$138.8$52.2$45.8$87.4$39.8$42.3
Powershop electricity customer connections
7
111,373112,995115,099118,721121,575124,668127,847131,647134,399135,205135,628136,202
Powershop gas customer connections
8
24,09625,24026,52927,85829,18230,46532,38733,42835,39236,07736,95537,878
Australia generation
Wind generation volume (GWh)615644444441383239434937
Average wind generation price ($A/MWh)$115.7$124.7$127.3$125.5$110.3$101.9$225.9$474.6$77.8$54.2$61.4$79.2
Hydro generation volume (GWh)37191715161498410
Average hydro generation price ($A/MWh)$81.0$104.0$99.2$99.4$66.9$64.4$153.1$56.4$43.8$39.1$39.9$58.5
PPA generation received (GWh)353430313029292830303228
Average PPA generation price [net of costs] ($A/MWh)$22.9$30.3$38.4$45.2$16.5$7.8$59.5$1.4-$8.9-$14.5-$13.1-$9.1
Australia hedging
Hedging volume (GWh)363936504850394342364037
Hedging costs ($A/MWh)$67.2$98.6$107.3$95.5$89.9$89.9-$23.1$197.7$185.1$79.3-$49.6$80.6
Hedging spot revenue average price ($A/MWh)$99.6$105.4$111.4$107.7$72.3$58.6$130.3$58.6$43.5$41.7$42.9$55.0
Future contract close outs ($A M)$0.0$0.2-$0.1$0.0$0.7-$0.1$0.0$0.5-$0.1$0.8$0.7$0.0
Meridian Group
Employee and Operating Costs ($NZ m)242425252422222424232228
Stay in Business Capital Expenditure ($NZ m)434444334336
Investment Capital Expenditure ($NZ m)122121122113
Total Capital Expenditure ($NZ m)556565456449
FY20 OPERATING INFORMATION
15
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 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$80.9
Cost to supply electricity customers ($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$100.5
Powershop electricity customer connections
7
96,74396,80196,65797,51498,61899,368101,020102,730104,450106,240108,332109,804
Powershop gas customer connections
8
1,1374,7767,5589,57711,33312,50814,30916,75118,22519,99021,42622,612
Australia generation
Wind generation volume (GWh)746443403736383033364949
Average wind generation price ($A/MWh)$153.0$148.0$163.9$178.3$123.2$134.9$225.9$151.6$175.3$138.9$143.9$125.3
Hydro generation volume (GWh)1011253026231421161113
Average hydro generation price ($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$94.7
Hedging spot revenue average price ($A/MWh)$58.2$98.5
Future contract close outs ($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
22 July 2020
Meridian Energy Limited Monthly Operating Report for June 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
22 July 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for June 2020
Meridian operating information