Meridian Energy monthly operating report for July 2020

PG 1

Meridian Energy monthly operating report for July 2020
21 August 2020
Attached is Meridian Energy Limited's monthly operating report for the month of July 2020.
Highlights this month include:
▪ In the month to 13 August 2020, national hydro storage decreased from 75% to 70% of historical average
▪ South Island storage sat at 73% of average and North Island storage at 57% of average on 13 August 2020
▪ Meridian’s July 2020 monthly total inflows were 108% of historical average
▪ Meridian’s Waitaki catchment storage at the end of July 2020 was 64% of historical average
▪ Storage in Meridian’s Waiau catchment was below average at the end of July 2020
▪ National electricity demand in July 2020 was 2.5% higher than the same month last year
▪ Temperatures in July 2020 were around average or above across the country. Rainfall was above average in
Northland and Otago/Southland, while it was comparatively dry elsewhere
▪ Meridian made calls under the Genesis swaption during July 2020
▪ New Zealand Aluminium Smelter’s average load during July 2020 was 561MW
▪ Meridian’s New Zealand retail sales volumes in July 2020 were 14.2% higher than July 2019
▪ Compared to July 2019, Meridian saw increased sales in all segments: residential (+12.7%), small medium
business (+16.9%) agricultural (+11.2%), large business (+20.8%) and corporate (+13.4%)
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
M O N T H LY O P ER AT I N G R EP O RT
J U LY 2 0 2 0

J U LY H I G H L I G H T S
In the month to 13 August
2020, national hydro
storage decreased from
75% to 70% of historical
average
South Island storage sat at
73% of average and North
Island storage at 57% of
average on 13 August 2020
Meridian’s July 2020
monthly total inflows were
108% of historical average
Meridian’s Waitaki
catchment storage at the
end of July 2020 was 64% of
historical average
New Zealand Aluminium
Smelter’s average load during
July 2020 was 561MW
Meridian’s New Zealand retail
sales volumes in July 2020 were
14.2% higher than July 2019
Compared to July 2019,
Meridian saw increased sales in
all segments: residential
(+12.7%), small medium
business (+16.9%) agricultural
(+11.2%), large business
(+20.8%) and corporate
(+13.4%)
Storage in Meridian’s Waiau
catchment was below
average at the end of July
2020
National electricity demand
in July 2020 was 2.5% higher
than the same month last
year
Temperatures in July 2020
were around average or
above across the country.
Rainfall was above average
in Northland and
Otago/Southland, while it
was comparatively dry
elsewhere
Meridian made calls under
the Genesis swaption during
July 2020
Meridian Energy Limited Monthly Operating Report for July 20202
21 August 2020

▪National electricity demand in July 2020
was 2.5% higher than the same month last
year
▪Temperatures in July 2020 were around
average or above across the country.
Rainfall was above average in Northland
and Otago/Southland, while it was
comparatively dry elsewhere
▪Demand in the last 12 months was flat
compared to the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during July 2020 was 561MW
▪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
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
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
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
▪July 2020 saw decreases in ASX prices
▪National storage decreased from 75% of
average on 20 July 2020 to 70% of average
on 13 August 2020
▪South Island storage decreased to 73% of
historical average on 13 August 2020.
North Island storage decreased to 57% of
average
Source: ASX
Source: ASX
Source: NZX
4
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (13 August 2020)
86yr Average199220042008
2012201820192020
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 202031 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
BENMORE ASX FUTURES SETTLEMENT PRICE
28 February 202031 March 202030 April 2020
29 May 202030 June 202031 July 2020

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.6% during July
2020
▪Retail sales volumes in July 2020 were
14.2% higher than July 2019
▪Compared to July 2019, Meridian saw
increased sales in all segments: residential
(+12.7%), small medium business
(+16.9%) agricultural (+11.2%), large
business (+20.8%) and corporate (+13.4%)
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
Meridian
operating
information
115
120
90
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
0
50
100
150
200
250
300
350
JulAugSepOctNovDecJanFebMarAprMayJune
ICPs ('000)
MERIDIAN'S NZ CUSTOMER CONNECTIONS
FY21 Meridian NIFY21 Meridian SIFY21 Powershop
FY20 Meridian NIFY20 Meridian SIFY20 Powershop
186
113
47
55
282
165
166
140
129
101
92
97
92
111
124
151
170
97
99
95
89
85
87
86
87
88
57
84
98
42
65
76
89
138
163
200
163
131
71
65
43
46
45
38
40
39
39
38
39
41
33
40
46
248
254
233
243
247
264
272
264
269
222
255
276
0
100
200
300
400
500
600
700
800
JulAugSepOctNovDecJanFebMarAprMayJune
GWh
MERIDIAN'S RETAIL SALES VOLUME*
FY21 ResidentialFY21 SMBFY21 AgriFY21 Large Bus
FY21 CorporateFY20 ResidentialFY20 SMBFY20 Agri
FY20 Large BusFY20 Corporate

NEW ZEALAND STORAGE
▪July 2020 monthly inflows were 108% of
historical average
▪Meridian’s Waitaki catchment storage
moved from 1,173GWh to 871GWh during
July 2020
▪Waitaki storage at the end of July 2020
was 64% of historical average and 50%
lower than the same time last year
▪Storage in Meridian’s Waiaucatchment
was also below average at the end of July
2020
6
21 August 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for July 2020
Meridian
operating
information
0
200
400
600
800
1,000
1,200
1,400
200620072008200920102011201220132014201520162017201820192020
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
July YTD87 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 July
2020 was 11.2% lower than the same
month last year, reflecting lower hydro and
lower wind generation
▪The average price Meridian received for its
generation in July 2020 was 43.4% higher
than the same month last year
▪The average price Meridian paid to supply
customers in July 2020 was 48.1% higher
than the same month last year
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
Meridian
operating
information
0
200
400
600
800
1,000
1,200
1,400
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S NEW ZEALAND GENERATION
FY21 HydroFY21 WindFY20 HydroFY20 Wind
145
101
123
122
121
94
51
77
43
52
42
116
136
0
20
40
60
80
100
120
140
160
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY21FY20

AUSTRALIAN RETAIL
▪Australian retail electricity sales volumes
in July 2020 were 35.3% higher than the
same month last year
▪Powershop Australia electricity customer
connection numbers rose 0.4% during July
2020
▪Gas customer connection numbers rose
1.8% during July 2020, with total sales in
the month of 312TJ
Source: Meridian
Source: Meridian
8
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
Meridian
operating
information
85
63
66
55
49
46
50
51
50
53
57
68
75
0
10
20
30
40
50
60
70
80
90
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
AUSTRALIAN RETAIL ELECTRICITY SALES VOLUMES
FY21FY20
312
176
192
171
119
64
51
22
37
52
108
231
270
0
50
100
150
200
250
300
350
JulAugSepOctNovDecJanFebMarAprMayJun
TJ
AUSTRALIAN RETAIL GAS SALES VOLUMES
FY21FY20

AUSTRALIAN GENERATION
▪Meridian’s Australian generation in July
2020 was 46.5% lower than the same
month last year, reflecting lower wind
generation and lower hydro generation
▪July 2020 saw a marked increase in
electricity demand with NEM
consumption increasing (versus the prior
corresponding period) for the first time
since the pandemic began
▪July 2020 average wholesale prices were
30% lower than the same month last year
Source: Meridian
9
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Meridian Energy Limited Monthly Operating Report for July 2020
Meridian
operating
information
34
0
61
56
44
44
44
41
38
32
39
43
49
37
3
7
19
17
15
16
14
9
8
4
1
0
0
10
20
30
40
50
60
70
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S AUSTRALIAN GENERATION
FY21 WindFY21 HydroFY20 WindFY20 Hydro

JULY
2020
MONTH
JULY
2019
MONTH
JUNE
2020
MONTH
MAY
2020
MONTH
New Zealand sales
Residential sales volume (GWh)
186165170151
Small medium business sales volume (GWh)
113979885
Agricultural sales volume (GWh)
47424365
Large business sales volume (GWh)
55464640
Corporate and industrial sales volume (GWh)
282249277255
Retail contracted sales volume (GWh)683599634596
Average retail contractedsales price
1
($NZ/MWh)$120.4$113.6$116.5$106.8
NZAS sales volume (GWh)426463412426
Financial contract sales volumes
2
(GWh)188150280318
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$82.0$69.9$67.4$65.4
Retail customer supply volumes (GWh)704645661624
Cost to supplyretail customers ($NZ/MWh)$165.1$110.4$132.2$132.3
Cost to supply wholesale customers ($NZ/MWh)$143.8$97.9$144.3$113.4
Cost of financial contracts ($NZ/MWh)$143.7$101.9$130.6$98.9
TotalNew Zealand customer connections
4
326,148304,993324,253322,448
NEW ZEALAND
10
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Meridian Energy Limited Monthly Operating Report for July 2020
Meridian operating information

JULY
2020
MONTH
JULY
2019
MONTH
JUNE
2020
MONTH
MAY
2020
MONTH
New Zealand generation
Hydro generation volumes (GWh)9751,1119581,176
Wind generation volumes (GWh)114116126106
Total generation volumes (GWh)1,0891,2271,0841,282
Average generationprice
5
($NZ/MWh)$144.5$100.7$152.7$116.0
New Zealand hedging
Hedging volume
6
(GWh)318145317218
Hedging costs ($NZ/MWh)$109.3$65.0$87.6$70.1
Hedging spot revenue average price ($NZ/MWh)$133.4$104.4$134.9$101.9
Future contract close outs ($NZ m)-$1.6-$0.3-$2.3-$4.3
NEW ZEALAND
11
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
Meridian operating information

AUSTRALIA
JULY
2020
MONTH
JULY
2019
MONTH
JUNE
2020
MONTH
MAY
2020
MONTH
Australian contracted sales
Retail contracted electricity sales volume (GWh)85637568
Average electricity contractedsales price
1
($A/MWh)$142.7$149.8$147.6$146.5
Retail contracted gas sales volume (TJ)312176270231
Average gas contractedsales price
1
($A/GJ)$14.7$13.9$12.5$15.4
Financial contract sales volumes
2
(GWh)26542219
Financial contractedsales average price ($A/MWh)$67.6$83.3$59.8$69.5
Cost to supplyelectricity customers ($A/MWh)$79.5$105.5$78.1$67.5
Cost to supplygas customers ($A/GJ)$10.1$11.8$11.6$11.2
Cost of financial contracts ($A/MWh)$56.7$86.9$42.3$39.8
Powershopelectricity customer connections
7
136,696111,373136,202135,628
Powershopgas customer connections
8
38,54424,09637,87836,955
12
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Meridian Energy Limited Monthly Operating Report for July 2020
Meridian operating information

AUSTRALIA
13
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
JULY
2020
MONTH
JULY
2019
MONTH
JUNE
2020
MONTH
MAY
2020
MONTH
Australian generation
Wind generation volumes (GWh)34613749
Average wind generationprice
5
($A/MWh)$90.3$115.7$79.2$61.4
Hydro generation volumes (GWh)0301
Average hydro generationprice
5
($A/MWh)-$81.0$58.5$39.9
PPA generation received (GWh)27352832
Average PPA generationprice [net of costs] ($A/MWh)-$1.6$22.9-$9.1-$13.1
Australian hedging
Hedging volume
6
(GWh)35363740
Hedging costs ($A/MWh)$48.4$87.3$80.6$49.6
Hedging spot revenue average price ($A/MWh)$18.6$99.6$55.0$42.9
Future contract close outs ($A M)-$0.2$0.0$0.0$0.7
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
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
JULY
2020
MONTH
JULY
2019
MONTH
JUNE
2020
MONTH
MAY
2020
MONTH
Meridian Group
Employee and Operating Costs
1
($m)21203119
Stay in Business Capital Expenditure ($m)3463
Investment Capital Expenditure ($m)7131
Total Capital Expenditure ($m)10594
Meridian operating information
1
excludes electricity metering expenses, now reclassified into gross margin

FY21 OPERATING INFORMATION
15
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
Meridian operating information
JulAugSepOctNovDecJanFebMarAprMayJun
202020202020202020202020202120212021202120212021
New Zealand contracted sales
Residential sales volume (GWh)186
Small medium business sales volume (GWh)113
Agricultural sales volume (GWh)47
Large business sales volume (GWh)55
Corporate and industrial sales volume (GWh)282
Retail contracted sales volume (GWh)683
Average retail contracted sales price ($NZ/MWh)$120.4
NZAS sales volume (GWh)426
Financial contract sales volumes (GWh)188
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0
Retail customer supply volumes (GWh)704
Cost to supply retail customers ($NZ/MWh)$165.1
Cost to supply wholesale customers ($NZ/MWh)$143.8
Cost of financial contracts ($NZ/MWh)$143.7
Total New Zealand customer connections326,148
New Zealand generation
Hydro generation volume (GWh)975
Wind generation volume (GWh)114
Total generation volume (GWh)1,089
Average generation price ($NZ/MWh)$144.5
New Zealand hedging
Hedging volume (GWh)318
Hedging costs ($NZ/MWh)$109.3
Hedging spot revenue average price ($NZ/MWh)$133.4
Future contract close outs ($NZm)-1.6
Australia contracted sales
Retail contracted electricity sales volume (GWh)85
Average electricity contracted sales price
1
($A/MWh)$142.7
Retail contracted gas sales volume (TJ)312
Average gas contracted sales price
1
($A/GJ)$14.7
Financial contract sales volumes
2
(GWh)26
Financial contracted sales average price ($A/MWh)$67.6
Cost to supply electricity customers ($A/MWh)$79.5
Cost to supply gas customers ($A/GJ)$10.1
Cost of financial contracts ($A/MWh)$56.7
Powershop electricity customer connections
7
136,696
Powershop gas customer connections
8
38,544
Australia generation
Wind generation volume (GWh)34
Average wind generation price ($A/MWh)$90.3
Hydro generation volume (GWh)0
Average hydro generation price ($A/MWh)-
PPA generation received (GWh)27
Average PPA generation price [net of costs] ($A/MWh)-$1.6
Australia hedging
Hedging volume (GWh)35
Hedging costs ($A/MWh)$48.4
Hedging spot revenue average price ($A/MWh)$18.6
Future contract close outs ($A M)-$0.2
Meridian Group
Employee and Operating Costs ($NZ m)21
Stay in Business Capital Expenditure ($NZ m)3
Investment Capital Expenditure ($NZ m)7
Total Capital Expenditure ($NZ m)10

FY20 OPERATING INFORMATION
16
21 August 2020
Meridian Energy Limited Monthly Operating Report for July 2020
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$67.4
Retail customer supply volumes (GWh)645662581623650669733682666537624661
Cost to supply retail customers ($NZ/MWh)$110.4$135.6$129.3$130.2$112.7$57.1$95.1$67.9$67.4$50.1$132.3$132.2
Cost to supply wholesale customers ($NZ/MWh)$97.9$120.5$126.1$118.7$89.6$45.4$76.8$36.6$44.7$43.4$113.4$144.3
Cost of financial contracts ($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)$87.3$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)212122222219192121201931
Stay in Business Capital Expenditure ($NZ m)434444334336
Investment Capital Expenditure ($NZ m)122121122113
Total Capital Expenditure ($NZ m)556565456449

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
NEMAustralia’s national energy market, comprising Queensland, New South Wales (including the Australian Capital Territory),
Victoria, South Australia, and Tasmania
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
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21 August 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for July 2020
Meridian operating information