Meridian Energy monthly operating report for August 2020

PG 1

Meridian Energy monthly operating report for August 2020
16 September 2020
Attached is Meridian Energy Limited's monthly operating report for the month of August 2020.
Highlights this month include:
▪ In the month to 14 September 2020, national hydro storage decreased from 70% to 56% of historical
average
▪ South Island storage sat at 59% of average and North Island storage at 46% of average on 14 September
2020
▪ Meridian’s August 2020 monthly total inflows were 92% of historical average
▪ Meridian’s Waitaki catchment storage at the end of August 2020 was 52% of historical average
▪ Storage in Meridian’s Waiau catchment was below average at the end of August 2020
▪ National electricity demand in August 2020 was 3.5% lower than the same month last year
▪ August 2020 was a warm dry month, the fourth warmest August on record. Rainfall was well below
average, except for higher than average levels in Northland and North Auckland
▪ New Zealand Aluminium Smelter’s average load during August 2020 was 562MW
▪ Meridian’s New Zealand retail sales volumes in August 2020 were 7.5% higher than August 2019
▪ Compared to August 2019, Meridian saw increased sales in all segments: residential (+2.7%), small
medium business (+8.0%) agricultural (+10.4%), large business (+15.6%) and corporate (+8.2%)
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
M O N T H LY O P ER AT I N G R EP O RT
AU G U ST 2 0 2 0

A U G U S T H I G H L I G H T S
In the month to 14
September 2020, national
hydro storage decreased
from 70% to 56% of
historical average
South Island storage sat at
59% of average and North
Island storage at 46% of
average on 14 September
2020
Meridian’s August 2020
monthly total inflows were
92% of historical average
Meridian’s Waitaki
catchment storage at the
end of August 2020 was
52% of historical average
New Zealand Aluminium
Smelter’s average load during
August 2020 was 562MW
Meridian’s New Zealand retail
sales volumes in August 2020
were 7.5% higher than August
2019
Compared to August 2019,
Meridian saw increased sales in
all segments: residential
(+2.7%), small medium business
(+8.0%) agricultural (+10.4%),
large business (+15.6%) and
corporate (+8.2%)
Storage in Meridian’s Waiau
catchment was below
average at the end of August
2020
National electricity demand
in August 2020 was 3.5%
lower than the same month
last year
August 2020 was a warm dry
month, the fourth warmest
August on record. Rainfall
was well below average,
except for higher than
average levels in Northland
and North Auckland
Meridian Energy Limited Monthly Operating Report for August 20202
16 September 2020

▪National electricity demand in August
2020 was 3.5% lower than the same
month last year
▪August 2020 was a warm dry month, the
fourth warmest August on record. Rainfall
was well below average, except for higher
than average levels in Northland and
North Auckland
▪Demand in the last 12 months was 0.5%
lower than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during August 2020 was 562MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.4% at the
end of July 2020
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 12.6% at the end
of July 2020
MARKET DATA
Source: Electricity Authority
Source: Electricity Authority (reconcileddemand)
3
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020
5%
7%
9%
11%
13%
15%
Jul 15Jan 16Jul 16Jan 17Jul 17Jan 18Jul 18Jan 19Jul 19Jan 20Jul 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

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
31 March 202030 April 202029 May 2020
30 June 202031 July 202031 August 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
31 March 202030 April 202029 May 2020
30 June 202031 July 202031 August 2020
MARKET DATA
▪August 2020 saw increases in ASX prices,
particularly at Benmore
▪National storage decreased from 70% of
average on 13 August 2020 to 46% of
average on 14 September 2020
▪South Island storage decreased to 59% of
historical average on 14 September 2020.
North Island storage decreased to 46% of
average
Source: ASX
Source: ASX
Source: NZX
4
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (14 September 2020)
86yr Average199220042008
2012201820192020

NEW ZEALAND RETAIL
▪Meridian’s New Zealand customer
connection numbers rose 0.3% during
August 2020 and have risen 0.9% since
June 2020
▪Retail sales volumes in August 2020 were
7.5% higher than August 2019
▪Compared to August 2019, Meridian saw
increased sales in all segments: residential
(+2.7%), small medium business (+8.0%)
agricultural (+10.4%), large business
(+15.6%) and corporate (+8.2%)
▪To date this financial year, retail sales
volumes are 10.7% higher than the same
period last year
▪This reflects increased sales in all
segments: residential (+7.6%), small
medium business (+12.4%) agricultural
(+10.7%), large business (+18.2%) and
corporate (+10.8%)
Source: Meridian
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Source: Meridian
5
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020
Meridian
operating
information
115
115
120
121
90
91
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
171
113
107
47
72
55
52
282
275
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
▪August 2020 monthly inflows were 92% of
historical average
▪To date this financial year, inflows are 99%
of historical average
▪Meridian’s Waitaki catchment storage
moved from 871GWh to 587GWh during
August 2020
▪Waitaki storage at the end of August 2020
was 52% of historical average and 58%
lower than the same time last year
▪Storage in Meridian’s Waiaucatchment
was also below average at the end of
August 2020
6
16 September 2020
Source: Meridian
Source: Meridian
Meridian Energy Limited Monthly Operating Report for August 2020
Meridian
operating
information
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
0
500
1,000
1,500
2,000
2,500
200720082009201020112012201320142015201620172018201920202021
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
August YTD87 year average

NEW ZEALAND GENERATION
▪Meridian’s New Zealand generation in
August 2020 was 18.1% lower than the
same month last year, reflecting lower
hydro and lower wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 14.7% lower than the
same period last year, reflecting lower
hydro and lower wind generation
▪The average price Meridian received for its
generation in August 2020 was 10.3% lower
than the same month last year
▪The average price Meridian paid to supply
customers in August 2020 was 9.1% lower
than the same month last year
▪To date this financial year, the average price
Meridian received for its generation is
14.4% higher than the same period last
year and the average price paid to supply
customers is 16.8% higher
Source: Meridian
*price received for Meridian’s physical generation
Source: Meridian
7
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 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
110
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
▪Powershop Australia electricity customer
connection numbers rose 0.6% during
August 2020 and have risen 1.0% since
June 2020
▪Electricity sales volumes in August 2020
were 25.2% higher than the same month
last year
▪To date this financial year, electricity sales
volumes are 30.1% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 1.1% during
August 2020and have risen 2.9% since
June 2020
▪Gas sales volumes in August 2020 were
45.9% higher than the same month last
year
▪To date this financial year, gas sales
volumes are 60.8% higher than the same
period last year
Source: Meridian
Source: Meridian
8
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020
Meridian
operating
information
85
83
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
280
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 August
2020 was 4.2% higher than the same
month last year, reflecting higher wind
generation and lower hydro generation
▪To date this financial year, Meridian’s
Australian generation is 21.6% lower than
the same period last year, reflecting lower
wind and lower hydro generation
▪Storage at Meridian’s Hume hydro power
station increased to 65% of capacity by
the mid September 2020
▪The Stage 4 lockdown of Victoria has had
a significant impact on electricity demand
with grid consumption in the state down
3% in August 2020 from the same month
last year, despite cooler than usual winter
weather
Source: Meridian
9
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020
Meridian
operating
information
34
60
0
4
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

AUGUST
2020
MONTH
AUGUST
2019
MONTH
JULY
2020
MONTH
JUNE
2020
MONTH
2 MONTHS
TO AUGUST
2020
2 MONTHS
TO AUGUST
2019
New Zealand sales
Residential sales volume (GWh)
171166186170357332
Small medium business sales volume (GWh)
1079911398220196
Agricultural sales volume (GWh)
72654743119107
Large business sales volume (GWh)
5245554610791
Corporate and industrial sales volume (GWh)
275255282277557503
Retail contracted sales volume (GWh)6776306836341,3601,228
Average retail contractedsales price
1
($NZ/MWh)$119.3$115.4$120.4$116.5$119.8$114.5
NZAS sales volume (GWh)426463426485851926
Financial contract sales volumes
2
(GWh)125176188280312326
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$70.4$70.9$82.0$66.5$76.5$70.4
Retail customer supply volumes (GWh)7176627046611,4211,307
Cost to supplyretail customers ($NZ/MWh)$120.6$135.6$165.1$132.2$142.7$123.2
Cost to supply wholesale customers ($NZ/MWh)$109.6$120.5$143.8$144.3$126.7$109.2
Cost of financial contracts ($NZ/MWh)$113.1$118.2$143.7$130.6$131.5$110.7
TotalNew Zealand customer connections
4
327,125307,798326,148324,253
NEW ZEALAND
10
Meridian operating information
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020

AUGUST
2020
MONTH
AUGUST
2019
MONTH
JULY
2020
MONTH
JUNE
2020
MONTH
2 MONTHS
TO AUGUST
2020
2 MONTHS
TO AUGUST
2019
New Zealand generation
Hydro generation volumes (GWh)9041,1069759581,8792,217
Wind generation volumes (GWh)113135114126228252
Total generation volumes (GWh)1,0171,2411,0891,0842,1072,469
Average generationprice
5
($NZ/MWh)$110.1$122.7$144.5$126.8$127.9$111.8
New Zealand hedging
Hedging volume
6
(GWh)266139318317584284
Hedging cost average price ($NZ/MWh)$104.6$63.2$109.3$87.6$107.2$64.1
Hedging spot revenue average price ($NZ/MWh)$123.8$130.5$133.4$134.9$129.0$117.1
Future contract close outs ($NZ m)-$1.9-$0.6-$1.6-$2.3-$3.5-$0.8
NEW ZEALAND
11
Meridian operating information
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020

AUSTRALIA
AUGUST
2020
MONTH
AUGUST
2019
MONTH
JULY
2020
MONTH
JUNE
2020
MONTH
2 MONTHS
TO AUGUST
2020
2 MONTHS
TO AUGUST
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)83668575168129
Average electricity contractedsales price
1
($A/MWh)$137.7$147.0$142.7$147.6$140.3$148.4
Retail contracted gas sales volume (TJ)280192312270591367
Average gas contractedsales price
1
($A/GJ)$11.5$14.0$14.7$12.5$13.2$13.9
Financial contract sales volumes
2
(GWh)334326226097
Financial contractedsales average price ($A/MWh)$65.7$86.1$67.6$59.8$66.5$84.5
Cost to supplyelectricity customers ($A/MWh)$85.5$126.4$79.5$78.1$82.5$116.2
Cost to supplygas customers ($A/GJ)$11.3$11.4$10.1$11.6$10.7$11.6
Cost of financial contracts ($A/MWh)$53.5$101.0$56.7$42.3$54.9$93.2
Powershopelectricity customer connections
7
137,530112,995136,696136,202
Powershopgas customer connections
8
38,97825,24038,54437,878
12
Meridian operating information
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020

AUSTRALIA
13
AUGUST
2020
MONTH
AUGUST
2019
MONTH
JULY
2020
MONTH
JUNE
2020
MONTH
2 MONTHS
TO AUGUST
2020
2 MONTHS
TO AUGUST
2019
Australian generation
Wind generation volumes (GWh)6056343795117
Average wind generationprice
5
($A/MWh)$90.4$124.7$90.3$79.2$90.4$120.0
Hydro generation volumes (GWh)4700410
Average hydro generationprice
5
($A/MWh)$51.7$104.0-$58.5$51.8$96.3
PPA generation received (GWh)3334272861$69
Average PPA generationprice [net of costs] ($A/MWh)-$3.8$30.3-$1.6-$9.1-$2.8$26.5
Australian hedging
Hedging volume
6
(GWh)423935377774
Hedging costs ($A/MWh)$78.3$98.7$48.4$80.6$64.8$93.2
Hedging spot revenue average price ($A/MWh)$55.8$105.5$18.6$55.0$39.0$102.7
Future contract close outs ($A M)$0.0$0.2-$0.2$0.0-$0.2$0.2
Meridian operating information
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020

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
AUGUST
2020
MONTH
AUGUST
2019
MONTH
JULY
2020
MONTH
JUNE
2020
MONTH
2 MONTHS
TO AUGUST
2020
2 MONTHS
TO AUGUST
2019
Meridian Group
Employee and Operating Costs
1
($m)212121314142
Stay in Business Capital Expenditure ($m)433667
Investment Capital Expenditure ($m)3273103
Total Capital Expenditure ($m)751091610
Meridian operating information
1
excludes electricity metering expenses, now reclassified into gross margin
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020

JulAugSepOctNovDecJanFebMarAprMayJun
202020202020202020202020202120212021202120212021
New Zealand contracted sales
Residential sales volume (GWh)186171
Small medium business sales volume (GWh)113107
Agricultural sales volume (GWh)4772
Large business sales volume (GWh)5552
Corporate and industrial sales volume (GWh)282275
Retail contracted sales volume (GWh)683677
Average retail contracted sales price ($NZ/MWh)$120.4$119.3
NZAS sales volume (GWh)426426
Financial contract sales volumes (GWh)188125
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0$70.4
Retail customer supply volumes (GWh)704717
Cost to supply retail customers ($NZ/MWh)$165.1$120.6
Cost to supply wholesale customers ($NZ/MWh)$143.8$109.6
Cost of financial contracts ($NZ/MWh)$143.7$113.1
Total New Zealand customer connections326,148327,125
New Zealand generation
Hydro generation volume (GWh)975904
Wind generation volume (GWh)114113
Total generation volume (GWh)1,0891,017
Average generation price ($NZ/MWh)$144.5$110.1
New Zealand hedging
Hedging volume (GWh)318266
Hedging cost average price ($NZ/MWh)$109.3$104.6
Hedging spot revenue average price ($NZ/MWh)$133.4$123.8
Future contract close outs ($NZm)-1.6-1.9
Australia contracted sales
Retail contracted electricity sales volume (GWh)8583
Average electricity contracted sales price
1
($A/MWh)$142.7$137.7
Retail contracted gas sales volume (TJ)312280
Average gas contracted sales price
1
($A/GJ)$14.7$11.5
Financial contract sales volumes
2
(GWh)2633
Financial contracted sales average price ($A/MWh)$67.6$65.7
Cost to supply electricity customers ($A/MWh)$79.5$85.5
Cost to supply gas customers ($A/GJ)$10.1$11.3
Cost of financial contracts ($A/MWh)$56.7$53.5
Powershop electricity customer connections
7
136,696137,530
Powershop gas customer connections
8
38,54438,978
Australia generation
Wind generation volume (GWh)3460
Average wind generation price ($A/MWh)$90.3$90.4
Hydro generation volume (GWh)04
Average hydro generation price ($A/MWh)-$51.7
PPA generation received (GWh)2733
Average PPA generation price [net of costs] ($A/MWh)-$1.6-$3.8
Australia hedging
Hedging volume (GWh)3542
Hedging costs ($A/MWh)$48.4$78.3
Hedging spot revenue average price ($A/MWh)$18.6$55.8
Future contract close outs ($A M)-$0.2$0.0
Meridian Group
Employee and Operating Costs ($NZ m)2121
Stay in Business Capital Expenditure ($NZ m)34
Investment Capital Expenditure ($NZ m)73
Total Capital Expenditure ($NZ m)107
FY21 OPERATING INFORMATION
15
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 2020
Meridian operating information

FY20 OPERATING INFORMATION
16
16 September 2020
Meridian Energy Limited Monthly Operating Report for August 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)249255233243247248272264269222255277
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$116.5
NZAS sales volume (GWh)463463447463448463463433463416426485
Financial contract sales volumes (GWh)150176148129135164170283354222318280
Average wholesale & financial contracts sales price ($NZ/MWh)$69.9$70.9$68.4$67.0$65.3$62.3$66.5$68.7$66.7$64.8$65.4$66.5
Retail customer supply volumes (GWh)645662581623650669733682666537624661
Cost to supply retail customers ($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$126.8
New Zealand hedging
Hedging volume (GWh)145139132145148182296342428239218317
Hedging cost average price ($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$98.7$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$105.5$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
17
16 September 2020
G L O S S A R Y
Meridian Energy Limited Monthly Operating Report for August 2020
Meridian operating information