Meridian Energy monthly operating report for September 2020

PG 1

Meridian Energy monthly operating report for September 2020
15 October 2020
Attached is Meridian Energy Limited's monthly operating report for the month of September 2020.
Highlights this month include:
▪ In the month to 8 October 2020, national hydro storage increased from 56% to 94% of historical average
▪ South Island storage sat at 101% of average and North Island storage at 72% of average on 8 October
2020
▪ Meridian’s September 2020 monthly total inflows were 169% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of September 2020 was 78% of historical average
▪ Water storage in Meridian’s Waiau catchment was above average at the end of September 2020
▪ Waitaki snow storage at the end of September 2020 was 113% of historical average
▪ September 2020 was a record month of wind generation for Meridian in New Zealand
▪ National electricity demand in September 2020 was 0.1% higher than the same month last year
▪ September 2020 was dry for the north of the North Island and wet for much of the South Island.
Temperatures were near average for most of the country. Soil moisture levels were below normal for
much of the eastern parts of New Zealand
▪ New Zealand Aluminium Smelter’s average load during September 2020 was 561MW
▪ Meridian’s New Zealand retail sales volumes in September 2020 were 12.7% higher than September
2019
▪ Compared to September 2019, Meridian saw increased sales in all segments: residential (+3.9%), small
medium business (+10.2%) agricultural (+13.8%), large business (+25.7%) and corporate (+16.6%)
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

Monthly Operating Report
September 2020

September highlights
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |2
In the month to 8 October
2020, national hydro storage
increased from 56% to 94% of
historical average
South Island storage sat at
101% of average and North
Island storage at 72% of
average on 8 October 2020
Meridian’s September 2020
monthly total inflows were
169% of historical average
Meridian’s Waitaki catchment
waterstorage at the end of
September 2020 was 78% of
historical average
Water storage in Meridian’s
Waiaucatchment was above
average at the end of
September 2020
New Zealand Aluminium
Smelter’s average load during
September 2020 was 561MW
Meridian’s New Zealand retail
sales volumes in September
2020 were 12.7% higher than
September 2019
Compared to September 2019,
Meridian saw increased sales in
all segments: residential
(+3.9%), small medium business
(+10.2%) agricultural (+13.8%),
large business (+25.7%) and
corporate (+16.6%)
Waitaki snow storage at the
end of September 2020 was
113% of historical average
September 2020 was a record
month of wind generation for
Meridian in New Zealand
National electricity demand in
September 2020 was 0.1%
higher than the same month
last year
September 2020 was dry for
the north of the North Island
and wet for much of the
South Island. Temperatures
were near average for most of
the country. Soil moisture
levels were below normal for
much of the eastern parts of
New Zealand

Market data
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |3
▪National electricity demand in September
2020 was 0.1% higher than the same
month last year
▪September 2020 was dry for the north of
the North Island and wet for much of the
South Island. Temperatures were near
average for most of the country. Soil
moisture levels were below normal for
much of the eastern parts of New Zealand
▪Demand in the last 12 months was 0.6%
lower than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during September 2020 was 561MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.2% at the
end of August 2020
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 12.6% at the end
of August 2020
Source: Electricity Authority (reconcileddemand)
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%
Aug 15Feb 16Aug 16Feb 17Aug 17Feb 18Aug 18Feb 19Aug 19Feb 20Aug 20
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches
Source: Electricity Authority

Market data
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |4
▪September 2020 saw further increases in
ASX prices
▪National storage increased from 56% of
average on 14 September 2020 to 94% of
average on 8 October 2020
▪South Island storage increased to 101% of
historical average on 8 October 2020.
North Island storage increased to 72% of
average
Source: ASX
Source: ASX
Source: NZX
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
30 April 202029 May 202030 June 2020
31 July 202031 August 202030 September 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
30 April 202029 May 202030 June 2020
31 July 202031 August 202030 September 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (8 October 2020)
86yr Average199220042008
2012201820192020

New Zealand retail
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▪Meridian’s New Zealand customer
connection numbers rose 0.5% during
September 2020 and have risen 1.3% since
June 2020
▪Retail sales volumes in September 2020
were 12.7% higher than September 2019
▪Compared to September 2019, Meridian
saw increased sales in all segments:
residential (+3.9%), small medium business
(+10.2%) agricultural (+13.8%), large
business (+25.7%) and corporate (+16.6%)
▪To date this financial year, retail sales
volumes are 11.4% higher than the same
period last year
▪This reflects increased sales in all
segments: residential (+6.5%), small
medium business (+11.7%) agricultural
(+12.0%), large business (+20.4%) and
corporate (+12.6%)
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
115
115
116
120
121
121
90
91
92
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
146
113
107
105
47
72
87
55
52
48
282
275
272
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
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |6
▪September 2020 monthly inflows were
169% of historical average
▪To date this financial year, inflows are
127% of historical average
▪Meridian’s Waitaki catchment water
storage moved from 587GWh to 763GWh
during September 2020
▪Waitaki water storage at the end of
September 2020 was 78% of historical
average and 19% lower than the same
time last year
▪Water storage in Meridian’s Waiau
catchment was above average at the end
of September 2020
▪Waitaki snow storage at the end of
September 2020 was 113% of historical
average
Meridian operating information
Source: Meridian
Source: Meridian
0
500
1,000
1,500
2,000
2,500
3,000
3,500
200720082009201020112012201320142015201620172018201920202021
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
September 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
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |7
▪Meridian’s New Zealand generation in
September 2020 was 9.1% lower than the
same month last year, reflecting lower
hydro and higher wind generation
▪September 2020 was a record month of
wind generation for Meridian
▪To date this financial year, Meridian’s New
Zealand generation is 12.9% lower than
the same period last year, reflecting lower
hydro and higher wind generation
▪The average price Meridian received for its
generation in September 2020 was 1.4%
higher than the same month last year
▪The average price Meridian paid to supply
customers in September 2020 was 4.5%
higher than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 10.0% higher than the same period last
year and the average price paid to supply
customers is 12.6% higher
Meridian operating information
Source: Meridian
Source: Meridian
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
124
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
*price received for Meridian’s physical generation

Australian retail
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |8
▪Powershop Australia electricity customer
connection numbers rose 0.6% during
September 2020 and have risen 1.5% since
June 2020
▪Electricity sales volumes in September
2020 were 20.0% higher than the same
month last year
▪To date this financial year, electricity sales
volumes are 27.1% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 0.7% during
September 2020 and have risen 3.6% since
June 2020
▪Gas sales volumes in September 2020
were 8.2% lower than the same month last
year
▪To date this financial year, gas sales
volumes are 38.9% higher than the same
period last year
Meridian operating information
85
83
66
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
Source: Meridian
Source: Meridian
312
280
157
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
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |9
▪Meridian’s Australian generation in
September 2020 was 11.5% 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 10.6% lower than
the same period last year, reflecting lower
wind and lower hydro generation
▪Storage at Meridian’s Hume hydro power
station increased to 72% of capacity by
early October 2020
▪NEM
1
electricity demand in September
2020 was 3% lower than the same month
last year
▪Average spot prices across the four key
NEM states in September 2020 were 65%
lower than the same month last year
Meridian operating information
Source: Meridian
1
See glossary on page 17 for a definition of Australia’s National Electricity Market
2
February 2020 average wind generation price includes the settlement of CY19 forward sold Large
Generation Certificates
Source: Meridian
90
90
70
116
125
127
126
110
102
226
78
54
61
79
0
50
100
150
200
250
JulAugSepOctNovDecJanFebMarAprMayJun
$A/MWh
AVERAGE WIND GENERATION PRICE
2
FY21FY20
34
60
57
0
4
14
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
80
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S AUSTRALIAN GENERATION
FY21 WindFY21 HydroFY20 WindFY20 Hydro

SEPTEMBER
2020
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2020
MONTH
JULY
2020
MONTH
3 MONTHS TO
SEPTEMBER
2020
3 MONTHS TO
SEPTEMBER
2019
New Zealand sales
Residential sales volume (GWh)
146140171186503472
Small medium business sales volume (GWh)
10595107113325291
Agricultural sales volume (GWh)
86767247205183
Large business sales volume (GWh)
48385255155129
Corporate and industrial sales volume (GWh)
272234275282829736
Retail contracted sales volume (GWh)6575836776832,0171,811
Average retail contractedsales price
1
($NZ/MWh)$118.1$109.6$119.3$120.4$119.3$112.9
NZAS sales volume (GWh)4114474264261,2621,373
Financial contract sales volumes
2
(GWh)201148125188514473
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$74.2$68.4$70.4$82.0$75.7$69.8
Retail customer supply volumes (GWh)6965817177042,1171,888
Cost to supplyretail customers ($NZ/MWh)$140.3$129.3$120.6$165.1$141.9$125.1
Cost to supply wholesale customers ($NZ/MWh)$122.2$126.1$109.6$143.8$125.2$114.7
Cost of financial contracts ($NZ/MWh)$127.8$120.5$113.1$143.7$130.0$113.7
TotalNew Zealand customer connections
4
328,602309,372327,125326,148
New Zealand
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |10
Meridian operating information

New Zealand
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |11
Meridian operating information
SEPTEMBER
2020
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2020
MONTH
JULY
2020
MONTH
3 MONTHS TO
SEPTEMBER
2020
3 MONTHS TO
SEPTEMBER
2019
New Zealand generation
Hydro generation volumes (GWh)8791,0159049752,7583,232
Wind generation volumes (GWh)158126113114386378
Total generation volumes (GWh)1,0371,1411,0171,0893,1443,610
Average generationprice
5
($NZ/MWh)$123.7$121.9$110.1$144.5$126.5$115.0
New Zealand hedging
Hedging volume
6
(GWh)268132266318852416
Hedging cost average price ($NZ/MWh)$101.2$62.2$104.6$109.3$105.3$63.5
Hedging spot revenue average price ($NZ/MWh)$132.6$124.0$123.8$133.4$130.2$119.3
Future contract close outs ($NZ m)-$2.9-$1.4-$1.9-$1.6-$6.4-$2.2

Australia
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |12
Meridian operating information
SEPTEMBER
2020
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2020
MONTH
JULY
2020
MONTH
3 MONTHS TO
SEPTEMBER
2020
3 MONTHS TO
SEPTEMBER
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)66558385234184
Average electricity contractedsales price
1
($A/MWh)$146.3$131.2$137.7$142.7$142.2$143.2
Retail contracted gas sales volume (TJ)157171280312749539
Average gas contractedsales price
1
($A/GJ)$12.0$13.4$11.5$14.7$12.9$13.8
Financial contract sales volumes
2
(GWh)2960332688157
Financial contractedsales average price ($A/MWh)$66.5$90.1$65.7$67.6$66.5$86.6
Cost to supplyelectricity customers ($A/MWh)$61.3$118.0$85.5$79.5$76.6$116.7
Cost to supplygas customers ($A/GJ)$14.6$9.8$11.3$10.1$11.5$11.0
Cost of financial contracts ($A/MWh)$37.0$103.6$53.5$56.7$49.1$97.1
Powershopelectricity customer connections
7
138,289115,099137,530136,696
Powershopgas customer connections
8
39,25126,52938,97838,544

Australia
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |13
Meridian operating information
SEPTEMBER
2020
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2020
MONTH
JULY
2020
MONTH
3 MONTHS TO
SEPTEMBER
2020
3 MONTHS TO
SEPTEMBER
2019
Australian generation
Wind generation volumes (GWh)57446034151161
Average wind generationprice
5
($A/MWh)$69.6$127.3$90.4$90.3$82.6$122.0
Hydro generation volumes (GWh)1419401929
Average hydro generationprice
5
($A/MWh)$39.0$99.2$51.7-$41.9$98.2
PPA generation received (GWh)343033279499
Average PPA generationprice [net of costs] ($A/MWh)-$14.4$38.4-$3.8-$1.6-$7.0$30.1
Australian hedging
Hedging volume
6
(GWh)37364235115110
Hedging costs ($A/MWh)$82.6$105.6$78.3$48.4$70.6$97.3
Hedging spot revenue average price ($A/MWh)$40.6$111.4$55.8$18.6$39.5$105.5
Future contract close outs ($A M)$0.0-$0.1$0.0-$0.2-$0.3$0.1

Meridian group
1 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |14
Meridian operating information
SEPTEMBER
2020
MONTH
SEPTEMBER
2019
MONTH
AUGUST
2020
MONTH
JULY
2020
MONTH
3 MONTHS TO
SEPTEMBER
2020
3 MONTHS TO
SEPTEMBER
2019
Meridian Group
Employee and Operating Costs
1
($m)212221216365
Stay in Business Capital Expenditure ($m)44431011
Investment Capital Expenditure ($m)3637134
Total Capital Expenditure ($m)767102315
1
excludes electricity metering expenses, now reclassified into gross margin

JulAugSepOctNovDecJanFebMarAprMayJun
202020202020202020202020202120212021202120212021
New Zealand contracted sales
Residential sales volume (GWh)186171146
Small medium business sales volume (GWh)113107105
Agricultural sales volume (GWh)477286
Large business sales volume (GWh)555248
Corporate and industrial sales volume (GWh)282275272
Retail contracted sales volume (GWh)683677657
Average retail contracted sales price ($NZ/MWh)$120.4$119.3$118.1
NZAS sales volume (GWh)426426411
Financial contract sales volumes (GWh)188125201
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0$70.4$74.2
Retail customer supply volumes (GWh)704717696
Cost to supply retail customers ($NZ/MWh)$165.1$120.6$140.3
Cost to supply wholesale customers ($NZ/MWh)$143.8$109.6$122.2
Cost of financial contracts ($NZ/MWh)$143.7$113.1$127.8
Total New Zealand customer connections326,148327,125328,602
New Zealand generation
Hydro generation volume (GWh)975904879
Wind generation volume (GWh)114113158
Total generation volume (GWh)1,0891,0171,037
Average generation price ($NZ/MWh)$144.5$110.1$123.7
New Zealand hedging
Hedging volume (GWh)318266268
Hedging cost average price ($NZ/MWh)$109.3$104.6$101.2
Hedging spot revenue average price ($NZ/MWh)$133.4$123.8$132.6
Future contract close outs ($NZm)-1.6-1.9-2.9
Australia contracted sales
Retail contracted electricity sales volume (GWh)858366
Average electricity contracted sales price
1
($A/MWh)$142.7$137.7$146.3
Retail contracted gas sales volume (TJ)312280157
Average gas contracted sales price
1
($A/GJ)$14.7$11.5$12.0
Financial contract sales volumes
2
(GWh)263329
Financial contracted sales average price ($A/MWh)$67.6$65.7$66.5
Cost to supply electricity customers ($A/MWh)$79.5$85.5$61.3
Cost to supply gas customers ($A/GJ)$10.1$11.3$14.6
Cost of financial contracts ($A/MWh)$56.7$53.5$37.0
Powershop electricity customer connections
7
136,696137,530138,289
Powershop gas customer connections
8
38,54438,97839,251
Australia generation
Wind generation volume (GWh)346057
Average wind generation price ($A/MWh)$90.3$90.4$69.6
Hydro generation volume (GWh)0414
Average hydro generation price ($A/MWh)-$51.7$39.0
PPA generation received (GWh)273334
Average PPA generation price [net of costs] ($A/MWh)-$1.6-$3.8-$14.4
Australia hedging
Hedging volume (GWh)354237
Hedging costs ($A/MWh)$48.4$78.3$82.6
Hedging spot revenue average price ($A/MWh)$18.6$55.8$40.6
Future contract close outs ($A M)-$0.2$0.0$0.0
Meridian Group
Employee and Operating Costs ($NZ m)212121
Stay in Business Capital Expenditure ($NZ m)344
Investment Capital Expenditure ($NZ m)733
Total Capital Expenditure ($NZ m)1077
FY21 operating information
151 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |
Meridian operating information

FY20 operating information
161 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |
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

Glossary
171 5 O C T O B E R 2 0 2 0 | M O N T H L Y O P E R A T I N G R E P O R T F O R S E P T E M B E R 2 0 2 0 |
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