Meridian Energy monthly operating report for October 2020

PG 1

Meridian Energy monthly operating report for October 2020
18 November 2020
Attached is Meridian Energy Limited's monthly operating report for the month of October 2020.
Highlights this month include:
▪ In the month to 11 November 2020, national hydro storage increased from 94% to 111% of historical
average
▪ South Island storage sat at 112% of average and North Island storage at 107% of average on 11
November 2020
▪ Meridian’s October 2020 monthly total inflows were 131% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of October 2020 was 98% of historical
average
▪ Water storage in Meridian’s Waiau catchment was above average at the end of October 2020
▪ Waitaki snow storage at the end of October 2020 was 101% of historical average
▪ National electricity demand in October 2020 was 0.3% higher than the same month last year
▪ October 2020 was warm and dry for much of New Zealand. Above average rainfall was widespread
across the West Coast, Fiordland, much of Southland, and Stewart Island. Soil moisture levels remain
below normal for much of the country
▪ Outages have commenced on the Clyde - Cromwell - Twizel circuits as part of the Clutha Upper
Waitaki Lines Project
▪ New Zealand Aluminium Smelter’s average load during October 2020 was 561MW
▪ Meridian’s New Zealand retail sales volumes in October 2020 were 21.6% higher than October 2019
▪ Compared to October 2019, Meridian saw increased segment sales in most segments: small medium
business (+17.4%) agricultural (+75.2%), large business (+15.5%) and corporate (+16.8%). Residential
sales were 1.8% lower

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

Monthly Operating Report
October 2020

October highlights
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In the month to 11 November
2020, national hydro storage
increased from 94%to 111%
of historical average
South Island storage sat at
112%of average and North
Island storage at 107%of
average on 11 November 2020
Meridian’s October 2020
monthly total inflows were
131%of historical average
Meridian’s Waitaki catchment
water storage at the end of
October 2020 was 98%of
historical average
Water storage in Meridian’s
Waiaucatchment was above
average at the end of October
2020
New Zealand Aluminium
Smelter’s average load during
October 2020 was 561MW
Meridian’s New Zealand retail
sales volumes in October 2020
were 21.6%higher than
October 2019
Compared to October 2019,
Meridian saw increased
segment sales in most
segments: small medium
business (+17.4%) agricultural
(+75.2%), large business
(+15.5%) and corporate
(+16.8%). Residential sales were
1.8% lower
Waitaki snow storage at the
end of October 2020 was
101%of historical average
National electricity demand in
October 2020 was 0.3%
higher than the same month
last year
October 2020 was warm and
dry for much of New Zealand.
Above average rainfall was
widespread across the West
Coast, Fiordland, much of
Southland, and Stewart
Island. Soil moisture levels
remain below normal for
much of the country
Outages have commenced on
the Clyde -Cromwell -Twizel
circuits as part of the Clutha
Upper Waitaki Lines Project

Market data
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▪National electricity demand in October
2020 was 0.3% higher than the same
month last year
▪October 2020 was warm and dry for much
of New Zealand. Above average rainfall
was widespread across the West Coast,
Fiordland, much of Southland, and Stewart
Island. Soil moisture levels remain below
normal for much of the country
▪Demand in the last 12 months was 0.7%
lower than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during October 2020 was 561MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.2% at the
end of September 2020
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 12.7% at the end
of September 2020
Source: Electricity Authority (reconcileddemand)
Source: Electricity Authority
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%
Sep 15Mar 16Sep 16Mar 17Sep 17Mar 18Sep 18Mar 19Sep 19Mar 20Sep 20
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

Market data
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▪October 2020 saw small changes in ASX
prices
▪National storage increased from 94% of
average on 8 October 2020 to 111% of
average on 11 November 2020
▪South Island storage increased to 112% of
historical average on 11 November 2020.
North Island storage increased to 107% of
average
Source: ASX
Source: ASX
Source: NZX
30
40
50
60
70
80
90
100
110
120
130
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
Q1
2024
Q2
2024
Q3
2024
Q4
2024
$/MWh
OTAHUHU ASX FUTURES SETTLEMENT PRICE
29 May 202030 June 202031 July 2020
31 August 202030 September 202030 October 2020
30
40
50
60
70
80
90
100
110
120
130
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
Q1
2024
Q2
2024
Q3
2024
Q4
2024
$/MWh
BENMORE ASX FUTURES SETTLEMENT PRICE
29 May 202030 June 202031 July 2020
31 August 202030 September 202030 October 2020
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (11 November 2020)
86yr Average199220042008
2012201820192020

New Zealand retail
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▪Meridian’s New Zealand customer
connection numbers rose 0.3% during
October 2020 and have risen 1.7% since
June 2020
▪Retail sales volumes in October 2020 were
21.6% higher than October 2019
▪Compared to October 2019, Meridian saw
increased segment sales in most
segments: small medium business
(+17.4%) agricultural (+75.2%), large
business (+15.5%) and corporate (+16.8%).
Residential sales were 1.8% lower
▪To date this financial year, retail sales
volumes are 13.9% higher than the same
period last year
▪This reflects increased sales in all
segments: residential (+4.7%), small
medium business (+13.0%) agricultural
(+32.7%), large business (+19.3%) and
corporate (+13.7%)
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
115
115
116
116
120
121
121
121
90
91
92
93
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
127
113
107
105
104
47
72
87
157
55
52
48
46
282
275
272
283
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
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▪October 2020 monthly inflows were 131%
of historical average
▪To date this financial year, inflows are
128% of historical average
▪Meridian’s Waitaki catchment water
storage moved from 763GWh to
1,054GWh during October 2020
▪Waitaki water storage at the end of
October 2020 was 98% of historical
average and 7% higher than the same time
last year
▪Water storage in Meridian’s Waiau
catchment was above average at the end
of October 2020
▪Waitaki snow storage at the end of
October 2020 was 101% of historical
average
Meridian operating information
Source: Meridian
Source: Meridian
0
1,000
2,000
3,000
4,000
5,000
6,000
200720082009201020112012201320142015201620172018201920202021
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
October 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
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▪Meridian’s New Zealand generation in
October 2020 was 6.1% higher than the
same month last year, reflecting higher
hydro and lower wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 8.4% lower than the
same period last year, reflecting lower
hydro and lower wind generation
▪The average price Meridian received for its
generation in October 2020 was 11.3%
lower than the same month last year
▪The average price Meridian paid to supply
customers in October 2020 was 7.0%
lower than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 4.1% higher than the same period last
year and the average price paid to supply
customers is 7.6% higher
Meridian operating information
Source: Meridian
Source: Meridian
*price received for Meridian’s physical generation
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
108
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
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▪Powershop Australia electricity customer
connection numbers rose 0.6% during
October 2020 and have risen 2.2% since
June 2020
▪Electricity sales volumes in October 2020
were 25.1% higher than the same month
last year
▪To date this financial year, electricity sales
volumes are 26.6% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 0.7% during
October 2020 and have risen 4.4% since
June 2020
▪Gas sales volumes in October 2020 were
19.4% higher than the same month last
year
▪To date this financial year, gas sales
volumes are 35.4% higher than the same
period last year
Meridian operating information
Source: Meridian
Source: Meridian
85
83
66
61
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
157
142
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
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▪Meridian’s Australian generation in
October 2020 was 8.5% lower than the
same month last year, reflecting lower
wind generation and lower hydro
generation
▪To date this financial year, Meridian’s
Australian generation is 10.1% lower than
the same period last year, reflecting lower
wind and lower hydro generation
▪Storage at Meridian’s Hume hydro power
station increased to 80% of capacity by
mid November 2020
▪NEM
1
electricity demand in October 2020
was again lower than the same month last
year, however wholesale electricity prices
rose with increases in spot gas prices
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
34
60
57
44
0
4
14
12
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
90
90
70
68
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

OCTOBER
2020
MONTH
OCTOBER
2019
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2020
MONTH
4 MONTHS TO
OCTOBER
2020
4 MONTHS TO
OCTOBER
2019
New Zealand sales
Residential sales volume (GWh)
127129146171629601
Small medium business sales volume (GWh)
10489105107429380
Agricultural sales volume (GWh)
157898672362273
Large business sales volume (GWh)
46404852201168
Corporate and industrial sales volume (GWh)
2832432722751,113979
Retail contracted sales volume (GWh)7175906576772,7342,401
Average retail contractedsales price
1
($NZ/MWh)$106.0$102.7$118.1$119.3$115.8$110.4
NZAS sales volume (GWh)4264634114261,6881,836
Financial contract sales volumes
2
(GWh)126129201125639603
Avg. wholesale & financial contracts sales price
3
($NZ/MWh)$69.4$67.0$74.2$70.4$74.2$69.1
Retail customer supply volumes (GWh)7556236967172,8722,510
Cost to supplyretail customers ($NZ/MWh)$126.9$130.2$140.3$120.6$137.9$126.4
Cost to supply wholesale customers ($NZ/MWh)$95.8$118.7$122.2$109.6$117.8$115.7
Cost of financial contracts ($NZ/MWh)$110.8$112.6$127.8$113.1$126.3$113.5
TotalNew Zealand customer connections
4
329,710311,694328,602327,125
New Zealand
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Meridian operating information

New Zealand
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Meridian operating information
OCTOBER
2020
MONTH
OCTOBER
2019
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2020
MONTH
4 MONTHS TO
OCTOBER
2020
4 MONTHS TO
OCTOBER
2019
New Zealand generation
Hydro generation volumes (GWh)1,0669808799043,8244,212
Wind generation volumes (GWh)126143158113511521
Total generation volumes (GWh)1,1921,1231,0371,0174,3354,733
Average generationprice
5
($NZ/MWh)$107.7$121.4$123.7$110.1$121.3$116.5
New Zealand hedging
Hedging volume
6
(GWh)2411452682661,094561
Hedging cost average price ($NZ/MWh)$96.2$64.4$101.2$104.6$103.3$63.7
Hedging spot revenue average price ($NZ/MWh)$114.4$122.6$132.6$123.8$126.7$120.2
Future contract close outs ($NZ m)$0.6-$1.5-$2.9-$1.9-$5.9-$3.7

Australia
1 8 N O V E M 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 O C T O B E R 2 0 2 0 |12
Meridian operating information
OCTOBER
2020
MONTH
OCTOBER
2019
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2020
MONTH
4 MONTHS TO
OCTOBER
2020
4 MONTHS TO
OCTOBER
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)61496683294233
Average electricity contractedsales price
1
($A/MWh)$140.0$168.0$146.3$137.7$141.7$148.4
Retail contracted gas sales volume (TJ)142119157280891658
Average gas contractedsales price
1
($A/GJ)$15.5$13.8$12.0$11.5$13.3$13.8
Financial contract sales volumes
2
(GWh)42652933131222
Financial contractedsales average price ($A/MWh)$66.8$80.1$66.5$65.7$66.6$84.7
Cost to supplyelectricity customers ($A/MWh)$73.1$119.9$61.3$85.5$75.9$117.4
Cost to supplygas customers ($A/GJ)$13.4$8.6$14.6$11.3$11.8$10.6
Cost of financial contracts ($A/MWh)$52.2$100.1$37.0$53.5$50.1$89.0
Powershopelectricity customer connections
7
139,162118,721138,289137,530
Powershopgas customer connections
8
39,54027,85839,25138,978

Australia
1 8 N O V E M 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 O C T O B E R 2 0 2 0 |13
Meridian operating information
OCTOBER
2020
MONTH
OCTOBER
2019
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2020
MONTH
4 MONTHS TO
OCTOBER
2020
4 MONTHS TO
OCTOBER
2019
Australian generation
Wind generation volumes (GWh)44445760195205
Average wind generationprice
5
($A/MWh)$67.8$125.5$69.6$90.4$79.3$122.8
Hydro generation volumes (GWh)12171443146
Average hydro generationprice
5
($A/MWh)$59.0$99.3$39.0$51.7$48.6$98.6
PPA generation received (GWh)3031343312499
Average PPA generationprice [net of costs] ($A/MWh)-$2.2$45.2-$14.4-$3.8$5.8$33.7
Australian hedging
Hedging volume
6
(GWh)13503742127160
Hedging costs ($A/MWh)$204.9$102.1$82.6$78.3$83.9$98.8
Hedging spot revenue average price ($A/MWh)$149.6$107.7$40.6$55.8$50.4$106.2
Future contract close outs ($A M)$0.0$0.0$0.0$0.0-$0.3$0.1

Meridian group
1 8 N O V E M 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 O C T O B E R 2 0 2 0 |14
Meridian operating information
OCTOBER
2020
MONTH
OCTOBER
2019
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2020
MONTH
4 MONTHS TO
OCTOBER
2020
4 MONTHS TO
OCTOBER
2019
Meridian Group
Employee and Operating Costs
9
($m)212221218386
Stay in Business Capital Expenditure ($m)44441415
Investment Capital Expenditure ($m)2133166
Total Capital Expenditure ($m)65773021
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
9.Excludes electricity metering expenses, now reclassified into gross margin

JulAugSepOctNovDecJanFebMarAprMayJun
202020202020202020202020202120212021202120212021
New Zealand contracted sales
Residential sales volume (GWh)186171146127
Small medium business sales volume (GWh)113107105104
Agricultural sales volume (GWh)477286157
Large business sales volume (GWh)55524846
Corporate and industrial sales volume (GWh)282275272283
Retail contracted sales volume (GWh)683677657717
Average retail contracted sales price ($NZ/MWh)$120.4$119.3$118.1$106.0
NZAS sales volume (GWh)426426411426
Financial contract sales volumes (GWh)188125201126
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0$70.4$74.2$69.4
Retail customer supply volumes (GWh)704717696755
Cost to supply retail customers ($NZ/MWh)$165.1$120.6$140.3$126.9
Cost to supply wholesale customers ($NZ/MWh)$143.8$109.6$122.2$95.8
Cost of financial contracts ($NZ/MWh)$143.7$113.1$127.8$110.8
Total New Zealand customer connections326,148327,125328,602329,710
New Zealand generation
Hydro generation volume (GWh)9759048791,066
Wind generation volume (GWh)114113158126
Total generation volume (GWh)1,0891,0171,0371,192
Average generation price ($NZ/MWh)$144.5$110.1$123.7$107.7
New Zealand hedging
Hedging volume (GWh)318266268241
Hedging cost average price ($NZ/MWh)$109.3$104.6$101.2$96.2
Hedging spot revenue average price ($NZ/MWh)$133.4$123.8$132.6$114.4
Future contract close outs ($NZm)-1.6-1.9-2.90.6
Australia contracted sales
Retail contracted electricity sales volume (GWh)85836661
Average electricity contracted sales price
1
($A/MWh)$142.7$137.7$146.3$140.0
Retail contracted gas sales volume (TJ)312280157142
Average gas contracted sales price
1
($A/GJ)$14.7$11.5$12.0$15.5
Financial contract sales volumes
2
(GWh)26332942
Financial contracted sales average price ($A/MWh)$67.6$65.7$66.5$66.8
Cost to supply electricity customers ($A/MWh)$79.5$85.5$61.3$73.1
Cost to supply gas customers ($A/GJ)$10.1$11.3$14.6$13.4
Cost of financial contracts ($A/MWh)$56.7$53.5$37.0$52.2
Powershop electricity customer connections
7
136,696137,530138,289139,162
Powershop gas customer connections
8
38,54438,97839,25139,540
Australia generation
Wind generation volume (GWh)34605744
Average wind generation price ($A/MWh)$90.3$90.4$69.6$67.8
Hydro generation volume (GWh)041412
Average hydro generation price ($A/MWh)-$51.7$39.0$59.0
PPA generation received (GWh)27333430
Average PPA generation price [net of costs] ($A/MWh)-$1.6-$3.8-$14.4-$2.2
Australia hedging
Hedging volume (GWh)35423713
Hedging costs ($A/MWh)$48.4$78.3$82.6$204.9
Hedging spot revenue average price ($A/MWh)$18.6$55.8$40.6$149.6
Future contract close outs ($A M)-$0.2$0.0$0.0$0.0
Meridian Group
Employee and Operating Costs ($NZ m)21212121
Stay in Business Capital Expenditure ($NZ m)3444
Investment Capital Expenditure ($NZ m)7332
Total Capital Expenditure ($NZ m)10776
FY21 operating information
151 8 N O V E M 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 O C T O 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$98.6$105.6$102.1$109.8$93.9-$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
FY20 operating information
161 8 N O V E M 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 O C T O B E R 2 0 2 0 |
Meridian operating information

Glossary
171 8 N O V E M 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 O C T O 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