Meridian Energy monthly operating report for December 2020

PG 1

Meridian Energy monthly operating report for December 2020
27 January 2021
Attached is Meridian Energy Limited's monthly operating report for the month of December 2020.
Highlights this month include:
▪ In the month to 18 January 2021, national hydro storage decreased from 95% to 79% of historical
average
▪ South Island storage sat at 72% of average and North Island storage at 117% of average on 18
January 2021
▪ Meridian’s December 2020 monthly total inflows were 80% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of December 2020 was 73% of historical
average
▪ Water storage in Meridian’s Waiau catchment was below average at the end of December 2020
▪ Waitaki snow storage at the end of December 2020 was 104% of historical average
▪ Meridian made calls under the Genesis swaption in mid January 2021
▪ National electricity demand in December 2020 was 0.9% lower than the same month last year
▪ December 2020 was dry and mild for most of New Zealand with near average temperatures for most
of the country. Much of the country experienced rainfall well below average, including western parts
of the South Island
▪ Outages confirmed out to May 2021 on the Roxborough-Livingstone line as part of the Clutha Upper
Waitaki Lines Project
▪ New Zealand Aluminium Smelter’s average load during December 2020 was 566MW
▪ NZ retail sales volumes in December 2020 were 8.9% higher than December 2019
▪ Compared to December 2019, sales increased in most segments: residential (+8.8%), SME (+22.0%),
large business (+8.3%) and corporate (+15.7%). Agricultural volumes were 6.3% lower

Highlights for the second quarter include:
▪ Meridian’s Q2 total inflows were 92% of historical average and 43% lower than Q2 last year
▪ Meridian’s Waitaki catchment water storage at the end of Q2 was 46% lower than Q2 last year
▪ Waitaki snow storage at the end of Q2 was 104% of historical average compared with 149% in Q2
last year

PG 2
▪ Compared to Q2 last year, Meridian’s New Zealand generation was 1.2% lower at a 15.8% higher
average price
▪ New Zealand Aluminium Smelter’s average load during Q2 was 565MW compared with 593MW in
Q2 last year
▪ National electricity demand in Q2 was 0.2% lower than Q2 last year
▪ At the end of Q2, Meridian’s New Zealand customer numbers were 6.1% higher than the same time
last year
▪ Compared to Q2 last year, Meridian’s NZ retail sales volumes were 13.6% higher at a 3.6% higher
average price
▪ All segment sales showed double digit percentage increases, except residential, which increased
4.9%
▪ Compared to Q2 last year, Meridian’s Australian wind generation was 1.2% lower at a 41.7% lower
average price
▪ At the end of Q2, Meridian’s Australian electricity customer numbers were 13.1% higher the same
time last year
▪ Compared to Q2 last year, Meridian’s Australian retail sales volumes were 18.0% higher at a 17.0%
lower average price
▪ Compared to Q2 last year, Meridian Group Operating costs were 3.1% higher and Capital
Expenditure was 8.7% higher

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
December 2020

December highlights
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |2
In the month to 18 January
2021, national hydro storage
decreased from 95%to 79%
of historical average
South Island storage sat at
72%of average and North
Island storage at 117%of
average on 18 January 2021
Meridian’s December 2020
monthly total inflows were
80%of historical average
Meridian’s Waitaki catchment
water storage at the end of
December 2020 was 73%of
historical average
Water storage in Meridian’s
Waiau catchment was below
average at the end of
December 2020
Outages confirmed out to May
2021 onthe Roxborough-
Livingstone line as part ofthe
Clutha Upper Waitaki Lines
Project
New Zealand Aluminium
Smelter’s average load during
December 2020 was 566MW
NZ retail salesvolumes in
December 2020 were
8.9%higher than December
2019​
Compared to December 2019,
sales increased in most
segments: residential (+8.8%),
SME (+22.0%), large business
(+8.3%)and corporate
(+15.7%). Agriculturalvolumes
were 6.3% lower
Waitaki snow storage at the
end of December 2020 was
104%of historical average
Meridian made calls under
the Genesis swaption in mid
January 2021
National electricity demand in
December 2020 was 0.9%
lower than the same month
last year
December 2020 was dry and
mild formost of New Zealand
with near average
temperatures for most of the
country.Much of the country
experienced rainfallwell
below average, including
westernparts of the South
Island

Q2 highlights
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Meridian’s Q2 total inflows
were 92%of historical average
and 43%lower than Q2 last
year
Meridian’s Waitaki catchment
water storage at the end of Q2
was 46%lower than Q2 last
year
Waitaki snow storage at the
end of Q2 was 104%of
historical average compared
with 149%in Q2 last year
Compared to Q2 last year,
Meridian’s New Zealand
generation was 1.2%lower at
a 15.8%higher average price
Compared to Q2 last year,
Meridian’s Australian wind
generation was 1.2%lower at a
41.7%lower average price
At the end of Q2, Meridian’s
Australian electricity customer
numbers were 13.1%higher
the same time last year
Compared to Q2 last year,
Meridian’s Australian retail
sales volumes were 18.0%
higher at a 17.0%lower
average price
Compared to Q2 last year,
Meridian Group Operating
costs were 3.1%higher and
Capital Expenditure was 8.7%
higher
New Zealand Aluminium
Smelter’s average load during
Q2 was 565MWcompared
with 593MWin Q2 last year
National electricity demand in
Q2 was 0.2%lower than Q2
last year
At the end of Q2, Meridian’s
New Zealand customer
numbers were 6.1%higher
than the same time last year
Compared to Q2 last year,
Meridian’s NZ retail sales
volumes were 13.6%higher at
a 3.6%higher average price
All segment sales showed
double digit percentage
increases, except residential,
which increased 4.9%
page 16 for Meridian’s quarterly operating information

Market data
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |4
▪National electricity demand in December
2020 was 0.9% lower than the same
month last year
▪December 2020 was dry and mild formost
of New Zealand with near average
temperatures for most of the
country.Much of the country experienced
rainfallwell below average, including
westernparts of the South Island
▪Demand in the last 12 months was 1.2%
lower than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during December 2020 was 566MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.3% at the
end of December 2020
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 12.9% at the end
of December 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%
Dec 15Jun 16Dec 16Jun 17Dec 17Jun 18Dec 18Jun 19Dec 19Jun 20Dec 20
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

Market data
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |5
▪December 2020 saw increases in ASX
prices
▪National storage decreased from 95% of
average on 7 December 2020 to 79% of
average on 18 January 2021
▪South Island storage decreased to 72% of
historical average on 18 January 2021.
North Island storage decreased to 117% of
average
Source: ASX
Source: ASX
Source: NZX
0
1,000
2,000
3,000
4,000
5,000
6,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (18 January 2021)
87yr Average199220042008
2012201820202021
60
70
80
90
100
110
120
130
140
150
160
170
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
30 June 202030 September 202030 October 2020
30 November 202031 December 202014 January 2021
60
70
80
90
100
110
120
130
140
150
160
170
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
30 June 202030 September 202030 October 2020
30 November 202031 December 202014 January 2021

New Zealand retail
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |6
▪Meridian’s New Zealand customer
connection numbers rose 0.4% during
December 2020 and have risen 2.6% since
June 2020
▪Retail sales volumes in December 2020
were 8.9% higher than December 2019
▪Compared to December 2019, sales
increased in most segments: residential
(+8.8%), SME (+22.0%), large business
(+8.3%)and corporate (+15.7%).
Agriculturalvolumes were 6.3% lower
▪To date this financial year, retail sales
volumes are 12.5% higher than the same
period last year
▪This reflects increased sales in all
segments: residential (+5.9%), small
medium business (+14.3%) agricultural
(+13.9%), large business (+16.3%) and
corporate (+14.3%)
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
115
115
116
116
116
116
120
121
121
121
121121
90
91
92
93
94
96
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
111
107
113
107
105
104
96
99
47
72
87
157
142
170
55
52
48
46
44
44
282
275
272
283
284
287
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
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |7
▪December 2020 monthly inflows were 80%
of historical average
▪To date this financial year, inflows are
116% of historical average
▪Meridian’s Waitaki catchment water
storage moved from 1,303GWh to
1,206GWh during December 2020
▪Waitaki water storage at the end of
December 2020 was 73% of historical
average and 46% lower than the same
time last year
▪Water storage in Meridian’s Waiau
catchment was below average at the end
of December 2020
▪Waitaki snow storage at the end of
December 2020 was 104% of historical
average
Meridian operating information
Source: Meridian
Source: Meridian
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
200720082009201020112012201320142015201620172018201920202021
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
December 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
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |8
▪Meridian’s New Zealand generation in
December 2020 was 8.7% lower than the
same month last year, reflecting lower
hydro and higher wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 7.1% lower than the
same period last year, reflecting lower
hydro and lower wind generation
▪The average price Meridian received for its
generation in December 2020 was 112.7%
higher than the same month last year
▪The average price Meridian paid to supply
customers in December 2020 was 106.5%
higher than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 11.7% higher than the same period last
year and the average price paid to supply
customers is 13.7% 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
87
109
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
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |9
▪Powershop Australia electricity customer
connection numbers rose 0.4% during
December 2020 and have risen 3.5% since
June 2020
▪Electricity sales volumes in December
2020 were 10.7% higher than the same
month last year
▪To date this financial year, electricity sales
volumes are 23.1% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 1.1% during
December 2020 and have risen 7.8% since
June 2020
▪Gas sales volumes in December 2020 were
6.9% lower than the same month last year
▪To date this financial year, gas sales
volumes are 28.2% higher than the same
period last year
Meridian operating information
Source: Meridian
Source: Meridian
85
83
66
61
55
56
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
52
48
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
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |10
▪Meridian’s Australian generation in
December 2020 was 45.2% higher than the
same month last year, reflecting higher
wind generation and higher hydro
generation
▪To date this financial year, Meridian’s
Australian generation is 6.2% higher than
the same period last year, reflecting lower
wind and higher hydro generation
▪Storage at Meridian’s Hume hydro power
station decreased to 57% of capacity by
mid January 2021
▪NEM
1
electricity demand in December
2020 was unseasonably weak, 4% lower
than the same month last year
▪Average spot electricity prices in
December 2020 fell 12% from last month
and were 34% lower than the same month
last year
Meridian operating information
Source: Meridian
1
See glossary on page 18 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
41
43
0
4
14
12
41
40
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
90
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S AUSTRALIAN GENERATION
FY21 WindFY21 HydroFY20 WindFY20 Hydro
90
90
70
68
75
55
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

DECEMBERDECEMBERNOVEMBEROCTOBER6 MONTHS TO6 MONTHS TO
2020201920202020DECEMBERDECEMBER
MONTHMONTHMONTHMONTH20202019
New Zealand contracted sales
Residential sales volume (GWh)107 98 111 127 848 801
Small medium business sales volume (GWh)99 81 96 104 624 546
Agricultural sales volume (GWh)170 181 142 157 674 592
Large business sales volume (GWh)44 40 44 46 289 248
Corporate and industrial sales volume (GWh)287 248 284 283 1,684 1,474
Retail contracted sales volume (GWh)707 650 678 717 4,119 3,661
Average retail contracted sales price ($NZ/MWh)$104.2$100.0$103.1$106.0$111.7$106.8
NZAS sales volume (GWh)426 463 412 426 2,525 2,746
Financial contract sales volumes (GWh)140 164 221 126 1,000 902
Average wholesale & financial contracts sales price ($NZ/MWh)$66.8$62.3$69.9$69.4$72.3$67.3
Retail customer supply volumes (GWh)743 669 717 755 4,331 3,829
Cost to supply retail customers ($NZ/MWh)$118.8$57.1$101.0$126.9$128.6$112.0
Cost to supply wholesale customers ($NZ/MWh)$109.2$45.4$76.3$95.8$109.6$99.6
Cost of financial contracts ($NZ/MWh)$119.1$81.6$92.3$110.8$117.7$104.6
Total New Zealand customer connections332,587 313,599 331,240 329,710
New Zealand
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |11
Meridian operating information

New Zealand
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |12
Meridian operating information
DECEMBERDECEMBERNOVEMBEROCTOBER6 MONTHS TO6 MONTHS TO
2020202020202020DECEMBERDECEMBER
MONTHMONTHMONTHMONTH20202020
New Zealand generation
Hydro generation volume (GWh)1,034 1,147 1,054 1,066 5,911 6,408
Wind generation volume (GWh)128 125 125 126 765 779
Total generation volume (GWh)1,162 1,272 1,179 1,192 6,676 7,187
Average generation price ($NZ/MWh)$109.3$51.4$86.5$107.7$113.1$101.2
New Zealand hedging
Hedging volume (GWh)308 182 314 241 1,716 891
Hedging cost average price ($NZ/MWh)$93.2$64.4$93.6$96.2$99.7$64.5
Hedging spot revenue average price ($NZ/MWh)$121.9$63.1$94.0$114.4$119.9$105.8
Future contract close outs ($NZm)-$1.3-$0.9-$2.9$0.6-$10.1-$4.8
2019
2019

Australia
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |13
Meridian operating information
DECEMBER
2020
MONTH
DECEMBER
2019
MONTH
NOVEMBER
2020
MONTH
OCTOBER
2020
MONTH
6 MONTHS TO
DECEMBER
2020
6 MONTHS TO
DECEMBER
2019
Australian contracted sales
Retail contracted electricity sales volume (GWh)56505561405329
Average electricity contractedsales price
1
($A/MWh)$132.2$161.1$144.9$140.0$140.9$153.9
Retail contracted gas sales volume (TJ)485152142991773
Average gas contractedsales price
1
($A/GJ)$23.3$20.0$22.2$15.5$14.3$14.6
Financial contract sales volumes
2
(GWh)40684142212353
Financial contractedsales average price ($A/MWh)$66.4$79.2$66.8$66.8$66.6$82.8
Cost to supplyelectricity customers ($A/MWh)$20.8$82.2$77.5$73.1$68.5$108.1
Cost to supplygas customers ($A/GJ)$19.9$9.9$12.7$13.4$12.3$10.8
Cost of financial contracts ($A/MWh)$50.0$58.2$54.4$52.2$50.9$85.1
Powershop electricity customer connections
7
140,965124,668140,346139,162
Powershop gas customer connections
8
40,81430,46540,38039,540

Australia
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |14
Meridian operating information
DECEMBER
2020
MONTH
DECEMBER
2019
MONTH
NOVEMBER
2020
MONTH
OCTOBER
2020
MONTH
6 MONTHS TO
DECEMBER
2020
6 MONTHS TO
DECEMBER
2019
Australian generation
Wind generation volumes (GWh)43414144278290
Average wind generationprice
5
($A/MWh)$54.8$101.9$75.0$67.8$74.9$117.9
Hydro generation volumes (GWh)4016411211377
Average hydro generationprice
5
($A/MWh)$86.3$64.4$72.6$59.0$69.8$85.5
PPA generation received (GWh)2929273018085
Average PPA generationprice [net of costs] ($A/MWh)-$10.7$7.8-$1.1-$2.2$5.9$27.0
Australian hedging
Hedging volume
6
(GWh)16502013163258
Hedging costs ($A/MWh)$99.7$91.9$176.2$204.9$96.5$99.5
Hedging spot revenue average price ($A/MWh)$69.7$58.6$71.6$149.6$55.0$90.7
Future contract close outs ($A M)-$0.0$0.0-$0.0$0.0$0.3$0.8

Meridian group
2 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |15
Meridian operating information
DECEMBER
2020
MONTH
DECEMBER
2019
MONTH
NOVEMBER
2020
MONTH
OCTOBER
2020
MONTH
6 MONTHS TO
DECEMBER
2020
6 MONTHS TO
DECEMBER
2019
Meridian Group
Employee and Operating Costs
9
($m)21192221126127
Stay in Business Capital Expenditure ($m)34342024
Investment Capital Expenditure ($m)3122218
Total Capital Expenditure ($m)65564132
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

FY21 operating information
162 7 J A N U A R Y 2 0 2 1 | 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 D E C E M B E R 2 0 2 0 |
Meridian operating information
JulAugSepOctNovDecJanFebMarAprMayJunQ1YoYQ2YoYQ3YoYQ4YoY
202020202020202020202020202120212021202120212021FY21changeFY21changeFY21changeFY21change
New Zealand contracted sales
Residential sales volume (GWh)186171146127111107503+31345+16
Small medium business sales volume (GWh)1131071051049699325+34299+44
Agricultural sales volume (GWh)477287157142170205+22469+60
Large business sales volume (GWh)555248464444155+26134+14
Corporate and industrial sales volume (GWh)282275272283284287829+93855+117
Retail contracted sales volume (GWh)6836776577176787072,017+2062,102+252
Average retail contracted sales price ($NZ/MWh)$120.4$119.3$118.1$106.0$103.1$104.2$119.3+$6.3$104.5+$3.6
NZAS sales volume (GWh)4264264114264124261,262-1101,263-110
Financial contract sales volumes (GWh)188125201126221140514+40487+59
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0$70.4$74.2$69.4$69.9$66.8$75.7+$6.0$68.7+$3.9
Retail customer supply volumes (GWh)7047176967557177432,117+2292,215+274
Cost to supply retail customers ($NZ/MWh)$165.1$120.6$140.3$126.9$101.0$118.8$141.9+$16.8$115.8+$16.6
Cost to supply wholesale customers ($NZ/MWh)$143.8$109.6$122.2$95.8$76.3$109.2$125.2+$10.5$94.0+$9.5
Cost of financial contracts ($NZ/MWh)$143.7$113.1$127.8$110.8$92.3$119.1$130.0+$16.3$104.7+$10.2
Total New Zealand customer connections326,148327,125328,602329,710331,240332,587328,602+19,230332,587+18,988
New Zealand generation
Hydro generation volume (GWh)9759048791,0661,0541,0342,758-4743,153-22
Wind generation volume (GWh)115113158126125128385+8379-22
Total generation volume (GWh)1,0891,0171,0371,1921,1791,1623,144-4663,533-44
Average generation price ($NZ/MWh)$144.5$110.1$123.7$107.7$86.5$109.3$126.5+$11.5$101.2+$13.8
New Zealand hedging
Hedging volume (GWh)318266268241314308852+436863+389
Hedging cost average price ($NZ/MWh)$109.3$104.6$101.2$96.2$93.6$93.2$105.3+$41.8$94.2+$28.9
Hedging spot revenue average price ($NZ/MWh)$133.4$123.8$132.6$114.4$94.0$121.9$130.2+$10.9$109.7+$15.6
Future contract close outs ($NZm)-1.6-1.9-2.90.6-2.9-1.3-6.4-4.2-3.7-1.1
Australia contracted sales
Retail contracted electricity sales volume (GWh)858366615556234+49171+26
Average electricity contracted sales price
1
($A/MWh)$142.7$137.7$146.3$140.0$144.9$132.2$142.2-$1.0$139.0-$28.5
Retail contracted gas sales volume (TJ)3122801571425248749+210242+8
Average gas contracted sales price
1
($A/GJ)$14.7$11.5$12.0$15.5$22.2$23.3$12.9-$0.8$18.5+$1.9
Financial contract sales volumes
2
(GWh)26332942414088-69124-73
Financial contracted sales average price ($A/MWh)$67.6$65.7$66.5$66.8$66.8$66.4$66.5-$20.1$66.7-$13.1
Cost to supply electricity customers ($A/MWh)$79.5$85.5$61.3$73.1$77.5$20.8$76.6-$40.2$57.5-$39.6
Cost to supply gas customers ($A/GJ)$10.1$11.3$14.6$13.4$12.7$19.9$11.5+$0.5$14.5+$4.2
Cost of financial contracts ($A/MWh)$56.7$53.5$37.0$52.2$54.4$50.0$49.1-$48.1$52.2-$23.2
Powershop electricity customer connections
7
136,696137,530138,289139,162140,346140,965138,289+23,190140,965+16,297
Powershop gas customer connections
8
38,54438,97839,25139,54040,38040,81439,251+12,72240,814+10,349
Australia generation
Wind generation volume (GWh)346057444143151-10127-2
Average wind generation price ($A/MWh)$90.3$90.4$69.6$67.8$75.0$54.8$82.6-$39.4$65.7-$47.1
Hydro generation volume (GWh)041412414019-1194+46
Average hydro generation price ($A/MWh)-$51.7$39.0$59.0$72.6$86.3$41.9-$56.3$75.3-$2.4
PPA generation received (GWh)27333430272994-586-4
Average PPA generation price [net of costs] ($A/MWh)-$1.6-$3.8-$14.4-$2.2-$1.1-$10.7-$7.0-$37.0-$4.7-$28.2
Australia hedging
Hedging volume (GWh)354237132016115+449-99
Hedging costs ($A/MWh)$48.4$78.3$82.6$204.9$176.2$99.7$70.6-$26.7$157.9+$56.7
Hedging spot revenue average price ($A/MWh)$18.6$55.8$40.6$149.6$71.6$69.7$39.5-$66.0$91.3+$11.7
Future contract close outs ($A M)-$0.2$0.0$0.0$0.0$0.0$0.0-$0.3-$0.4-$0.1-$0.7
Meridian Group
Employee and Operating Costs ($NZ m)21212121222163-264+2
Stay in Business Capital Expenditure ($NZ m)34443311+010-2
Investment Capital Expenditure ($NZ m)73322313+87+3
Total Capital Expenditure ($NZ m)107765624+817+1

FY20 operating information
172 7 J A N U A R Y 2 0 2 1 | 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 D E C 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$98.6$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

Glossary
182 7 J A N U A R Y 2 0 2 1 | 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 D E C 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