Meridian Energy monthly operating report for February 2021

PG 1

Meridian Energy monthly operating report for February 2021
19 March 2021
Attached is Meridian Energy Limited's monthly operating report for the month of February 2021.
Highlights this month include:
▪ In the month to 16 March 2021, national hydro storage decreased from 80% to 70% of historical
average
▪ South Island storage decreased to 70% of average and North Island storage decreased to 73% of
average by 16 March 2021
▪ Meridian’s February 2021 monthly total inflows were 54% of historical average, the third driest
February on record
▪ Meridian’s Waitaki catchment water storage at the end of February 2021 was 67% of historical
average
▪ Water storage in Meridian’s Waiau catchment was below average at the end of February 2021
▪ National electricity demand in February 2021 was 4.6% lower than the same month last year
▪ February 2021 was a dry month with mixed temperatures. Soil moisture levels remain around
average across the country
▪ Meridian made calls under the Genesis swaption in February and March 2021
▪ Outages continued on Clyde - Cromwell - Twizel circuits as part of the Clutha Upper Waitaki Lines
Project
▪ New Zealand Aluminium Smelter’s average load during February 2021 was 565MW
▪ Meridian’s New Zealand retail sales volumes in February 2021 were 11.6% higher than February
2020
▪ Compared to February 2020, we saw increased sales in all segments: Res +1.2%, SME +6.9%,
agricultural +8.6%, large business +17.8% and corporate +17.8%
▪ With the announcement of the commencement of the Harapaki wind farm build, FY21 capex is now
expected to be between $120M-$130M (previously $70M-$80M)

PG 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

Monthly Operating Report
February 2021

February highlights
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |2
In the month to 16 March
2021, national hydro storage
decreased from 80%to 70%
of historical average
South Island storage
decreased to 70%of average
and North Island storage
decreased to 73%of average
by 16 March 2021
Meridian’s February 2021
monthly total inflows were
54%of historical average, the
thirddriest February on
record
Meridian’s Waitaki catchment
water storage at the end of
February 2021 was 67%of
historical average
New Zealand Aluminium
Smelter’s average load during
February 2021 was 565MW
Meridian’s New Zealand retail
sales volumes in February 2021
were 11.6%higher than
February 2020
Compared to February 2020,
we saw increased sales in all
segments: Res +1.2%, SME
+6.9%, agricultural +8.6%, large
business +17.8%and corporate
+17.8%
With the announcement of the
commencement of the
Harapakiwind farm build, FY21
capex is now expected to be
between $120M-$130M
(previously $70M-$80M)
Water storage in Meridian’s
Waiaucatchment was below
average at the end of
February 2021
National electricity demand in
February 2021 was 4.6%
lower than the same month
last year
February 2021 was a dry
month with mixed
temperatures. Soil moisture
levels remain around average
across the country
Meridian made calls under
the Genesis swaption in
February and March 2021
Outages continued on Clyde -
Cromwell -Twizel circuits as
part of the Clutha Upper
Waitaki Lines Project

Market data
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |3
▪National electricity demand in February
2021 was 4.6% lower than the same
month last year
▪February 2021 was a dry month with
mixed temperatures. Soil moisture levels
remain around average across the country
▪Demand in the last 12 months was 2.2%
lower than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during February 2021 was 565MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.3% at the
end of January 2021
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.0% at the end
of January 2021
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 (2010-2020)201620172018201920202021
5%
7%
9%
11%
13%
15%
Jan 16Jul 16Jan 17Jul 17Jan 18Jul 18Jan 19Jul 19Jan 20Jul 20Jan 21
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

Market data
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |4
▪February 2021 saw increases in ASX prices
▪National storage decreased from 80% of
average on 11 February 2021 to 70% of
average on 16 March 2021
▪South Island storage decreased to 70% of
historical average by 16 March 2021. North
Island storage decreased to 73% 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 (16 March 2021)
87yr Average199220042008
2012201820202021
60
80
100
120
140
160
180
200
220
240
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 October 202030 November 2020
31 December 202029 January 20211 March 2021
60
80
100
120
140
160
180
200
220
240
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 October 202030 November 2020
31 December 202029 January 20211 March 2021

New Zealand retail
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |5
▪Meridian’s New Zealand customer
connection numbers rose 0.7% during
February 2021 and have risen 3.5% since
June 2020
▪Retail sales volumes in February 2021 were
11.6% higher than February 2020
▪Compared to February 2020, sales
increased in all segments: residential
+1.2%, small business +6.9%, agricultural
+8.6%, large business +17.8%and
corporate +17.8%
▪To date this financial year, retail sales
volumes are 10.4% higher than the same
period last year
▪This reflects increased sales in all
segments: residential +5.3%, small
medium business +13.0%, agricultural
+5.2%, large business +16.4% and
corporate +13.6%
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
115
115
116
116
116116116
117
120
121
121
121
121121
121
122
90
91
92
93
94
96
96
97
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
100
200
300
400
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
101
93
113
107
105
104
96
99
96
93
47
72
87
157
142
170
154
177
55
52
48
46
44
44
44
46
282
275
272
283
284
287
288
311
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 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |6
▪February 2021 monthly inflows were 54%
of historical average, the third driest
February on record
▪To date this financial year, inflows are 95%
of historical average
▪Meridian’s Waitaki catchment water
storage moved from 1,380GWh to
1,296GWh during February 2021
▪Waitaki water storage at the end of
February 2021 was 67% of historical
average and 72% lower than the same
time last year
▪Water storage in Meridian’s Waiau
catchment was below average at the end
of February 2021
Meridian operating information
Source: Meridian
Source: Meridian
0
2,000
4,000
6,000
8,000
10,000
12,000
200720082009201020112012201320142015201620172018201920202021
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
February 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 1979-201620172018201920202021

New Zealand generation
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |7
▪Meridian’s New Zealand generation in
February 2021 was 19.8% 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 10.1% lower than
the same period last year, reflecting lower
hydro and lower wind generation
▪The average price Meridian received for its
generation in February 2021 was 457.2%
higher than the same month last year
▪The average price Meridian paid to supply
customers in February 2021 was 364.5%
higher than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 42.6% higher than the same period last
year and the average price paid to supply
customers is 43.7% 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
135
242
101
123
122
121
94
51
77
43
52
42
116
136
0
50
100
150
200
250
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY21FY20

Australian retail
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |8
▪Powershop Australia electricity customer
connection numbers rose 0.3% during
February 2021 and have risen 4.0% since
June 2020
▪Electricity sales volumes in February 2021
were 5.3% higher than the same month
last year
▪To date this financial year, electricity sales
volumes are 19.7% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 1.5% during
February 2021 and have risen 10.6% since
June 2020
▪Gas sales volumes in February 2021 were
17.5% lower than the same month last
year
▪To date this financial year, gas sales
volumes are 26.6% higher than the same
period last year
Meridian operating information
Source: Meridian
Source: Meridian
85
83
66
61
55
56
57
53
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
31
31
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 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |9
▪Meridian’s Australian generation in
February 2021 was 34.2% higher than the
same month last year, reflecting lower wind
generation and higher hydro generation
▪To date this financial year, Meridian’s
Australian generation is 14.3% higher than
the same period last year, reflecting lower
wind and higher hydro generation
▪Storage at Meridian’s Hume hydro power
station decreased to 48% of capacity by mid
March 2021
▪NEM
1
electricity demand in February
2021was 3% lower than the same month
last year
▪Spot and forward electricity prices declined
further in February 2021 with unseasonably
weak demand and strong generator
availability
Meridian operating information
Source: Meridian
1
See glossary on page 17 for a definition of Australia’s National Electricity Market
2
February average generation prices include the settlement of forward sold Large Generation
Certificates:
•Forward LGC sales are marked to market monthly through fair value movements
•Sales settle in February each year
•At which point fair value gains or losses on settled sales transfer to generation revenue
•With the FY21 settlement, generation revenue now includes market to market losses of A$3M
•This compares with settlement gains of A$12M in FY20
Source: Meridian
34
60
57
44
41
43
39
31
0
4
14
12
41
40
41
24
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
53
-54
116
125
127
126
110
102
226
78
54
61
79
-100
-50
0
50
100
150
200
250
JulAugSepOctNovDecJanFebMarAprMayJun
$A/MWh
AVERAGE WIND GENERATION PRICE
2
FY21FY20

New Zealand
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |10
Meridian operating information
FEBRUARY
FEBRUARY
JANUARY
DECEMBER
8 MONTHS TO
8 MONTHS TO
2021
2020
2021
2020
FEBRUARY
FEBRUARY
MONTH
MONTH
MONTH
MONTH
2021
2020
New Zealand contracted sales
Residential sales volume (GWh)
93


92


101


107


1,042


990


Small medium business sales volume (GWh)
93


87


96


99


814


720


Agricultural sales volume (GWh)
177


163


154


170


1,005


955


Large business sales volume (GWh)
46


39


44


44


378


325


Corporate and industrial sales volume (GWh)
311


264


288


287


2,284


2,011


Retail contracted sales volume (GWh)
721


646


683


707


5,523


5,001


Average retail contracted sales price ($NZ/MWh)
$108.7
$109.5
$104.1
$104.2
$110.4
$106.7
NZAS sales volume (GWh)
384


433


426


426


3,335


3,642


Financial contract sales volumes (GWh)
126


283


144


140


1,270


1,354


Average wholesale & financial contracts sales price ($NZ/MWh)
$58.0
$68.7
$59.6
$66.8
$69.1
$67.4
Retail customer supply volumes (GWh)
757


682


719


743


5,807


5,244


Cost to supply retail customers ($NZ/MWh)
$256.7
$67.9
$143.9
$118.8
$147.2
$103.9
Cost to supply wholesale customers ($NZ/MWh)
$244.8
$36.6
$132.6
$109.2
$128.1
$89.2
Cost of financial contracts ($NZ/MWh)
$234.0
$47.0
$139.1
$119.1
$131.7
$90.3
Total New Zealand customer connections
335,580


317,784


333,367


332,587

New Zealand
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |11
Meridian operating information
FEBRUARY
FEBRUARY
JANUARY
DECEMBER
8 MONTHS TO
8 MONTHS TO
2021
2020
2021
2020
FEBRUARY
FEBRUARY
MONTH
MONTH
MONTH
MONTH
2021
2020
New Zealand generation
Hydro generation volume (GWh)
868


1,077


874


1,034


7,653


8,580


Wind generation volume (GWh)
83


108


117


128


965


1,009


Total generation volume (GWh)
951


1,185


991


1,162


8,618


9,589


Average generation price ($NZ/MWh)
$242.1
$43.4
$134.5
$109.3
$129.8
$91.0
New Zealand hedging
Hedging volume (GWh)
345


342


312


308


2,373


1,529


Hedging cost average price ($NZ/MWh)
$115.6
$100.7
$98.5
$93.2
$101.9
$78.7
Hedging spot revenue average price ($NZ/MWh)
$235.0
$75.1
$136.8
$121.9
$138.8
$97.8
Future contract close outs ($NZm)
-$4.5
-$0.2
-$1.5
-$1.3
-$16.1
-$5.2

Australia
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |12
Meridian operating information
FEBRUARY
2021
MONTH
FEBRUARY
2020
MONTH
JANUARY
2021
MONTH
DECEMBER
2020
MONTH
8 MONTHS TO
FEBRUARY
2021
8 MONTHS TO
FEBRUARY
2020
Australian contracted sales
Retail contracted electricity sales volume (GWh)53505756515430
Average electricity contractedsales price
1
($A/MWh)$129.7$150.4$131.8$132.2$138.7$150.6
Retail contracted gas sales volume (TJ)313731481,053831
Average gas contractedsales price
1
($A/GJ)$28.0$22.2$29.8$23.3$15.1$15.4
Financial contract sales volumes
2
(GWh)38434240291443
Financial contractedsales average price ($A/MWh)$86.4$122.0$86.4$66.4$72.0$90.7
Cost to supplyelectricity customers ($A/MWh)$48.0$111.9$53.2$20.8$64.7$126.3
Cost to supplygas customers ($A/GJ)$17.7$20.4$22.8$19.9$12.7$12.0
Cost of financial contracts ($A/MWh)$30.2$52.2$33.2$50.0$45.7$87.5
Powershop electricity customer connections
7
141,643131,647141,203140,965
Powershop gas customer connections
8
41,88433,42841,24740,814

Australia
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |13
Meridian operating information
FEBRUARY
2021
MONTH
FEBRUARY
2020
MONTH
JANUARY
2021
MONTH
DECEMBER
2020
MONTH
8 MONTHS
TO FEBRUARY
2021
8 MONTHS TO
FEBRUARY
2020
Australian generation
Wind generation volumes (GWh)31323943348359
Average wind generationprice
5
($A/MWh)-$54.4$474.6$52.7$54.8$60.9$160.8
Hydro generation volumes (GWh)2494140178100
Average hydro generationprice
5
($A/MWh)$33.3$56.4$37.6$86.3$57.4$91.9
PPA generation received (GWh)2428282923292
Average PPA generationprice [net of costs] ($A/MWh)-$18.2$1.4-$15.8-$10.7-$8.4$27.9
Australian hedging
Hedging volume
6
(GWh)1543916187340
Hedging costs ($A/MWh)$266.8$197.7$482.6$99.7$128.7$98.1
Hedging spot revenue average price ($A/MWh)$82.2$58.7$109.7$69.7$59.7$91.1
Future contract close outs ($A M)-$0.7$0.5-$0.3-$0.0$1.2$1.3

Meridian group
1 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |14
Meridian operating information
FEBRUARY
2021
MONTH
FEBRUARY
2020
MONTH
JANUARY
2021
MONTH
DECEMBER
2020
MONTH
8 MONTHS TO
FEBRUARY
2021
8 MONTHS TO
FEBRUARY
2020
Meridian Group
Employee and Operating Costs
9
($m)21211821166167
Stay in Business Capital Expenditure ($m)33332729
Investment Capital Expenditure ($m)31232611
Total Capital Expenditure ($m)64565340
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
▪With the announcement of the commencement of the Harapakiwind farm build, FY21
capex is now expected to be between $120M-$130M(previously $70M-$80M)
▪$50M to $55M of stay in business capex
▪$70M to $75M of currently approved investment spend

FY21 operating information
151 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |
Meridian operating information
JulAugSepOctNovDecJanFebMarAprMayJunQ1YoYQ2YoY
202020202020202020202020202120212021202120212021FY21changeFY21change
New Zealand contracted sales
Residential sales volume (GWh)18617114612711110710193503+31345+16
Small medium business sales volume (GWh)11310710510496999693325+34299+44
Agricultural sales volume (GWh)477287157142170154177205+22469+60
Large business sales volume (GWh)5552484644444446155+26134+14
Corporate and industrial sales volume (GWh)282275272283284287288311829+93855+117
Retail contracted sales volume (GWh)6836776577176787076837212,017+2062,102+252
Average retail contracted sales price ($NZ/MWh)$120.4$119.3$118.1$106.0$103.1$104.2$104.1$108.7$119.3+$6.3$104.5+$3.6
NZAS sales volume (GWh)4264264114264124264263841,262-1101,263-110
Financial contract sales volumes (GWh)188125201126221140144126514+40487+59
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0$70.4$74.2$69.4$69.9$66.8$59.6$58.0$75.7+$6.0$68.7+$3.9
Retail customer supply volumes (GWh)7047176967557177437197572,117+2292,215+274
Cost to supply retail customers ($NZ/MWh)$165.1$120.6$140.3$126.9$101.0$118.8$143.9$256.7$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$132.6$244.8$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$139.1$234.0$130.0+$16.3$104.7+$10.2
Total New Zealand customer connections326,148327,125328,602329,710331,240332,587333,367335,580328,602+19,230332,587+18,988
New Zealand generation
Hydro generation volume (GWh)9759048791,0661,0541,0348748682,758-4743,153-22
Wind generation volume (GWh)11511315812612512811783385+8379-22
Total generation volume (GWh)1,0891,0171,0371,1921,1791,1629919513,144-4663,533-44
Average generation price ($NZ/MWh)$144.5$110.1$123.7$107.7$86.5$109.3$134.5$242.1$126.5+$11.5$101.2+$13.8
New Zealand hedging
Hedging volume (GWh)318266268241314308312345852+436863+389
Hedging cost average price ($NZ/MWh)$109.3$104.6$101.2$96.2$93.6$93.2$98.5$115.6$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$136.8$235.0$130.2+$10.9$109.7+$15.6
Future contract close outs ($NZm)-1.6-1.9-2.90.6-2.9-1.3-1.5-4.5-6.4-4.2-3.7-1.1
Australia contracted sales
Retail contracted electricity sales volume (GWh)8583666155565753234+49171+26
Average electricity contracted sales price
1
($A/MWh)$142.7$137.7$146.3$140.0$144.9$132.2$131.8$129.7$142.2-$1.0$139.0-$28.5
Retail contracted gas sales volume (TJ)31228015714252483131749+210242+8
Average gas contracted sales price
1
($A/GJ)$14.7$11.5$12.0$15.5$22.2$23.3$29.8$28.0$12.9-$0.8$18.5+$1.9
Financial contract sales volumes
2
(GWh)263329424140423888-69124-73
Financial contracted sales average price ($A/MWh)$67.6$65.7$66.5$66.8$66.8$66.4$86.4$86.4$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$53.2$48.0$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$22.8$17.7$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$33.2$30.2$49.1-$48.1$52.2-$23.2
Powershop electricity customer connections
7
136,696137,530138,289139,162140,346140,965141,203141,643138,289+23,190140,965+16,297
Powershop gas customer connections
8
38,54438,97839,25139,54040,38040,81441,24741,88439,251+12,72240,814+10,349
Australia generation
Wind generation volume (GWh)3460574441433931151-10127-2
Average wind generation price ($A/MWh)$90.3$90.4$69.6$67.8$75.0$54.8$52.7-$54.4$82.6-$39.4$65.7-$47.1
Hydro generation volume (GWh)0414124140412419-1194+46
Average hydro generation price ($A/MWh)-$51.7$39.0$59.0$72.6$86.3$37.6$33.3$41.9-$56.3$75.3-$2.4
PPA generation received (GWh)273334302729282494-586-4
Average PPA generation price [net of costs] ($A/MWh)-$1.6-$3.8-$14.4-$2.2-$1.1-$10.7-$15.8-$18.2-$7.0-$37.0-$4.7-$28.2
Australia hedging
Hedging volume (GWh)354237132016915115+449-99
Hedging costs ($A/MWh)$48.4$78.3$82.6$204.9$176.2$99.7$482.6$266.8$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$109.7$82.2$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-$0.7-$0.3-$0.4-$0.1-$0.7
Meridian Group
Employee and Operating Costs ($NZ m)212121212221182163-264+2
Stay in Business Capital Expenditure ($NZ m)3444333311+010-2
Investment Capital Expenditure ($NZ m)7332232313+87+3
Total Capital Expenditure ($NZ m)10776565624+817+1

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 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |
Meridian operating information

Glossary
171 9 M A R C H 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 F E B R U A R Y 2 0 2 1 |
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