Meridian Energy Monthly Operating Report for May 2021

PG 1

Meridian Energy monthly operating report for May 2021
14 June 2021
Attached is Meridian Energy Limited's monthly operating report for the month of May 2021.
Highlights this month include:
▪ In the month to 10 June 2021, national hydro storage increased from 67% to 70% of historical
average
▪ South Island storage increased to 75% of average and North Island storage was unchanged at 35% of
average by 10 June 2021
▪ Meridian’s May 2021 monthly total inflows were 111% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of May 2021 was 66% of historical average
▪ Water storage in Meridian’s Waiau catchment was below average at the end of May 2021
▪ National electricity demand in May 2021 was 3.0% higher than the same month last year
▪ May 2021 was warmer than normal for most of the country. Rainfall was highly variable; it was dry
in parts of the North Island while Canterbury experienced severe flooding late in the month
▪ Meridian made calls under the Genesis swaption in May and June 2021
▪ Outages have been confirmed out to December 2021 on the Roxburgh-Livingstone line as part of the
Clutha Upper Waitaki Lines Project
▪ New Zealand Aluminium Smelter’s average load during May 2021 was 552MW
▪ Meridian’s New Zealand retail sales volumes in May 2021 were 23.4% higher than May 2020
▪ Compared to May 2020, sales increased in all segments: residential +5.7%, small medium business
+49.2%, agricultural +1.4%, large business +11.1% and corporate +33.0%
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
May 2021

May highlights
1 4 J U N E 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 M A Y 2 0 2 1 |2
In the month to 10 June 2021,
national hydro storage
increased from 67%to 70%of
historical average
South Island storage
increased to 75%of average
and North Island storage was
unchanged at 35%of average
by 10 June 2021
Meridian’s May 2021 monthly
total inflows were 111%of
historical average
Meridian’s Waitaki catchment
water storage at the end of
May 2021 was 66%of
historical average
Water storage in Meridian’s
Waiaucatchment was below
average at the end of May
2021
New Zealand Aluminium
Smelter’s average load during
May 2021 was 552MW
Meridian’s New Zealand retail
sales volumes in May 2021
were 23.4%higher than May
2020
Compared to May 2020, sales
increased in all segments:
residential +5.7%, small
medium business+49.2%,
agricultural +1.4%, large
business +11.1% and corporate
+33.0%
National electricity demand in
May 2021 was 3.0%higher
than the same month last
year
May 2021 was warmer than
normal for most of the
country. Rainfall was highly
variable; it was dry in parts of
the North Island while
Canterbury experienced
severe flooding late in the
month
Meridian made calls under
the Genesis swaption in May
and June 2021
Outages have been confirmed
out to December 2021 onthe
Roxburgh-Livingstone line as
part ofthe Clutha Upper
Waitaki Lines Project

Market data
1 4 J U N E 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 M A Y 2 0 2 1 |3
▪National electricity demand in May 2021
was 3.0% higher than the same month last
year
▪May 2021 was warmer than normal for
most of the country. Rainfall was highly
variable; it was dry in parts of the North
Island while Canterbury experienced
severe flooding late in the month
▪Demand in the last 12 months was 0.5%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during May 2021 was 552MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.5% at the
end of April 2021
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.9% at the end
of April 2021
Source: Electricity Authority (reconcileddemand)
Source: Electricity Authority
5%
7%
9%
11%
13%
15%
Apr 16Oct 16Apr 17Oct 17Apr 18Oct 18Apr 19Oct 19Apr 20Oct 20Apr 21
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches
2,600
2,800
3,000
3,200
3,400
3,600
3,800
4,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL DEMAND
Range (2010-2020)201620172018201920202021

Market data
1 4 J U N E 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 M A Y 2 0 2 1 |4
▪May 2021 saw increases in 2021 and 2022
ASX prices
▪National storage increased from 67% of
average on 14 May 2021 to 70% of average
on 10 June 2021
▪South Island storage increased to 75% of
historical average by 10 June 2021. North
Island storage was unchanged at 35% 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 (10 June 2021)
87yr Average199220042008
2012201820202021
60
110
160
210
260
310
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 202029 January 20211 March 2021
31 March 202130 April 202131 May 2021
60
110
160
210
260
310
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 202029 January 20211 March 2021
31 March 202130 April 202131 May 2021

New Zealand retail
1 4 J U N E 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 M A Y 2 0 2 1 |5
▪Meridian’s New Zealand customer
connection numbers rose 0.8% during May
2021 and have risen 5.8% since June 2020
▪Retail sales volumes in May 2021 were
23.4% higher than May 2020
▪Compared to May 2020, sales increased in
all segments: residential +5.7%, small
medium business+49.2%, agricultural
+1.4%, large business +11.1% and
corporate +33.0%
▪To date this financial year, retail sales
volumes are 14.1% higher than the same
period last year
▪This reflects increased sales in all
segments: residential +4.0%, small
medium business +22.2%, agricultural
+14.0%, large business +11.0% and
corporate +18.5%
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
115
115
116
116
116116116
117
117
118
119
120
121
121
121
121121
121
122
122
122
122
90
91
92
93
94
96
96
97
99
101
103
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
108
121
160
113
107
105
104
96
99
96
93
111
109
126
47
72
87
157
142
170
154
177
145
116
66
55
52
48
46
44
44
44
46
40
37
44
282
275
272
283
284
287
288
311
334
311
339
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 4 J U N E 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 M A Y 2 0 2 1 |6
▪May 2021 monthly inflows were 111% of
historical average
▪To date this financial year, inflows are 93%
of historical average
▪Meridian’s Waitaki catchment water
storage moved from 974GWh to
1,128GWh during May 2021
▪Waitaki water storage at the end of May
2021 was 66% of historical average and
38% lower than the same time last year
▪Water storage in Meridian’s Waiau
catchment was below average at the end
of May 2021
Meridian operating information
Source: Meridian
Source: Meridian
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
200720082009201020112012201320142015201620172018201920202021
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
May 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 4 J U N E 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 M A Y 2 0 2 1 |7
▪Meridian’s New Zealand generation in May
2021 was 20.8% 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 11.1% lower than
the same period last year, reflecting lower
hydro and lower wind generation
▪The average price Meridian received for its
generation in May 2021 was 144.4% higher
than the same month last year
▪The average price Meridian paid to supply
customers in May 2021 was 146.2% higher
than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 93.7% higher than the same period last
year and the average price paid to supply
customers is 95.7% 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
254
273
283
101
123
122
121
94
51
77
43
52
42
116
136
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY21FY20

Australian retail
1 4 J U N E 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 M A Y 2 0 2 1 |8
▪Powershop Australia electricity customer
connection numbers rose 0.3% during May
2021 and have risen 4.6% since June 2020
▪Electricity sales volumes in May 2021 were
6.1% higher than the same month last year
▪To date this financial year, electricity sales
volumes are 15.7% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 1.4% during May
2021 and have risen 15.4% since June
2020
▪Gas sales volumes in May 2021 were 7.8%
lower than the same month last year
▪To date this financial year, gas sales
volumes are 16.5% higher than the same
period last year
Meridian operating information
Source: Meridian
Source: Meridian
85
83
66
61
55
56
57
53
58
59
72
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
42
116
213
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 4 J U N E 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 M A Y 2 0 2 1 |9
▪Meridian’s Australian generation in May
2021 was 4.4% 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 13.6% higher than
the same period last year, reflecting lower
wind and higher hydro generation
▪Storage at Meridian’s Hume hydro power
station increased to 47% of capacity by 9
June 2021
▪NEM
1
electricity demand in May 2021 was
1.0% higher than the same month last year
▪Spot prices lifted in May 2021 to be
significantly higher than the same month
last year. Active forward prices were also up
14% on the previous month
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
27
30
48
0
4
14
12
41
40
41
24
24
28
5
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
59
63
75
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

MAY
MAY
APRIL
MARCH
11 MONTHS
11 MONTHS
2021
2020
2021
2021
TO MAY
TO MAY
MONTH
MONTH
MONTH
MONTH
2021
2020
New Zealand contracted sales
Residential sales volume (GWh)
160


151


121


108


1,431


1,376


Small medium business sales volume (GWh)
126


84


109


111


1,160


949


Agricultural sales volume (GWh)
66


65


116


145


1,332


1,222


Large business sales volume (GWh)
44


40


37


40


500


438


Corporate and industrial sales volume (GWh)
339


255


311


334


3,267


2,757


Retail contracted sales volume (GWh)
736


596


694


738


7,690


6,743


Average retail contracted sales price ($NZ/MWh)
$123.2
$106.8
$114.7
$107.5
$111.7
$107.0
NZAS sales volume (GWh)
426


426


412


426


4,599


4,946


Financial contract sales volumes (GWh)
143


318


167


197


1,777


2,248


Average wholesale & financial contracts sales price ($NZ/MWh)
$75.2
$65.4
$76.8
$69.8
$70.4
$66.9
Retail customer supply volumes (GWh)
782


624


718


768


8,075


7,070


Cost to supply retail customers ($NZ/MWh)
$301.9
$132.3
$285.5
$265.1
$185.7
$98.9
Cost to supply wholesale customers ($NZ/MWh)
$274.2
$113.4
$277.8
$260.3
$167.3
$83.3
Cost of financial contracts ($NZ/MWh)
$291.8
$98.9
$266.4
$204.8
$165.3
$80.7
Total New Zealand customer connections
343,015


322,448


340,178


338,051


New Zealand
1 4 J U N E 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 M A Y 2 0 2 1 |10
Meridian operating information

MAYMAYAPRILMARCH11 MONTHS11 MONTHS
2021202020212021TO MAYTO MAY
MONTHMONTHMONTHMONTH20212020
New Zealand generation
Hydro generation volume (GWh)900 1,176 867 974 10,394 11,800
Wind generation volume (GWh)116 106 116 87 1,284 1,339
Total generation volume (GWh)1,016 1,282 983 1,061 11,678 13,139
Average generation price ($NZ/MWh)$283.4$116.0$272.5$253.8$166.4$85.9
New Zealand hedging
Hedging volume (GWh)372 218 348 431 3,523 2,413
Hedging cost average price ($NZ/MWh)$116.7$70.1$110.3$127.0$107.3$82.7
Hedging spot revenue average price ($NZ/MWh)$285.0$101.9$260.2$219.0$176.0$86.9
Future contract close outs ($NZm)-$2.1-$4.3-$1.6-$3.6-$23.5-$11.6
New Zealand
1 4 J U N E 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 M A Y 2 0 2 1 |11
Meridian operating information

Australia
1 4 J U N E 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 M A Y 2 0 2 1 |12
Meridian operating information
MAY
2021
MONTH
MAY
2020
MONTH
APRIL
2021
MONTH
MARCH
2021
MONTH
11 MONTHS
TO MAY
2021
11 MONTHS
TO MAY
2020
Australian contracted sales
Retail contracted electricity sales volume (GWh)72685958704608
Average electricity contractedsales price
1
($A/MWh)$132.7$146.5$127.2$124.1$135.9$146.7
Retail contracted gas sales volume (TJ)213231116421,4231,222
Average gas contractedsales price
1
($A/GJ)$14.8$15.4$13.0$24.2$15.2$15.3
Financial contract sales volumes
2
(GWh)17191742367515
Financial contractedsales average price ($A/MWh)$49.8$69.5$49.8$86.4$71.6$93.9
Cost to supplyelectricity customers ($A/MWh)$147.6$67.5$76.7$56.8$73.5$106.9
Cost to supplygas customers ($A/GJ)$11.3$11.2$10.7$17.8$12.5$12.1
Cost of financial contracts ($A/MWh)$92.3$39.8$52.8$39.1$47.4$82.0
Powershop electricity customer connections
7
142,470135,628142,086141,998
Powershop gas customer connections
8
43,70736,95543,09242,728

Australia
1 4 J U N E 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 M A Y 2 0 2 1 |13
Meridian operating information
MAY
2021
MONTH
MAY
2020
MONTH
APRIL
2021
MONTH
MARCH
2021
MONTH
11 MONTHS
TO MAY
2021
11 MONTHS
TO MAY
2020
Australian generation
Wind generation volumes (GWh)48493027453491
Average wind generationprice
5
($A/MWh)$75.3$61.4$63.2$58.9$62.5$134.8
Hydro generation volumes (GWh)512824235113
Average hydro generationprice
5
($A/MWh)$65.1$39.9$68.2$43.7$57.5$86.3
PPA generation received (GWh)30322525313339
Average PPA generationprice [net of costs] ($A/MWh)$19.2-$13.1$0.6-$13.4-$5.4$16.9
Australian hedging
Hedging volume
6
(GWh)38402313262459
Hedging costs ($A/MWh)$62.4$49.6$180.3$266.6$130.2$100.4
Hedging spot revenue average price ($A/MWh)$156.6$42.9$186.2$50.4$84.6$78.6
Future contract close outs ($Am)-$0.1$0.7$0.0$0.0-$1.4$2.7

Meridian group
1 4 J U N E 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 M A Y 2 0 2 1 |14
Meridian operating information
MAY
2021
MONTH
MAY
2020
MONTH
APRIL
2021
MONTH
MARCH
2021
MONTH
11 MONTHS
TO MAY
2021
11 MONTHS
TO MAY
2020
Meridian Group
Employee and Operating Costs
9
($m)24192222234227
Stay in Business Capital Expenditure ($m)43444038
Investment Capital Expenditure ($m)524346817
Total Capital Expenditure ($m)9583810855
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

JulAugSepOctNovDecJanFebMarAprMayJunQ1YoYQ2YoYQ3YoYQ4YoY
202020202020202020202020202120212021202120212021FY21changeFY21changeFY21changeFY21change
New Zealand contracted sales
Residential sales volume (GWh)18617114612711110710193108121160503+31345+16302+2
Small medium business sales volume (GWh)11310710510496999693111109126325+34299+44300+39
Agricultural sales volume (GWh)47728715714217015417714511666205+22469+60476-18
Large business sales volume (GWh)5552484644444446403744155+26134+14130+12
Corporate and industrial sales volume (GWh)282275272283284287288311334311339829+93855+117933+127
Retail contracted sales volume (GWh)6836776577176787076837217386947362,017+2062,102+2522,141+163
Average retail contracted sales price ($NZ/MWh)$120.4$119.3$118.1$106.0$103.1$104.2$104.1$108.7$107.5$114.7$123.2$119.3+$6.3$104.5+$3.6$106.8-$0.1
NZAS sales volume (GWh)4264264114264124264263844264124261,262-1101,263-1101,236-123
Financial contract sales volumes (GWh)188125201126221140144126197167143514+40487+59467-339
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0$70.4$74.2$69.4$69.9$66.8$59.6$58.0$69.8$76.8$75.2$75.7+$6.0$68.7+$3.9$62.9-$4.4
Retail customer supply volumes (GWh)7047176967557177437197577687187822,117+2292,215+2742,244+163
Cost to supply retail customers ($NZ/MWh)$165.1$120.6$140.3$126.9$101.0$118.8$143.9$256.7$265.1$285.5$301.9$141.9+$16.8$115.8+$16.6$223.4+$146.1
Cost to supply wholesale customers ($NZ/MWh)$143.8$109.6$122.2$95.8$76.3$109.2$132.6$244.8$260.3$277.8$274.2$125.2+$10.5$94.0+$9.5$211.5+$158.5
Cost of financial contracts ($NZ/MWh)$143.7$113.1$127.8$110.8$92.3$119.1$139.1$234.0$204.8$266.4$291.8$130.0+$16.3$104.7+$10.2$192.5+$137.7
Total New Zealand customer connections326,148327,125328,602329,710331,240332,587333,367335,580338,051340,178343,015328,602+19,230332,587+18,988338,051+18,273
New Zealand generation
Hydro generation volume (GWh)9759048791,0661,0541,0348748689748679002,758-4743,153-222,716-542
Wind generation volume (GWh)1151131581261251281178387116116385+8379-22287-52
Total generation volume (GWh)1,0891,0171,0371,1921,1791,1629919511,0619831,0163,144-4663,533-443,003-593
Average generation price ($NZ/MWh)$144.5$110.1$123.7$107.7$86.5$109.3$134.5$242.1$253.8$272.5$283.4$126.5+$11.5$101.2+$13.8$210.7+$153.0
New Zealand hedging
Hedging volume (GWh)318266268241314308312345431348372852+436863+3891,088+23
Hedging cost average price ($NZ/MWh)$109.3$104.6$101.2$96.2$93.6$93.2$98.5$115.6$127.0$110.3$116.7$105.3+$41.8$94.2+$28.9$115.2+$13.5
Hedging spot revenue average price ($NZ/MWh)$133.4$123.8$132.6$114.4$94.0$121.9$136.8$235.0$219.0$260.2$285.0$130.2+$10.9$109.7+$15.6$358.8+$282.9
Future contract close outs ($NZm)-1.6-1.9-2.90.6-2.9-1.3-1.5-4.5-3.6-1.6-2.1-6.4-4.2-3.7-1.1-9.7-9.1
Australia contracted sales
Retail contracted electricity sales volume (GWh)8583666155565753585972234+49171+26168+13
Average electricity contracted sales price
1
($A/MWh)$142.7$137.7$146.3$140.0$144.9$132.2$131.8$129.7$124.1$127.2$132.7$142.2-$1.0$139.0-$28.5$128.5-$12.2
Retail contracted gas sales volume (TJ)3122801571425248313142116213749+210242+8104-7
Average gas contracted sales price
1
($A/GJ)$14.7$11.5$12.0$15.5$22.2$23.3$29.8$28.0$24.2$13.0$14.8$12.9-$0.8$18.5+$1.9$27.0+$4.2
Financial contract sales volumes
2
(GWh)263329424140423842171788-69124-73121-14
Financial contracted sales average price ($A/MWh)$67.6$65.7$66.5$66.8$66.8$66.4$86.4$86.4$86.4$49.8$49.8$66.5-$20.1$66.7-$13.1$86.4-$35.6
Cost to supply electricity customers ($A/MWh)$79.5$85.5$61.3$73.1$77.5$20.8$53.2$48.0$56.8$76.7$147.6$76.6-$40.2$57.5-$39.6$52.8-$87.2
Cost to supply gas customers ($A/GJ)$10.1$11.3$14.6$13.4$12.7$19.9$22.8$17.7$17.8$10.7$11.3$11.5+$0.5$14.5+$4.2$19.3-$2.0
Cost of financial contracts ($A/MWh)$56.7$53.5$37.0$52.2$54.4$50.0$33.2$30.2$39.1$52.8$92.3$49.1-$48.1$52.2-$23.2$34.3-$45.2
Powershop electricity customer connections
7
136,696137,530138,289139,162140,346140,965141,203141,643141,998142,086142,470138,289+23,190140,965+16,297141,998+7,599
Powershop gas customer connections
8
38,54438,97839,25139,54040,38040,81441,24741,88442,72843,09243,70739,251+12,72240,814+10,34942,728+7,336
Australia generation
Wind generation volume (GWh)3460574441433931273048151-10127-297-11
Average wind generation price ($A/MWh)$90.3$90.4$69.6$67.8$75.0$54.8$52.7-$54.4$58.9$63.2$75.3$82.6-$39.4$65.7-$47.1$20.4-$224.6
Hydro generation volume (GWh)041412414041242428519-1194+4689+58
Average hydro generation price ($A/MWh)-$51.7$39.0$59.0$72.6$86.3$37.6$33.3$43.7$68.2$65.1$41.9-$56.3$75.3-$2.4$38.0-$57.3
PPA generation received (GWh)273334302729282425253094-586-478-9
Average PPA generation price [net of costs] ($A/MWh)-$1.6-$3.8-$14.4-$2.2-$1.1-$10.7-$15.8-$18.2-$13.4$0.6$19.2-$7.0-$37.0-$4.7-$28.2-$15.8-$32.7
Australia hedging
Hedging volume (GWh)354237132016915132338115+449-9937-88
Hedging costs ($A/MWh)$48.4$78.3$82.6$204.9$176.2$99.7$482.6$266.8$266.6$180.3$62.4$70.6-$26.7$157.9+$56.7$319.2+$194.4
Hedging spot revenue average price ($A/MWh)$18.6$55.8$40.6$149.6$71.6$69.7$109.7$82.2$50.4$186.2$156.6$39.5-$66.0$91.3+$11.7$77.9-$2.2
Future contract close outs ($A M)-$0.2$0.0$0.0$0.0$0.0$0.0-$0.3-$0.7$0.0$0.0-$0.1-$0.3-$0.4-$0.1-$0.7-$0.9-$1.2
Meridian Group
Employee and Operating Costs ($NZ m)212121212221182122222463-264+261-1
Stay in Business Capital Expenditure ($NZ m)3444333344411+010-210-0
Investment Capital Expenditure ($NZ m)73322323344513+87+339+34
Total Capital Expenditure ($NZ m)107765656388924+817+149+34
FY21 operating information
151 4 J U N E 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 M A Y 2 0 2 1 |
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 4 J U N E 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 M A Y 2 0 2 1 |
Meridian operating information

Glossary
171 4 J U N E 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 M A 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