Meridian Energy monthly operating report for September 2021

Release






M e r i d i a n E n e r g y L i m i t e d ( A R B N 1 5 1 8 0 0 3 9 6 ) A c o m p a n y i n c o r p o r a t e d i n N e w Z e a l a n d
L e v e l 2 , 5 5 L a d y E l i z a b e t h L a n e , P O B o x 1 0 8 4 0 , W e l l i n g t o n 6 1 4 3

m e r i d i a n e n e r g y . c o . n z
Stock Exchange Listings NZX (MEL) ASX (MEZ)
Meridian Energy monthly operating report for September 2021

20 October 2021
Attached is Meridian Energy Limited's monthly operating report for the month of
September 2021.
Mike Roan (CFO) and Owen Hackston (Investor Relations Manager) will host a quarterly
operating result call via a Microsoft Teams Live event today, Wednesday 20 October at 1pm
NZDT (11am AEDT).
Click on the link below at this time to join the call.
Meridian Energy Quarterly Operating results – Microsoft Teams Live Event
Please submit any question using the Q&A panel on the right-hand side of the call window.
If the Q&A panel doesn’t automatically appear, please select the small ‘?’ speech bubble.
Highlights this month include:

▪ In the month to 12 October 2021, national hydro storage increased from 126% to 134%
of historical average
▪ South Island storage increased to 140% of average and North Island storage increased to
115% of average by 12 October 2021
▪ Meridian’s September 2021 monthly total inflows were 171% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of September 2021 was 162% of
historical average
▪ Water storage in Meridian’s Waiau catchment was well above average at the end of
September 2021
▪ Waitaki snow storage in early September 2021 was 132% of historical average
▪ National electricity demand in September 2021 was 1.7% lower than the same month
last year. More stringent lockdowns were in place this September compared to
September 2020
▪ September 2021 was mild and wet with temperatures near average for most of the
country. Lower South Island regions saw rainfall significantly above average
▪ New Zealand Aluminium Smelter’s average load during September 2021 was 571MW
▪ Meridian’s New Zealand retail sales volumes in September 2021 were 8.8% higher than
September 2020
▪ Compared to September 2020, segment sales increased in residential +18.0%, small
medium business +14.5% and corporate +9.0%. Large business volumes were -9.7%
lower and agricultural volumes were -4.3% than September 2020

m e r i d i a n e n e r g y . c o . n z
PG 2


Highlights for the first quarter include:

▪ Meridian’s Q1 total inflows were 163% of historical average, the second highest Q1
inflows in record and 32% higher than Q1 last year
▪ Meridian’s Waitaki catchment water storage at the end of Q1 was 108% higher than Q1
last year
▪ Compared to Q1 last year, Meridian’s New Zealand generation was 11.3% higher at a
1.9% lower average price
▪ During the quarter, NZ futures prices fell. Q4 2021 Otahuhu prices have now fallen by
half to $73/MWh
▪ New Zealand Aluminium Smelter’s average load during Q1 was 569MW compared with
561MW in Q1 last year
▪ National electricity demand in Q1 was 0.4% lower than Q1 last year
▪ At the end of Q1, Meridian’s New Zealand customer numbers were 8.0% higher than the
same time last year
▪ Compared to Q1 last year, Meridian’s NZ retail sales volumes were 11.6% higher at a
3.3% higher average price
▪ Sales increased in most segments, large business and agricultural volumes were lower
▪ Compared to Q1 last year, Meridian’s Australian wind generation was 12.2% higher at a
12.7% lower average price
▪ Hume water storage rose from 57% of average to 97% of average during Q1
▪ At the end of Q1, Meridian’s Australian electricity customer numbers were 4.1% higher
the same time last year
▪ Compared to Q1 last year, Meridian’s Australian retail sales volumes were 5.9% higher
at a 21.3% lower average price
▪ Compared to Q1 last year, Meridian Group Operating costs were 2.5% higher and Total
Capital Expenditure was 108.1% 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
External Communications Manager
021 174 1715

Monthly Operating Report
September 2021

September highlights
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |2
In the month to 12 October
2021, national hydro storage
increased from 126%to 134%
of historical average
South Island storage
increased to 140%of average
and North Island storage
increased to 115%of average
by 12 October 2021
Meridian’s September 2021
monthly total inflows were
171%of historical average
Meridian’s Waitaki catchment
water storage at the end of
September 2021 was 162%of
historical average
New Zealand Aluminium
Smelter’s average load during
September 2021 was 571MW
Meridian’s New Zealand retail
sales volumes in September
2021 were 8.8%higher than
September 2020
Compared to September 2020,
segment sales increased in
residential +18.0%, small
medium business+14.5% and
corporate +9.0%. Large business
volumes were -9.7% lower and
agricultural volumes were -4.3%
than September 2020
Water storage in Meridian’s
Waiaucatchment was well
aboveaverage at the end of
September 2021
Waitaki snow storage in early
September 2021 was 132%of
historical average
National electricity demand in
September 2021 was 1.7%
lower than the same month
last year. More stringent
lockdowns were in place this
September compared to
September 2020
September 2021 was mild
and wet with temperatures
near average for most of the
country. Lower South Island
regions saw rainfall
significantly above average

Q1 highlights
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |3
Meridian’s Q1 total inflows
were 163%of historical
average, the second highest
Q1 inflows in record and 32%
higher than Q1 last year
Meridian’s Waitaki catchment
water storage at the end of
Q1 was 108%higher than Q1
last year
Compared to Q1 last year,
Meridian’s New Zealand
generation was 11.3%higher
at a 1.9%lower average price
During the quarter, NZ futures
prices fell. Q4 2021 Otahuhu
prices have now fallen by half
to $73/MWh
Compared to Q1 last year,
Meridian’s Australian wind
generation was 12.2%higher at
a 12.7%lower average price
Hume water storage rose from
57% of average to 97%of
average during Q1
At the end of Q1, Meridian’s
Australian electricity customer
numbers were 4.1%higher the
same time last year
Compared to Q1 last year,
Meridian’s Australian retail
sales volumes were 5.9%higher
at a 21.3%lower average price
Compared to Q1 last year,
Meridian Group Operating costs
were 2.5%higher and Total
Capital Expenditure was 108.1%
higher
New Zealand Aluminium
Smelter’s average load during
Q1 was 569MWcompared
with 561MWin Q1 last year
National electricity demand in
Q1 was 0.4%lower than Q1
last year
At the end of Q1, Meridian’s
New Zealand customer
numbers were 8.0%higher
than the same time last year
Compared to Q1 last year,
Meridian’s NZ retail sales
volumes were 11.6%higher at
a 3.3%higher average price
Sales increased in most
segments, large business and
agricultural volumes were
lower

Market data
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |4
▪National electricity demand in September
2021 was 1.7% lower than the same month
last year. More stringent lockdowns were in
place this September compared to
September 2020
▪September 2021 was mild and wet with
temperatures near average for most of the
country. Lower South Island regions saw
rainfall significantly above average
▪Demand in the last 12 months was 0.7%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during September 2021 was 571MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 6.2% at the
end of August 2021
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.9% at the end of
August 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%
Aug 16Feb 17Aug 17Feb 18Aug 18Feb 19Aug 19Feb 20Aug 20Feb 21Aug 21
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

Market data
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |5
▪September 2021 saw decreases in near
term ASX prices. 2025 futures commenced
trading at lower levels than 2024
▪National storage increased from 126% of
average on 10 September 2021 to 134% of
average on 12 October 2021
▪South Island storage increased to 140% of
historical average by 12 October 2021.
North Island storage increased to 115% 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 (12 October 2021)
87yr Average199220042008
2012201820202021
70
90
110
130
150
170
190
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
Q1
2025
Q2
2025
Q3
2025
Q4
2025
$/MWh
OTAHUHU ASX FUTURES SETTLEMENT PRICE
30 April 202131 May 202130 June 2021
30 July 202131 August 20211 October 2021
70
90
110
130
150
170
190
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
Q1
2025
Q2
2025
Q3
2025
Q4
2025
$/MWh
BENMORE ASX FUTURES SETTLEMENT PRICE
30 April 202131 May 202130 June 2021
30 July 202131 August 20211 October 2021

New Zealand retail
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |6
▪Meridian’s New Zealand customer
connection numbers rose 0.4% during
September 2021 and have risen 2.3% since
June 2021
▪Retail sales volumes in September 2021
were 8.8% higher than September 2020
▪Compared to September 2020, segment
sales increased in residential +18.0%, small
medium business+14.5% and corporate
+9.0%. Large business volumes were -9.7%
lower and agricultural volumes were -4.3%
than September 2020
▪To date this financial year, retail sales
volumes are 11.6% higher than the same
period last year
▪This reflects increased segment sales in:
residential +13.9%, small medium business
+21.8%, and corporate +13.4%. Large
business volumes are -10.0% lower and
agricultural volumes are -1.4% lower
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
120120
120
123
123
123
109
111
112
115
115
116
116
116
116
116
117
117
118
119
119
120
121
121
121
121121
121
122
122
122
122
122
90
91
92
93
94
96
96
97
99
101
103
106
0
100
200
300
400
JulAugSepOctNovDecJanFebMarAprMayJune
ICPs ('000)
MERIDIAN'S NZ CUSTOMER CONNECTIONS
FY22 Meridian NIFY22 Meridian SIFY22 Powershop
FY21 Meridian NIFY21 Meridian SIFY21 Powershop
205
195
172
149
127
120
51
68
83
49
47
43
321
322
297
186
171
146
127
111
107
101
93
108
121
160
174
113
107
105
104
96
99
96
93
111
109
126
134
47
72
87
157
142
170
154
177
145
116
66
43
55
52
48
46
44
44
44
46
40
37
44
45
282
275
272
283
284
287
288
311
334
311
339
319
0
300
600
900
JulAugSepOctNovDecJanFebMarAprMayJune
GWh
MERIDIAN'S RETAIL SALES VOLUME*
FY22 ResidentialFY22 SMBFY22 AgriFY22 Large Bus
FY22 CorporateFY21 ResidentialFY21 SMBFY21 Agri
FY21 Large BusFY21 Corporate

New Zealand storage
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |7
▪September 2021 monthly inflows were
171% of historical average
▪Q1 2021 inflows (July-September) were
the second highest Q1 inflows on record
▪To date this financial year, inflows are
163% of historical average
▪Meridian’s Waitaki catchment water
storage moved from 1,517GWh to
1,583GWh during September 2021
▪Waitaki water storage at the end of
September 2021 was 162% of historical
average and 52% higher than the same
time last year
▪Water storage in Meridian’s Waiau
catchment was well above average at the
end of September 2021
▪Waitaki snow storage in early October
2021 was 132% of historical average
Meridian operating information
Source: Meridian
Source: Meridian
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
200820092010201120122013201420152016201720182019202020212022
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
September YTD88 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
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |8
▪Meridian’s New Zealand generation in
September 2021 was 20.1% higher than
the same month last year, reflecting higher
hydro and lower wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 11.3% higher than
the same period last year, reflecting higher
hydro and lower wind generation
▪The average price Meridian received for its
generation in September 2021 was 38.7%
lower than the same month last year
▪The average price Meridian paid to supply
customers in September 2021 was 36.0%
lower than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 1.8% lower than the same period last
year and the average price paid to supply
customers is 1.5% 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
FY22 HydroFY22 WindFY21 HydroFY21 Wind
166
136
76
145
110
124
108
87
109
135
242
254
273
283
248
0
50
100
150
200
250
300
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY22FY21

Australian retail
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |9
▪Powershop Australia electricity customer
connection numbers rose 1.6% during
September 2021 and have increased 1.4%
since June 2021
▪Electricity sales volumes in September
2021 were 7.6% higher than the same
month last year
▪To date this financial year, electricity sales
volumes are 5.9% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 2.0% during
September 2021 and have risen 4.1% since
June 2021
▪Gas sales volumes in September 2021
were 25.1% higher than the same month
last year
▪To date this financial year, gas sales
volumes are 1.4% higher than the same
period last year
Meridian operating information
Source: Meridian
Source: Meridian
93
84
71
85
83
66
61
55
56
57
53
58
59
72
81
0
10
20
30
40
50
60
70
80
90
100
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
AUSTRALIAN RETAIL ELECTRICITY SALES VOLUMES
FY22FY21
302
261
197
312
280
157
142
52
48
31
31
42
116
213
287
0
50
100
150
200
250
300
350
JulAugSepOctNovDecJanFebMarAprMayJun
TJ
AUSTRALIAN RETAIL GAS SALES VOLUMES
FY22FY21

Australian generation
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |10
▪Meridian’s Australian generation in
September 2021 was 19.2% 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 44.9% higher than
the same period last year, reflecting higher
wind and higher hydro generation
▪Storage at Meridian’s Hume hydro power
station decreased to 97% of capacity by 12
October 2021
▪NEM
1
electricity demand in September
2021 was down 7% on the previous month
▪With the inset of milder weather, spot
prices fell in September 2021, however,
remain 24% higher than September 2020.
Forward prices fell 2% compared to the
previous month
Meridian operating information
Source: Meridian
1
See glossary on page 18 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 included market to market losses of A$3M
Source: Meridian
68
54
47
16
23
38
34
60
57
44
41
43
39
31
27
30
48
49
0
4
14
12
41
40
41
24
24
28
5
3
0
10
20
30
40
50
60
70
80
90
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S AUSTRALIAN GENERATION
FY22 WindFY22 HydroFY21 WindFY21 Hydro
93
64
52
90
90
70
68
75
55
53
-54
59
63
75
100
-100
-50
0
50
100
150
JulAugSepOctNovDecJanFebMarAprMayJun
$A/MWh
AVERAGE WIND GENERATION PRICE
2
FY22FY21

New Zealand
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |11
Meridian operating information
SEPTEMBER
SEPTEMBER
AUGUST
JULY
3 MONTHS TO
3 MONTHS TO
2021
2020
2021
2021
SEPTEMBER
SEPTEMBER
MONTH
MONTH
MONTH
MONTH
2021
2020
New Zealand contracted sales
Residential sales volume (GWh)
172


146


195


205


572


503


Small medium business sales volume (GWh)
120


105


127


149


396


325


Agricultural sales volume (GWh)
83


87


68


51


202


205


Large business sales volume (GWh)
43


48


47


49


140


155


Corporate and industrial sales volume (GWh)
297


272


322


321


940


829


Retail contracted sales volume (GWh)
715


657


759


776


2,250


2,017


Average retail contracted sales price ($NZ/MWh)
$123.2
$118.1
$124.0
$122.6
$123.2
$119.3
NZAS sales volume (GWh)
411


411


426


426


1,262


1,262


Financial contract sales volumes (GWh)
234


201


297


197


728


514


Average wholesale & financial contracts sales price ($NZ/MWh)
$65.1
$74.2
$78.4
$73.2
$72.5
$75.7
Retail customer supply volumes (GWh)
752


696


795


816


2,363


2,117


Cost to supply retail customers ($NZ/MWh)
$91.0
$140.3
$165.3
$190.3
$150.3
$141.9
Cost to supply wholesale customers ($NZ/MWh)
$62.6
$122.2
$115.9
$162.7
$114.3
$125.2
Cost of financial contracts ($NZ/MWh)
$104.8
$127.8
$137.5
$159.9
$133.0
$130.0
Total New Zealand customer connections
354,810


328,602


353,357


350,961

SEPTEMBER
SEPTEMBER
AUGUST
JULY
3 MONTHS TO
3 MONTHS TO
2021
2020
2021
2021
SEPTEMBER
SEPTEMBER
MONTH
MONTH
MONTH
MONTH
2021
2020
New Zealand generation
Hydro generation volume (GWh)
1,110


879


1,019


1,000


3,130


2,758


Wind generation volume (GWh)
135


158


129


105


370


385


Total generation volume (GWh)
1,245


1,037


1,149


1,105


3,499


3,144


Average generation price ($NZ/MWh)
$75.8
$123.7
$136.1
$166.2
$124.1
$126.5
New Zealand hedging
Hedging volume (GWh)
255


268


325


394


975


852


Hedging cost average price ($NZ/MWh)
$117.7
$101.2
$121.5
$129.6
$123.8
$105.3
Hedging spot revenue average price ($NZ/MWh)
$115.6
$132.6
$140.7
$164.1
$143.6
$130.2
Future contract close outs ($NZm)
$0.2
-$2.9
$0.1
-$0.7
-$0.5
-$6.4
New Zealand
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |12
Meridian operating information

Australia
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |13
Meridian operating information
SEPTEMBER
2021
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2021
MONTH
JULY
2021
MONTH
3 MONTHS TO
SEPTEMBER
2021
3 MONTHS TO
SEPTEMBER
2020
Australian contracted sales
Retail contracted electricity sales volume (GWh)71668493248233
Average electricity contractedsales price
1
($A/MWh)$91.4$146.3$86.4$150.9$112.0$142.3
Retail contracted gas sales volume (TJ)197157261302759749
Average gas contractedsales price
1
($A/GJ)$13.5$12.0$15.9$19.1$16.6$12.9
Financial contract sales volumes
2
(GWh)382922228388
Financial contractedsales average price ($A/MWh)$54.3$66.5$47.9$47.9$50.8$66.5
Cost to supplyelectricity customers ($A/MWh)$70.5$61.3$82.0$152.6$105.2$76.6
Cost to supplygas customers ($A/GJ)$11.7$14.6$12.0$13.5$12.5$11.5
Cost of financial contracts ($A/MWh)$40.6$37.0$50.8$102.7$60.1$49.1
Powershop electricity customer connections
7
143,976138,289141,723141,149
Powershop gas customer connections
8
45,70239,25144,80544,272

Australia
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |14
Meridian operating information
SEPTEMBER
2021
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2021
MONTH
JULY
2021
MONTH
3 MONTHS TO
SEPTEMBER
2021
3 MONTHS TO
SEPTEMBER
2020
Australian generation
Wind generation volumes (GWh)47575468170151
Average wind generationprice
5
($A/MWh)$51.7$69.6$64.0$92.6$72.1$82.6
Hydro generation volumes (GWh)381423167719
Average hydro generationprice
5
($A/MWh)$63.5$39.0$83.6$152.5$88.4$41.9
PPA generation received (GWh)3234364110998
Average PPA generationprice [net of costs] ($A/MWh)-$1.9-$14.4$3.4$30.9$12.2-$6.7
Australian hedging
Hedging volume
6
(GWh)35374033108115
Hedging costs ($A/MWh)$97.3$82.6$92.1$87.2$92.3$70.6
Hedging spot revenue average price ($A/MWh)$69.9$40.6$83.6$159.4$102.1$39.6
Future contract close outs ($Am)$0.0$0.0$0.0$0.0$0.0-$0.3

Meridian group
2 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |15
Meridian operating information
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
SEPTEMBER
2021
MONTH
SEPTEMBER
2020
MONTH
AUGUST
2021
MONTH
JULY
2021
MONTH
3 MONTHS TO
SEPTEMBER
2021
3 MONTHS TO
SEPTEMBER
2020
Meridian Group
Employee and Operating Costs
9
($m)222122206462
Stay in Business Capital Expenditure ($m)44331010
Investment Capital Expenditure ($m)253593813
Total Capital Expenditure ($m)2978124823

JulAugSepOctNovDecJanFebMarAprMayJunQ1YoYQ2YoYQ3YoYQ4YoY
202120212021202120212021202220222022202220222022FY22changeFY22changeFY22changeFY22change
New Zealand contracted sales
Residential sales volume (GWh)205195172572+70
Small medium business sales volume (GWh)149127120396+71
Agricultural sales volume (GWh)516883202-3
Large business sales volume (GWh)494743140-16
Corporate and industrial sales volume (GWh)321322297940+111
Retail contracted sales volume (GWh)7767597152,250+233
Average retail contracted sales price ($NZ/MWh)$122.6$124.0$123.2$123.2+$4.0
NZAS sales volume (GWh)4264264111,262+0
Financial contract sales volumes (GWh)197297234728+214
Average wholesale & financial contracts sales price ($NZ/MWh)$73.2$78.4$65.1$72.5-$3.3
Retail customer supply volumes (GWh)8167957522,363+246
Cost to supply retail customers ($NZ/MWh)$190.3$165.3$91.0$150.3+$8.4
Cost to supply wholesale customers ($NZ/MWh)$162.7$115.9$62.6$114.3-$10.9
Cost of financial contracts ($NZ/MWh)$159.9$137.5$104.8$133.0+$2.9
Total New Zealand customer connections350,961353,357354,810354,810+26,208
New Zealand generation
Hydro generation volume (GWh)1,0001,0201,1103,130+372
Wind generation volume (GWh)105129135370-16
Total generation volume (GWh)1,1051,1491,2453,499+356
Average generation price ($NZ/MWh)$166.2$136.1$75.8$124.1-$2.3
New Zealand hedging
Hedging volume (GWh)394325255975+122
Hedging cost average price ($NZ/MWh)$129.6$121.5$117.7$123.8+$18.5
Hedging spot revenue average price ($NZ/MWh)$164.1$140.7$115.6$143.6+$13.4
Future contract close outs ($NZm)-0.70.10.2-0.5+5.9
Australia contracted sales
Retail contracted electricity sales volume (GWh)938471248+14
Average electricity contracted sales price
1
($A/MWh)$150.9$86.4$91.4$112.0-$30.3
Retail contracted gas sales volume (TJ)302261197759+11
Average gas contracted sales price
1
($A/GJ)$19.1$15.9$13.5$16.6+$5.1
Financial contract sales volumes
2
(GWh)22223883-5
Financial contracted sales average price ($A/MWh)$47.9$47.9$54.3$50.8-$15.7
Cost to supply electricity customers ($A/MWh)$152.6$82.0$70.5$105.2+$28.6
Cost to supply gas customers ($A/GJ)$13.5$12.0$11.7$12.5+$1.0
Cost of financial contracts ($A/MWh)$102.7$50.8$40.6$60.1+$11.0
Powershop electricity customer connections
7
141,149141,723143,976143,976+5,687
Powershop gas customer connections
8
44,27244,80545,70245,702+6,451
Australia generation
Wind generation volume (GWh)685447170+18
Average wind generation price ($A/MWh)$92.6$64.0$51.7$72.1-$10.5
Hydro generation volume (GWh)16233877+58
Average hydro generation price ($A/MWh)$152.5$83.6$63.5$88.4+$46.5
PPA generation received (GWh)413632109+11
Average PPA generation price [net of costs] ($A/MWh)$30.9$3.4-$1.9$12.2+$18.9
Australia hedging
Hedging volume (GWh)334035108-7
Hedging costs ($A/MWh)$87.2$92.1$97.3-$92.3-$162.9
Hedging spot revenue average price ($A/MWh)$159.4$83.6$69.9$102.1+$62.5
Future contract close outs ($A M)$0.0$0.0$0.0$0.0+$0.2
Meridian Group
Employee and Operating Costs ($NZ m)20222264+2
Stay in Business Capital Expenditure ($NZ m)33410-0
Investment Capital Expenditure ($NZ m)952438+25
Total Capital Expenditure ($NZ m)1282948+25
FY22 operating information
162 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |
Meridian operating information

JulAugSepOctNovDecJanFebMarAprMayJunQ1YoYQ2YoYQ3YoYQ4YoY
202020202020202020202020202120212021202120212021FY21changeFY21changeFY21changeFY21change
New Zealand contracted sales
Residential sales volume (GWh)18617114612711110710193108121160174503+31345+16302+2455 +9
Small medium business sales volume (GWh)11310710510496999693111109126134325+34299+44300+39369 +130
Agricultural sales volume (GWh)4772871571421701541771451166643205+22469+60476-18226 +46
Large business sales volume (GWh)555248464444444640374445155+26134+14130+12126 +7
Corporate and industrial sales volume (GWh)282275272283284287288311334311339319829+93855+117933+127968 +215
Retail contracted sales volume (GWh)6836776577176787076837217386947367152,017+2062,102+2522,141+1632,144 +408
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$118.9$119.3+$6.3$104.5+$3.6$106.8-$0.1$119.0+$8.0
NZAS sales volume (GWh)4264264114264124264263844264124264121,262-1101,263-1101,236-1231,250 -77
Financial contract sales volumes (GWh)188125201126221140144126197167143129514+40487+59467-339439 -380
Average wholesale & financial contracts sales price ($NZ/MWh)$82.0$70.4$74.2$69.4$69.9$66.8$59.6$58.0$69.8$76.8$75.2$74.1$75.7+$6.0$68.7+$3.9$62.9-$4.4$75.4+$9.8
Retail customer supply volumes (GWh)7047176967557177437197577687187827532,117+2292,215+2742,244+1632,253 +432
Cost to supply retail customers ($NZ/MWh)$165.1$120.6$140.3$126.9$101.0$118.8$143.9$256.7$265.1$285.5$301.9$272.2$141.9+$16.8$115.8+$16.6$223.4+$146.1$286.7+$178.7
Cost to supply wholesale customers ($NZ/MWh)$143.8$109.6$122.2$95.8$76.3$109.2$132.6$244.8$260.3$277.8$274.2$242.5$125.2+$10.5$94.0+$9.5$211.5+$158.5$264.9+$162.2
Cost of financial contracts ($NZ/MWh)$143.7$113.1$127.8$110.8$92.3$119.1$139.1$234.0$204.8$266.4$291.8$228.2$130.0+$16.3$104.7+$10.2$192.5+$137.7$263.5+$166.4
Total New Zealand customer connections326,148327,125328,602329,710331,240332,587333,367335,580338,051340,178343,015346,830328,602+19,230332,587+18,988338,051+18,273346,830 +22,577
New Zealand generation
Hydro generation volume (GWh)9759048791,0661,0541,0348748689748679009032,758-4743,153-222,716-5422,670 -423
Wind generation volume (GWh)1151131581261251281178387116116111385+8379-22287-52344 -4
Total generation volume (GWh)1,0891,0171,0371,1921,1791,1629919511,0619831,0161,0153,144-4663,533-443,003-5933,014 -427
Average generation price ($NZ/MWh)$144.5$110.1$123.7$107.7$86.5$109.3$134.5$242.1$253.8$272.5$283.4$247.5$126.5+$11.5$101.2+$13.8$210.7+$153.0$267.8+$171.5
New Zealand hedging
Hedging volume (GWh)318266268241314308312345431348372360852+436863+3891,088+231,079 +305
Hedging cost average price ($NZ/MWh)$109.3$104.6$101.2$96.2$93.6$93.2$98.5$115.6$127.0$110.3$116.7$119.0$105.3+$41.8$94.2+$28.9$115.2+$13.5$115.4+$35.9
Hedging spot revenue average price ($NZ/MWh)$133.4$123.8$132.6$114.4$94.0$121.9$136.8$235.0$219.0$260.2$285.0$237.6$130.2+$10.9$109.7+$15.6$358.8+$282.9$261.2+$161.3
Future contract close outs ($NZm)-1.6-1.9-2.90.6-2.9-1.3-1.5-4.5-3.6-1.6-2.19.7-6.4-4.2-3.7-1.1-9.7-9.1$6.0$14.6
Australia contracted sales
Retail contracted electricity sales volume (GWh)858366615556575358597281234+49171+26168+13212+13
Average electricity contracted sales price
1
($A/MWh)$142.7$137.7$146.3$140.0$144.9$132.2$131.8$129.7$124.1$127.2$132.7$130.3$142.3-$1.0$139.0-$28.5$128.5-$12.2$130.2-$9.4
Retail contracted gas sales volume (TJ)3122801571425248313142116213287749+210242+8104-7616+8
Average gas contracted sales price
1
($A/GJ)$14.7$11.5$12.0$15.5$22.2$23.3$29.8$28.0$24.2$13.0$14.8$14.4$11.5-$0.8$18.5+$1.9$27.0+$4.2$14.3+$0.6
Financial contract sales volumes
2
(GWh)26332942414042384217171788-69124-73121-1450+5
Financial contracted sales average price ($A/MWh)$67.6$65.7$66.5$66.8$66.8$66.4$86.4$86.4$86.4$49.8$49.8$49.8$66.5-$20.1$66.7-$13.1$86.4-$35.6$49.8-$36.2
Cost to supply electricity customers ($A/MWh)$79.5$85.5$61.3$73.1$77.5$20.8$53.2$48.0$56.8$76.7$147.6$187.1$76.6-$40.2$57.5-$39.6$52.8-$87.2$143.0+$74.6
Cost to supply gas customers ($A/GJ)$10.1$11.3$14.6$13.4$12.7$19.9$22.8$17.7$17.8$10.7$11.3$10.5$11.5+$0.5$14.5+$4.2$19.3-$2.0$10.8-$1.0
Cost of financial contracts ($A/MWh)$56.7$53.5$37.0$52.2$54.4$50.0$33.2$30.2$39.1$52.8$92.3$118.4$49.1-$48.1$52.2-$23.2$34.3-$45.2$87.9+$36.8
Powershop electricity customer connections
7
136,696137,530138,289139,162140,346140,965141,203141,643141,998142,086142,470142,029138,289+23,190140,965+16,297141,998+7,599142,029+5,827
Powershop gas customer connections
8
38,54438,97839,25139,54040,38040,81441,24741,88442,72843,09243,70743,90539,251+12,72240,814+10,34942,728+7,33643,905+6,027
Australia generation
Wind generation volume (GWh)346057444143393127304849151-10127-297-11126-4
Average wind generation price ($A/MWh)$90.3$90.4$69.6$67.8$75.0$54.8$52.7-$54.4$58.9$63.2$75.3$100.3$82.6-$39.4$65.7-$47.1$20.4-$224.6$82.1+$18.0
Hydro generation volume (GWh)0414124140412424285319-1194+4689+5836+31
Average hydro generation price ($A/MWh)-$51.7$39.0$59.0$72.6$86.3$37.6$33.3$43.7$68.2$65.1$124.2$41.9-$56.3$75.3-$2.4$38.0-$57.3$72.7+$32.3
PPA generation received (GWh)27373430272928242525303198-586-478-986-5
Average PPA generation price [net of costs] ($A/MWh)-$1.6-$3.4-$14.4-$2.2-$1.1-$10.7-$15.8-$18.2-$13.4$0.6$19.2$39.8-$6.7-$37.0-$4.7-$28.2-$15.8-$32.7$21.2+$33.6
Australia hedging
Hedging volume (GWh)35423713201691513233830115+449-9937-8892-26
Hedging costs ($A/MWh)$48.4$78.3$82.6$204.9$176.2$99.7$482.6$266.8$266.6$180.3$62.4$71.5$70.6-$26.7$157.9+$56.7$319.2+$194.4$95.0+$28.1
Hedging spot revenue average price ($A/MWh)$18.6$55.8$40.6$149.6$71.6$69.7$109.7$82.2$50.4$186.2$156.6$230.9$39.6-$66.0$91.3+$11.7$77.9-$2.2$188.5+$143.6
Future contract close outs ($A M)-$0.2$0.0$0.0$0.0$0.0$0.0-$0.3-$0.7$0.0$0.0-$0.1$0.0-$0.3-$0.4-$0.1-$0.7-$0.9-$1.2-$0.1-$1.7
Meridian Group
Employee and Operating Costs ($NZ m)20212121222118212222243162-264+261-077+7
Stay in Business Capital Expenditure ($NZ m)34443333444610-110-210-014+2
Investment Capital Expenditure ($NZ m)733223233445413+87+339+3413+8
Total Capital Expenditure ($NZ m)10776565638891023+717+149+3427+10
FY21 operating information
172 0 O C T O B E R 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 S E P T E M B E R 2 0 2 1 |
Meridian operating information

Glossary
182 0 O C T O B E R 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 S E P T E M B E R 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