Meridian Energy monthly operating report for December 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 December 2021

21 January 2022
Attached is Meridian Energy Limited's monthly operating report for the month of December
2021.

Highlights this month include:
▪ In the month to 11 January 2022, national hydro storage decreased from 128% to 115%
of historical average
▪ South Island storage decreased to 112% of average and North Island storage increased
to 131% of average by 11 January 2022
▪ Meridian’s December 2021 monthly total inflows were 113% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of December 2021 was 132% of
historical average
▪ Water storage in Meridian’s Waiau catchment was slightly below average at the end of
December 2021
▪ Waitaki snow storage in early January 2022 was 95% of historical average
▪ National electricity demand in December 2021 was 2.0% lower than the same month
last year
▪ December 2021 was another warm month with temperatures above average for most of
the country. Except in northern regions, above average rainfall was observed in many
parts of New Zealand
▪ New Zealand Aluminium Smelter’s average load during December 2021 was 569MW
▪ Meridian’s New Zealand retail sales volumes in December 2021 were 3.3% higher than
December 2020
▪ Compared to December 2020, segment sales increased in residential +12.5%, small
medium business +21.9% and corporate +14.1%. Large business volumes were -3.1%
lower and agricultural volumes -30.0% lower than December 2020
▪ Following the Court of Appeal decision in the Metro Glass case, a $6.8m provision in
relation to holiday pay has been released, reducing December 2021 operating costs
▪ $3.3m of MEA transaction costs have been reclassified out of November 2021 YTD
operating costs in December 2021

Highlights for the second quarter include:
▪ Meridian’s Q2 total inflows were 97% of historical average, 6% higher than Q2 last year

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

▪ Meridian’s Waitaki catchment water storage at the end of Q2 was 79% higher than Q2
last year
▪ Compared to Q2 last year, Meridian’s New Zealand generation was 2.2% higher at a
37.8% lower average price
▪ Q2 saw small changes in NZ futures prices. 2025 commenced trading at lower prices
than 2024
▪ New Zealand Aluminium Smelter’s average load during Q2 was 571MW compared with
565MW in Q2 last year
▪ National electricity demand in Q2 was 1.7% lower than Q2 last year
▪ At the end of Q2, Meridian’s New Zealand customer numbers were 7.7% higher than the
same time last year
▪ Compared to Q2 last year, Meridian’s NZ retail sales volumes were 4.7% higher at a 3.7%
higher average price
▪ Sales increased in most segments, large business and agricultural volumes were lower
▪ Compared to Q2 last year, Meridian’s Australian wind generation was 9.4% lower at a
7.0% lower average price
▪ Hume water storage rose from 97% of average to 98% of average during Q2
▪ At the end of Q2, Meridian’s Australian electricity customer numbers were 0.2% lower
than the same time last year
▪ Compared to Q2 last year, Meridian’s Australian retail sales volumes were 7.1% higher
at a 16.4% lower average price
▪ Compared to Q2 last year, total operating costs were 8.7% lower and included a $7m
holiday pay provision release
▪ Compared to Q2 last year, total capital expenditure was 182.9% higher, with
commencement of the Harapaki wind farm build
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
December 2021

December highlights
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |2
In the month to 11 January
2022, national hydro storage
decreased from 128%to
115%of historical average
South Island storage
decreased to 112%of average
and North Island storage
increased to 131%of average
by 11 January 2022
Meridian’s December 2021
monthly total inflows were
113%of historical average
Meridian’s Waitaki catchment
water storage at the end of
December 2021 was 132%of
historical average
Water storage in Meridian’s
Waiaucatchment was slightly
belowaverage at the end of
December 2021
Meridian’s New Zealand retail
sales volumes in December
2021 were 3.3%higher than
December 2020
Compared to December 2020,
segment sales increased in
residential +12.5%, small
medium business+21.9% and
corporate +14.1%. Large
business volumes were -3.1%
lower and agricultural volumes
-30.0% lower than December
2020
Following the Court of Appeal
decision in the Metro Glass
case, a $6.8m provision in
relation to holiday pay has
been released, reducing
December 2021 operating costs
$3.3m of MEA transaction costs
have been reclassified out of
November 2021 YTD operating
costs in December 2021
Waitaki snow storage in early
January 2022 was 95%of
historical average
National electricity demand in
December 2021 was 2.0%
lower than the same month
last year
December 2021 was another
warm month with
temperatures above average
for most of the country.
Except in northern regions,
above average rainfall was
observed in many parts of
New Zealand
New Zealand Aluminium
Smelter’s average load during
December 2021 was 569MW

Q2 highlights
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |3
Meridian’s Q2 total inflows
were 97%of historical
average, 6%higher than Q2
last year
Meridian’s Waitaki catchment
water storage at the end of
Q2 was 79%higher than Q2
last year
Compared to Q2 last year,
Meridian’s New Zealand
generation was 2.2%higher at
a 37.8%lower average price
Q2 saw small changes in NZ
futures prices. 2025
commenced trading at lower
prices than 2024
New Zealand Aluminium
Smelter’s average load during
Q2 was 571MWcompared
with 565MWin Q2 last year
Hume water storage rose from
97% of average to 98%of
average during Q2
At the end of Q2, Meridian’s
Australian electricity customer
numbers were 0.2%lower than
the same time last year
Compared to Q2 last year,
Meridian’s Australian retail
sales volumes were 7.1%higher
at a 16.4%lower average price
Compared to Q2 last year, total
operating costs were 8.7%
lower and included a $7m
holiday pay provision release
Compared to Q2 last year, total
capital expenditure was 182.9%
higher, with commencement of
the Harapakiwind farm build
National electricity demand in
Q2 was 1.7%lower than Q2
last year
At the end of Q2, Meridian’s
New Zealand customer
numbers were 7.7%higher
than the same time last year
Compared to Q2 last year,
Meridian’s NZ retail sales
volumes were 4.7%higher at
a 3.7%higher average price
Sales increased in most
segments, large business and
agricultural volumes were
lower
Compared to Q2 last year,
Meridian’s Australian wind
generation was 9.4%lower at
a 7.0%lower average price

Market data
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |4
▪National electricity demand in December
2021 was 2.0% lower than the same month
last year
▪December 2021 was another warm month
with temperatures above average for most
of the country. Except in northern regions,
above average rainfall was observed in
many parts of New Zealand
▪Demand in the last 12 months was 0.3%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during December 2021 was 569MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 5.7% at the
end of November 2021
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.3% at the end of
November 2021
Source: Electricity Authority (reconcileddemand)
Source: Electricity Authority
5%
7%
9%
11%
13%
15%
Nov 16May 17Nov 17May 18Nov 18May 19Nov 19May 20Nov 20May 21Nov 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
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |5
▪While December 2021 saw decreases in
near term ASX prices, January 2022 has so
far seen significant increases
▪National storage decreased from 128% of
average on 9 December 2021 to 115% of
average on 11 January 2022
▪South Island storage decreased to 112% of
historical average by 11 January 2022.
North Island storage increased to 131% of
average
Source: ASX
Source: ASX
Source: NZX
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (11 January 2022)
88yr Average199220042008
2012201820212022
60
80
100
120
140
160
180
200
220
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 June 20211 October 202129 October 2021
30 November 202131 December 202119 January 2022
60
80
100
120
140
160
180
200
220
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 June 20211 October 202129 October 2021
30 November 202131 December 202119 January 2022

New Zealand retail
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |6
▪Meridian’s New Zealand customer
connection numbers rose 0.2% during
December 2021 and have risen 3.3% since
June 2021
▪Retail sales volumes in December 2021
were 3.3% higher than December 2020
▪Compared to December 2020, segment
sales increased in residential +12.5%, small
medium business+21.9% and corporate
+14.1%. Large business volumes were -
3.1% lower and agricultural volumes -
30.0% lower than December 2020
▪To date this financial year, retail sales
volumes are 8.1% higher than the same
period last year
▪This reflects increased segment sales in:
residential +13.6%, small medium business
+20.1%, and corporate +11.8%. Large
business volumes are -7.9% lower and
agricultural volumes are -12.5% lower
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
120120
120
120
120
120
123
123
123
123
123
123
109
111
112
113
114
114
115
115
116
116
116116116
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
148
122
121
149
127
120
117
116
121
51
68
83
105
164
119
49
47
43
43
40
43
321
322
297
302
314
328
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 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |7
▪December 2021 monthly inflows were
113% of historical average
▪To date this financial year, inflows are
122% of historical average
▪Meridian’s Waitaki catchment water
storage moved from 1,704GWh to
2,155GWh during December 2021
▪Waitaki water storage at the end of
December 2021 was 132% of historical
average and 79% higher than the same
time last year
▪Water storage in Meridian’s Waiau
catchment was slightly below average at
the end of December 2021
▪Waitaki snow storage in early January 2022
was 95% of historical average
Meridian operating information
Source: Meridian
Source: Meridian
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
200820092010201120122013201420152016201720182019202020212022
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
December 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 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |8
▪Meridian’s New Zealand generation in
December 2021 was 2.0% 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 6.5% higher than the
same period last year, reflecting higher
hydro and lower wind generation
▪The average price Meridian received for its
generation in December 2021 was 51.1%
lower than the same month last year
▪The average price Meridian paid to supply
customers in December 2021 was 52.2%
lower than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 17.7% lower than the same period last
year and the average price paid to supply
customers is 15.2% lower
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
57
79
53
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 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |9
▪Powershop Australia electricity customer
connection numbers decreased 2.7%
during December 2021 and have
decreased 0.9% since June 2021
▪Electricity sales volumes in December
2021 were 2.7% higher than the same
month last year
▪To date this financial year, electricity sales
volumes are 6.4% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers rose 0.4% during
December 2021 and have risen 8.4% since
June 2021
▪Gas sales volumes in December 2021 were
6.3% higher than the same month last year
▪To date this financial year, gas sales
volumes are 7.4% higher than the same
period last year
Meridian operating information
Source: Meridian
Source: Meridian
93
84
71
68
59
57
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
149
105
51
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 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |10
▪Meridian’s Australian generation in
December 2021 was 8.2% 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 29.7% higher than
the same period last year, reflecting higher
wind and higher hydro generation
▪Storage at Meridian’s Hume hydro power
station increased to 98% of capacity by 31
December 2021
▪NEM
1
electricity demand in December 2021
was down 1% on the previous month
▪Despite cooler weather, spot prices rose in
December 2021 and were 80% higher than
December 2020. Forward prices rose 15%
compared to the previous month, coinciding
with another spike in domestic gas prices
driven by tightness in export markets
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
37
38
40
16
23
38
44
50
49
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
100
JulAugSepOctNovDecJanFebMarAprMayJun
GWh
MERIDIAN'S AUSTRALIAN GENERATION
FY22 WindFY22 HydroFY21 WindFY21 Hydro
93
64
52
45
60
77
90
90
70
68
75
55
53
-54
59
63
75
100
-75
-55
-35
-15
5
25
45
65
85
105
125
JulAugSepOctNovDecJanFebMarAprMayJun
$A/MWh
AVERAGE WIND GENERATION PRICE
2
FY22FY21

DECEMBER
DECEMBER
NOVEMBER
OCTOBER
6 MONTHS TO
6 MONTHS TO
2021
2020
2021
2021
DECEMBER
DECEMBER
MONTH
MONTH
MONTH
MONTH
2021
2020
New Zealand contracted sales
Residential sales volume (GWh)
121


107


122


148


963


848


Small medium business sales volume (GWh)
121


99


116


117


750


624


Agricultural sales volume (GWh)
119


170


164


105


590


674


Large business sales volume (GWh)
43


44


40


43


266


289


Corporate and industrial sales volume (GWh)
328


287


314


302


1,883


1,684


Retail contracted sales volume (GWh)
731


707


755


716


4,452


4,119


Average retail contracted sales price ($NZ/MWh)
$105.2
$104.2
$109.8
$109.9
$115.8
$111.7
NZAS sales volume (GWh)
426


426


412


426


2,525


2,525


Financial contract sales volumes (GWh)
208


140


280


374


1,590


1,000


Average wholesale & financial contracts sales price ($NZ/MWh)
$59.8
$66.8
$56.9
$62.3
$65.9
$72.3
Retail customer supply volumes (GWh)
776


743


798


764


4,700


4,331


Cost to supply retail customers ($NZ/MWh)
$57.2
$118.8
$92.7
$74.6
$112.8
$128.6
Cost to supply wholesale customers ($NZ/MWh)
$45.5
$109.2
$76.5
$51.2
$85.9
$109.6
Cost of financial contracts ($NZ/MWh)
$68.2
$119.1
$78.8
$66.0
$99.2
$117.7
Total New Zealand customer connections
358,350


332,587


357,521


355,760


New Zealand
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |11
Meridian operating information

DECEMBER
DECEMBER
NOVEMBER
OCTOBER
6 MONTHS TO
6 MONTHS TO
2021
2020
2021
2021
DECEMBER
DECEMBER
MONTH
MONTH
MONTH
MONTH
2021
2020
New Zealand generation
Hydro generation volume (GWh)
1,071


1,034


1,052


1,150


6,402


5,911


Wind generation volume (GWh)
114


128


114


111


709


765


Total generation volume (GWh)
1,185


1,162


1,166


1,260


7,111


6,676


Average generation price ($NZ/MWh)
$53.4
$109.3
$78.9
$57.1
$93.1
$113.1
New Zealand hedging
Hedging volume (GWh)
346


308


332


327


1,978


1,716


Hedging cost average price ($NZ/MWh)
$109.3
$93.2
$94.8
$93.6
$111.4
$99.7
Hedging spot revenue average price ($NZ/MWh)
$69.2
$121.9
$88.3
$74.4
$109.9
$119.9
Future contract close outs ($NZm)
-$0.1
-$1.3
$0.2
-$0.9
-$1.3
-$10.1
New Zealand
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |12
Meridian operating information

Australia
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |13
Meridian operating information
DECEMBER
2021
MONTH
DECEMBER
2020
MONTH
NOVEMBER
2021
MONTH
OCTOBER
2021
MONTH
6 MONTHS TO
DECEMBER
2021
6 MONTHS TO
DECEMBER
2020
Australian contracted sales
Retail contracted electricity sales volume (GWh)57565968431404
Average electricity contractedsales price
1
($A/MWh)$122.5$132.2$126.7$102.1$113.8$140.9
Retail contracted gas sales volume (TJ)51481051491,064991
Average gas contractedsales price
1
($A/GJ)$27.2$23.3$15.9$19.4$17.4$14.3
Financial contract sales volumes
2
(GWh)55405355246212
Financial contractedsales average price ($A/MWh)$53.3$66.4$53.3$53.3$52.5$66.6
Cost to supplyelectricity customers ($A/MWh)$103.6$20.8$80.8$64.3$95.2$68.5
Cost to supplygas customers ($A/GJ)$21.6$19.9$17.5$11.8$13.3$12.3
Cost of financial contracts ($A/MWh)$60.4$50.0$56.7$46.4$56.3$50.9
Powershop electricity customer connections
7
140,716140,965144,629145,738
Powershop gas customer connections
8
47,57440,81447,59946,588

Australia
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |14
Meridian operating information
DECEMBER
2021
MONTH
DECEMBER
2020
MONTH
NOVEMBER
2021
MONTH
OCTOBER
2021
MONTH
6 MONTHS TO
DECEMBER
2021
6 MONTHS TO
DECEMBER
2020
Australian generation
Wind generation volumes (GWh)40433837285278
Average wind generationprice
5
($A/MWh)$77.0$54.8$60.1$45.0$67.7$74.9
Hydro generation volumes (GWh)49405044221113
Average hydro generationprice
5
($A/MWh)$80.1$86.3$75.0$65.2$78.8$69.8
PPA generation received (GWh)23293123186184
Average PPA generationprice [net of costs] ($A/MWh)$1.3-$10.7-$1.6$1.9$7.3-$5.7
Australian hedging
Hedging volume
6
(GWh)24162324179163
Hedging costs ($A/MWh)$106.6$99.7$135.4$129.4$104.7$96.5
Hedging spot revenue average price ($A/MWh)$124.2$69.7$132.2$95.6$108.0$54.9
Future contract close outs ($Am)$0.0$0.0$0.0$0.0-$0.1-$0.3

Meridian group
2 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 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
DECEMBER
2021
MONTH
DECEMBER
2020
MONTH
NOVEMBER
2021
MONTH
OCTOBER
2021
MONTH
6 MONTHS TO
DECEMBER
2021
6 MONTHS TO
DECEMBER
2020
Meridian Group
Employee and Operating Costs
9
($m)12*212423122126
Stay in Business Capital Expenditure ($m)34712021
Investment Capital Expenditure ($m)6317157721
Total Capital Expenditure ($m)9724169742
*Following the Court of Appeal decision in the Metro Glass case, a $6.8m provision in relation to holiday pay has been released,reducing December
2021 operating costs. $3.3m of MEA transaction costs have also been reclassified out of November 2021 YTD operating costs in December 2021

JulAugSepOctNovDecJanFebMarAprMayJunQ1YoYQ2YoYQ3YoYQ4YoY
202120212021202120212021202220222022202220222022FY22changeFY22changeFY22changeFY22change
New Zealand contracted sales
Residential sales volume (GWh)205195172148122121572+70391+45
Small medium business sales volume (GWh)149127120117116121396+71354+55
Agricultural sales volume (GWh)516883105164119202-3387-81
Large business sales volume (GWh)494743434043140-16126-7
Corporate and industrial sales volume (GWh)321322297302314328940+111943+88
Retail contracted sales volume (GWh)7767597157167557312,250+2332,202+99
Average retail contracted sales price ($NZ/MWh)$122.6$124.0$123.2$109.9$109.8$105.2$123.2+$4.0$108.3+$3.8
NZAS sales volume (GWh)4264264114264124261,262+01,263+0
Financial contract sales volumes (GWh)197297234374280208728+214862+376
Average wholesale & financial contracts sales price ($NZ/MWh)$73.2$78.4$65.1$62.3$56.9$59.8$72.5-$3.3$59.8-$8.9
Retail customer supply volumes (GWh)8167957527647987762,363+2462,337+123
Cost to supply retail customers ($NZ/MWh)$190.3$165.3$91.0$74.6$92.7$57.2$150.3+$8.4$75.0-$40.8
Cost to supply wholesale customers ($NZ/MWh)$162.7$115.9$62.6$51.2$76.5$45.5$114.3-$10.9$57.5-$36.4
Cost of financial contracts ($NZ/MWh)$159.9$137.5$104.8$66.0$78.8$68.2$133.0+$2.9$70.7-$34.0
Total New Zealand customer connections350,961353,357354,810355,760357,521358,350354,810+26,208358,350+25,763
New Zealand generation
Hydro generation volume (GWh)1,0001,0201,1101,1501,0521,0713,130+3723,273+119
Wind generation volume (GWh)105129135111114114370-16339-40
Total generation volume (GWh)1,1051,1491,2451,2601,1661,1853,499+3563,612+79
Average generation price ($NZ/MWh)$166.2$136.1$75.8$57.1$78.9$53.4$124.1-$2.3$63.0-$38.2
New Zealand hedging
Hedging volume (GWh)394325255327332346975+1221,004+141
Hedging cost average price ($NZ/MWh)$129.6$121.5$117.7$93.6$94.8$109.3$123.8+$18.5$99.4+$5.2
Hedging spot revenue average price ($NZ/MWh)$164.1$140.7$115.6$74.4$88.3$69.2$143.6+$13.4$77.2-$32.5
Future contract close outs ($NZm)-0.70.10.2-0.90.2-0.1-0.5+5.9-0.8+2.8
Australia contracted sales
Retail contracted electricity sales volume (GWh)938471685957248+14183+12
Average electricity contracted sales price
1
($A/MWh)$150.9$86.4$91.4$102.1$126.7$122.5$112.0-$30.3$116.3-$22.7
Retail contracted gas sales volume (TJ)30226119714910551759+11305+63
Average gas contracted sales price
1
($A/GJ)$19.1$15.9$13.5$19.4$15.9$27.2$16.6+$5.1$19.5+$1.0
Financial contract sales volumes
2
(GWh)22223855535583-5163+40
Financial contracted sales average price ($A/MWh)$47.9$47.9$54.3$53.3$53.3$53.3$50.8-$15.7$53.3-$13.4
Cost to supply electricity customers ($A/MWh)$152.6$82.0$70.5$64.3$80.8$103.6$105.2+$28.6$81.8+$24.3
Cost to supply gas customers ($A/GJ)$13.5$12.0$11.7$11.8$17.5$21.6$12.5+$1.0$15.4+$0.8
Cost of financial contracts ($A/MWh)$102.7$50.8$40.6$46.4$56.7$60.4$60.1+$11.0$54.4+$2.2
Powershop electricity customer connections
7
141,149141,723143,976145,738144,629140,716143,976+5,687-3,260-144,225
Powershop gas customer connections
8
44,27244,80545,70246,58847,59947,57445,702+6,4511,872-38,942
Australia generation
Wind generation volume (GWh)685447373840170+18115-12
Average wind generation price ($A/MWh)$92.6$64.0$51.7$45.0$60.1$77.0$72.1-$10.5$61.1-$4.6
Hydro generation volume (GWh)16233844504977+58144+49
Average hydro generation price ($A/MWh)$152.5$83.6$63.5$65.2$75.0$80.1$88.4+$46.5$73.7-$1.5
PPA generation received (GWh)413632233123109+1177-9
Average PPA generation price [net of costs] ($A/MWh)$30.9$3.4-$1.9$1.9-$1.6$1.3$12.2+$18.9$0.3+$5.0
Australia hedging
Hedging volume (GWh)334035242324108-771+22
Hedging costs ($A/MWh)$87.2$92.1$97.3$129.4$135.4$106.6$92.3+$21.7$123.7-$34.2
Hedging spot revenue average price ($A/MWh)$159.4$83.6$69.9$95.6$132.2$124.2$102.1+$62.5$117.2+$25.9
Future contract close outs ($A M)$0.0$0.0$0.0$0.0$0.0$0.0$0.0+$0.2-$0.1-$0.0
Meridian Group
Employee and Operating Costs ($NZ m)20222223241264+258-6
Stay in Business Capital Expenditure ($NZ m)33417310-011+0
Investment Capital Expenditure ($NZ m)95241517638+2538+31
Total Capital Expenditure ($NZ m)128291624948+2549+32
FY22 operating information
162 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 1 |
Meridian operating information

FY21 operating information
172 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 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

Glossary
182 1 J A N U A R Y 2 0 2 2 | M O N T H L Y O P E R A T I N G R E P O R T F O R D E C E M B E R 2 0 2 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