Meridian Energy monthly operating report for January 2022

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 January 2022

18 February 2022
Attached is Meridian Energy Limited's monthly operating report for the month of January
2022.

Highlights this month include:
▪ In the month to 14 February 2022, national hydro storage increased from 115% to 117%
of historical average
▪ South Island storage increased to 113% of average and North Island storage increased to
146% of average by 14 February 2022
▪ Meridian’s January 2022 monthly total inflows were 41% of historical average, the
lowest January monthly inflows on record
▪ Meridian’s Waitaki catchment water storage at the end of January 2022 was 99% of
historical average
▪ Water storage in Meridian’s Waiau catchment was well below average at the end of
January 2022
▪ Waitaki snow storage in early February 2022 was 93% of historical average
▪ National electricity demand in January 2022 was 1.9% higher than the same month last
year
▪ January was a warm and very dry month with above average temperatures and rainfall
well below average for almost all the country
▪ New Zealand Aluminium Smelter’s average load during January 2022 was 572MW
▪ Meridian’s New Zealand retail sales volumes in January 2022 were 16.2% higher than
January 2021
▪ Compared to January 2021, segment sales increased in residential +13.6%, small
medium business +23.1%, agricultural +14.2% and corporate +18.9%. Large business
volumes were -3.7% lower than January 2021


ENDS
Neal Barclay
Chief Executive
Meridian Energy Limited

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

For investor relations queries, please contact:
Owen Hackston
Investor Relations Manager
021 246 4772
For media queries, please contact:
Rheilli Uluilelata
External Communications Advisor
022 589 1052

Monthly Operating Report
January 2022

January highlights
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |2
In the month to 14 February
2022, national hydro storage
increased from 115%to 117%
of historical average
South Island storage
increased to 113%of average
and North Island storage
increased to 146%of average
by 14 February 2022
Meridian’s January 2022
monthly total inflows were
41%of historical average, the
lowest January monthly
inflows on record
Meridian’s Waitaki catchment
water storage at the end of
January 2022 was 99%of
historical average
Meridian’s New Zealand retail
sales volumes in January 2022
were 16.2%higher than
January 2021
Compared to January 2021,
segment sales increased in
residential +13.6%, small
medium business+23.1%,
agricultural +14.2% and
corporate +18.9%. Large
business volumes were -3.7%
lower than January 2021
Water storage in Meridian’s
Waiaucatchment was well
belowaverage at the end of
January 2022
Waitaki snow storage in early
February 2022 was 93%of
historical average
National electricity demand in
January 2022 was 1.9%higher
than the same month last
year
January was a warm and very
dry month with above
average temperatures and
rainfall well below average for
almost all the country
New Zealand Aluminium
Smelter’s average load during
January 2022 was 572MW

Market data
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |3
▪National electricity demand in January 2022
was 1.9% higher than the same month last
year
▪January was a warm and very dry month
with above average temperatures and
rainfall well below average for almost all
the country
▪Demand in the last 12 months was 0.8%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during January 2022 was 572MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 5.6% at the
end of December 2021
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.3% at the end of
December 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 (2011-2021)201720182019202020212022
5%
7%
9%
11%
13%
15%
Dec 16Jun 17Dec 17Jun 18Dec 18Jun 19Dec 19Jun 20Dec 20Jun 21Dec 21
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

Market data
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |4
▪January 2022 saw increases in ASX prices
▪National storage increased from 115% of
average on 11 January 2022 to 117% of
average on 14 February 2022
▪South Island storage increased to 113% of
historical average by 14 February 2022.
North Island storage increased to 146% of
average
Source: ASX
Source: ASX
Source: NZX
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (14 February 2022)
88yr Average199220042008
2012201820212022
70
90
110
130
150
170
190
210
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 202129 October 202130 November 2021
31 December 202131 January 202211 February 2022
70
90
110
130
150
170
190
210
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 202129 October 202130 November 2021
31 December 202131 January 202211 February 2022

New Zealand retail
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |5
▪Meridian’s New Zealand customer
connection numbers rose 0.3% during
January 2022 and have risen 3.7% since
June 2021
▪Retail sales volumes in January 2022 were
16.2% higher than January 2021
▪Compared to January 2021, segment sales
increased in residential +13.6%, small
medium business+23.1%, agricultural
+14.2% and corporate +18.9%. Large
business volumes were -3.7% lower than
January 2021
▪To date this financial year, retail sales
volumes are 9.2% higher than the same
period last year
▪This reflects increased segment sales in:
residential +13.6%, small medium business
+20.5%, and corporate +12.9%.
Agricultural volumes are -7.6% lower and
Large business volumes are -7.3% lower
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
120120
120
120
120
120
121
123
123
123
123
123
123
124
109
111
112
113
114
114
115
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
115
149
127
120
117
116
121
118
51
68
83
105
164
119
175
49
47
43
43
40
43
42
321
322
297
302
314
328
343
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
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |6
▪January 2022 monthly inflows were 41% of
historical average
▪To date this financial year, inflows are
107% of historical average
▪Meridian’s Waitaki catchment water
storage moved from 2,155GWh to
1,860GWh during January 2022
▪Waitaki water storage at the end of
January 2022 was 99% of historical
average and 35% higher than the same
time last year
▪Water storage in Meridian’s Waiau
catchment was well below average at the
end of January 2022
▪Waitaki snow storage in early February
2022 was 93% 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
10,000
200820092010201120122013201420152016201720182019202020212022
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
January YTD88 year average
0
500
1,000
1,500
2,000
2,500
1-Jan1-Mar1-May1-Jul1-Sep1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-201720182019202020212022

New Zealand generation
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |7
▪Meridian’s New Zealand generation in
January 2022 was 20.7% 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 8.3% higher than the
same period last year, reflecting higher
hydro and lower wind generation
▪The average price Meridian received for its
generation in January 2022 was 2.9%
higher than the same month last year
▪The average price Meridian paid to supply
customers in January 2022 was 9.5%
higher than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 14.0% lower than the same period last
year and the average price paid to supply
customers is 11.0% 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
138
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
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |8
▪Powershop Australia electricity customer
connection numbers decreased 1.2%
during January 2022 and have decreased
2.1% since June 2021
▪Electricity sales volumes in January 2022
were 10.7% higher than the same month
last year
▪To date this financial year, electricity sales
volumes are 6.9% higher than the same
period last year
▪Powershop Australia gas customer
connection numbers decreased 0.3%
during January 2022 and have risen 8.0%
since June 2021
▪Gas sales volumes in January 2022 were
3.0% higher than the same month last year
▪To date this financial year, gas sales
volumes are 7.3% higher than the same
period last year
Meridian operating information
Source: Meridian
Source: Meridian
93
84
71
68
59
57
64
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
32
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
On 31 January 2022, Meridian completed the sale of its Australian business

Australian generation
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |9
▪Meridian’s Australian generation in January
2022 was 10.2% lower than the same month
last year, reflecting lower wind generation
and lower hydro generation
▪To date this financial year, Meridian’s
Australian generation is 22.9% higher than
the same period last year, reflecting higher
wind and higher hydro generation
▪Storage at Meridian’s Hume hydro power
station increased to 99% of capacity by 31
January 2022
▪NEM
1
electricity demand in January 2022
was flat on the same month last year
▪Spot prices rose 23% in January 2022 and
were almost double January 2021. Forward
prices rose 9% compared to 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 included market to market losses of A$3M
Source: Meridian
68
54
47
37
38
40
35
16
23
38
44
50
49
37
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
83
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
On 31 January 2022, Meridian completed the sale of its Australian business

JANUARY
JANUARY
DECEMBER
NOVEMBER
7 MONTHS TO
7 MONTHS TO
2022
2021
2021
2021
JANUARY
JANUARY
MONTH
MONTH
MONTH
MONTH
2022
2021
New Zealand contracted sales
Residential sales volume (GWh)
115


101


121


122


1,078


949


Small medium business sales volume (GWh)
118


96


121


116


868


720


Agricultural sales volume (GWh)
175


154


119


164


765


828


Large business sales volume (GWh)
42


44


43


40


308


332


Corporate and industrial sales volume (GWh)
343


288


328


314


2,226


1,973


Retail contracted sales volume (GWh)
793


683


731


755


5,245


4,802


Average retail contracted sales price ($NZ/MWh)
$111.2
$104.1
$105.2
$109.8
$115.1
$110.6
NZAS sales volume (GWh)
426


426


426


412


2,951


2,951


Financial contract sales volumes (GWh)
280


144


208


280


1,871


1,144


Average wholesale & financial contracts sales price ($NZ/MWh)
$63.3
$59.6
$59.8
$56.9
$65.5
$70.5
Retail customer supply volumes (GWh)
828


719


776


798


5,528


5,050


Cost to supply retail customers ($NZ/MWh)
$148.4
$143.9
$57.2
$92.7
$118.2
$130.7
Cost to supply wholesale customers ($NZ/MWh)
$156.9
$132.6
$45.5
$76.5
$96.2
$112.9
Cost of financial contracts ($NZ/MWh)
$160.4
$139.1
$68.2
$78.8
$108.4
$120.4
Total New Zealand customer connections
359,550


333,367


361,579


357,521


New Zealand
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |10
Meridian operating information

JANUARY
JANUARY
DECEMBER
NOVEMBER
7 MONTHS TO
7 MONTHS TO
2022
2021
2021
2021
JANUARY
JANUARY
MONTH
MONTH
MONTH
MONTH
2022
2021
New Zealand generation
Hydro generation volume (GWh)
1,110


874


1,071


1,052


7,512


6,785


Wind generation volume (GWh)
86


117


114


114


795


882


Total generation volume (GWh)
1,196


991


1,185


1,166


8,307


7,667


Average generation price ($NZ/MWh)
$138.4
$134.5
$53.4
$78.9
$99.6
$115.9
New Zealand hedging
Hedging volume (GWh)
404


312


346


332


2,382


2,028


Hedging cost average price ($NZ/MWh)
$104.1
$98.5
$109.3
$94.8
$110.2
$99.5
Hedging spot revenue average price ($NZ/MWh)
$168.3
$136.8
$69.2
$88.3
$119.8
$122.5
Future contract close outs ($NZm)
-$5.1
-$1.5
-$0.1
$0.2
-$6.5
-$11.6
New Zealand
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |11
Meridian operating information

Australia
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |12
Meridian operating information
JANUARY
2022
MONTH
JANUARY
2021
MONTH
DECEMBER
2021
MONTH
NOVEMBER
2021
MONTH
7 MONTHS TO
JANUARY
2022
7 MONTHS TO
JANUARY
2021
Australian contracted sales
Retail contracted electricity sales volume (GWh)64575759494462
Average electricity contractedsales price
1
($A/MWh)$117.3$131.8$122.5$126.7$114.3$139.8
Retail contracted gas sales volume (TJ)3231511051,0961,022
Average gas contractedsales price
1
($A/GJ)$31.7$29.8$27.2$15.9$17.8$14.8
Financial contract sales volumes
2
(GWh)41425553287254
Financial contractedsales average price ($A/MWh)$53.7$86.4$53.3$53.3$52.6$69.9
Cost to supplyelectricity customers ($A/MWh)$96.3$53.2$103.6$80.8$95.4$66.6
Cost to supplygas customers ($A/GJ)$28.1$22.8$21.6$17.5$13.8$12.6
Cost of financial contracts ($A/MWh)$49.9$33.2$60.4$56.7$55.4$48.0
Powershop electricity customer connections
7
139,070141,203140,716144,629
Powershop gas customer connections
8
47,41541,24747,57447,599
On 31 January 2022, Meridian completed the sale of its Australian business

Australia
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |13
Meridian operating information
JANUARY
2022
MONTH
JANUARY
2021
MONTH
DECEMBER
2021
MONTH
NOVEMBER
2021
MONTH
7 MONTHS TO
JANUARY
2022
7 MONTHS TO
JANUARY
2021
Australian generation
Wind generation volumes (GWh)35394038320318
Average wind generationprice
5
($A/MWh)$83.3$52.7$77.0$60.1$69.4$72.2
Hydro generation volumes (GWh)37414950258154
Average hydro generationprice
5
($A/MWh)$74.4$37.6$80.1$75.0$78.2$61.2
PPA generation received (GWh)27282331213212
Average PPA generationprice [net of costs] ($A/MWh)$12.0-$15.8$1.3-$1.6$7.9-$7.1
Australian hedging
Hedging volume
6
(GWh)792423186172
Hedging costs ($A/MWh)$409.6$482.6$106.6$135.4$115.7$116.5
Hedging spot revenue average price ($A/MWh)$263.3$109.7$124.2$132.2$113.6$57.7
Future contract close outs ($Am)$1.1-$0.3$0.0$0.0$1.0-$0.6
On 31 January 2022, Meridian completed the sale of its Australian business

Meridian group
1 8 F E B R U 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 J A N U A R Y 2 0 2 2 |14
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
JANUARY
2022
MONTH
JANUARY
2021
MONTH
DECEMBER
2021
MONTH
NOVEMBER
2021
MONTH
7 MONTHS TO
JANUARY
2022
7 MONTHS TO
JANUARY
2021
Meridian Group
Employee and Operating Costs
9
($m)181812*24*141144
Stay in Business Capital Expenditure ($m)13372123
Investment Capital Expenditure ($m)826178423
Total Capital Expenditure ($m)9592410546
*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
On 31 January 2022, Meridian completed the sale of its Australian business

JulAugSepOctNovDecJanFebMarAprMayJunQ1YoYQ2YoYQ3YoYQ4YoY
202120212021202120212021202220222022202220222022FY22changeFY22changeFY22changeFY22change
New Zealand contracted sales
Residential sales volume (GWh)205195172148122121115572+70391+45
Small medium business sales volume (GWh)149127120117116121118396+71354+55
Agricultural sales volume (GWh)516883105164119175202-3387-81
Large business sales volume (GWh)49474343404342140-16126-7
Corporate and industrial sales volume (GWh)321322297302314328343940+111943+88
Retail contracted sales volume (GWh)7767597157167557317932,250+2332,202+99
Average retail contracted sales price ($NZ/MWh)$122.6$124.0$123.2$109.9$109.8$105.2$111.2$123.2+$4.0$108.3+$3.8
NZAS sales volume (GWh)4264264114264124264261,262+01,263+0
Financial contract sales volumes (GWh)197297234374280208280728+214862+376
Average wholesale & financial contracts sales price ($NZ/MWh)$73.2$78.4$65.1$62.3$56.9$59.8$63.3$72.5-$3.3$59.8-$8.9
Retail customer supply volumes (GWh)8167957527647987768282,363+2462,337+123
Cost to supply retail customers ($NZ/MWh)$190.3$165.3$91.0$74.6$92.7$57.2$148.4$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$156.9$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$160.4$133.0+$2.9$70.7-$34.0
Total New Zealand customer connections350,961353,357354,810355,760357,521358,350359,550354,810+26,208358,350+25,763
New Zealand generation
Hydro generation volume (GWh)1,0001,0201,1101,1501,0521,0711,1103,130+3723,273+119
Wind generation volume (GWh)10512913511111411486370-16339-40
Total generation volume (GWh)1,1051,1491,2451,2601,1661,1851,1963,499+3563,612+79
Average generation price ($NZ/MWh)$166.2$136.1$75.8$57.1$78.9$53.4$138.4$124.1-$2.3$63.0-$38.2
New Zealand hedging
Hedging volume (GWh)394325255327332346404975+1221,004+141
Hedging cost average price ($NZ/MWh)$129.6$121.5$117.7$93.6$94.8$109.3$104.1$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$168.3$143.6+$13.4$77.2-$32.5
Future contract close outs ($NZm)-0.70.10.2-0.90.2-0.1-5.1-0.5+5.9-0.8+2.8
Australia contracted sales
Retail contracted electricity sales volume (GWh)93847168595764248+14183+12
Average electricity contracted sales price
1
($A/MWh)$150.9$86.4$91.4$102.1$126.7$122.5$117.3$112.0-$30.3$116.3-$22.7
Retail contracted gas sales volume (TJ)3022611971491055132759+11305+63
Average gas contracted sales price
1
($A/GJ)$19.1$15.9$13.5$19.4$15.9$27.2$31.7$16.6+$5.1$19.5+$1.0
Financial contract sales volumes
2
(GWh)2222385553554183-5163+40
Financial contracted sales average price ($A/MWh)$47.9$47.9$54.3$53.3$53.3$53.3$53.7$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$96.3$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$28.1$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$49.9$60.1+$11.0$54.4+$2.2
Powershop electricity customer connections
7
141,149141,723143,976145,738144,629140,716139,070143,976+5,687140,716-249
Powershop gas customer connections
8
44,27244,80545,70246,58847,59947,57447,41545,702+6,45147,574+6,760
Australia generation
Wind generation volume (GWh)68544737384035170+18115-12
Average wind generation price ($A/MWh)$92.6$64.0$51.7$45.0$60.1$77.0$83.3$72.1-$10.5$61.1-$4.6
Hydro generation volume (GWh)1623384450493777+58144+49
Average hydro generation price ($A/MWh)$152.5$83.6$63.5$65.2$75.0$80.1$74.4$88.4+$46.5$73.7-$1.5
PPA generation received (GWh)41363223312327109+1177-9
Average PPA generation price [net of costs] ($A/MWh)$30.9$3.4-$1.9$1.9-$1.6$1.3$12.0$12.2+$18.9$0.3+$5.0
Australia hedging
Hedging volume (GWh)3340352423247108-771+22
Hedging costs ($A/MWh)$87.2$92.1$97.3$129.4$135.4$106.6$409.6$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$263.3$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$1.1$0.0+$0.2-$0.1-$0.0
Meridian Group
Employee and Operating Costs ($NZ m)2022222324121864+258-6
Stay in Business Capital Expenditure ($NZ m)334173110-011+0
Investment Capital Expenditure ($NZ m)952415176838+2538+31
Total Capital Expenditure ($NZ m)1282916249948+2549+32
FY22 operating information
151 8 F E B R U 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 J A N U A R Y 2 0 2 2 |
Meridian operating information
On 31 January 2022, Meridian completed the sale of its Australian business

FY21 operating information
161 8 F E B R U 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 J A N U A R Y 2 0 2 2 |
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
On 31 January 2022, Meridian completed the sale of its Australian business

Glossary
171 8 F E B R U 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 J A N U A R Y 2 0 2 2 |
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