Meridian Energy monthly operating report for March 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 March 2022

14 April 2022
Attached is Meridian Energy Limited's monthly operating report for the month of March
2022.
Mike Roan (CFO) and Owen Hackston (Investor Relations Manager) will host a quarterly
operating result call via a Microsoft Teams Live event today, Thursday 14 April at 3pm NZST
(1pm AEST).
Click on the link below at this time to join the call.
Meridian Energy Quarterly Operating results – Microsoft Teams Live Event
Please submit any questions 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 April 2022, national hydro storage decreased from 102% to 81% of
historical average
▪ South Island storage decreased to 73% of average and North Island storage increased to
148% of average by 12 April 2022
▪ Meridian’s March 2022 monthly total inflows were 38% of historical average, the lowest
March month inflows on record
▪ Both Meridian’s Waitaki and Waiau catchments recorded their lowest March inflows on
record, with Waiau inflows only 22% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of March 2022 was 92% of
historical average
▪ Water storage in Meridian’s Waiau catchment was 24% of average at the end of March
2022
▪ National electricity demand in March 2022 was 1.3% lower than the same month last
year
▪ Meridian made calls under the Genesis swaption in March 2022 and early April 2022
▪ March was a warm month for most of the country. Rainfall was generally below average,
the notable exception was the east of the North Island
▪ New Zealand Aluminium Smelter’s average load during March 2022 was 572MW
▪ Meridian’s New Zealand retail sales volumes in March 2022 were 5.9% higher than
March 2021
▪ Compared to March 2021, segment sales increased in residential +9.9%, small medium

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

business +17.5%, large business +10.9% and corporate +10.8%. Agricultural volumes
were -18.2% lower than March 2021


Highlights for the first quarter include:
▪ Meridian’s Q3 total inflows were 64% of historical average, 8% lower than Q3 last year
▪ Q3 Waiau catchment inflows were the lowest Q3 inflows on record
▪ Meridian’s Waitaki catchment water storage at the end of Q3 was 55% higher than Q3
last year
▪ Compared to Q3 last year, Meridian’s New Zealand generation was 9.2% higher at a
27.5% lower average price
▪ Q3 saw increases in futures prices across the forward curve
▪ New Zealand Aluminium Smelter’s sales volume in Q3 was the same as Q3 last year
▪ National electricity demand in Q3 was 0.6% lower than Q3 last year
▪ 2021-22 summer (Dec-Feb) was the 5
th
warmest on record with above average rainfall,
except for northern New Zealand and far South of the country
▪ At the end of Q3, Meridian’s New Zealand customer numbers were 7.5% higher than the
same time last year
▪ Compared to Q3 last year, Meridian’s NZ retail sales volumes were 4.9% higher at a 7.1%
higher average price
▪ Sales increased in most segments, large business and agricultural volumes were lower
▪ Compared to Q3 last year, total operating costs were 15.8% higher, largely reflecting
timing of fortnightly payroll implementation
▪ Compared to Q3 last year, total capital expenditure was 35.6% lower
▪ Q3 2021 capex included the first payment to Siemens Gamesa under the Harapaki wind
farm contract


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:
Rheilli Uluilelata
External Communications Advisor
022 589 1052

Monthly Operating Report
March 2022

March highlights
1 4 A P R I L 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 M A R C H 2 0 2 2 |2
In the month to 12 April 2022,
national hydro storage
decreased from 102%to 81%
of historical average
South Island storage
decreased to 73%of average
and North Island storage
increased to 148%of average
by 12 April 2022
Meridian’s March 2022
monthly total inflows were
38%of historical average, the
lowest March month inflows
on record
Both Meridian’s Waitaki and
Waiau catchments recorded
their lowest March inflows on
record, with Waiau inflows
only 22% of historical average
March was a warm month for
most of the country. Rainfall
was generally below average,
the notable exception was the
east of the North Island
New Zealand Aluminium
Smelter’s average load during
March 2022 was 572MW
Meridian’s New Zealand retail
sales volumes in March 2022
were 5.9%higher than March
2021
Compared to March 2021,
segment sales increased in
residential +9.9%, small
medium business+17.5%, large
business +10.9% and corporate
+10.8%. Agricultural volumes
were -18.2% lower than March
2021
Meridian’s Waitaki catchment
water storage at the end of
March 2022 was 92%of
historical average
Water storage in Meridian’s
Waiau catchment was 24%of
average at the end of March
2022
National electricity demand in
March 2022 was 1.3%lower
than the same month last
year
Meridian made calls under
the Genesis swaption in
March 2022 and early April
2022

Q3 highlights
1 4 A P R I L 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 M A R C H 2 0 2 2 |3
Meridian’s Q3 total inflows
were 64%of historical
average, 8%lower than Q3
last year
Q3 Waiau catchment inflows
were the lowest Q3 inflows
on record
Meridian’s Waitaki catchment
water storage at the end of
Q3 was 55%higher than Q3
last year
Compared to Q3 last year,
Meridian’s New Zealand
generation was 9.2%higher at
a 27.5%lower average price
Q3 saw increases in futures
prices across the forward
curve
Compared to Q3 last year,
Meridian’s NZ retail sales
volumes were 4.9%higher at a
7.1%higher average price
Sales increased in most
segments, large business and
agricultural volumes were lower
Compared to Q3 last year, total
operating costs were 15.8%
higher, largely reflecting timing
of fortnightly payroll
implementation
Compared to Q3 last year, total
capital expenditure was 35.6%
lower
Q3 2021 capex included the
first payment to Siemens
Gamesa under the Harapaki
wind farm contract
New Zealand Aluminium
Smelter’s sales volume in Q3
was the same as Q3 last year
National electricity demand in
Q3 was 0.6%lower than Q3
last year
2021-22 summer (Dec-Feb)
was the 5
th
warmest on
record with above average
rainfall, except for northern
New Zealand and far South of
the country
At the end of Q3, Meridian’s
New Zealand customer
numbers were 7.5%higher
than the same time last year

Market data
1 4 A P R I L 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 M A R C H 2 0 2 2 |4
▪National electricity demand in March 2022
was 1.3% lower than the same month last
year
▪March was a warm month for most of the
country. Rainfall was generally below
average, the notable exception was the
eastern North Island
▪Demand in the last 12 months was 0.7%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during March 2022 was 572MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 5.5% at the
end of February 2022
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 13.2% at the end of
February 2022
Source: Electricity Authority (reconcileddemand)
Source: Electricity Authority
5%
7%
9%
11%
13%
15%
Feb 17Aug 17Feb 18Aug 18Feb 19Aug 19Feb 20Aug 20Feb 21Aug 21Feb 22
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 (2011-2021)20172018

Market data
1 4 A P R I L 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 M A R C H 2 0 2 2 |5
▪March 2022 saw increases in ASX prices
▪National storage decreased from 102% of
average on 10 March 2022 to 81% of
average on 12 April 2022
▪South Island storage decreased to 73% of
historical average by 12 April 2022. North
Island storage increased to 148% of
average
Source: ASX
Source: ASX
Source: NZX
70
90
110
130
150
170
190
210
230
250
270
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 202130 November 202131 December 2021
31 January 202228 February 202231 March 2022
70
90
110
130
150
170
190
210
230
250
270
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 202130 November 202131 December 2021
31 January 202228 February 202231 March 2022
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (12 April 2022)
88yr Average199220042008
2012201820212022

New Zealand retail
1 4 A P R I L 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 M A R C H 2 0 2 2 |6
▪Meridian’s New Zealand customer
connection numbers rose 0.7% during
March 2022 and have risen 4.8% since
June 2021
▪Retail sales volumes in March 2022 were
5.9% higher than March 2021
▪Compared to March 2021, segment sales
increased in residential +9.9%, small
medium business+17.5%, large business
+10.9% and corporate +10.8%.
Agricultural volumes were -18.2% lower
than March 2021
▪To date this financial year, retail sales
volumes are 7.0% higher than the same
period last year
▪This reflects increased segment sales in:
residential +13.4%, small medium business
+20.3%, and corporate +11.2%.
Agricultural volumes are -15.0% lower and
large business volumes are -5.7% lower
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
120120
120
120
120
120
121
121
122
123
123
123
123
123
123
124
124
125
109
111
112
113
114
114
115
115
116
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
108
118
149
127
120
117
116
121
118
113
130
51
68
83
105
164
119
175
93
119
49
47
43
43
40
43
42
42
45
321
322
297
302
314
328
343
314
369
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

0
500
1,000
1,500
2,000
2,500
1-Jan1-Mar1-May1-Jul1-Sep1-Nov
GWh
MERIDIAN'S WAITAKI STORAGE
Average 1979-201720182019
New Zealand storage
1 4 A P R I L 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 M A R C H 2 0 2 2 |7
▪March 2022 monthly inflows were 38% of
historical average,the lowest March month
inflows on record
▪Both Meridian’s Waitaki and Waiau
catchments recorded their lowest March
inflows in record, with Waiau inflows only
22% of historical average
▪To date this financial year, inflows are
100% of historical average
▪Meridian’s Waitaki catchment water
storage moved from 2,165GWh to
1,705GWh during March 2022
▪Waitaki water storage at the end of March
2022 was 92% of historical average and
55% higher than the same time last year
▪Water storage in Meridian’s Waiau
catchment was 24% of average at the end
of March 2022
Meridian operating information
Source: Meridian
Source: Meridian
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
200820092010201120122013201420152016201720182019202020212022
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
March YTD88 year average
1-Dec

New Zealand generation
1 4 A P R I L 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 M A R C H 2 0 2 2 |8
▪Meridian’s New Zealand generation in
March 2022 was 0.8% 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 7.3% higher than the
same period last year, reflecting higher
hydro and lower wind generation
▪The average price Meridian received for its
generation in March 2022 was 22.0%
lower than the same month last year
▪The average price Meridian paid to supply
customers in March 2022 was 18.2% lower
than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 22.0% lower than the same period last
year and the average price paid to supply
customers is 19.1% 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
122
198
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

MARCH
MARCH
FEBRUARY
JANUARY
9 MONTHS TO
9 MONTHS TO
2022
2021
2021
2021
MARCH
MARCH
MONTH
MONTH
MONTH
MONTH
2022
2021
New Zealand contracted sales
Residential sales volume (GWh)
118


108


108


115


1,304


1,150


Small medium business sales volume (GWh)
130


111


113


118


1,112


924


Agricultural sales volume (GWh)
119


145


93


175


977


1,150


Large business sales volume (GWh)
45


40


42


42


394


418


Corporate and industrial sales volume (GWh)
369


334


314


343


2,910


2,618


Retail contracted sales volume (GWh)
781


738


671


793


6,698


6,260


Average retail contracted sales price
1
($NZ/MWh)
$116.6
$107.5
$115.5
$111.2
$115.4
$110.0
NZAS sales volume (GWh)
426


426


384


426


3,761


3,761


Financial contract sales volumes
2
(GWh)
249


197


244


280


2,363


1,467


Average wholesale & financial contracts sales price
3
($NZ/MWh)
$64.2
$69.8
$63.7
$63.3
$65.2
$69.2
Retail customer supply volumes (GWh)
821


768


709


828


7,058


6,575


Cost to supply retail customers ($NZ/MWh)
$213.2
$265.1
$146.4
$148.4
$132.0
$160.9
Cost to supply wholesale customers ($NZ/MWh)
$216.0
$260.3
$120.5
$156.9
$112.2
$143.1
Cost of financial contracts ($NZ/MWh)
$180.6
$204.8
$117.0
$160.4
$116.9
$141.5
Total New Zealand customer connections
4
363,430


338,051


360,780


359,550


New Zealand
1 4 A P R I L 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 M A R C H 2 0 2 2 |9
Meridian operating information
See page 11 for footnotes

MARCH
MARCH
FEBRUARY
JANUARY
9 MONTHS TO
9 MONTHS TO
2022
2021
2021
2021
MARCH
MARCH
MONTH
MONTH
MONTH
MONTH
2022
2021
New Zealand generation
Hydro generation volume (GWh)
986


974


918


1,110


9,416


8,627


Wind generation volume (GWh)
84


87


94


86


973


1,052


Total generation volume (GWh)
1,070


1,061


1,012


1,196


10,389


9,679


Average generation price
5
($NZ/MWh)
$198.1
$253.8
$121.8
$138.4
$111.9
$143.4
New Zealand hedging
Hedging volume
6
(GWh)
459


431


421


404


3,262


2,804


Hedging cost average price ($NZ/MWh)
$120.0
$127.0
$117.0
$104.1
$112.4
$105.7
Hedging spot revenue average price ($NZ/MWh)
$205.9
$219.0
$138.8
$168.3
$134.4
$151.1
Future contract close outs ($NZm)
$10.0
-$3.6
-$1.5
-$5.1
$2.0
-$19.7
New Zealand
1 4 A P R I L 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 M A R C H 2 0 2 2 |10
Meridian operating information
See page 11 for footnotes

New Zealand
1 4 A P R I L 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 M A R C H 2 0 2 2 |11
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.Excludes electricity metering expenses, now reclassified into gross margin
MARCH
2022
MONTH
MARCH
2021
MONTH
FEBRUARY
2021
MONTH
JANUARY
2022
MONTH
9 MONTHS TO
MARCH
2022
9 MONTHS TO
MARCH
2021
New Zealand costs
Employee and Operating Costs
7
($m)21171715151145
Stay in Business Capital Expenditure ($m)433-12826
Investment Capital Expenditure ($m)634299355
Total Capital Expenditure ($m)10375812181
Following the Court of Appeal decision in the Metro Glass case, a $6.8m provision in relation to holiday pay has been released, reducing FY22 YTD operating costs.

Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Q1
YoY
Q2
YoY
Q3
YoY
Q4
YoY
2021
2021
2021
2021
2021
2021
2022
2022
2022
2022
2022
2022
FY22
change
FY22
change
FY22
change
FY22
change
New Zealand contracted sales
Residential sales volume (GWh)
205
195
172
148
122
121
115
108
118
572
+70
391
+45
341
+39
Small medium business sales volume (GWh)
149
127
120
117
116
121
118
113
130
396
+71
354
+55
362
+62
Agricultural sales volume (GWh)
51
68
83
105
164
119
175
93
119
202
-3
387
-81
388
-88
Large business sales volume (GWh)
49
47
43
43
40
43
42
42
45
140
-16
126
-7
128
-1
Corporate and industrial sales volume (GWh)
321
322
297
302
314
328
343
314
369
940
+111
943
+88
1026
+93
Retail contracted sales volume (GWh)
776
759
715
716
755
731
793
671
781
2,250
+233
2,202
+99
2,246
+105
Average retail contracted sales price ($NZ/MWh)
$122.6
$124.0
$123.2
$109.9
$109.8
$105.2
$111.2
$115.5
$116.6
$123.2
+$4.0
$108.3
+$3.8
$114.4
+$7.6
NZAS sales volume (GWh)
426
426
411
426
412
426
426
384
426
1,262
+0
1,263
+0
1,236
+0
Financial contract sales volumes (GWh)
197
297
234
374
280
208
280
244
249
728
+214
862
+376
773
+306
Average wholesale & financial contracts sales price ($NZ/MWh)
$73.2
$78.4
$65.1
$62.3
$56.9
$59.8
$63.3
$63.7
$64.2
$72.5
-$3.3
$59.8
-$8.9
$63.7
+$0.9
Retail customer supply volumes (GWh)
816
795
752
764
798
776
828
709
821
2,363
+246
2,337
+123
2,358
+114
Cost to supply retail customers ($NZ/MWh)
$190.3
$165.3
$91.0
$74.6
$92.7
$57.2
$148.4
$146.4
$213.2
$150.3
+$8.4
$75.0
-$40.8
$170.4
-$53.1
Cost to supply wholesale customers ($NZ/MWh)
$162.7
$115.9
$62.6
$51.2
$76.5
$45.5
$156.9
$120.5
$216.0
$114.3
-$10.9
$57.5
-$36.4
$165.9
-$45.6
Cost of financial contracts ($NZ/MWh)
$159.9
$137.5
$104.8
$66.0
$78.8
$68.2
$160.4
$117.0
$180.6
$133.0
+$2.9
$70.7
-$34.0
$153.2
-$39.3
Total New Zealand customer connections
350,961
353,357
354,810
355,760
357,521
358,350
359,550
360,780
363,430
354,810
+26,208
358,350
+25,763
363,430
+25,379
New Zealand generation
Hydro generation volume (GWh)
1,000
1,020
1,110
1,150
1,052
1,071
1,110
918
986
3,130
+372
3,273
+119
3,014
+298
Wind generation volume (GWh)
105
129
135
111
114
114
86
94
84
370
-16
339
-40
264
-23
Total generation volume (GWh)
1,105
1,149
1,245
1,260
1,166
1,185
1,196
1,012
1,070
3,499
+356
3,612
+79
3,278
+275
Average generation price ($NZ/MWh)
$166.2
$136.1
$75.8
$57.1
$78.9
$53.4
$138.4
$121.8
$198.1
$124.1
-$2.3
$63.0
-$38.2
$152.8
-$58.0
New Zealand hedging
Hedging volume (GWh)
394
325
255
327
332
346
404
421
459
975
+122
1,004
+141
1,283
+195
Hedging cost average price ($NZ/MWh)
$129.6
$121.5
$117.7
$93.6
$94.8
$109.3
$104.1
$117.0
$120.0
$123.8
+$18.5
$99.4
+$5.2
$114.0
-$1.2
Hedging spot revenue average price ($NZ/MWh)
$164.1
$140.7
$115.6
$74.4
$88.3
$69.2
$168.3
$138.8
$205.9
$143.6
+$13.4
$77.2
-$32.5
$303.7
-$55.1
Future contract close outs ($NZm)
-0.7
0.1
0.2
-0.9
0.2
-0.1
-5.1
-1.5
10.0
-0.5
+5.9
-0.8
+2.8
3.3
+13.0
Meridian Group
Employee and Operating Costs ($NZ m)
16
17
18
18
20
8
15
18
21
51
+3
46
-3
54
+7
Stay in Business Capital Expenditure ($NZ m)
3
3
4
3
6
2
-1
4
4
10
+1
11
+2
6
-2
Investment Capital Expenditure ($NZ m)
9
4
23
11
17
6
9
8
6
36
+25
34
+28
23
-14
Total Capital Expenditure ($NZ m)
12
7
27
15
24
7
8
11
10
46
+26
46
+30
29
-16
FY22 operating information
121 4 A P R I L 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 M A R C H 2 0 2 2 |
Meridian operating information
On 31 January 2022, Meridian completed the sale of its Australian business

FY21 operating information
131 4 A P R I L 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 M A R C H 2 0 2 2 |
Meridian operating information
On 31 January 2022, Meridian completed the sale of its Australian business
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Q1
YoY
Q2
YoY
Q3
YoY
Q4
YoY
2020
2020
2020
2020
2020
2020
2021
2021
2021
2021
2021
2021
FY21
change
FY21
change
FY21
change
FY21
change
New Zealand contracted sales
Residential sales volume (GWh)
186
171
146
127
111
107
101
93
108
121
160
174
503
+31
345
+16
302
+2
455


+9
Small medium business sales volume (GWh)
113
107
105
104
96
99
96
93
111
109
126
134
325
+34
299
+44
300
+39
369


+130
Agricultural sales volume (GWh)
47
72
87
157
142
170
154
177
145
116
66
43
205
+22
469
+60
476
-18
226


+46
Large business sales volume (GWh)
55
52
48
46
44
44
44
46
40
37
44
45
155
+26
134
+14
130
+12
126


+7
Corporate and industrial sales volume (GWh)
282
275
272
283
284
287
288
311
334
311
339
319
829
+93
855
+117
933
+127
968


+215
Retail contracted sales volume (GWh)
683
677
657
717
678
707
683
721
738
694
736
715
2,017
+206
2,102
+252
2,141
+163
2,144


+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)
426
426
411
426
412
426
426
384
426
412
426
412
1,262
-110
1,263
-110
1,236
-123
1,250


-77
Financial contract sales volumes (GWh)
188
125
201
126
221
140
144
126
197
167
143
129
514
+40
487
+59
467
-339
439


-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)
704
717
696
755
717
743
719
757
768
718
782
753
2,117
+229
2,215
+274
2,244
+163
2,253


+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 connections
326,148
327,125
328,602
329,710
331,240
332,587
333,367
335,580
338,051
340,178
343,015
346,830
328,602
+19,230
332,587
+18,988
338,051
+18,273
346,830


+22,577
New Zealand generation
Hydro generation volume (GWh)
975
904
879
1,066
1,054
1,034
874
868
974
867
900
903
2,758
-474
3,153
-22
2,716
-542
2,670


-423
Wind generation volume (GWh)
115
113
158
126
125
128
117
83
87
116
116
111
385
+8
379
-22
287
-52
344


-4
Total generation volume (GWh)
1,089
1,017
1,037
1,192
1,179
1,162
991
951
1,061
983
1,016
1,015
3,144
-466
3,533
-44
3,003
-593
3,014


-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)
318
266
268
241
314
308
312
345
431
348
372
360
852
+436
863
+389
1,088
+23
1,079


+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
-2.9
0.6
-2.9
-1.3
-1.5
-4.5
-3.6
-1.6
-2.1
9.7
-6.4
-4.2
-3.7
-1.1
-9.7
-9.1
$6.0
$14.6
Meridian Group
Employee and Operating Costs ($NZ m)
16
15
17
16
17
17
14
17
17
18
19
27
48
-17
50
-12
47
-15
64
-6
Stay in Business Capital Expenditure ($NZ m)
2
3
4
4
3
3
3
2
3
4
3
4
9
-2
9
-3
8
-2
11
-1
Investment Capital Expenditure ($NZ m)
6
2
2
2
2
3
1
2
34
3
4
3
11
+6
6
+2
37
+32
10
+5
Total Capital Expenditure ($NZ m)
9
6
6
5
4
6
4
5
37
7
7
7
20
+4
15
-1
46
+31
21
+4

Glossary
141 4 A P R I L 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 M A R C H 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
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
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
Virtual Asset Swaps(VAS)CFDs Meridian has with Genesis Energy and Mercury New Zealand. They do not result in the physical supply of electricity