Meridian Energy monthly operating report for June 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
287-2 9 3 D u r h a m S t r e e t N o r t h , C h r i s t c h u r c h 8 0 1 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 June 2022

15 July 2022
Attached is Meridian Energy Limited's monthly operating report for the month of June 2022.

Highlights this month include:
▪ In the month to 14 July 2022, national hydro storage increased from 85% to 94% of
historical average
▪ South Island storage increased to 84% of average and North Island storage increased to
146% of average by 14 July 2022
▪ Meridian’s June 2022 monthly total inflows were 144% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of June 2022 was 78% of
historical average
▪ Water storage in Meridian’s Waiau catchment was 119% of average at the end of June
2022
▪ National electricity demand in June 2022 was 0.2% higher than the same month last
year
▪ June was a warm month with temperatures above average for nearly all the country.
Rainfall was above average in western and inland areas, with eastern areas drier than
average
▪ New Zealand Aluminium Smelter’s average load during June 2022 was 575MW
▪ Meridian’s New Zealand retail sales volumes in June 2022 were 6.5% higher than June
2021
▪ Compared to June 2021, segment sales increased in residential +6.2%, small medium
business +6.5%, agricultural +9.9%, large business +13.4% and corporate +5.2%


Highlights for the fourth quarter include:
▪ Meridian’s Q4 total inflows were 95% of historical average, 18% lower than Q4 last year
▪ Meridian’s Waitaki catchment water storage at the end of Q4 was 5% lower than Q4 last
year
▪ Compared to Q4 last year, Meridian’s New Zealand generation was 5.1% higher at a
29.8% lower average price
▪ Q4 saw decreases in near-term futures prices and increases in longer dated futures
prices
▪ New Zealand Aluminium Smelter’s sales volume in Q4 was 1.5% lower than Q4 last year

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

▪ National electricity demand in Q4 was 1.7% lower than Q4 last year
▪ 2022 autumn (Mar-May) was the equal 2
nd
warmest on record. The north and east of
the North Island recorded above average rainfall, while the rest of country experienced
below average rainfall
▪ At the end of Q4, Meridian’s New Zealand customer numbers were 5.3% higher than the
same time last year
▪ Compared to Q4 last year, Meridian’s NZ retail sales volumes were 4.6% higher at a 6.0%
higher average price
▪ Sales increased in most segments, agricultural volumes were lower
▪ Compared to Q4 last year, total operating costs were 1.8% higher
▪ Compared to Q4 last year, total capital expenditure was 159.0% higher
▪ Stay in business capital expenditure was 13.5% higher. Growth capital expenditure was
324.3% higher, reflecting construction of the Harapaki wind farm



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
June 2022

June highlights
1 5 J U L 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 U N E 2 0 2 2 |2
In the month to 14 July 2022,
national hydro storage
increased from 85%to 94%of
historical average
South Island storage
increased to 84%of average
and North Island storage
increased to 146%of average
by 14 July 2022
Meridian’s June 2022 monthly
total inflows were 144%of
historical average
Meridian’s Waitaki catchment
water storage at the end of
June 2022 was 78%of
historical average
New Zealand Aluminium
Smelter’s average load during
June 2022 was 575MW
Meridian’s New Zealand retail
sales volumes in June 2022
were 6.5%higher than June
2021
Compared to June 2021,
segment sales increased in
residential +6.2%, small
medium business+6.5%,
agricultural +9.9%, large
business +13.4% and corporate
+5.2%
Water storage in Meridian’s
Waiaucatchment was 119%
of average at the end of June
2022
National electricity demand in
June 2022 was 0.2%higher
than the same month last
year
June was a warm month with
temperatures above average
for nearly all the country.
Rainfall was above average in
western and inland areas,
with eastern areas drier than
average

Q4 highlights
1 5 J U L 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 U N E 2 0 2 2 |3
Meridian’s Q4 total inflows
were 95%of historical
average, 18%lower than Q4
last year
Meridian’s Waitaki catchment
water storage at the end of
Q4 was 5%lower than Q4 last
year
Compared to Q4 last year,
Meridian’s New Zealand
generation was 5.1%higher at
a 29.8%lower average price
Q4 saw decreases in near-
term futures prices and
increases in longer dated
futures prices
Compared to Q4 last year,
Meridian’s NZ retail sales
volumes were 4.6%higher at a
6.0%higher average price
Sales increased in most
segments, agricultural volumes
were lower
Compared to Q4 last year, total
operating costs were 1.8%
higher
Compared to Q4 last year, total
capital expenditure was 159.0%
higher
Stay in business capital
expenditure was 13.5%higher.
Growth capital expenditure was
324.3%higher, reflecting
construction of the Harapaki
wind farm
New Zealand Aluminium
Smelter’s sales volume in Q4
was 1.5%lower than Q4 last
year
National electricity demand in
Q4 was 1.7%lower than Q4
last year
2022 autumn (Mar-May) was
the equal 2
nd
warmest on
record. The north and east of
the North Island recorded
above average rainfall, while
the rest of country
experienced below average
rainfall
At the end of Q4, Meridian’s
New Zealand customer
numbers were 5.3%higher
than the same time last year

Market data
1 5 J U L 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 U N E 2 0 2 2 |4
▪National electricity demand in June 2022
was 0.2% higher than the same month last
year
▪June was a warm month with temperatures
above average for nearly all the country.
Rainfall was above average in western and
inland areas, with eastern areas drier than
average
▪Demand in the last 12 months was 1.1%
lower than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during June 2022 was 575MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 5.5% at the
end of May 2022
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 12.8% at the end of
May 2022
Source: Electricity Authority (reconcileddemand)
Source: Electricity Authority
5%
7%
9%
11%
13%
15%
May 17Nov 17May 18Nov 18May 19Nov 19May 20Nov 20May 21Nov 21May 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)201720182019202020212022

Market data
1 5 J U L 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 U N E 2 0 2 2 |5
▪June 2022 saw decreases in ASX prices
▪National storage increased from 85% of
average on 10 June 2022 to 94% of
average on 14 July 2022
▪South Island storage increased to 84% of
historical average by 14 July 2022. North
Island storage increased to 146% of
average
Source: ASX
Source: ASX
Source: NZX
80
100
120
140
160
180
200
220
240
260
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 202128 February 202231 March 2022
29 April 202231 May 202230 June 2022
80
100
120
140
160
180
200
220
240
260
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 202128 February 202231 March 2022
29 April 202231 May 202230 June 2022
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (14 July 2022)
88yr Average199220042008
2012201820212022

New Zealand retail
1 5 J U L 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 U N E 2 0 2 2 |6
▪Meridian’s New Zealand customer
connection numbers rose 0.1% during
June 2022 and have risen 5.3% since June
2021
▪Retail sales volumes in June 2022 were
6.5% higher than June 2021
▪Compared to June 2021, segment sales
increased in residential +6.2%, small
medium business+6.5%, agricultural
+9.9%, large business +13.4% and
corporate +5.2%
▪To date this financial year, retail sales
volumes are 6.4% higher than the same
period last year
▪This reflects increased segment sales in:
residential +10.5%, small medium business
+16.8%, and corporate +9.6%. Agricultural
volumes are -13.3% lower and large
business volumes are -1.8% 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
122
123
123
123
123
123123
123
123
124
124
125
125
126
126
109
111
112
113
114
114
115
115
116
116
117
117
115
115
116
116
116
116
116
117
117
118
119
119
120
121
121
121
121121
121
122
122
122
122
122
90
91
92
93
94
96
96
97
99
101
103
106
0
100
200
300
400
JulAugSepOctNovDecJanFebMarAprMayJune
ICPs ('000)
MERIDIAN'S NZ CUSTOMER CONNECTIONS
FY22 Meridian NIFY22 Meridian SIFY22 Powershop
FY21 Meridian NIFY21 Meridian SIFY21 Powershop
205
195
172
148
122
121
115
108
118
127
158
185
149
127
120
117
116
121
118
113
130
121
136
143
51
68
83
105
164
119
175
93
119
94
74
48
49
47
43
43
40
43
42
42
45
41
48
51
321
322
297
302
314
328
343
314
369
332
352
335
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 1979-201720182019202020212022
New Zealand storage
1 5 J U L 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 U N E 2 0 2 2 |7
▪June 2022 monthly inflows were 144% of
historical average
▪To date this financial year, inflows are 99%
of historical average
▪Meridian’s Waitaki catchment water
storage moved from 1,170GWh to
1,230GWh during June 2022
▪Waitaki water storage at the end of June
2022 was 78% of historical average and 5%
lower than the same time last year
▪Water storage in Meridian’s Waiau
catchment was 119% of average at the end
of June 2022
Meridian operating information
Source: Meridian
Source: Meridian
1-Dec
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
200820092010201120122013201420152016201720182019202020212022
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
June YTD88 year average

New Zealand generation
1 5 J U L 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 U N E 2 0 2 2 |8
▪Meridian’s New Zealand generation in June
2022 was 9.8% higher than the same
month last year, reflecting higher hydro
and higher wind generation
▪To date this financial year, Meridian’s New
Zealand generation is 6.8% higher than the
same period last year, reflecting higher
hydro and lower wind generation
▪The average price Meridian received for its
generation in June 2022 was 36.8% lower
than the same month last year
▪The average price Meridian paid to supply
customers in June 2022 was 37.4% lower
than the same month last year
▪To date this financial year, the average
price Meridian received for its generation
is 25.0% lower than the same period last
year and the average price paid to supply
customers is 23.0% 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
122
198
202
209
156
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

JUNE
JUNE
MAY
APRIL
12 MONTHS TO
12 MONTHS TO
2022
2021
2022
2022
JUNE
JUNE
MONTH
MONTH
MONTH
MONTH
2022
2021
New Zealand contracted sales
Residential sales volume (GWh)
185


174


158


127


1,774


1,605


Small medium business sales volume (GWh)
143


134


136


121


1,511


1,294


Agricultural sales volume (GWh)
48


43


74


94


1,193


1,376


Large business sales volume (GWh)
51


45


48


41


534


544


Corporate and industrial sales volume (GWh)
335


319


352


332


3,929


3,586


Retail contracted sales volume (GWh)
761


715


768


715


8,941


8,405


Average retail contracted sales price
1
($NZ/MWh)
$127.0
$118.9
$128.5
$122.8
$118.1
$112.3
NZAS sales volume (GWh)
412


412


418


402


4,992


5,011


Financial contract sales volumes
2
(GWh)
219


129


203


178


2,963


1,906


Average wholesale & financial contracts sales price
3
($NZ/MWh)
$66.9
$74.1
$74.9
$68.1
$66.3
$70.7
Retail customer supply volumes (GWh)
814


753


815


747


9,433


8,828


Cost to supply retail customers ($NZ/MWh)
$168.0
$272.2
$221.5
$210.5
$149.1
$193.0
Cost to supply wholesale customers ($NZ/MWh)
$152.1
$242.5
$215.0
$225.2
$133.2
$173.5
Cost of financial contracts ($NZ/MWh)
$157.1
$228.2
$207.7
$219.0
$132.2
$169.6
Total New Zealand customer connections
4
365,346


346,830


364,839


364,182


New Zealand
1 5 J U L 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 U N E 2 0 2 2 |9
Meridian operating information
See page 11 for footnotes

JUNE
JUNE
MAY
APRIL
12 MONTHS TO
12 MONTHS TO
2022
2021
2022
2022
JUNE
JUNE
MONTH
MONTH
MONTH
MONTH
2022
2021
New Zealand generation
Hydro generation volume (GWh)
998


903


982


876


12,271


11,297


Wind generation volume (GWh)
116


111


104


93


1,285


1,395


Total generation volume (GWh)
1,114


1,015


1,085


968


13,557


12,692


Average generation price
5
($NZ/MWh)
$156.4
$247.5
$208.5
$201.5
$129.7
$172.9
New Zealand hedging
Hedging volume
6
(GWh)
324


360


353


438


4,376


3,883


Hedging cost average price ($NZ/MWh)
$136.7
$119.0
$134.6
$127.8
$117.6
$108.4
Hedging spot revenue average price ($NZ/MWh)
$161.2
$237.6
$217.2
$197.5
$149.3
$181.7
Future contract close outs ($NZm)
$10.9
$9.7
$2.3
-$6.4
$8.8
-$13.7
New Zealand
1 5 J U L 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 U N E 2 0 2 2 |10
Meridian operating information
See page 11 for footnotes

New Zealand
1 5 J U L 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 U N E 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
JUNE
2022
MONTH
JUNE
2021
MONTH
MAY
2022
MONTH
APRIL
2022
MONTH
12 MONTHS
TO JUNE
2022
12 MONTHS
TO JUNE
2021
New Zealand costs
Employee and Operating Costs
7
($m)25272119216209
Stay in Business Capital Expenditure ($m)64334038
Investment Capital Expenditure ($m)93131913564
Total Capital Expenditure ($m)1571622175102
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
127
158
185
572
+70
391
+45
341
+39
470
+15
Small medium business sales volume (GWh)
149
127
120
117
116
121
118
113
130
121
136
143
396
+71
354
+55
362
+62
399
+30
Agricultural sales volume (GWh)
51
68
83
105
164
119
175
93
119
94
74
48
202
-3
387
-81
388
-88
216
-10
Large business sales volume (GWh)
49
47
43
43
40
43
42
42
45
41
48
51
140
-16
126
-7
128
-1
140
+14
Corporate and industrial sales volume (GWh)
321
322
297
302
314
328
343
314
369
332
352
335
940
+111
943
+88
1,026
+93
1,019
+51
Retail contracted sales volume (GWh)
776
759
715
716
755
731
793
671
781
715
768
761
2,250
+233
2,202
+99
2,246
+105
2,244
+99
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
$122.8
$128.5
$127.0
$123.2
+$4.0
$108.3
+$3.8
$114.4
+$7.6
$126.2
+$7.2
NZAS sales volume (GWh)
426
426
411
426
412
426
426
384
426
402
418
412
1,262
+0
1,263
+0
1,236
+0
1,232
-18
Financial contract sales volumes (GWh)
197
297
234
374
280
208
280
244
249
178
203
219
728
+214
862
+376
773
+306
600
+161
Average wholesale & financial contracts sales price ($NZ/MWh)
$73.2
$78.4
$65.1
$62.3
$56.9
$59.8
$63.3
$63.7
$64.2
$68.1
$74.9
$66.9
$72.5
-$3.3
$59.8
-$8.9
$63.7
+$0.9
$70.0
-$5.4
Retail customer supply volumes (GWh)
816
795
752
764
798
776
828
709
821
747
815
814
2,363
+246
2,337
+123
2,358
+114
2,376
+123
Cost to supply retail customers ($NZ/MWh)
$190.3
$165.3
$91.0
$74.6
$92.7
$57.2
$148.4
$146.4
$213.2
$210.5
$221.5
$168.0
$150.3
+$8.4
$75.0
-$40.8
$170.4
-$53.1
$199.7
-$87.0
Cost to supply wholesale customers ($NZ/MWh)
$162.7
$115.9
$62.6
$51.2
$76.5
$45.5
$156.9
$120.5
$216.0
$225.2
$215.0
$152.1
$114.3
-$10.9
$57.5
-$36.4
$165.9
-$45.6
$197.3
-$67.6
Cost of financial contracts ($NZ/MWh)
$159.9
$137.5
$104.8
$66.0
$78.8
$68.2
$160.4
$117.0
$180.6
$219.0
$207.7
$157.1
$133.0
+$2.9
$70.7
-$34.0
$153.2
-$39.3
$192.6
-$70.9
Total New Zealand customer connections
350,961
353,357
354,810
355,760
357,521
358,350
359,550
360,780
363,430
364,182
364,839
365,346
354,810
+26,208
358,350
+25,763
363,430
+25,379
365,346
+18,516
New Zealand generation
Hydro generation volume (GWh)
1,000
1,020
1,110
1,150
1,052
1,071
1,110
918
986
876
982
998
3,130
+372
3,273
+119
3,014
+298
2,855
+185
Wind generation volume (GWh)
105
129
135
111
114
114
86
94
84
93
104
116
370
-16
339
-40
264
-23
313
-31
Total generation volume (GWh)
1,105
1,149
1,245
1,260
1,166
1,185
1,196
1,012
1,070
968
1,085
1,114
3,499
+356
3,612
+79
3,278
+275
3,168
+154
Average generation price ($NZ/MWh)
$166.2
$136.1
$75.8
$57.1
$78.9
$53.4
$138.4
$121.8
$198.1
$201.5
$208.5
$156.4
$124.1
-$2.3
$63.0
-$38.2
$152.8
-$58.0
$188.0
-$79.7
New Zealand hedging
Hedging volume (GWh)
394
325
255
327
332
346
404
421
459
438
353
324
975
+122
1,004
+141
1,283
+195
1,115
+35
Hedging cost average price ($NZ/MWh)
$129.6
$121.5
$117.7
$93.6
$94.8
$109.3
$104.1
$117.0
$120.0
$127.8
$134.6
$136.7
$123.8
+$18.5
$99.4
+$5.2
$114.0
-$1.2
$132.6
+$17.2
Hedging spot revenue average price ($NZ/MWh)
$164.1
$140.7
$115.6
$74.4
$88.3
$69.2
$168.3
$138.8
$205.9
$197.5
$217.2
$161.2
$143.6
+$13.4
$77.2
-$32.5
$303.7
-$55.1
$193.2
-$68.0
Future contract close outs ($NZm)
-0.7
0.1
0.2
-0.9
0.2
-0.1
-5.1
-1.5
10.0
-6.4
2.3
10.9
-0.5
+5.9
-0.8
+2.8
3.3
+13.0
6.8
+0.8
Meridian Group
Employee and Operating Costs ($NZ m)
16
17
18
18
20
8
15
18
21
19
21
25
51
+3
46
-3
54
+7
65
+1
Stay in Business Capital Expenditure ($NZ m)
3
3
4
3
6
2
-1
4
4
3
3
6
10
+1
11
+2
6
-2
13
+1
Investment Capital Expenditure ($NZ m)
9
4
23
11
17
6
9
8
6
19
13
9
36
+25
34
+28
23
-14
41
+31
Total Capital Expenditure ($NZ m)
12
7
27
15
24
7
8
11
10
22
16
15
46
+26
46
+30
29
-16
54
+33
FY22 operating information
121 5 J U L 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 U N E 2 0 2 2 |
Meridian operating information
On 31 January 2022, Meridian completed the sale of its Australian business

FY21 operating information
131 5 J U L 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 U N E 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 5 J U L 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 U N E 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