Meridian Energy monthly operating report for July 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 July 2022

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

Highlights this month include:
▪ In the month to 9 August 2022, national hydro storage increased from 94% to 144% of
historical average
▪ South Island storage increased to 146% of average and North Island storage decreased
to 132% of average by 9 August 2022
▪ Meridian’s July 2022 monthly total inflows were 183% of historical average, the 3
rd

highest July month inflows on record
▪ July 2022 Waitaki catchment inflows were the highest July month inflows on record
▪ Meridian’s Waitaki catchment water storage at the end of July 2022 was 112% of
historical average
▪ Water storage in Meridian’s Waiau catchment was 144% of average at the end of July
2022
▪ Waitaki snow storage in late July 2022 was 131% of historical average
▪ National electricity demand in July 2022 was 1.1% lower than the same month last year
▪ July 2022 was New Zealand’s wettest July on record. It was also the 4
th
warmest July on
record, with temperatures above average across most of the country
▪ New Zealand Aluminium Smelter’s average load during July 2022 was 575MW
▪ Meridian’s New Zealand retail sales volumes in July 2022 were 2.4% higher than July
2021
▪ Compared to July 2021, segment sales increased in residential +0.6%, small medium
business +4.0%, agricultural +3.0% and large business +22.3%. Corporate sales
decreased -0.4%

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
July 2022

July highlights
1 2 A U G U S T 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 L Y 2 0 2 2 |2
In the month to 9 August
2022, national hydro storage
increased from 94%to 144%
of historical average
South Island storage
increased to 146%of average
and North Island storage
decreased to 132%of average
by 9 August 2022
Meridian’s July 2022 monthly
total inflows were 183%of
historical average, the 3
rd
highest July month inflows on
record
July 2022 Waitaki catchment
inflows were the highest July
month inflows on record
July 2022 was New Zealand’s
wettest July on record. It was
also the 4
th
warmest July on
record, with temperatures
above average across most of
the country
New Zealand Aluminium
Smelter’s average load during
July 2022 was 575MW
Meridian’s New Zealand retail
sales volumes in July 2022 were
2.4%higher than July 2021
Compared to July 2021,
segment sales increased in
residential +0.6%, small
medium business+4.0%,
agricultural +3.0% and large
business +22.3%. Corporate
sales decreased -0.4%
Meridian’s Waitaki catchment
water storage at the end of
July 2022 was 112%of
historical average
Water storage in Meridian’s
Waiaucatchment was 144%
of average at the end of July
2022
Waitaki snow storage in late
July 2022 was 131%of
historical average
National electricity demand in
July 2022 was 1.1%lower
than the same month last
year

Market data
1 2 A U G U S T 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 L Y 2 0 2 2 |3
▪National electricity demand in July 2022
was 1.1% lower than the same month last
year
▪July 2022 was New Zealand’s wettest July
on record. It was also the 4
th
warmest July
on record, with temperatures above
average across most of the country
▪Demand in the last 12 months was 1.3%
lower than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during July 2022 was 575MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 5.5% at the
end of June 2022
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 12.8% at the end of
June 2022
Source: Electricity Authority (reconcileddemand)
Source: Electricity Authority
5%
7%
9%
11%
13%
15%
Jun 17Dec 17Jun 18Dec 18Jun 19Dec 19Jun 20Dec 20Jun 21Dec 21Jun 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 2 A U G U S T 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 L Y 2 0 2 2 |4
▪July 2022 saw sizeable decreases in short
dated ASX prices
▪National storage increased from 94% of
average on 14 July 2022 to 144% of
average on 9 August 2022
▪South Island storage increased to 146% of
historical average by 9 August 2022. North
Island storage decreased to 132% of
average
Source: ASX
Source: ASX
Source: NZX
80
100
120
140
160
180
200
220
240
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 202131 March 202229 April 2022
31 May 202230 June 202229 July 2022
80
100
120
140
160
180
200
220
240
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 202131 March 202229 April 2022
31 May 202230 June 202229 July 2022
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (9 August2022)
88yr Average199220042008
2012201820212022

New Zealand retail
1 2 A U G U S T 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 L Y 2 0 2 2 |5
▪Meridian’s New Zealand customer
connection numbers rose 0.5% during July
2022
▪Retail sales volumes in July 2022 were
2.4% higher than July 2021
▪Compared to July 2021, segment sales
increased in residential +0.6%, small
medium business+4.0%, agricultural
+3.0% and large business +22.3%.
Corporate sales decreased -0.4%
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
123
127
117
120120
120
120
120
120
121
121
122
122
123
123
123
123
123
123
123
123
124
124
125
125
126
126
109
111
112
113
114
114
115
115
116
116
117
117
0
100
200
300
400
JulAugSepOctNovDecJanFebMarAprMayJune
ICPs ('000)
MERIDIAN'S NZ CUSTOMER CONNECTIONS
FY23 Meridian NIFY23 Meridian SIFY23 Powershop
FY22 Meridian NIFY22 Meridian SIFY22 Powershop
207
155
53
61
320
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
0
300
600
900
JulAugSepOctNovDecJanFebMarAprMayJune
GWh
MERIDIAN'S RETAIL SALES VOLUME*
FY23 ResidentialFY23 SMBFY23 AgriFY23 Large Bus
FY23 CorporateFY22 ResidentialFY22 SMBFY22 Agri
FY22 Large BusFY22 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 2 A U G U S T 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 L Y 2 0 2 2 |6
▪July 2022 monthly inflows were 183% of
historical average, the 3
rd
highest July
month inflows on record
▪Meridian’s Waitaki catchment water
storage moved from 1,230GWh to
1,522GWh during July 2022
▪Waitaki water storage at the end of July
2022 was 112% of historical average and
2% higher than the same time last year
▪Water storage in Meridian’s Waiau
catchment was 144% of average at the end
of July 2022
▪Waitaki snow storage in late July 2022 was
131% of historical average
Meridian operating information
Source: Meridian
Source: Meridian
1-Dec
0
200
400
600
800
1,000
1,200
1,400
200920102011201220132014201520162017201820192020202120222023
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
July YTD89 year average

New Zealand generation
1 2 A U G U S T 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 L Y 2 0 2 2 |7
▪Meridian’s New Zealand generation in July
2022 was 2.5% higher than the same
month last year, reflecting higher hydro
and higher wind generation
▪The average price Meridian received for its
generation in July 2022 was 43.0% lower
than the same month last year
▪The average price Meridian paid to supply
customers in July 2022 was 39.3% lower
than the same month last year
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
FY23 HydroFY23 WindFY22 HydroFY22 Wind
95
166
136
76
57
79
53
138
122
198
202
209
156
0
50
100
150
200
250
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY23FY22

New Zealand
1 2 A U G U S T 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 L Y 2 0 2 2 |8
Meridian operating information
See page 10 for footnotes
JULY
JULY
JUNE
MAY
2022
2021
2022
2022
MONTH
MONTH
MONTH
MONTH
New Zealand contracted sales
Residential sales volume (GWh)
207


205


185


158


Small medium business sales volume (GWh)
155


149


143


136


Agricultural sales volume (GWh)
53


51


48


74


Large business sales volume (GWh)
61


49


51


48


Corporate and industrial sales volume (GWh)
320


321


335


352


Retail contracted sales volume (GWh)
795


776


761


768


Average retail contracted sales price
1
($NZ/MWh)
$133.3
$122.6
$127.0
$128.5
NZAS sales volume (GWh)
426


426


412


418


Financial contract sales volumes
2
(GWh)
190


197


219


203


Average wholesale & financial contracts sales price
3
($NZ/MWh)
$65.4
$73.2
$66.9
$74.9
Retail customer supply volumes (GWh)
835


816


814


815


Cost to supply retail customers ($NZ/MWh)
$110.6
$190.3
$168.0
$221.5
Cost to supply wholesale customers ($NZ/MWh)
$97.6
$162.7
$152.1
$215.0
Cost of financial contracts ($NZ/MWh)
$120.6
$159.9
$157.1
$207.7
Total New Zealand customer connections
4
367,035


365,686


372,115


364,839

New Zealand
1 2 A U G U S T 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 L Y 2 0 2 2 |9
Meridian operating information
See page 10 for footnotes
JULY
JULY
JUNE
MAY
2022
2021
2022
2022
MONTH
MONTH
MONTH
MONTH
New Zealand generation
Hydro generation volume (GWh)
1,013


1,000


998


982


Wind generation volume (GWh)
120


105


116


104


Total generation volume (GWh)
1,133


1,105


1,114


1,085


Average generation price
5
($NZ/MWh)
$94.7
$166.2
$156.4
$208.5
New Zealand hedging
Hedging volume
6
(GWh)
428


394


324


353


Hedging cost average price ($NZ/MWh)
$131.4
$129.6
$136.7
$134.6
Hedging spot revenue average price ($NZ/MWh)
$113.0
$164.1
$161.2
$217.2
Future contract close outs ($NZm)
-$1.1
-$0.7
$10.9
$2.3

New Zealand
1 2 A U G U S T 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 L Y 2 0 2 2 |10
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
JULY
2022
MONTH
JULY
2021
MONTH
JUNE
2022
MONTH
MAY
2022
MONTH
New Zealand costs
Employee and Operating Costs
7
($m)19162521
Stay in Business Capital Expenditure ($m)3363
Investment Capital Expenditure ($m)99913
Total Capital Expenditure ($m)12121516

Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Q1
YoY
Q2
YoY
Q3
YoY
Q4
YoY
2022
2022
2022
2022
2022
2022
2023
2023
2023
2023
2023
2023
FY22
change
FY22
change
FY22
change
FY22
change
New Zealand contracted sales
Residential sales volume (GWh)
207
Small medium business sales volume (GWh)
155
Agricultural sales volume (GWh)
53
Large business sales volume (GWh)
61
Corporate and industrial sales volume (GWh)
320
Retail contracted sales volume (GWh)
795
Average retail contracted sales price ($NZ/MWh)
$133.3
NZAS sales volume (GWh)
426
Financial contract sales volumes (GWh)
190
Average wholesale & financial contracts sales price ($NZ/MWh)
$65.4
Retail customer supply volumes (GWh)
835
Cost to supply retail customers ($NZ/MWh)
$110.6
Cost to supply wholesale customers ($NZ/MWh)
$97.6
Cost of financial contracts ($NZ/MWh)
$120.6
Total New Zealand customer connections
367,035
New Zealand generation
Hydro generation volume (GWh)
1,013
Wind generation volume (GWh)
120
Total generation volume (GWh)
1,133
Average generation price ($NZ/MWh)
$94.7
New Zealand hedging
Hedging volume (GWh)
428
Hedging cost average price ($NZ/MWh)
$131.4
Hedging spot revenue average price ($NZ/MWh)
$113.0
Future contract close outs ($NZm)
`
Meridian Group
Employee and Operating Costs ($NZ m)
19
Stay in Business Capital Expenditure ($NZ m)
3
Investment Capital Expenditure ($NZ m)
9
Total Capital Expenditure ($NZ m)
12
FY23 operating information
111 2 A U G U S T 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 L Y 2 0 2 2 |
Meridian operating information

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 2 A U G U S T 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 L Y 2 0 2 2 |
Meridian operating information

Glossary
131 2 A U G U S T 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 L 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
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