Meridian Energy monthly operating report for July 2023

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 2023

16 August 2023
Attached is Meridian Energy Limited's monthly operating report for the month of July 2023.
Highlights this month include:
▪ In the month to 11 August 2023, national hydro storage decreased from 121% to 106%
of historical average
▪ South Island storage decreased to 112% of average and North Island storage decreased
to 81% of average by 11 August 2023
▪ Meridian’s July 2023 monthly total inflows were 86% of historical average
▪ Waiau catchment inflows in July 2023 were 98% of historical average
▪ Meridian’s Waitaki catchment water storage at the end of July 2023 was 126% of
historical average
▪ Snow storage in Meridian’s Waitaki catchment was 94% of average in early August
▪ Water storage in Meridian’s Waiau catchment was 107% of average at the end of July
2023
▪ National electricity demand in July 2023 was 1.0% lower than the same month last year
▪ July 2023 temperatures were above average for most of the country. Rainfall was above
average in eastern and southern parts of the South Island, and below average for the
rest of the country
▪ New Zealand Aluminium Smelter’s average load during July 2023 was 569MW
▪ Meridian’s retail sales volumes in July 2023 were 0.6% higher than July 2022
▪ Compared to July 2022, segment sales decreased in residential -3.4%, small medium
business -0.5%, large business -1.5% and agriculture -0.4%. Corporate sales increased
+4.4%
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 2023

July highlights
1 6 A U G U S T 2 0 2 3 | 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 3 |2
In the month to 11 August
2023, national hydro storage
decreased from 121%to
106%of historical average
South Island storage
decreased to 112%of average
and North Island storage
decreased to 81%of average
by 11 August 2023
Meridian’s July 2023 monthly
total inflows were 86%of
historical average
Waiau catchment inflows in
July 2023 were 98%of
historical average
Meridian’s Waitaki catchment
water storage at the end of
July 2023 was 126%of
historical average
New Zealand Aluminium
Smelter’s average load during
July 2023 was 569MW
Meridian’s retail sales volumes
in July 2023 were 0.6% higher
than July 2022
Compared to July 2022,
segment sales decreased in
residential -3.4%, small
medium business -0.5%, large
business -1.5% and agriculture
-0.4%. Corporate sales
increased +4.4%
Snow storage in Meridian’s
Waitaki catchment was 94%
of average in early August
Water storage in Meridian’s
Waiau catchment was 107%
of average at the end of July
2023
National electricity demand
in July 2023 was 1.0%lower
than the same month last
year
July 2023 temperatures were
above average for most of
the country. Rainfall was
above average in eastern and
southern parts of the South
Island, and below average for
the rest of the country

Market data
1 6 A U G U S T 2 0 2 3 | 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 3 |3
▪National electricity demand in July 2023
was 1.0% lower than the same month last
year
▪July 2023 temperatures were above
average for most of the country. Rainfall
was above average in eastern and southern
parts of the South Island, and below
average for the rest of the country
▪Demand in the last 12 months was 0.2%
higher than the preceding 12 months
▪New Zealand Aluminium Smelter’s average
load during July 2023 was 569MW
▪12-month average switching rate of
customers changing retailers but not
moving (“trader” switch) was 5.8% at the
end of June 2023
▪12-month average switching rate of
customers moving and changing retailers
(“move-in” switch) was 12.8% at the end of
June 2023
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 (2011-2022)201820192020202120222023
5%
7%
9%
11%
13%
15%
Jun 18Dec 18Jun 19Dec 19Jun 20Dec 20Jun 21Dec 21Jun 22Dec 22Jun 23
12 month average
MARKET ICP SWITCHING (ALL RETAILERS)
Industry Move-in SwitchesIndustry Trader Switches

Market data
1 6 A U G U S T 2 0 2 3 | 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 3 |4
▪July 2023 saw increases in near-term ASX
prices
▪National storage decreased from 121% of
average on 12 July 2023 to 106% of
average on 11 August 2023
▪South Island storage decreased to 112% of
historical average by 11 August 2023.
North Island storage decreased to 81% of
average
Source: ASX
Source: ASX
Source: NZX
60
80
100
120
140
160
180
200
220
Q3
2023
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
Q1
2025
Q2
2025
Q3
2025
Q4
2025
Q1
2026
Q2
2026
Q3
2026
Q4
2026
$/MWh
OTAHUHU ASX FUTURES SETTLEMENT PRICE
30 June 202231 March 202328 April 2023
31 May 202330 June 202331 July 2023
60
80
100
120
140
160
180
200
220
Q3
2023
Q4
2023
Q1
2024
Q2
2024
Q3
2024
Q4
2024
Q1
2025
Q2
2025
Q3
2025
Q4
2025
Q1
2026
Q2
2026
Q3
2026
Q4
2026
$/MWh
BENMORE ASX FUTURES SETTLEMENT PRICE
30 June 202231 March 202328 April 2023
31 May 202330 June 202331 July 2023
0
1,000
2,000
3,000
4,000
5,000
JanFebMarAprMayJunJulAugSepOctNovDec
GWh
NATIONAL HYDRO STORAGE (11 August 2023)
Average stored (90yr)19922004
200820122019
202120222023

Meridian retail
1 6 A U G U S T 2 0 2 3 | 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 3 |5
▪Meridian’s customer connection numbers
increased +0.9% during July 2023 and have
increased +0.1% since July 2022
▪Retail sales volumes in July 2023 were
0.6% higher than July 2022
▪Compared to July 2022, segment sales
decreased in residential -3.4%, small
medium business -0.5%, large business
-1.5% and agricultural -0.4%. Corporate
sales increased by +4.4%
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
Meridian operating information
Source: Meridian
Source: Meridian
123
126
117
123
123123
123123
123
123
122122
122
122
122
126
126126
126
126
126
126
125
125
125
125
125
117
118
117
117
118
118
118
118
118
117
117
117
0
100
200
300
400
JulAugSepOctNovDecJanFebMarAprMayJune
ICPs ('000)
MERIDIAN'S CUSTOMER CONNECTIONS
FY24 Meridian NIFY24 Meridian SIFY24 Powershop
FY23 Meridian NIFY23 Meridian SIFY23 Powershop
200
154
53
60
334
207
192
165
152
119
119
115
106
122
130
157
180
155
152
141
145
128
125
121
119
135
123
141
148
53
75
87
134
150
141
176
146
97
76
68
48
61
59
53
40
50
48
49
45
51
48
54
56
320
326
325
323
319
308
318
320
355
320
356
327
0
300
600
900
JulAugSepOctNovDecJanFebMarAprMayJune
GWh
MERIDIAN'S RETAIL SALES VOLUME*
FY24 ResidentialFY24 SMBFY24 AgriFY24 Large Bus
FY24 CorporateFY23 ResidentialFY23 SMBFY23 Agri
FY23 Large BusFY23 Corporate

Meridian inflows and storage
1 6 A U G U S T 2 0 2 3 | 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 3 |6
▪July 2023 monthly inflows were 86% of
historical average
▪Waiau catchment inflows in July 2023 were
98% of historical average, lower than the
same time last year
▪Meridian’s Waitaki catchment water
storage moved from 2,075GWh to
1,709GWh during July 2023
▪Waitaki water storage at the end of July
2023 was 126% of historical average and
12% higher than the same time last year
▪Snow storage in Meridian’s Waitaki
catchment was 94% of average in early
August
▪Water storage in Meridian’s Waiau
catchment was 107% of average at the end
of July 2023
Meridian operating information
Source: Meridian
Source: Meridian
1-Dec
0
200
400
600
800
1,000
1,200
1,400
2009201020112012201320142015201620172018201920202021202220232024
GWh
Financial
year
MERIDIAN'S COMBINED CATCHMENT INFLOWS
Jul YTD90 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 1979-201720182019
2020202120222023

Meridian generation
1 6 A U G U S T 2 0 2 3 | 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 3 |7
▪Meridian’s generation in July 2023 was
0.1% higher than the same month last
year, reflecting higher hydro generation
and lower wind generation
▪The average price Meridian received for its
generation in July 2023 was 17.0% higher
than the same month last year
▪The average price Meridian paid to supply
customers in July 2023 was 10.5% higher
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 GENERATION
FY24 HydroFY24 WindFY23 HydroFY23 Wind
111
95
40
56
72
33
16
117
146
134
78
58
74
0
20
40
60
80
100
120
140
160
JulAugSepOctNovDecJanFebMarAprMayJun
$/MWh
MERIDIAN'S AVERAGE GENERATION PRICE*
FY24FY23

Monthly operating information
1 6 A U G U S T 2 0 2 3 | 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 3 |8
Meridian operating information
See page 10 for footnotes
JULY
JULY
JUNE
MAY
1 MONTH TO
1 MONTH TO
2023
2022
2023
2023
JULY
JULY
MONTH
MONTH
MONTH
MONTH
2023
2022
New Zealand contracted sales
Residential sales volume (GWh)
200


207


180


157


200


207


Small medium business sales volume (GWh)
154


155


148


141


154


155


Agricultural sales volume (GWh)
53


53


48


68


53


53


Large business sales volume (GWh)
60


61


56


54


60


61


Corporate and industrial sales volume (GWh)
334


320


327


356


334


320


Retail contracted sales volume (GWh)
800


795


759


775


800


795


Average retail contracted sales price
1
($NZ/MWh)
$149.2
$133.3
$123.6
$151.5
$149.2
$133.3
NZAS sales volume (GWh)
426


426


412


426


426


426


Financial contract sales volumes
2
(GWh)
338


190


342


338


338


190


Average wholesale & financial contracts sales price
3
($NZ/MWh)
$78.6
$65.4
$75.3
$78.5
$78.6
$65.4
Retail customer supply volumes (GWh)
845


835


769


839


845


835


Cost to supply retail customers ($NZ/MWh)
$128.6
$110.6
$95.2
$67.2
$128.6
$110.6
Cost to supply wholesale customers ($NZ/MWh)
$109.2
$97.6
$71.3
$55.5
$109.2
$97.6
Cost of financial contracts ($NZ/MWh)
$109.5
$120.6
$74.5
$72.4
$109.5
$120.6
Total New Zealand customer connections
4
364,389


366,518


363,335


364,148

Monthly operating information
1 6 A U G U S T 2 0 2 3 | 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 3 |9
Meridian operating information
See page 10 for footnotes
JULY
JULY
JUNE
MAY
1 MONTH TO
1 MONTH TO
2023
2022
2023
2023
JULY
JULY
MONTH
MONTH
MONTH
MONTH
2023
2022
New Zealand generation
Hydro generation volume (GWh)
1,016


1,013


1,233


1,162


1,016


1,013


Wind generation volume (GWh)
118


120


81


97


118


120


Total generation volume (GWh)
1,134


1,133


1,314


1,259


1,134


1,133


Average generation price
5
($NZ/MWh)
$110.8
$94.7
$73.7
$58.0
$110.8
$94.7
New Zealand hedging
Hedging volume
6
(GWh)
505


428


440


413


505


428


Hedging cost average price ($NZ/MWh)
$142.4
$131.4
$134.7
$135.2
$142.4
$131.4
Hedging spot revenue average price ($NZ/MWh)
$115.7
$113.0
$89.9
$66.6
$115.7
$113.0
Future contract close outs ($NZm)
$14.0
-$1.1
$1.6
$0.4
$14.0
-$1.1

Monthly operating information
1 6 A U G U S T 2 0 2 3 | 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 3 |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
JULY
JULY
JUNE
MAY
1 MONTH TO
1 MONTH TO
2023
2022
2023
2023
JULY
JULY
MONTH
MONTH
MONTH
MONTH
2023
2022
New Zealand costs
Employee and Operating Costs ($m)
23


19


24


24


23


19


Stay in Business Capital Expenditure ($m)
4


3


5


6


4


3


Investment Capital Expenditure ($m)
15


9


12


18


15


9


Total Capital Expenditure ($m)
19


12


17


24


19


12

FY24 operating information
111 6 A U G U S T 2 0 2 3 | 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 3 |
Meridian operating information
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Q1
YoY
Q2
YoY
Q3
YoY
Q4
YoY
2023
2023
2023
2023
2023
2023
2024
2024
2024
2024
2024
2024
FY24
change
FY24
change
FY24
change
FY24
change
New Zealand contracted sales
Residential sales volume (GWh)
200


Small medium business sales volume (GWh)
154


Agricultural sales volume (GWh)
53


Large business sales volume (GWh)
60


Corporate and industrial sales volume (GWh)
334


Retail contracted sales volume (GWh)
800


Average retail contracted sales price ($NZ/MWh)
$149.2
NZAS sales volume (GWh)
426


Financial contract sales volumes (GWh)
338


Average wholesale & financial contracts sales price ($NZ/MWh)
$78.6
Retail customer supply volumes (GWh)
845


Cost to supply retail customers ($NZ/MWh)
$128.6
Cost to supply wholesale customers ($NZ/MWh)
$109.2
Cost of financial contracts ($NZ/MWh)
$109.5
Total New Zealand customer connections
364,389


New Zealand generation
Hydro generation volume (GWh)
1,016


Wind generation volume (GWh)
118


Total generation volume (GWh)
1,134


Average generation price ($NZ/MWh)
$110.8
New Zealand hedging
Hedging volume (GWh)
505


Hedging cost average price ($NZ/MWh)
$142.4
Hedging spot revenue average price ($NZ/MWh)
$115.7
Future contract close outs ($NZm)
$14.0
Meridian Group
Employee and Operating Costs ($NZ m)
23
Stay in Business Capital Expenditure ($NZ m)
3
Investment Capital Expenditure ($NZ m)
15
Total Capital Expenditure ($NZ m)
19

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
FY23
change
FY23
change
FY23
change
FY23
change
New Zealand contracted sales
Residential sales volume (GWh)
207
192
165
152
119
119
115
106
122
130
157
180
564
-8
390
-0
343
+2
467
-3
Small medium business sales volume (GWh)
155
152
141
145
128
125
121
119
135
123
141
148
448
+52
398
+44
375
+14
411
+12
Agricultural sales volume (GWh)
53
75
87
134
150
141
176
146
97
76
68
48
214
+12
425
+38
419
+31
191
-25
Large business sales volume (GWh)
61
59
53
40
50
48
49
45
51
48
54
56
173
+33
137
+11
144
+16
157
+17
Corporate and industrial sales volume (GWh)
320
326
325
323
319
308
318
320
355
320
356
327
970
+30
950
+7
993
-33
1,003
-15
Retail contracted sales volume (GWh)
795
804
771
795
766
741
779
736
761
696
775
759
2,369
+119
2,301
+100
2,275
+30
2,230
-14
Average retail contracted sales price ($NZ/MWh)
$133.3
$134.2
$134.9
$124.0
$121.5
$122.5
$126.3
$127.5
$134.3
$144.5
$151.5
$123.6
$134.1
+$10.9
$122.7
+$14.4
$129.3
+$15.0
$139.8
+$13.7
NZAS sales volume (GWh)
426
425
411
426


411
425
426
384
426
412
426
412
1,262
-1
1,262
-1
1,236
+0
1,250
+18
Financial contract sales volumes (GWh)
190
281
176
257


251
277
308
179
190
310
338
342
647
-81
785
-78
677
-96
989
+389
Average wholesale & financial contracts sales price ($NZ/MWh)
$65.4
$60.4
$50.5
$56.5
$55.8
$54.2
$72.4
$66.8
$66.1
$77.5
$78.5
$75.3
$58.9
-$13.5
$55.5
-$4.3
$68.7
+$5.0
$77.1
+$7.1
Retail customer supply volumes (GWh)
835
843
823
847


825
793
804
775
818
704
839
769
2,501
+138
2,465
+127
2,396
+39
2,312
-63
Cost to supply retail customers ($NZ/MWh)
$110.6
$49.1
$64.5
$82.8
$44.2
$23.6
$124.7
$159.5
$151.5
$97.5
$67.2
$95.2
$74.7
-$75.6
$50.8
-$24.1
$145.1
-$25.3
$85.7
-$114.0
Cost to supply wholesale customers ($NZ/MWh)
$97.6
$40.2
$49.7
$70.7
$29.7
$12.7
$123.4
$154.7
$143.3
$78.1
$55.5
$71.3
$62.7
-$51.7
$37.8
-$19.7
$140.0
-$25.9
$68.1
-$129.1
Cost of financial contracts ($NZ/MWh)
$120.6
$58.7
$63.1
$73.7
$33.7
$22.2
$125.8
$135.8
$125.3
$84.4
$72.4
$74.5
$78.1
-$54.9
$42.7
-$28.0
$128.3
-$24.9
$76.9
-$115.7
Total New Zealand customer connections
366,518
366,599
366,285
364,700


365,946
366,936
366,362
365,444
365,260
364,537
364,148
363,335
366,285
+11,475
366,936
+8,586
365,260
+1,830
363,335
-2,011
New Zealand generation
Hydro generation volume (GWh)
1,013
1,187
1,101
1,066


1,086
1,121
1,028
789
876
1,039
1,162
1,233
3,300
+170
3,274
+1
2,693
-321
3,434
+579
Wind generation volume (GWh)
120
122
89
126


103
81
87
92
113
92
97
81
331
-39
310
-30
291
+27
270
-42
Total generation volume (GWh)
1,133
1,308
1,190
1,192


1,190
1,202
1,115
881
988
1,131
1,259
1,314
3,631
+131
3,583
-29
2,984
-293
3,705
+537
Average generation price ($NZ/MWh)
$94.7
$39.9
$55.7
$72.4
$33.1
$16.3
$117.4
$146.1
$133.5
$77.9
$58.0
$73.7
$62.2
-$62.0
$40.6
-$22.4
$131.2
-$21.5
$69.6
-$118.4
New Zealand hedging
Hedging volume (GWh)
428
425
352
350


347
358
396
429
450
378
413
440
1,205
+231
1,054
+51
1,276
-7
1,232
+117
Hedging cost average price ($NZ/MWh)
$131.4
$122.0
$116.7
$103.3
$100.2
$99.1
$117.0
$142.1
$125.4
$136.6
$135.2
$134.7
$123.8
-$0.0
$100.8
+$1.5
$128.4
+$14.4
$135.4
+$2.9
Hedging spot revenue average price ($NZ/MWh)
$113.0
$39.6
$64.7
$77.2
$35.8
$25.5
$142.0
$146.1
$136.1
$93.9
$66.6
$89.9
$73.0
-$70.6
$46.0
-$31.2
$82.0
-$90.1
$83.3
-$109.8
Future contract close outs ($NZm)
-1.1
12.7
20.7
$5.4
13.7
-0.2
-2.5
-2.8
-0.9
-1.0
0.4
1.6
32.4
+32.9
18.9
+19.7
-6.2
-9.5
1.0
-5.8
Meridian Group
Employee and Operating Costs ($NZ m)
19
20
20
21
21
21
18
19
23
20
24
24
60
+8
62
+15
60
+6
68
+3
Stay in Business Capital Expenditure ($NZ m)
3
4
4
3
4
4
2
4
4
3
6
6
11
+1
11
-1
10
+4
15
+3
Investment Capital Expenditure ($NZ m)
9
9
12
11
50
59
20
44
25
31
18
12
30
-6
119
+85
90
+67
61
+20
Total Capital Expenditure ($NZ m)
12
13
16
14
54
62
22
48
29
34
24
17
41
-5
130
+84
99
+70
76
+23
FY23 operating information
121 6 A U G U S T 2 0 2 3 | 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 3 |
Meridian operating information

Glossary
131 6 A U G U S T 2 0 2 3 | 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 3 |
Hedging volumesbuy-side electricity derivatives excluding the 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 between parties 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
National demandElectricity Authority’s reconciled grid demand www.emi.ea.govt.nz
NZASNew Zealand Aluminium Smelters Limited
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 the sell-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