Quarterly Operational Update

Market summary
Higher national inflows during the quarter were reflectedin spot electricity prices averaging $132/MWh
inAuckland. Forward prices remained high at $152/MWh in Auckland forfinancial years 2024 to 2026 as at 30
September 2023.
Low Waikato hydro generation with 25
th
percentile inflows, partially offset by higher wind generation
Dry conditions with 25
th
percentile inflows in the Waikato catchment over the quarter saw Q1 hydro generation
reduce to 1,144GWh (311GWh, 21% lower than PCP). Wind generation was higher at 529GWh (129GWh, 32%
higher than PCP), primarily a result of a full quarter of generation from the Turitea South wind farm (86GWh).
Kaiwera Downs 1 first generation occurred in August 2023, adding 9GWh to the quarter withfull operation
expected by the end of October. Commercial & Industrial yield growth (physical and end-userCfDs) was
$18/MWh higher for the quarter relative to PCP because of contractrepricing to a sustained higher electricity
forward curve.
Retail connection growth despite recent focus on customer migration
Electricity connections were 10k higher than PCP but 6k lower than Q4FY23, withthequarterly reduction
primarily due to a focus on successfullydelivering on customer migration. After a successful trial migration in
the quarter,over50%of all customers previously on SAP have successfully migrated to the Gentrack billing
system. Mass Market yield for the quarter was $156/MWh, $2/MWh higher than PCP largely attributed to the
change in customer mix. Telco connections were 34khigher than PCP, primarily driven by the inclusion of 25k
NOW customers. Average rolling 12-month churn has stabilised in the last few months at 16%, and remained
flat relative to PCP.
National demand higher from urban demand offsetting lower industrial demand
National demand was 0.5% higher for the quarter relativeto PCP primarily driven by urban cities and partially
offset by lower Industrial demand. Lower industrialdemand was primarily driven byCyclone Gabrielle impact
on the Pan Pac timber mill.

21%
32%
21%
15%
3%
8%
23%
33%
19%
15%
3%
7%
19%
81%
19%
81%

⁰