Quarterly Operational Update

Market summary
77thpercentile nationalhydro inflowsand lower electricity demand during the quarter were reflected in
lower spot electricity prices averaging $44/MWh in Auckland. Whilst forward prices eased slightly from
last quarter’s outlook, they remain elevated at $174/MWh in Auckland for financial years 2025 to 2027 as
at 31st December 2024. National demand was 2.1% lower for the quarter relative to PCP. After
normalising demand for industrial demand response initiated during Q1, demand increased by 0.7%
versus thePCP.
Portfolio management has resulted in a good starting Taupōlake level for Q3, despite drier conditions
Lower Waikato catchment inflows of 22nd percentile over the quarter saw Q2 hydro generation reduce to
872 GWh (56 GWh, 6% lower than PCP). Taupō hydro storage was conserved to end the quarter with an
above average lake level. This was achieved by reducing hydro generation while spot electricity prices
were low relative to forward electricity prices in the secondhalf of 2025.
Wind generation was 44 GWh or 8% lower for the quarter relative to PCP because of lower than average
wind. Planned maintenance outages at Nga Awa Purua and Rotokawa stations have resulted in 55 GWh
lower geothermal generation than PCP at 589 GWh. Commercial & Industrial yield growth (physical and
end-user CfDs) was $15/MWh higher for the quarter relative to PCP because of contract repricing to a
sustained higher electricity forward curve.
Telco and mobile connections increased by 25k relative to PCP and 6k versus the last quarter due to
cross-sell focus and various customer offers.
Mercury commits to Kaiwaikawe wind farm in Northland
Mercury confirmed it will construct a $287m wind farm near Dargaville, bringing the total commitment to
new renewables to more than $1b over two years. The 77 MW and 221 GWh per annum is expected to
reach full generation by late CY26.

20%
35%
20%
10%
2%
13%
21%
34%
21%
12%
3%
9%
17%
83%
17%
83%

⁰