Meridian Energy : Monthly operating report for June 2023

Monthly Operating Report

June 2023

June highlights

In the month to 12 July 2023, national hydro storage decreased from 143% to 121% of historical average

South Island storage decreased to 120% of average and North Island storage decreased to 127% of average by 12 July 2023

Meridian's June 2023 monthly total inflows were 124% of historical average

Waiau catchment inflows in June 2023 were 112% of historical average

Meridian's Waitaki catchment

water storage at the end of June 2023 was 131% of historical average

Water storage in Meridian's Waiau catchment was 108% of average at the end of June 2023

National electricity demand in June 2023 was 0.3% higher than the same month last year

June 2023 temperatures were above average apart from central parts of the South Island. Rainfall was below average across the country, except for eastern and northern parts of the North Island

New Zealand Aluminium

Smelter's average load during June 2023 was 569MW

Meridian's retail sales volumes in June 2023 were 0.3% lower than June 2022

Compared to June 2022, segment sales increased in small medium business +3.4%, large business +10.9%. Sales decreased in residential -2.5% and corporate -2.4%. Agricultural sales were at the same level as last June 2022

Provisional full year operating costs of $249 million were $2 million (0.8%) above the top of the guidance range

Provisional full year capital expenditure of $346 million was near the lower end of the guidance range

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Q4 highlights

Meridian's Q4 total inflows were 129% of

historical average, 35% higher than Q4 last year

Meridian's Waitaki

catchment water storage at the end of Q4 was 69% higher than Q4 last year

Compared to Q4 last

year, Meridian's generation was 17.0% higher at

a 63.0% lower average price

Autumn wind speeds have been well below average in the lower North Island

Q4 saw decreases in electricity futures prices

New Zealand Aluminium Smelter's sales volume in Q4

were slightly higher than Q4

last year​

National electricity demand in Q4 was 0.6% higher than Q4 last year​

Autumn 2023 was warm and wet with much of the country experiencing rainfall well above average. No part of the country experienced below average autumn temperatures

During the quarter, Meridian made calls on volume under swaption agreement with Nova

At the end of Q4, Meridian's customer numbers were 0.6%

lower than the same time last year

Compared to Q4 last year, Meridian's retail sales volumes were 0.6% lower at a 10.8% higher average price

Sales increased in small medium business and large business; all other segments decreased. ​

Compared to Q4 last year, total operating costs were 4.3% higher​

Compared to Q4 last year, total capital expenditure was 42.2% higher with construction at the Harapaki Wind Farm and the Ruakākā Battery Energy Storage System

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Market data

• National electricity demand in June 2023 was 0.3% higher than the same month last year
• June 2023 temperatures were above average apart from central parts of the South Island. Rainfall was below average across the country, except for eastern and northern parts of the North Island
• Demand in the last 12 months was 0.2% higher than the preceding 12 months
• New Zealand Aluminium Smelter's average load during June 2023 was 569MW
• 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 5.7% at the end of May 2023
• 12-monthaverage switching rate of customers moving and changing retailers
  ("move-in" switch) was 12.9% at the end of
  May 2023

NATIONAL DEMAND

GWh

4,000

3,800

3,600

3,400

3,200

3,000

2,800

2,600

Jan Feb Mar	Apr	May Jun	Jul	Aug Sep	Oct	Nov Dec
Range (2011-2022)		2018		2019		2020		2021			2022		2023

Source: Electricity Authority (reconciled demand)

MARKET ICP SWITCHING (ALL RETAILERS)

12 month average

15%

13%

11%

9%

7%

5%

May 18 Nov 18 May 19 Nov 19 May 20 Nov 20 May 21 Nov 21 May 22 Nov 22 May 23

Industry Move-in Switches		Industry Trader Switches
		Source: Electricity Authority

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Market data

• June 2023 saw ASX prices remain steady
• National storage decreased from 143% of average on 14 June 2023 to 121% of average on 12 July 2023
• South Island storage decreased to 120% of historical average by 12 July 2023. North Island storage decreased to 127% of average

OTAHUHU ASX FUTURES SETTLEMENT PRICE

$/MWh 240

220

200

180

160

140

120

100

80

60

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 2026

30 June 2022		28 February 2023		31 March 2023
28 April 2023		31 May 2023		30 June 2023
				Source: ASX

NATIONAL HYDRO STORAGE (12 July 2023)

GWh 5,000

4,000

3,000

2,000

1,000

0

Jan Feb Mar	Apr May Jun	Jul Aug Sep Oct Nov Dec
	Average stored (90yr)			1992			2004
	2008			2012			2018
	2021			2022			2023

Source: NZX

BENMORE ASX FUTURES SETTLEMENT PRICE

$/MWh 240

220

200

180

160

140

120

100

80

60

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 2026

30 June 2022		28 February 2023		31 March 2023
28 April 2023		31 May 2023		30 June 2023
				Source: ASX

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