Meridian Energy : Monthly operating report for May 2023

Monthly Operating Report

May 2023

May highlights

In the month to 14 June 2023, national hydro storage increased from 121% to 143% of historical average

South Island storage increased to 141% of average and North Island storage decreased to 158% of average by 14 June 2023

Meridian's May 2023 monthly total inflows were 190% of historical average, the third highest May inflows on record

The Waitaki catchment recorded its second highest May month inflows on record

Waiau catchment inflows in May 2023 were 188% of historical average

Meridian's Waitaki catchment water storage at the end of May 2023 was 137% of historical average

Water storage in Meridian's Waiau catchment was 187% of average at the end of May 2023

National electricity demand in May 2023 was 1.6% higher than the same month last year

May 2023 saw the warmest May on record. Rainfall was above average across the country except in some east coast regions of both islands

New Zealand Aluminium Smelter's average load during May 2023 was 574MW

Meridian's retail sales volumes in May 2023 were 1.0% higher than May 2022

Compared to May 2022, segment sales increased in small medium business +3.7%, large business +11.4% and corporate +1.2%. Sales decreased in residential -0.5% and agricultural -8.5%

Revised full year FY23 Capital Expenditure of $340m-$365m (previously $370m-$395m)

19 JUNE 2023 | MONTHLY OPERATING REPORT FOR MAY 2023 | 2

Market data

• National electricity demand in May 2023 was 1.6% higher than the same month last year
• May 2023 saw the warmest May on record. Rainfall was above average across the country except in some east coast regions of both islands
• Demand in the last 12 months was 0.2% higher than the preceding 12 months
• New Zealand Aluminium Smelter's average load during May 2023 was 574MW
• 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 5.6% at the end of April 2023
• 12-monthaverage switching rate of customers moving and changing retailers
  ("move-in" switch) was 12.9% at the end of
  April 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%

Apr 18 Oct 18 Apr 19 Oct 19 Apr 20 Oct 20 Apr 21 Oct 21 Apr 22 Oct 22 Apr 23

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

19 JUNE 2023 | MONTHLY OPERATING REPORT FOR MAY 2023 | 3

Market data

• May 2023 saw decreases in ASX prices
• National storage increased from 121% of average on 8 May 2023 to 143% of average on 14 June 2023
• South Island storage increased to 141% of historical average by 14 June 2023. North Island storage decreased to 158% 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		31 January 2023		28 February 2023
31 March 2023		28 April 2023		31 May 2023
				Source: ASX

NATIONAL HYDRO STORAGE (14 June 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		31 January 2023		28 February 2023
31 March 2023		28 April 2023		31 May 2023
				Source: ASX

19 JUNE 2023 | MONTHLY OPERATING REPORT FOR MAY 2023 | 4

Meridian retail

• Meridian's customer connection numbers decreased -0.1% during May 2023 and have decreased -0.3% since June 2022
• Retail sales volumes in May 2023 were 1.0% higher than May 2022
• Compared to May 2022, segment sales increased in small medium business +3.7%, large business +11.4% and corporate +1.2%. Sales decreased in residential -0.5% and agriculture -8.5%
• To date this financial year, retail sales volumes are 2.9% higher than the same period last year
• This reflects increased segment sales in: small medium business +8.5%, agricultural +4.9% and large business +14.9%. Residential sales are -0.3% lower and corporate are -0.1% lower

*excludes volumes sold to New Zealand Aluminium Smelters and CFDs

Meridian operating information

MERIDIAN'S CUSTOMER CONNECTIONS

ICPs ('000)		FY23 Meridian NI					FY23 Meridian SI					FY23 Powershop
400						FY22 Meridian NI					FY22 Meridian SI					FY22 Powershop
300		117			118		117		117				118		118			118				118			118	116	117	116	117	117		117
	109	111	112	113	114		114		115	115
200
	126	123	126	123	126	123	126	123	126	123	126		123	126		124	125	124		125	125	125	125	125	126		126
100
	123	120	123	120	123	120	123	120	123	120	123		120	123		121	122	121		122	122	122	122	122	123		123
0
	Jul			Aug	Sep		Oct			Nov	Dec	Jan			Feb	Mar	Apr			May	June
																																Source: Meridian
MERIDIAN'S RETAIL SALES VOLUME*
GWh			FY23 Residential			FY23 SMB						FY23 Agri						FY23 Large Bus
900					FY23 Corporate			FY22 Residential		FY22 SMB						FY22 Agri
				FY22 Large Bus			FY22 Corporate
600		320	321	326				323										318		343
	322	325					319	314	308							355	369						356	352		335
					297		302		328					320						332
																						320
																								314
		61			59				40
		49		53						50	40					49		42
		53				47	43			43		48							45				45						54	48		51
		51	75	68			134									43								51		48	41
300						87	83		105	150	164	141		119	176		175	146	42		97	119	94	68	74		48
																							76
	155	149	152	127	141	120	145													93		141	136		143
					117													135		123
							128	116	125		121	121		118	119	113		130	121
		207	205
		192	195	165	172																			185
		152	148																130	127	157	158
		119	122	119		121	115		115	106	108		122	118
0
	Jul			Aug	Sep		Oct			Nov	Dec	Jan			Feb	Mar	Apr			May	June

Source: Meridian

19 JUNE 2023 | MONTHLY OPERATING REPORT FOR MAY 2023 | 5