Monthly Operating Report

October 2023

October highlights

In the month to 10 November 2023, national hydro storage decreased from 116% to 100% of historical average

South Island storage decreased to 99% of average and North Island storage increased to 106% of average by 10 November 2023

Meridian's October 2023 monthly total inflows were 107% of historical average

Waiau catchment inflows in October 2023 were 97% of historical average

Meridian's Waitaki catchment water storage at the end of

October 2023 was 125% of historical average

Snow storage in Meridian's Waitaki catchment was 109% of average in early November

Water storage in Meridian's Waiau catchment was 107% of average at the end of October 2023

National electricity demand in October 2023 was -1.9% lower than the same month last year

October 2023 saw large temperature swings, with the overall national monthly temperature slightly above average. Rainfall was above normal in Northland and South Canterbury and below average for most other parts of the country

New Zealand Aluminium Smelter's average load during October 2023 was 570MW

Meridian's retail sales volumes in October 2023 were -1.7% lower than October 2022

Compared to October 2022, segment sales increased in large business +27.7% and corporate +2.4%, with decreases in residential -5.0%, small medium business -7.8% and agricultural -10.0%

In October 2023, Meridian and NZ Windfarms announced a joint venture to repower and extend the Te Rere Hau wind farm

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 2

Market data

  • National electricity demand in October
    2023 was -1.9% lower than the same month last year
  • October 2023 saw large temperature swings, with the overall national monthly temperature slightly above average. Rainfall was above normal in Northland and South Canterbury and below average for most other parts of the country
  • Demand in the last 12 months was 0.2% lower than the preceding 12 months
  • New Zealand Aluminium Smelter's average load during October 2023 was 570MW
  • 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 6.1% at the end of September 2023
  • 12-monthaverage switching rate of customers moving and changing retailers
    ("move-in" switch) was 12.5% at the end of
    September 2023

NATIONAL DEMAND

GWh

4,200

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%

Jun 18 Dec 18 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22 Jun 23

Industry Move-in Switches

Industry Trader Switches

Source: Electricity Authority

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 3

Market data

  • Longer dated electricity futures prices reduced slightly during October
  • National storage decreased from 116% of average on 5 October 2023 to 100% of average on 10 November 2023
  • South Island storage decreased to 99% of historical average by 10 November 2023. North Island storage increased to 106% of average

OTAHUHU ASX FUTURES SETTLEMENT PRICE

$/MWh 220

200

180

160

140

120

100

80

60

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

2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 2026 2027 2027 2027 2027

30 June 2023

31 July 2023

31 August 2023

2 October 2023

31 October 2023

Source: ASX

NATIONAL HYDRO STORAGE (10 November 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 storeage (90yr)

1992

2004

2008

2012

2019

2021

2022

2023

Source: NZX

BENMORE ASX FUTURES SETTLEMENT PRICE

$/MWh 220

200

180

160

140

120

100

80

60

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

2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 2026 2027 2027 2027 2027

30 June 2023

31 July 2023

31 August 2023

2 October 2023

31 October 2023

Source: ASX

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 4

Meridian retail

  • Meridian's customer connection numbers increased +0.2% during October 2023 and have increased +0.8% since June 2023
  • Retail sales volumes in October 2023 were -1.7% lower than October 2022
  • Compared to October 2022, segment sales increased in large business +27.7% and corporate +2.4%, with decreases in residential -5.0%, small medium business -7.8% and agricultural -10.0%
  • To date this financial year, retail sales volumes are +1.1% higher than the same period last year
  • This reflects increased segment sales in, large business +6.1%, agricultural +3.8% and corporate +2.1%, with a decrease in residential -2.3% and small medium business -0.4%

*excludes volumes sold to New Zealand Aluminium Smelters and CFDs

Meridian operating information

MERIDIAN'S CUSTOMER CONNECTIONS

ICPs ('000)

FY24 Meridian NI

FY24 Meridian SI

FY24 Powershop

400

FY23 Meridian NI

FY23 Meridian SI

FY23 Powershop

300

117

117

118

118

118

117

119

117

118

118

118

118

118

117

117

117

200

126

126

125

126

125

126

126

126

126

125

125

125

125

125

125

125

100

123

123

123

122

123

123

123

123

122

122

122

122

122

122

122

122

0

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Source: Meridian

MERIDIAN'S RETAIL SALES VOLUME*

GWh

FY24 Residential

FY24 SMB

FY24 Agri

FY24 Large Bus

900

FY24 Corporate

FY23 Residential

FY23 SMB

FY23 Agri

FY23 Large Bus

FY23 Corporate

337

600

334

320

326

318

325

331

323

319

318

356

327

308

320

355

320

61

60

61

59

54

40

49

53

51

50

53

53

76

75

112

134

48

45

51

54

56

300

87

120

150

141

176

146

97

48

68

48

155

161

76

154

152

141

141

134

145

141

148

128

125

121

135

123

119

200

207

201

192

180

155

165

144

152

157

119

119

115

122

130

106

0

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Source: Meridian

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 5

Meridian inflows and storage

  • October 2023 monthly inflows were 107% of historical average
  • Waiau catchment inflows in October 2023 were 97% of historical average, higher than the same time last year
  • To date this financial year, inflows are 112% of historical average
  • Meridian's Waitaki catchment water storage moved from 1,149GWh to 1,355GWh during October 2023
  • Waitaki water storage at the end of October 2023 was 125% of historical average and 19% lower than the same time last year
  • Snow storage in Meridian's Waitaki catchment was 109% of average in early November
  • Water storage in Meridian's Waiau catchment was 107% of average at the end of October 2023

Meridian operating information

MERIDIAN'S COMBINED CATCHMENT INFLOWS

GWh 6,000

5,000

4,000

3,000

2,000

1,000

0

Financial 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

year

Oct YTD

90 year average

Source: Meridian

MERIDIAN'S WAITAKI STORAGE

GWh

2,500

2,000

1,500

1,000

500

0

1-Jan

1-Mar

1-May

1-Jul

1-Sep

1-Nov

1-Dec

Average 1979-

2017

2018

2019

2020

2021

2022

2023

Source: Meridian

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 6

Meridian generation

▪ Meridian's generation in October 2023 was

-7.5% lower than the same month last

year, reflecting lower hydro generation

and higher wind generation

▪ To date this financial year, Meridian's

generation is -3.2% lower than the same

period last year, reflecting lower hydro

generation and higher wind generation

▪ The average price Meridian received for its

generation in October 2023 was +48.8%

higher than the same month last year

▪

Meridian operating information

MERIDIAN'S GENERATION

GWh

1,400

1,200

1,000

800

600

400

200

0

Jul Aug Sep

Oct Nov Dec

Jan Feb Mar

Apr May Jun

FY24 Hydro

FY24 Wind

FY23 Hydro

FY23 Wind

Source: Meridian

MERIDIAN'S AVERAGE GENERATION PRICE*

$/MWh

The average price Meridian paid to supply

customers in October 2023 was +48.9%

higher than the same month last year

▪ To date this financial year, the average

price Meridian received for its generation

is +79.7% higher than the same period last

year and the average price paid to supply

customers is +68.5% higher

160

140

120

100

80

60

40

20

0

133

111

95

111 108

72

56

40

33

146

134

117

78

16

74

58

Jul Aug Sep Oct FY24 FY23

Nov

Dec Jan Feb Mar Apr

May Jun

*price received for Meridian's physical generation

Source: Meridian

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 7

Meridian operating information

Monthly operating information

OCTOBER

OCTOBER

SEPTEMBER

AUGUST

4 MONTHS TO

4 MONTHS TO

2023

2022

2023

2023

OCTOBER

OCTOBER

MONTH

MONTH

MONTH

MONTH

2023

2022

New Zealand contracted sales

Residential sales volume (GWh)

144

152

155

201

700

716

Small medium business sales volume (GWh)

134

145

141

161

591

593

Agricultural sales volume (GWh)

120

134

112

76

361

348

Large business sales volume (GWh)

51

40

54

61

226

213

Corporate and industrial sales volume (GWh)

331

323

318

337

1,320

1,293

Retail contracted sales volume (GWh)

781

795

781

836

3,198

3,164

Average retail contracted sales price1 ($NZ/MWh)

$131.5

$124.0

$148.2

$151.2

$145.2

$131.6

NZAS sales volume (GWh)

426

426

411

426

1,688

1,687

Financial contract sales volumes2 (GWh)

221

257

371

371

1,301

904

Average wholesale & financial contracts sales price3 ($NZ/MWh)

$56.2

$56.5

$76.4

$78.4

$73.1

$58.3

Retail customer supply volumes (GWh)

829

847

825

892

3,391

3,347

Cost to supply retail customers ($NZ/MWh)

$124.3

$82.8

$123.3

$144.9

$130.6

$76.8

Cost to supply wholesale customers ($NZ/MWh)

$105.1

$70.7

$110.7

$132.9

$114.5

$64.7

Cost of financial contracts ($NZ/MWh)

$105.8

$73.7

$115.5

$132.6

$117.2

$76.8

Total New Zealand customer connections4

366,320

364,700

365,453

364,631

See page 10 for footnotes

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 8

Monthly operating information

Meridian operating information

OCTOBER

2023

MONTH

New Zealand generation

Hydro generation volume (GWh)

974

Wind generation volume (GWh)

128

Total generation volume (GWh)

1,102

Average generation price

5

($NZ/MWh)

$107.8

New Zealand hedging

Hedging volume

6

(GWh)

496

Hedging cost average price ($NZ/MWh)

$110.9

Hedging spot revenue average price ($NZ/MWh)

$123.7

Future contract close outs ($NZm)

-$0.7

OCTOBER 2022 MONTH

1,066 126 1,192 $72.4

350 $103.3 $77.2 $5.4

SEPTEMBER 2023 MONTH

1,020 138 1,157 $111.4

458 $139.1 $121.2 $1.4

AUGUST 2023 MONTH

1,170 107 1,276 $133.0

539 $132.3 $134.3 $3.2

4 MONTHS TO OCTOBER 2023

4,179 490 4,669 $116.3

1,998 $131.1 $124.0 $17.9

4 MONTHS TO OCTOBER 2022

4,366 456 4,822 $64.7

1,555 $119.2 $73.9 $37.8

See page 10 for footnotes

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 9

Monthly operating information

Meridian operating information

OCTOBER

2023

MONTH

New Zealand costs

Employee and Operating Costs ($m)

22

Stay in Business Capital Expenditure ($m)

4

Investment Capital Expenditure ($m)

16

Total Capital Expenditure ($m)

20

OCTOBER

SEPTEMBER

2022

2023

MONTH

MONTH

21

22

3

4

11

15

14

19

AUGUST

4 MONTHS TO

2023

OCTOBER

MONTH

2023

24

91

6

18

20

66

26

84

4 MONTHS TO OCTOBER 2022

80

14 41 55

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
  1. Volume weighted average price received for Meridian's physical generation
  2. Over the counter and ASX contract volumes excluding the buy-side of virtual asset swaps

14 NOVEMBER 2023 | MONTHLY OPERATING REPORT FOR OCTOBER 2023 | 10

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Disclaimer

Meridian Energy Limited published this content on 14 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 16:19:30 UTC.