Meridian Energy : Monthly operating report for December 2021 (PDF).

Monthly Operating Report

December 2021

December highlights

In the month to 11 January 2022, national hydro storage decreased from 128% to 115% of historical average

South Island storage decreased to 112% of average and North Island storage increased to 131% of average by 11 January 2022

Meridian's December 2021 monthly total inflows were 113% of historical average

Meridian's Waitaki catchment

water storage at the end of December 2021 was 132% of historical average

Water storage in Meridian's

Waiau catchment was slightly below average at the end of December 2021

Waitaki snow storage in early January 2022 was 95% of historical average

National electricity demand in December 2021 was 2.0% lower than the same month last year

December 2021 was another warm month with temperatures above average for most of the country. Except in northern regions, above average rainfall was observed in many parts of New Zealand

New Zealand Aluminium Smelter's average load during

December 2021 was 569MW

Meridian's New Zealand retail sales volumes in December 2021 were 3.3% higher than December 2020

Compared to December 2020, segment sales increased in residential +12.5%, small medium business +21.9% and corporate +14.1%. Large business volumes were -3.1% lower and agricultural volumes -30.0% lower than December 2020

Following the Court of Appeal decision in the Metro Glass case, a $6.8m provision in relation to holiday pay has been released, reducing December 2021 operating costs

$3.3m of MEA transaction costs have been reclassified out of November 2021 YTD operating costs in December 2021

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Q2 highlights

Meridian's Q2 total inflows were 97% of historical average, 6% higher than Q2 last year

Meridian's Waitaki catchment water storage at the end of Q2 was 79% higher than Q2 last year

Compared to Q2 last year, Meridian's New Zealand generation was 2.2% higher at a 37.8% lower average price

Q2 saw small changes in NZ futures prices. 2025 commenced trading at lower prices than 2024

New Zealand Aluminium

Smelter's average load during

Q2 was 571MW compared with 565MW in Q2 last year

National electricity demand in Q2 was 1.7% lower than Q2 last year

At the end of Q2, Meridian's New Zealand customer numbers were 7.7% higher than the same time last year

Compared to Q2 last year, Meridian's NZ retail sales volumes were 4.7% higher at a 3.7% higher average price

Sales increased in most segments, large business and agricultural volumes were lower

Compared to Q2 last year,

Meridian's Australian wind

generation was 9.4% lower at a 7.0% lower average price

Hume water storage rose from 97% of average to 98% of average during Q2

At the end of Q2, Meridian's Australian electricity customer numbers were 0.2% lower than the same time last year

Compared to Q2 last year, Meridian's Australian retail sales volumes were 7.1% higher at a 16.4% lower average price

Compared to Q2 last year, total operating costs were 8.7% lower and included a $7m holiday pay provision release

Compared to Q2 last year, total capital expenditure was 182.9% higher, with commencement of the Harapaki wind farm build

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Market data

• National electricity demand in December 2021 was 2.0% lower than the same month last year
• December 2021 was another warm month with temperatures above average for most of the country. Except in northern regions, above average rainfall was observed in many parts of New Zealand
• Demand in the last 12 months was 0.3% higher than the preceding 12 months
• New Zealand Aluminium Smelter's average load during December 2021 was 569MW
• 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 5.7% at the end of November 2021
• 12-monthaverage switching rate of customers moving and changing retailers
  ("move-in" switch) was 13.3% at the end of
  November 2021

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 (2010-2020)			2016		2017		2018			2019		2020			2021

Source: Electricity Authority (reconciled demand)

MARKET ICP SWITCHING (ALL RETAILERS)

12 month average

15%

13%

11%

9%

7%

5%

Nov 16 May 17 Nov 17 May 18 Nov 18 May 19 Nov 19 May 20 Nov 20 May 21 Nov 21

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

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Market data

• While December 2021 saw decreases in near term ASX prices, January 2022 has so far seen significant increases
• National storage decreased from 128% of average on 9 December 2021 to 115% of average on 11 January 2022
• South Island storage decreased to 112% of historical average by 11 January 2022. North Island storage increased to 131% of average

OTAHUHU ASX FUTURES SETTLEMENT PRICE

$/MWh 220

200

180

160

140

120

100

80

60

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

2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025

30 June 2021		1 October 2021		29 October 2021
30 November 2021		31 December 2021		19 January 2022
				Source: ASX

NATIONAL HYDRO STORAGE (11 January 2022)

GWh 5,000

4,000

3,000

2,000

1,000

0

Jan Feb Mar	Apr May Jun	Jul Aug Sep	Oct Nov Dec
88yr Average			1992		2004			2008
2012			2018		2021			2022

Source: NZX

BENMORE ASX FUTURES SETTLEMENT PRICE

$/MWh

220

200

180

160

140

120

100

80

60

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

2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025

30 June 2021		1 October 2021		29 October 2021
30 November 2021		31 December 2021		19 January 2022
				Source: ASX

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