Meridian Energy : Monthly operating report for August 2021 (PDF)

Monthly Operating Report

August 2021

August highlights

In the month to 10 September 2021, national hydro storage increased from 103% to 126% of historical average

South Island storage increased to 139% of average and North Island storage increased to 83% of average by 10 September 2021

Meridian's August 2021 monthly total inflows were 161% of historical average

Meridian's Waitaki catchment

water storage at the end of August 2021 was 136% of historical average

Water storage in Meridian's

Waiau catchment was above average at the end of August 2021

Waitaki snow storage in early September 2021 was 118% of historical average

National electricity demand in August 2021 was 0.3% lower than the same month last year. More stringent lockdowns were in place this August compared to August 2020

August 2021 was another unseasonably warm month with temperatures above average for almost all the country. Rainfall was mixed, including above average totals in areas of the South Island

Meridian made some calls under the Genesis swaption in August 2021​ during the HVDC Pole 2 outage

New Zealand Aluminium Smelter's average load during August 2021 was 570MW

Meridian's New Zealand retail

sales volumes in August 2021 were 12.2% higher than August 2020

Compared to August 2020, segment sales increased in residential +14.2%, small medium business +18.8% and corporate +17.2%. Large business volumes were -10.3% lower and agricultural volumes were -5.0% than August 2020

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Market data

• National electricity demand in August 2021 was 0.3% lower than the same month last year. More stringent lockdowns were in place this August compared to August 2020
• August 2021 was another unseasonably warm month with temperatures above average for almost all the country. Rainfall was mixed, including above average totals in areas of the South Island
• Demand in the last 12 months was 0.8% higher than the preceding 12 months
• New Zealand Aluminium Smelter's average load during August 2021 was 570MW
• 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 6.2% at the end of July 2021
• 12-monthaverage switching rate of customers moving and changing retailers
  ("move-in" switch) was 14.2% at the end of
  July 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

Source: Electricity Authority (reconciled demand)

MARKET ICP SWITCHING (ALL RETAILERS)

12 month average

15%

13%
11%
9%
7%
5%
Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19	Jul 19 Jan 20 Jul 20 Jan 21 Jul 21
Industry Move-in Switches	Industry Trader Switches

Source: Electricity Authority

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Market data

• August 2021 saw slight increases in ASX prices
• National storage increased from 103% of average on 11 August 2021 to 126% of average on 10 September 2021
• South Island storage increased to 139% of historical average by 10 September 2021. North Island storage increased to 83% of average

OTAHUHU ASX FUTURES SETTLEMENT PRICE

$/MWh 310

270

230

190

150

110

70

	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2021	2021	2022	2022	2022	2022	2023	2023	2023	2023	2024	2024	2024	2024
		31 March 2021			30 April 2021			31 May 2021
		30 June 2021			30 July 2021				31 August 2021
												Source: ASX

NATIONAL HYDRO STORAGE (10 September 2021)

GWh 6,000

5,000

4,000

3,000

2,000

1,000

0

Jan Feb Mar	Apr May Jun	Jul Aug Sep	Oct Nov Dec
87yr Average			1992		2004			2008
2012			2018		2020			2021

Source: NZX

BENMORE ASX FUTURES SETTLEMENT PRICE

$/MWh 310

270

230

190

150

110

70

	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2021	2021	2022	2022	2022	2022	2023	2023	2023	2023	2024	2024	2024	2024
		31 March 2021			30 April 2021			31 May 2021
		30 June 2021			30 July 2021				31 August 2021

Source: ASX

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New Zealand retail

• Meridian's New Zealand customer connection numbers rose 0.7% during August 2021 and have risen 1.9% since June 2021
• Retail sales volumes in August 2021 were 12.2% higher than August 2020
• Compared to August 2020, segment sales increased in residential +14.2%, small medium business +18.8% and corporate +17.2%. Large business volumes were -10.3% lower and agricultural volumes were -5.0% than August 2020
• To date this financial year, retail sales volumes are 12.9% higher than the same period last year
• This reflects increased segment sales in: residential +12.2%, small medium business +25.2%, agricultural +0.7% and corporate +15.5%. Large business volumes are -10.1% lower

*excludes volumes sold to New Zealand Aluminium Smelters and CFDs

Meridian operating information

MERIDIAN'S NZ CUSTOMER CONNECTIONS

ICPs ('000)			FY22 Meridian NI			FY22 Meridian SI			FY22 Powershop
400								FY21 Meridian NI			FY21 Meridian SI			FY21 Powershop
300
					111																												103		106
	109	90	91		92		93		94			96		96		97		99				101
200
					123
	123	120	121		121		121		121			121		121		122		122				122		122		122
100
	120	115	120	115		116		116		116			116		116		117		117				118		119		119
0
	Jul				Aug	Sep Oct	Nov	Dec Jan				Feb	Mar	Apr	May	June
																																Source: Meridian
MERIDIAN'S RETAIL SALES VOLUME*
GWh				FY22 Residential			FY22 SMB			FY22 Agri					FY22 Large Bus
900						FY22 Corporate			FY21 Residential			FY21 SMB					FY21 Agri
					FY21 Large Bus			FY21 Corporate
600		321				322
		282	275		272		283		284			287		288		311		334				311		339		319
		49
						47						46					44
		51	55		52												44		46		40							44		45
		68		48						44												37
300			47		72				157																				66		43
							87						170								145				116
	149	113	127									142				154		177								134
				107		105		104																				126
												96			99								111				109
		205	186	195										96		93
		171																			160		174
			146		127																	121
					111			107		101				108
0																	93

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

Source: Meridian

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