Meridian Energy : Monthly operating report for August 2023

Monthly Operating Report

August 2023

August highlights

In the month to 11 September 2023, national hydro storage decreased from 106% to 83% of historical average

South Island storage decreased to 87% of average and North Island storage decreased to 68% of average by 11 September 2023

Meridian's August 2023 monthly total inflows were 84% of historical average

Waiau catchment inflows in August 2023 were 102% of historical average

Meridian's Waitaki catchment water storage at the end of

August 2023 was 107% of historical average

Snow storage in Meridian's Waitaki catchment was 90% of average in early September

Water storage in Meridian's Waiau catchment was 106% of average at the end of August 2023

National electricity demand in August 2023 was 4.5% higher than the same month last year

August 2023 was the coldest August in seven years with temperatures below average for most of the country. Rainfall was below average for eastern, central and northern parts of the North Island and most of the South Island

New Zealand Aluminium Smelter's average load during August 2023 was 568MW

Meridian's retail sales volumes in August 2023 were 4.1% higher than August 2022

Compared to August 2022, segment sales increased in residential +4.3%, small medium business +6.4%, large business +3.2%, agricultural +1.9% and corporate +3.6%

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Market data

• National electricity demand in August 2023 was 4.5% higher than the same month last year
• August 2023 was the coldest August in seven years with temperatures below average for most of the country. Rainfall was below average for eastern, central and northern parts of the North Island and most of the South Island
• Demand in the last 12 months was 0.5% higher than the preceding 12 months
• New Zealand Aluminium Smelter's average load during August 2023 was 568MW
• 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 5.8% at the end of July 2023
• 12-monthaverage switching rate of customers moving and changing retailers
  ("move-in" switch) was 12.5% at the end of
  July 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

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Market data

• August 2023 saw increases in near-term ASX prices
• National storage decreased from 106% of average on 11 August 2023 to 83% of average on 11 September 2023
• South Island storage decreased to 87% of historical average by 11 August 2023. North Island storage decreased to 68% of average

OTAHUHU ASX FUTURES SETTLEMENT PRICE

$/MWh 220

200

180

160

140

120

100

80

60

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
2023	2023	2024	2024	2024	2024	2025	2025	2025	2025	2026	2026	2026	2026
			30 June 2022					28 April 2023				31 May 2023
			30 June 2023					31 July 2023				31 August 2023

Source: ASX

NATIONAL HYDRO STORAGE (11 September 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			2019
	2021			2022			2023

Source: NZX

BENMORE ASX FUTURES SETTLEMENT PRICE

$/MWh 220

200

180

160

140

120

100

80

60

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
2023	2023	2024	2024	2024	2024	2025	2025	2025	2025	2026	2026	2026	2026
			30 June 2022					28 April 2023				31 May 2023
			30 June 2023					31 July 2023				31 August 2023
																Source: ASX

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Meridian retail

▪ Meridian's customer connection numbers

increased +0.1% during August 2023 and

have increased 0.4% since June 2023

▪ Retail sales volumes in August 2023 were

4.1% higher than August 2022

▪ Compared to August 2022, segment sales

increased in residential +4.3%, small

medium business +6.4%, large business

+3.2%, agricultural +1.9% and corporate

+3.6%

▪ To date this financial year, retail sales

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		117		117		118			118		118		118		118				117		117		117
200
			126			126		126		126		126			126		126		125		125				125
	125	125													125		125
100
	122 123 122 123	123	123		123	123	123	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*

volumes are 2.4% higher than the same

period last year

▪ This reflects increased segment sales in

residential +0.3%, small medium business

+2.9, large business +0.8%, agricultural

+1.0% and corporate +4.0%

GWh				FY24 Residential
900						FY24 Corporate
					FY23 Large Bus
						337
600		334	320	326
		325
						61
		60	61	59
		76		53
		53	53	75
300			87
		155	161
	154	152		141
		200	207	201	192
			165
0

			FY24 SMB						FY24 Agri					FY24 Large Bus
			FY23 Residential				FY23 SMB					FY23 Agri
			FY23 Corporate
323		319				318										356
						308					355							327
												320
																		320
40						49
					50		48													56
134										45		51						54
													48
					150		141		176							68		48
								146		97		76			148
145														141
	128		125		121				135		123
				119
																							180
152																			157
	119		119		115		106		122		130

*excludes volumes sold to New Zealand Aluminium Smelters and CFDs

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

Source: Meridian

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