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

Monthly Operating Report

July 2021

July highlights

In the month to 11 August 2021, national hydro storage increased from 92% to 103% of historical average

South Island storage increased to 111% of average and North Island storage increased to 72% of average by 11 August 2021

Meridian's July 2021 monthly total inflows were 156% of historical average

Meridian's Waitaki catchment

Waitaki snow storage in early August 2021 was 112% of historical average

National electricity demand in July 2021 was 0.7% higher than the same month last year

July 2021 was unseasonably warm with temperatures above average for much of the country. Rainfall was mixed, including above average rainfall in the South Island

New Zealand Aluminium Smelter's average load during July 2021 was 566MW

Meridian's New Zealand retail sales volumes in July 2021 were 13.6% higher than July 2020

Compared to July 2020, segment sales increased in residential +10.3%, small medium business +31.4%, agricultural +9.4% and corporate +13.9%. Large business volumes were -10.0% lower than July 2020

water storage at the end of July 2021 was 111% of historical average

Water storage in Meridian's

Waiau catchment was above average at the end of July 2021

Meridian made calls under the Genesis swaption in early July 2021

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Market data

• National electricity demand in July 2021 was 0.7% higher than the same month last year
• July 2021 was unseasonably warm with temperatures above average for much of the country. Rainfall was mixed, including above average rainfall in 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 July 2021 was 566MW
• 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 6.5% at the end of June 2021
• 12-monthaverage switching rate of customers moving and changing retailers
  ("move-in" switch) was 14.2% at the end of June 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%

Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21

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

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Market data

• July 2021 saw ASX prices continue to decrease
• National storage increased from 92% of average on 13 July 2021 to 103% of average on 11 August 2021
• South Island storage increased to 111% of historical average by 11 August 2021. North Island storage increased to 72% of average

OTAHUHU ASX FUTURES SETTLEMENT PRICE

$/MWh 310

260

210

160

110

60

	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
		30 June 2020				31 March 2021			30 April 2021
		31 May 2021				30 June 2021			30 July 2021
													Source: ASX

NATIONAL HYDRO STORAGE (11 August 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

260

210

160

110

60

	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
		30 June 2020				31 March 2021			30 April 2021
		31 May 2021				30 June 2021			30 July 2021

Source: ASX

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New Zealand retail

• Meridian's New Zealand customer connection numbers rose 1.2% during July 2021
• Retail sales volumes in July 2021 were 13.6% higher than July 2020
• Compared to July 2020, segment sales increased in residential +10.3%, small medium business +31.4%, agricultural +9.4% and corporate +13.9%. Large business volumes were -10.0% lower than July 2020

*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	109	91	92	93	94	96	96	97	99	101	103	106
	90
200	123 120											122
	121	121	121	121	121	121	122	122	122	122
100
	120 115	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
				283		287		311	334		339	319
		282	275	272	284	288	311
	49				46		44
	51	55	52				46	40		44	45
	48		44	44	37
300		47	72	87	157							66	43
149	142	170	154	177	145	116
	113								134
		107									126
			105
				104					111	109
					96	99	96	93
	205 186
	171	146	127	111					121	160	174
			107	101	93	108
0

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

Source: Meridian

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