MERIDIAN ENERGY LIMITED Monthly Operating Report
February 2024
February highlights
In the month to 11 March 2024, national hydro storage decreased from 101% to 93% of historical average
South Island storage decreased to 87% of average and North Island storage decreased to 140% of average by 11 March 2024
Meridian's February 2024 monthly total inflows were 94% of historical average
Waiau catchment inflows in February 2024 were 149% of historical average
Meridian's Waitaki catchment water storage at the end of
February 2024 was 85% of historical average
Water storage in Meridian's Waiau catchment was 141% of average at the end of February 2024
National electricity demand in February 2024 (which includes a leap day) was +7.1% higher than the same month last year
February 2024 was a dry month across the country with temperatures near average for many areas. Below normal rainfall occurred in most regions, with above average rainfall in the lower South Island
New Zealand Aluminium Smelter's average load during February 2024 was 580MW
Meridian's retail sales volumes in February 2024 were +9.6% higher than February 2023
Compared to February 2023, segment sales increased in residential +5.8%, small medium business +9.0%, large business +17.4%, agriculture +27.6% and corporate +1.7%
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 2
Market data
- National electricity demand in February 2024 (which includes a leap day) was +7.1% higher than the same month last year
- February 2024 was a dry month across the country with temperatures near average for many areas. Below normal rainfall occurred in most regions, with above average rainfall in the lower South Island
- Demand in the last 12 months was +1.0% higher than the preceding 12 months
- New Zealand Aluminium Smelter's average load during February 2024 was 580MW
- 12-monthaverage switching rate of customers changing retailers but not moving ("trader" switch) was 6.0% at the end of January 2024
- 12-monthaverage switching rate of customers moving and changing retailers
("move-in" switch) was 12.7% at the end of
January 2024
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 (2014-2023) | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |||||||||
Source: Electricity Authority (reconciled demand)
MARKET ICP SWITCHING (ALL RETAILERS)
12 month average
15%
13% | |
11% | |
9% | |
7% | |
5% | |
Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 | Jan 22 Jul 22 Jan 23 Jul 23 Jan 24 |
Industry Move-in Switches | Industry Trader Switches |
Source: Electricity Authority
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 3
Market data
- Near term ASX electricity futures increased, with longer dated prices staying steady during February 2024
- National storage decreased from 101% of average on 14 February 2024 to 93% of average on 11 March 2024
- South Island storage decreased to 87% of historical average by 11 March 2024. North Island storage decreased to 140% 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
2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 2026 2027 2027 2027 2027
30 June 2023 | 31 October 2023 | 30 November 2023 | ||
29 December 2023 | 31 January 2024 | 29 February 2024 | ||
Source: ASX |
NATIONAL HYDRO STORAGE (11 March 2024)
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 storage (91yr) | 1992 | 2004 | |||||
2008 | 2012 | 2019 | |||||
2022 | 2023 | 2024 | |||||
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
2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 2026 2027 2027 2027 2027
30 June 2023 | 31 October 2023 | 30 November 2023 | ||
29 December 2023 | 31 January 2024 | 29 February 2024 | ||
Source: ASX |
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 4
Meridian operating information
Meridian retail
▪ Meridian's customer connection numbers |
increased +0.3% during February 2024 and |
MERIDIAN'S CUSTOMER CONNECTIONS
ICPs ('000) | FY24 Meridian NI | FY24 Meridian SI | ||||
400 | FY23 Meridian NI | FY23 Meridian SI | ||||
FY24 Powershop FY23 Powershop
have increased +2.8% since June 2023 |
▪ Retail sales volumes in February 2024 were |
300 | 117 117 118 118 118 117 119 117 120 118 121 118 122 118 122 118 | |
118
117
117
117
+9.6% higher than February 2023 |
▪ Compared to February 2023, segment |
sales increased in residential +5.8%, small |
medium business +9.0%, large business |
200
100
0
125 126 125 126 125 126 125 126 126 126 127 126 127 126 127 125
122 123 122 123 122 123 122 123 123 123 124 123 124 123 124 122
125
122
125
122
125
122
125
122
+17.4%, agriculture +27.6% and corporate |
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June
+1.7% |
▪ To date this financial year, retail sales |
volumes are +4.4% higher than the same |
period last year |
▪ This reflects increased segment sales in |
residential +0.2%, small medium business |
+2.1%, large business +8.1%, agricultural |
+13.5% and corporate +3.2% |
MERIDIAN'S RETAIL SALES VOLUME*
GWh | FY24 Residential | FY24 SMB | FY24 Agri | ||||||||||||||||||||||||
900 | FY24 Corporate | FY23 Residential | FY23 SMB | ||||||||||||||||||||||||
FY23 Large Bus | FY23 Corporate | ||||||||||||||||||||||||||
337 | |||||||||||||||||||||||||||
332 | |||||||||||||||||||||||||||
326 | 326 | ||||||||||||||||||||||||||
331 | |||||||||||||||||||||||||||
334 | 320 | 323 | |||||||||||||||||||||||||
318 | 331 | 332 | 318 | ||||||||||||||||||||||||
600 | 325 | 319 | 308 | ||||||||||||||||||||||||
320 | |||||||||||||||||||||||||||
54 | |||||||||||||||||||||||||||
61 | |||||||||||||||||||||||||||
60 | 61 | 59 | 54 | 40 | 52 | 51 | 49 | 53 | |||||||||||||||||||
76 | 53 | 51 | 50 | 48 | |||||||||||||||||||||||
53 | 53 | 75 | 134 | 45 | |||||||||||||||||||||||
112 | 87 | 120 | 150 150 184 141 210 | ||||||||||||||||||||||||
176 186 | |||||||||||||||||||||||||||
355
51
97
Source: Meridian
FY24 Large Bus FY23 Agri
356 | 327 |
320
54 56
4848
68
*excludes volumes sold to New Zealand Aluminium Smelters and CFDs
300 |
146 | |||||||||||||||||
154 155 161 152 | 141 | ||||||||||||||||
141 | 134 | 145 | 132 | 128 | 127 | 125 | 129 | 121 | 130 | ||||||||
119 | |||||||||||||||||
135
76
141
123
148
200 | 207 201 192 | 155 | 165 144 | 152 | 124 119 | 123 119 119 115 112 106 |
0 |
122
130 | 157 | 180 |
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June
Source: Meridian
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 5
Meridian inflows and storage
- February 2024 monthly inflows were 94% of historical average
- Waiau catchment inflows in February 2024 were 149% of historical average, 107% higher than the same month last year
- To date this financial year, inflows are 99% of historical average
- Meridian's Waitaki catchment water storage moved from 1,750GWh to 1,628GWh during February 2024
- Waitaki water storage at the end of February 2024 was 85% of historical average and 17% lower than the same time last year
- Water storage in Meridian's Waiau catchment was 141% of average at the end of February 2024
Meridian operating information
MERIDIAN'S COMBINED CATCHMENT INFLOWS
GWh 12,000
10,000
8,000
6,000
4,000
2,000
0
Financial | 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 | ||||
year | Feb 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 |
Average 1979- | 2018 | 2019 | 2020 | ||
2021 | 2022 | 2023 | 2024 |
Source: Meridian
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 6
Meridian generation
▪ Meridian's generation in February 2024 |
was +23.6% higher than the same month |
last year, reflecting higher hydro |
generation and higher wind generation |
▪ To date this financial year, Meridian's |
generation is -0.6% lower than the same |
period last year, reflecting lower hydro |
generation and higher wind generation |
▪ The average price Meridian received for its |
generation in February 2024 was -6.6% |
lower 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*
$/MWh
The average price Meridian paid to supply |
customers in February 2024 was -5.1% |
lower than the same month last year |
▪ To date this financial year, the average |
price Meridian received for its generation |
is +98.4% higher than the same period last |
year and the average price paid to supply |
customers is +83.9% higher |
200
180
160
140
120
100
80
60
40
20
0
133
111
95
111 108
72
56
40
130
33
189
171
146
136 134
117
78
16
74
58
Jul Aug Sep Oct FY24 FY23
Nov
Dec Jan Feb Mar Apr
May Jun
*price received for Meridian's physical generation | Source: Meridian |
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 7
Meridian operating information
Monthly operating information
FEBRUARY | FEBRUARY | JANUARY | DECEMBER | 8 MONTHS TO | 8 MONTHS TO | |
2024 | 2023 | 2024 | 2023 | FEBRUARY | FEBRUARY | |
MONTH | MONTH | MONTH | MONTH | 2024 | 2023 | |
New Zealand contracted sales | ||||||
Residential sales volume (GWh) | 112 | 106 | 119 | 123 | 1,178 | 1,176 |
Small medium business sales volume (GWh) | 130 | 119 | 129 | 127 | 1,109 | 1,086 |
Agricultural sales volume (GWh) | 186 | 146 | 210 | 184 | 1,091 | 961 |
Large business sales volume (GWh) | 53 | 45 | 54 | 51 | 436 | 404 |
Corporate and industrial sales volume (GWh) | 326 | 320 | 331 | 332 | 2,641 | 2,558 |
Retail contracted sales volume (GWh) | 806 | 736 | 843 | 818 | 6,455 | 6,185 |
Average retail contracted sales price1 ($NZ/MWh) | $135.9 | $127.5 | $136.4 | $125.9 | $138.6 | $128.1 |
NZAS sales volume (GWh) | 398 | 384 | 426 | 426 | 3,349 | 3,334 |
Financial contract sales volumes2 (GWh) | 206 | 179 | 275 | 212 | 2,244 | 1,919 |
Average wholesale & financial contracts sales price3 ($NZ/MWh) | $68.8 | $66.8 | $75.0 | $57.5 | $69.8 | $60.3 |
Retail customer supply volumes (GWh) | 851 | 775 | 884 | 879 | 6,842 | 6,544 |
Cost to supply retail customers ($NZ/MWh) | $155.1 | $159.5 | $201.4 | $186.1 | $151.5 | $81.9 |
Cost to supply wholesale customers ($NZ/MWh) | $136.4 | $154.7 | $187.1 | $171.4 | $135.3 | $71.6 |
Cost of financial contracts ($NZ/MWh) | $134.9 | $135.8 | $181.8 | $166.7 | $132.5 | $76.7 |
Total New Zealand customer connections4 | 373,536 | 365,444 | 372,604 | 371,800 |
See page 10 for footnotes
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 8
Monthly operating information
Meridian operating information
FEBRUARY | ||||||
2024 | ||||||
MONTH | ||||||
New Zealand generation | ||||||
Hydro generation volume (GWh) | 962 | |||||
Wind generation volume (GWh) | 127 | |||||
Total generation volume (GWh) | 1,089 | |||||
Average generation price | 5 | ($NZ/MWh) | $136.4 | |||
New Zealand hedging | ||||||
Hedging volume | 6 | (GWh) | 438 | |||
Hedging cost average price ($NZ/MWh) | $131.9 | |||||
Hedging spot revenue average price ($NZ/MWh) | $156.1 | |||||
Future contract close outs ($NZm) | $0.0 |
FEBRUARY 2023 MONTH
789 92 881 $146.1
429 $142.1 $146.1 -$2.8
JANUARY 2024 MONTH
1,010 106 1,116 $188.6
504 $127.4 $192.6 $2.1
DECEMBER 2023 MONTH
987 119 1,106 $170.8
458 $110.1 $179.4 $1.0
8 MONTHS TO FEBRUARY 2024
8,199 953 9,152 $135.9
3,802 $125.5 $145.7 $20.1
8 MONTHS TO FEBRUARY 2023
8,391 819 9,210 $68.5
3,085 $117.6 $82.8 $45.9
See page 10 for footnotes
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 9
Monthly operating information
Meridian operating information
FEBRUARY | |
2024 | |
MONTH | |
New Zealand costs | |
Employee and Operating Costs ($m) | 24 |
Stay in Business Capital Expenditure ($m) | 9 |
Investment Capital Expenditure ($m) | 36 |
Total Capital Expenditure ($m) | 45 |
FEBRUARY 2023 MONTH
19
3 45 48
JANUARY | DECEMBER |
2024 | 2023 |
MONTH | MONTH |
20 | |
24 | |
6 | 5 |
12 | 13 |
18 | 18 |
8 MONTHS TO FEBRUARY 2024
184
45 181 226
8 MONTHS TO FEBRUARY 2023
158
27 214 241
Footnotes
- Contracted sales volumes and volume weighted average price received from contracted customers less distribution costs
- Derivatives sold excluding the sell-side of virtual asset swaps
- Average price of both NZAS sales volume and derivative sales volumes
- Meridian Retail and Powershop New Zealand installation control points (ICPs), excluding vacants
- Volume weighted average price received for Meridian's physical generation
- Over the counter and ASX contract volumes excluding the buy-side of virtual asset swaps
14 MARCH 2024 | MONTHLY OPERATING REPORT FOR FEBRUARY 2024 | 10
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Disclaimer
Meridian Energy Limited published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 19:39:08 UTC.
