Meridian Energy Reports Strong Hydro Storage and Retail Sales Growth

Hydro Storage Surges to Near 120% of Average

Meridian Energy (NZX:MEL) reported a significant boost in New Zealand’s hydro storage levels, with national storage climbing from 106% to 119% of the historical average by 11 May 2026. The North Island’s hydro storage soared to 201% of average, while the South Island also improved to 109%. This surge is underpinned by sizeable inflows, with April’s total inflows at 98% of historical average and year-to-date inflows hitting 121%, the eighth highest on record. Meridian’s Waitaki catchment water storage was 106% of average, contrasting with the Waiau catchment at 91%.

CEO Mike Roan attributed the robust storage to significant rainfall events, including a cyclone and low-pressure system that brought above-average temperatures and heavy rain to the North Island, while the South Island experienced near-normal rainfall. This has left the country’s electricity system well-fuelled entering the cooler months.

Retail Sales and Customer Demand Climb

Meridian’s retail sales volumes in April rose 8.2% compared to the same month last year, with residential segment sales surging 25%. Small-medium business and large business segments also posted gains of 9.2% and 11.4%, respectively. Agriculture and corporate segments showed more modest increases. Despite a 1.1% dip in total customer connections during April, the company noted a 15.7% rise over the past 12 months.

National electricity demand increased 3.7% year-on-year in April, or 2.6% excluding New Zealand Aluminium Smelters Ltd (NZAS). Interestingly, NZAS’s average load rose to 575MW from 522MW a year earlier, reflecting the end of a previously agreed 50MW demand reduction period. This uptick in demand aligns with Meridian’s growing retail sales and customer base.

Generation Up, Prices Down Amid Market Shifts

Meridian’s total generation for April 2026 was 13.5% higher than April 2025, driven by increased hydro generation despite a slight drop in wind output. Year-to-date generation is 14.2% above last year’s levels. However, the average price Meridian received for its generation in April was 69.8% lower than the same month last year, reflecting a broader decline in electricity market prices.

ASX electricity futures prices continued their downward trajectory in April, likely influenced by ongoing high investment in renewable generation capacity and system security agreements such as those signed for Huntly capacity. This dynamic has compressed the average wholesale and financial contract sales prices, which remain below last year’s levels.

Operating costs stayed relatively stable, with employee and operating expenses at $25 million for April. Capital expenditure rose to $27 million, reflecting ongoing investment in both stay-in-business and growth projects.

Market Trends and Customer Switching

The electricity market showed continued customer churn, with a 12-month average switching rate of 15% for all retailers. The rate of customers switching retailers without moving home (“trader” switches) was 5.9%, while those moving and switching (“move-in” switches) stood at 14.2% as of March 2026. These figures suggest a dynamic retail market environment.

Meridian’s retail sales momentum and strong hydro storage build on the trends seen in March 2026, when retail volumes rose 11.4% year-on-year and hydro storage remained healthy despite falling prices. The company’s latest report confirms that while the market prices are under pressure, demand and supply fundamentals remain robust retail sales surge and hydro strength.