Meridian Energy Limited (ASX: MEZ) has released its monthly operating report for June 2026, showcasing robust hydro performance amidst favourable weather conditions. The company, an Australasian integrated energy business focused on generation, wholesale, and retail electricity markets, reported strong inflows into its hydro catchments. CEO Mike Roan commented on the careful management of southern hydro lakes, stating that the sector is comfortably navigating the current winter, bolstered by beneficial conditions and storms in the Southern hydro catchments, leading to relatively low wholesale spot prices for this time of year.
The report highlighted that national hydro storage surged from 125% to 136% of the historical average in the month to July 13, 2026, with South Island storage reaching 139% of average. Meridian’s own June 2026 monthly total inflows were a significant 187% of historical average, contributing to the highest financial year inflows since 1998 at 122% of average. The warmest June on record saw varied rainfall, aiding storage levels in Meridian’s Waitaki and Waiau catchments, which stood at 131% and 129% of historical average respectively. Despite these conditions, national electricity demand in June 2026 was marginally lower, down 0.1% compared to June 2025.
Meridian also reported a healthy increase in retail sales volumes, which were 6.4% higher than June 2025, with residential sales up 16.4%. Quarter four (Q4) results further reflected this growth, with total inflows 118% of historical average and 15% higher year-on-year. Q4 generation was up 11.4%, though achieved at a 65.7% lower average price. CEO Roan noted that 2027 forward wholesale prices fell by over 35% from April, with 2028 and 2029 prices declining 15% over the same period, driven by new renewable generation build and already resulting in lower prices for commercial customers. Meridian’s total customer numbers at the end of Q4 were 12.3% higher than the previous year, although total operating costs increased 21.5% and capital expenditure rose 64.1% over the same period.
