Meridian Energy’s April 2026 monthly operating report reveals an exceptionally well-positioned hydro system as the country enters the cooler months. National electricity storage reached 119 percent of historical average by May 11, up sharply from 106 percent at the start of the month, with the North Island recording an extraordinary 201 percent of average levels. This represents a significant supply cushion at a seasonally critical time when demand typically rises, providing the company and the broader electricity market with substantial operational flexibility.
The surge in storage levels reflects unusually strong rainfall across New Zealand, particularly in the North Island where a cyclone and multiple heavy rain events drove inflows well above normal. While Meridian’s April inflows came in at 98 percent of historical average, the cumulative effect of strong weather patterns means financial year-to-date inflows stand at 121 percent of average, marking the eighth highest on record for this metric. The company’s Waitaki catchment, one of its critical assets, sits at 106 percent of historical average, though the Waiau catchment remains more constrained at 91 percent of average.
Behind the company’s storage advantage sits a business performing well on the retail front. Meridian’s April retail sales volumes were 8.2 percent higher than the same month last year, with growth distributed across all customer segments. Residential demand climbed 25 percent year-on-year, while small and medium business sales rose 9.2 percent, large business increased 11.4 percent, and agriculture expanded 6.1 percent. These figures suggest Meridian is holding its market share and possibly gaining ground despite a competitive landscape.
National electricity demand in April was 3.7 percent higher than April 2025, with demand growth standing at 2.6 percent when excluding aluminium smelter load. This steady recovery in consumption provides tailwinds for a company that has strengthened its customer base and improved its operational position. CEO Mike Roan’s statement about maintaining good momentum through the second half of the financial year appears firmly grounded in the operational metrics released.
The price context remains challenging for generator margins. ASX forward prices have continued their decline, a reflection of substantial new renewable capacity entering the market and longer-term supply certainty from Huntly capacity agreements. While elevated storage levels reduce immediate spot price risk and provide downside protection during dry periods, the structural shift toward lower wholesale prices from increased renewables investment will likely shape Meridian’s earnings trajectory. Investors should watch the progression toward cooler months to see whether demand growth accelerates, how the company’s retail momentum continues, and whether water storage trends remain supportive. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Meridian Energy Limited (ASX: MEZ)
Meridian Energy Limited generates and retails electricity to residential, business, and industrial customers in New Zealand, Australia, and the United Kingdom. The company operates 7 hydro stations, 8 wind farms, a 100MW battery energy storage system, and a grid-scale solar array, selling electricity under the Meridian Energy and Powershop brands.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
