Meridian Energy (ASX:MEZ) Reports Mixed Operational Trends in May 2025

June 15, 2025 11:18 PM PDT | By Team Kalkine Media

Meridian Energy (ASX:MEZ) Reports Mixed Operational Trends in May 2025 — Image source: Shutterstock

Hydro Storage and Inflows on the Rise

In the lead-up to 9 June 2025, national hydro storage levels increased to 94% of the historical average, up from 88%. This uplift was fueled by robust inflows across key regions. South Island storage rose to 88% of average, while North Island made a significant leap, reaching 138% of historical averages. Total monthly inflows hit 106% of the norm, with Waiau catchment inflows particularly strong at 123%. This suggests a positive trend for future hydro generation potential if these conditions continue.

Retail Sales Growth and Evolving Customer Mix

Meridian’s retail sales volume in May 2025 edged up 0.7% compared to May 2024, with a steady gain of 0.4% in customer connections during the month. Over the past year (since June 2024), customer numbers have expanded by 8.1%, reflecting consistent momentum in the company’s reach.

A breakdown of sector-specific performance shows contrasting outcomes. Large business segment volumes surged by 10.5%, while corporate clients added 3.8% to the tally. However, residential sales dropped 4.4%, and the agricultural segment dipped by 8.1%. Small-medium businesses remained stable, with a modest 0.2% increase.

Generation and Pricing Trends Weaken

Meridian’s total energy generation in May 2025 declined 14.2% year-over-year, primarily due to reduced hydro output. While wind generation partially offset this, it wasn’t enough to match last year’s levels. On the financial front, the average price received for electricity generation fell sharply by 32.9%. However, the average price paid to supply customers also dropped by 28.7%, reflecting a broader softening in energy market prices.

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