The Meridian Energy Ltd (ASX: MEZ) share price is in focus today after the company released its January 2026 monthly operating report, revealing a 14.5% year-on-year lift in total generation and strong inflows putting storage well above historical averages.
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What did Meridian Energy report?
- January 2026 total generation up 14.5% year-on-year to 1,373 GWh, with both hydro and wind production higher.
- Waitaki catchment water storage ended January at 119% of historical average; snow storage reached 177% of average in early February.
- Monthly inflows were 108% of average, with financial year-to-date inflows 138% of average – the second highest on record for July–January.
- Retail sales volumes rose 2.9% from January 2025; residential segment sales jumped 27.4% (including former Flick customers), SMB 12.5%, large business 15.3%.
- Average generation price for January dropped to just over $1/MWh, nearly 99% lower year-on-year due to extended periods of spilling.
- National electricity demand was 3.1% higher than January 2025.
What else do investors need to know?
January was marked by wet weather, setting rainfall records for parts of both islands, which helped build water and snow storage levels ahead of winter. Storage in the Waitaki and Waiau catchments remained well above typical levels, though national hydro storage decreased from 115% to 92% of average over the month.
Electricity market conditions saw wholesale prices plummet due to the excess water, with the average sales price for generation falling to $1.10 per megawatt hour in January. The heavy inflows and low generation prices impacted both the revenues received and the cost to supply customers, which was also significantly lower than a year ago.
What did Meridian Energy management say?
Chief Executive Mike Roan said:
We are in a really solid position as we move towards autumn. Both water and snow storage in the Waitaki catchment are well above historical averages for this time of year, putting the country in a good position ahead of the coming winter. Extended periods of spilling in both the Waitaki and Waiau catchments have now ended but drove wholesale prices to remarkably low levels in January. Our average generation sales price was just over $1 per megawatt hour last month.
What's next for Meridian Energy?
With healthy storage levels and strong inflows, Meridian Energy has plenty of flexibility to manage supply and meet increased demand as the country heads into winter. The company continues to track above-average snow and water reserves, giving it confidence to navigate the coming months of potentially higher consumption.
Looking forward, investors will want to watch for any shift in rainfall patterns as autumn arrives and the impact this may have on lake levels, electricity prices and Meridian's earnings outlook.
Meridian Energy share price snapshot
Over the past 12 months, Meridian Energy shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
