COMPANY PROFILE -Meridian Energy Ltd
Business Sector :Utilities
Operating Geography :New Zealand, Australia
About Meridian Energy Ltd :
Meridian Energy Limited is an electricity generator and retailer, founded on 16 December 1998. It is headquartered in Wellington, New Zealand. It is New Zealand’s largest electricity generator, contributing around 30 percent of the country’s electricity as of 2020 and powering 167k homes in Australia annually. It is one of three electricity companies which were formed from the break-up of the Electricity Corporation of New Zealand (ECNZ) in 1998–99. It was then partially privatised in 2013. The New Zealand Government holds majority stake in the Company with 51% shareholding. Five wind farms, seven hydro power stations, and commercial solar arrays in New Zealand and two wind farms and three hydro power stations in Australia are all operated by Meridian Energy. The Group sells electricity to consumers via three brands – Meridian and Powershop in New Zealand, and Powershop in Australia. The company features amongst the three major electricity generators who employ renewable sources to generate electricity. The company has a total installed capacity of 2,754 MW in New Zealand along with having 201 MW overseas. Meridian Energy employs 1080 employees as of 2020.
Meridian’s Unique Selling Proposition or USP lies in it being the largest electricity provider in New Zealand while generating electricity from renewable sources. All the electricity generated by the Company comes from 100% renewable sources – wind, water and sun.
Meridian Energy Ltd Revenue :
NZD 3,405 million - FY ending 30th June 2020 (y-o-y growth -2.46%)
NZD 3,491 million - FY ending 30th June 2019
Competitive Analysis of Meridian Energy Ltd
The SWOT analysis for Meridian Energy is presented below in a table followed by the detailed analysis report.
Strengths | Weaknesses |
1. One of the largest organizations of New Zealand in terms of market capitalization
2. Largest producer of renewable energy with production of around one-third energy of country’s total energy requirement
3. Strong brand offering great customer experience
4. Eighth highest revenue per employee - $3.36 million - among ASX listed companies
| 1. Harapaki wind farm construction deferred after smelter closure
2. Small player in Australia contributing only 10% to Meridian’s annual revenue
3. EPS growth declined 48% y-o-y and shrunk by 12% in 3 years
4. Rio Tinto exiting New Zealand to lead to fall in electricity demand
|
Opportunities | Threats |
1. Adoption of Transmission Pricing Methodology (TPM) reforms
2. Laws and reforms in New Zealand to meet its Zero carbon goal
3. White-label agreement with Kogan to set up Kogan Energy for mass-markets
4. Customers’ interest for dual fuel connections, cleaner gas-based fuel along with electricity from fossil fuels in Australia
5. Availability of additional hydrostorage at Lake Pukaki able to provide power for 50,000 homes
| 1. Highly competitive market environment in Electricity sector
2. Held accountable for causing Undesirable Trading Situation (UTS)
|
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Detailed SWOT Analysis of Meridian Energy Ltd
Strength
This section is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Adoption of Transmission Pricing Methodology (TPM) reforms: The previously existing electricity transmission pricing methodology had major problems. Hence, a benefits-based approach was adopted by the Electricity Authority. This comes as a much-awaited news for Meridian as it will be more beneficial to the firm financially. Meridian, in response to Electricity Authority’s 2019 Issues Paper: Transmission Pricing Review, argued that the pricing methodology was inefficient and costlier for consumers. In June 2020, the EA notified the new guidelines which do not differentiate between the HVDC and other AC transmission assets eliminating difference in allocation of costs. According to their estimates, the new TPM policy will reduce Meridian’s overall transmission bill by $27 million per year when implemented in 2023. It will also help in more efficient use of power grid and contribute towards the decarbonisation goal of Meridian.
The remaining section of “Opportunity” is available only in the 'Complete Report' on purchase.
Threats
1. Highly competitive market environment in Electricity sector: According to the World Energy Council, energy systems in New Zealand are highly competitive and are 10th best in the world. There are 39 and 33 retail brands in New Zealand and Australia respectively. With numerous options to choose from, these brands are launching aggressive pricing plans and other offers to lure customers. For instance, every year thousands of families either change their plans or regularly make comparisons before switching. There are low barriers to entry in this sector and new players often come with better technologies, open and available data and more liquid hedge markets. Price emerges to be the main deciding factor for customers whereas Meridian believes in not just competing on price but giving the trust of a reliable brand. It is building on a better customer experience, reducing costs and playing on data analytics and technology.
The remaining section of “Threats” is available only in the 'Complete Report' on purchase.
The PESTLE / PESTEL analysis for Meridian Energy is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Incentivizing green electricity product scheme – GreenPower – backed by Australian government | 1. Oversupply of renewable energy caused due to reduction in demand by closure of Tiwai Point aluminium smelter
2. Decrease in industrial and commercial electricity demand due to lockdown measures
|
Social | Technological |
1. High electricity costs for households hit by pandemic
2. World Energy Council’s Energy Trilemma in balancing growing demand for electricity at low costs with no carbon footprint
| 1. Leveraging technology for better customer experience |
Legal | Environmental |
1. Named for involvement in Undesirable Trading Situation (UTS) in the electricity market by the EA
2. Working with regulators with regards to changes in public policy
| 1. Committed to United Nations Sustainability goals SDG7 Affordable and Clean Energy and SDG13 Climate Action
2. Focus on New Zealand’s zero carbon goal by reducing greenhouse gas emissions from electricity generation
3. Growing trend of green investment as part of their portfolios by Investors
4. Wholesale energy market price variation due to change in rainfall and gas availability
|
On purchase the Meridian Energy Ltd SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Meridian Energy Ltd
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Committed to United Nations Sustainability goals SDG7 Affordable and Clean Energy and SDG13 Climate Action: In line to fulfill its commitment to affordable energy, Meridian Energy was the first mover among electricity retailers to suspend the prompt payment discounts (PPDs). This will help households who struggle to pay their bills early or are late for bill payments. New simpler pricing plans with low tariffs have been introduced. The recent Electricity Price Review also recommended these measures. Even during the pandemic, Meridian did not disconnect power connections of households. Meridian generates its electricity from 100% renewable energy resources which include wind, solar and hydro power. It is similarly eyeing renewable energy transformations in Australia to set up a sustainable business there. Primarily starting by acquisitions, Meridian aims to develop its electricity generation portfolio slowly by diversifying to include wind, solar and battery developments.
The remaining section of “Environmental” is available only in the 'Complete Report' on purchase.
Major Competitors :
- Genesis Energy
- Contact Energy
- Electric Kiwi
- Mercury NZ
Major Brands :
- Powershop New Zealand
- Meridian New Zealand
- Powershop Australia
On purchase the Meridian Energy Ltd SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in Meridian Energy Ltd SWOT & PESTLE Analysis Report
1. Renewing Our Future-Intigrated Report 2020–
https://www.meridianenergy.co.nz/assets/Investors/Reports-and-presentations/Shareholder-meetings/2020/Meridian-Energy-Integrated-Report-for-year-ended-30-June-2020.pdf
2. The Power to Make a Difference. –
https://www.meridianenergy.co.nz/assets/Investors/Reports-and-presentations/Annual-results-and-reports/2019/91eab4a432/2019-Integrated-Annual-Report.pdf
3. Investor Optimism Abounds Meridian Energy Limited (NZSE:MEL) But Growth Is Lacking –
https://finance.yahoo.com/news/investor-optimism-abounds-meridian-energy-225924801.html
4. This ASX-listed company makes $5.7 million per employee –
https://www.fool.com.au/2020/08/31/this-asx-listed-company-makes-5-7-million-per-employee/
5. Meridian found in wrong in market abuse investigation –
https://www.nzherald.co.nz/business/meridian-found-in-wrong-in-market-abuse-investigation/LLNND2PZCQCY5MREL6BEYIS64Y/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Meridian Energy SWOT and PESTLE analysis has been conducted by Ayushi Verma and reviewed by senior analysts from Barakaat Consulting.
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