Northpower to distribute $22.5m in sale proceeds

WHANGAREI - Northpower customers are in for a $22.5 million windfall after trustees decided to distribute the proceeds of the sale of the company's retail arm.

Just how much each of the estimated 40,000 customers will receive, and whether it will be cash or in the form of a credit, has yet to be decided by the Northpower Electric Power Trust.

Trust chairman Erc Angelo said the initial $21.5 million sale proceeds had earned about $1 million in interest over the past 18 months and as a result $22.5 million would be available for distribution, "hopefully in August."

The trustees had held off making a decision on the future of the sale proceeds until the recently completed ministerial inquiry into electricity.

Mr Angelo said trustees were now satisfied "there's nothing in the government review that will impact down the track on our decision."

But news of the decision to distribute the sale proceeds will be bittersweet for many former Northpower customers as it spells the end of hopes Northpower might once again sell power direct to customers.

Northpower was forced to sell its retailing arm under electricity reforms introduced by the National Government.

Dissatisfaction with the performance of Northpower's replacement, state-owned-enterprise Meridian, sparked the formation last year of consumer watchdog Energy Watch. One of the group's key concerns was that Northpower be once again able to operate both a lines (supply) company and a retail arm.

- NZPA