Northpower to keep distributing profits to consumers after five-yearly ownership model review

Northpower Electric Power Trust deputy chairwoman Sheena McKenzie and chairman Erc Angelo have announced the consumer trust ownership model of power company Northpower will stay the same

The ownership model of electricity distribution company Northpower - a trust that distributes profits to consumers - will stay the same for at least the next five years following a review and public feedback.

Northpower Ltd distributes electricity to about 57,500 consumers in Whangārei and Kaipara and the company's shares are owned by the Northpower Electric Power Trust (NEPT).

Every five years, NEPT has to review its ownership model and call for public feedback, which has been carried out over the past few months.

As a result of that, the present consumer ownership model of Northpower will continue, with the decision made at a public meeting held in Whangārei earlier this month.

"As a result of the 2022 Northpower ownership review process, all trustees have unanimously agreed to retain the ownership of the shares of Northpower Limited in the Northpower Electric Power Trust (NEPT)," trust chairman Erc Angelo said.

The announcement follows extensive consultation with electricity consumers throughout Kaipara and Whangārei connected to the Northpower electricity network.

"The trustees of the Northpower Trust must carry out a consultation process with Northpower consumers to determine if the current trust ownership structure is what consumers want, or if consumers would prefer a change," Angelo said.

Northpower Trust deputy chairwoman Sheena McKenzie said an ownership review is undertaken every five years, with consumers connected to Northpower's electricity network able to make submissions on the ownership model.

"Earlier this year we held public meetings in Dargaville, Mangawhai and Whangārei, plus a Zoom meeting to give people a chance to have their say. Information was also made widely available via media and social media platforms. We received 131 written submissions and 36 of those were dual (husband and wife) submissions – giving us a total of 167 submitters," McKenzie said.

"It is very clear that people are really happy with the current ownership model and performance of Northpower as all submitters were in favour of Option A - retaining Northpower Ltd Shares in the trust."

The other options available to submitters were to dispose of a portion of the shares and retain the remainder in the trust or dispose of all the shares.

The last ownership review, in 2017, also resulted in no change to the ownership structure.

The seven trustees - Angelo, McKenzie, Chris Biddles, Irene Durham, Phil Heatley, Bill Rossiter and Paul Yovich - hold all the shares in Northpower on behalf of the trust's beneficiaries (electricity consumers connected to the Northpower electricity network).

In 1992, the Government passed legislation that required Northpower to become a company. When the company was incorporated in 1993, the trust was formed to hold all the shares in Northpower on behalf of electricity consumers connected to the Northpower network. This resulted in the ownership of the company remaining in the community.

The trust gives back a portion of its profits to its consumers in the shape of payments to their electricity accounts near Christmas time.