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Energy consumers could receive a $4000 windfall as Auckland authorities launch another bid to wrest control of power line company Vector.
Three Auckland councils have urged a Royal Commission of Inquiry to recommend a law change to wind up the Auckland Energy Consumer Trust, which owns 75.1 per cent of Vector.
Auckland, Manukau and Papakura councils would divide the proceeds of the trust - which has assets of $1.6 billion - among themselves and 290,000 power consumers.
Consumers could get cash or shares worth $3000-$4000 and the councils would receive the rest of the shareholding, worth $450 million to $750 million.
Two attempts to grab the shares have failed, and trust chairman Warren Kyd poured cold water on suggestions a third attempt would prove successful. But the three councils are optimistic the Royal Commission, set up to investigate the fractured governance of the Auckland region, can be convinced to recommend the law change needed.
Leigh Auton, chief executive of the Manukau City Council, confirmed the three councils - and the Auckland Regional Council - had made combined submissions on trust governance.
He was coy about the details but revealed the trust and Manukau City Council had requested confidential papers from each other - an indication of the acrimonious relationship.
As the capital beneficiaries of the trust, the three councils would otherwise have to wait 65 years to get their hands on Vector's assets. If they could dissolve the trust, each would have the choice of keeping their shares or selling them to invest in other infrastructure.
The 290,000 consumers from the old Auckland Electric Power Board will receive an annual dividend from the trust until 2073. Last year they each received $320.
Kyd said the trust had obtained confidential council papers, under the Official Information Act, which outlined their plans to wind it up. He would not comment on their content but said it was unlikely the move would succeed.
"Vector is a very competent company running Auckland's power lines and half the North Island's," said Kyd. "Any council which tried that would get such a public backlash. It's all very well for these council officers to run around making plans but the politicians won't do it."
The Herald on Sunday understands the Auckland and Manukau councils are keen to dissolve the trust in case the Royal Commission recommends amalgamating the region's authorities.
If a "Greater Auckland Council" was formed with Waitakere, the North Shore and Rodney; the Auckland, Manukau and Papakura councils could lose hundreds of millions of dollars worth of Vector assets.
