13 June 2022
Status quo for Northpower ownership structure
The current consumer ownership model of Northpower Limited will continue. The decision was made at a public meeting held in Whangārei.
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),” says Trust Chairman Erc Angelo.
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,” he says.
Ownership review submissions
Sheena McKenzie, Deputy Chair of the Northpower Trust says an ownership review of Northpower is undertaken every five years, with consumers connected to Northpower’s electricity network in Kaipara and Whangārei able to make submissions on the ownership model of the company.
“Earlier this year we held public meetings in Dargaville, Mangawhai and Whangarei, 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,” says Ms McKenzie.
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.
Currently, seven Trustees Erc Angelo (Chairman), Sheena McKenzie (Deputy Chair), Chris Biddles, Irene Durham, Phil Heatley, Bill Rossiter and Paul Yovich hold all of the shares in Northpower on behalf of the Trust’s beneficiaries (electricity consumers connected to the Northpower electricity network).
Editor’s note
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 electricity network in Kaipara and Whangārei. This resulted in the ownership of the Company remaining in the community.
Northpower Trustee responsibilities are set out in the Trust deed, and are summarised as follows:
- To protect the value of Northpower Ltd for the long term benefit of the beneficiaries.
- To appoint directors to Northpower Ltd and monitor their governance of the company.
- To approve Northpower annual Statement of Corporate Intent that sets out performance targets for the company for the year ahead.
- To receive details of the Company’s posted discounts for consumers, along with any dividend payment from Northpower Ltd and to ensure distribution of both of them in accordance with the Trust Deed.
- To consult with the community, at least every five years, about the options for the future ownership of the shares in Northpower Ltd.