Consumers would still be protected if Dunedin City Council (DCC) goes ahead with a proposal to sell Aurora Energy, both say.

Aurora Energy supplies electricity to homes, farms and businesses across Queenstown Lakes and the wider Otago region.

Earlier this week DCC said it planned to consult the public over a proposal to sell the council-owned company and make a decision on whether or not to sell by late May.

Aurora Energy chair Steve Thompson said it was “business as usual” at the company despite the proposed sale and sought to allay any concerns that its investment programme would not continue.

The company is part-way through a five-year $563M investment programme, following historic underinvestment in asset maintenance and renewal and Commerce Commission proceedings against the company for breaching regulated quality standards. 

“Irrespective of the outcome of consultation, consumer rights would continue to be protected by the checks and balances imposed on the company by the sector regulators, the Commerce Commission and the Electricity Authority,” Steve said.

“Our team of dedicated staff will continue their great work on delivering the significant programme of network investment and supporting the changing electricity needs of consumers.” 

Since the five-year investment programme was approved in March 2021 the company has spent close to $100M each year on asset maintenance and renewal to improve the network.

DCC said it wanted to sell Aurora Energy to allow repayment of Aurora’s forecast debt of around $570M (which is likely to rise with the investment programme) and use additional sale funds to create an investment fund that would earn income for the council.

DCC mayor Jules Radich also stressed that consumer rights would continue to be protected under any new ownership of the lines company.

“This is the same protection that is in place now and would not change with Aurora Energy being sold,” he said. “The new owners would be subject to the same rules and considerations as currently exist.”

PHOTO: Supplied