Ted Daniels said the long-term case for a sale had not been made and the Dunedin City Council was well aware public feedback was firmly against putting the company on the market.
"The risks are too high to sell our main asset", he said.
"There are too many questions and once we sell it, we never get it back."
However, public perception of the impact of council ownership has consistently been disputed, as the council’s influence on company operations is limited.
The city council has yet to decide whether to sell the electricity distribution business and set up a diversified investment fund with the sale proceeds.
It received more than 700 public submissions about the issue, ran a three-day hearing and listened to input from Dunedin City Holdings Ltd (DCHL) and independent advisers.
Aurora is part of the council’s DCHL group of companies and DCHL concluded there was a compelling case to sell.
An unscientific poll by the Otago Daily Times at the weekend showed public opposition remained strong.
Of the almost 500 people who took part in the poll, 86% were against the Dunedin City Council selling Aurora Energy.
Mr Daniels wrote to Dunedin Mayor Jules Radich and city councillors on the subject.
"Ultimately, the decision on electricity network ownership must rest with Dunedin’s citizens — the ratepayers and consumers who directly benefit from its operation", Mr Daniels said.
"They have made their preference known not to sell and to ignore the informed public voice is perilous for any elected entity", Mr Daniels said.
Key reasons for the proposal to sell have included avoiding the need for the combined debt of the council and its companies increasing to fund Aurora’s substantial future capital requirements.
Under council ownership, Aurora historically ran down its network in Dunedin, Central Otago, Queenstown Lakes and Wānaka and it has not paid a dividend to DCHL since 2017.
It has embarked on a large capital programme in recent years to catch up and to cater for growth, taking on more debt.
The council’s own debt has also been escalating.
Mr Daniels said Aurora’s management was "perfectly capable of effectively addressing outstanding maintenance needs, generating income and ensuring stability in our electricity rates".
Aurora was "Dunedin’s most valuable asset, bringing power to our city’s infrastructure and guaranteeing the long-term sustainability of our economy", he said.
"The stakes are high."
The council has said if the sale goes ahead, a diversified fund will be set up for the council worth hundreds of millions of dollars.
This has been described as reducing investment risk.
Regular revenue from the fund could be used to repay some council debt or reduce the size of rates increases, the council has signalled.
Mr Daniels raised an alternative idea that had not been explored much during the consultation process — transferring the company to a community trust.
"Should the council find itself hesitant to oversee Aurora’s future, a consumer trust could provide a viable alternative, safeguarding the high-value regional jobs at Aurora and Delta [Utility Services] and the interests of our community", he said.
Delta is also owned by the council and is part of the DCHL group.
"If DCHL is unwilling to safeguard Aurora’s future, ownership should rightfully remain with us, the consumers", Mr Daniels said.
