The North Otago electricity lines company, Network Waitaki, is now back under full local control - and that should bring financial benefits for its customers, Waitaki Power Trust chairwoman Helen Brookes said yesterday.
Network Waitaki announced on Friday it would end its partnership agreement with Timaru's Alpine Energy in NetCon, a joint contracting and maintenance company.
Those tasks would return under Network Waitaki's control from October 1 under Network Waitaki Contracting Ltd with about 18 staff.
That ends controversy dating back to 2000, when Network Waitaki and Alpine set up a joint management company, Network South.
Network South took over joint management of Network Waitaki and Alpine, shifting it to Timaru, and established Netcon, which had the role of maintaining both lines companies' networks and carrying out contract work.
Dr Brookes said yesterday that, because of the ownership structures, the management and governance of Network and Alpine Energy differed and it was felt the return to Network Waitaki's shareholders was not as great as it could have been.
Through the Waitaki Power Trust,Network Waitaki is 100% owned by its consumers, numbering about 12,000.
Alpine is owned 60% by the Timaru, Waimate and Mackenzie District Councils and 40% by consumers through a trust.
The aims and levels of return expected from Alpine were set by the three district councils.
Legislative changes proposed in the Commerce Amendment Bill, now before Parliament, would also give 100% consumer-owned lines companies advantages.
On April 1, 2005, Network Waitaki and Alpine terminated its agreement over management, corporate control and governance.
Network Waitaki's management returned to Oamaru.
The move meant Network Waitaki was now totally locally controlled.
"That should bring financial benefits for consumers," Dr Brookes said.
Network Waitaki's network extends from Shag Pointto the Waitaki River and Hakataramea Valley, and inland to Ohau.
