Discount power shares may be sold

Ruapehu Bulletin, Volume 9, Issue 438, 27 May 1992, Page 15

Discount power shares may be sold

Customers should be able to buy shares in King Country Energy at a discounted price after the Government passes its Energy Sector Re-

form Bill. The Bill, due for its third and final reading and implementation on July 1, insists that tradeable shares in the

present power boards be made available to customers, as owners of the boards. Shares would become available next year.

The local share sale plan is dependent on approval by the trustees of the proposals and ratification by the Minister of Energy. King Country Energy is also required to consult with the public under the provisions of the Local Government Act, which means the draft establishment plan and statement of corporate intent, will be open for public comment for at least a month, before the final form is decided for submission to the Minister in December. King Country Energy's directors reaffirmed their stance on

the ownership question during discussions on the Bill at the May board meeting and have asked general manager Peter Till to draw up a draft establishment plan and statement of corporate intent as required under the Bill. Mr Till says the board envisages selling customers a large percentage of the shares in the new power company set up as required by the Bill, with the rest being given to the King Country Energy Trust. "The trust's role will be to act as a watch-dog for electricity consumers in King Country Energy's area, and to

disburse profits to the community. "The board envisages shares sold to customers will be at a heavily discounted price, and the customers will be able to on-sell them." Customers would be allocated discounted share purchase rights on two grounds - the first for being a customer and the second for the amount of electricity purchased. It may be that not all shares would be Sold at i the same time. Chairperson Ken Street says there is a need for the board to work in early with the trustees to ensure King

j Country Energy meets the deadlines required by the Bill. Director Gordon Gower said he believed the board was going down the road that the public want, in terms of future ownership. He ; said public response to a meeting called by the trustees earlier was in . favour of the share sale j proposals outlined. The Bill provides for the shares in King Country Energy to be given to the Ruapehu Taupo District Councils if the trustees and the board cannot agree on the goals and objectives for the new energy company.