Latest news with #WaitakiPowerTrust
Otago Daily Times
02-08-2025
- Business
- Otago Daily Times
After-tax profit of $5.1m for Network Waitaki
Consumer-owned lines company Network Waitaki has posted a positive result for the financial year. The Oamaru-based electricity distribution company's 2025 annual report shows it made a $5.1million after-tax profit. Network Waitaki, which is wholly-owned by the Waitaki Power Trust (WPT), also paid a discount and returned $1.15m to consumers through energy retailers. "This is the benefit of your network being owned 100% by the Waitaki Power Trust," the WPT latest annual report states. "This financial result has been achieved following a focus on tight cost-control measures to counteract the inflationary environment experienced over the year. "Sustained profitability is essential so that Network Waitaki can support the reinvestment that is needed in the network over the coming decade. "Trustees understand affordability is a real issue for power users, especially in the current economic climate. "While the network requires investment, there is a concerted effort to spread the cost over a long period, so costs don't only fall on today's users where upgrades have longer term benefit for the next generation of customers." For the year ending March 31, 2025, Network Waitaki recorded a total revenue of $35.5m, down $1m on 2024. The $5.1m after-tax profit was $0.96m up from the 2024 financial year. The profit has been invested back into the company. Company assets grew 7.7% to $162m, putting the year-end debt position at $17.65m, with a debt-to-total assets ratio of 10.8%. Network Waitaki chief executive Dylan Andrews presented highlights of the report to the annual meeting on Tuesday and said the company had successfully delivered on its core business objectives and met its targets outlined in its Statement of Intent around safety, financial performance and reliability. "I'm particularly proud to report that there were no lost time injuries in any critical risk areas. Safety remains our top priority in both the planning and operation of our business," he told the Oamaru Mail. "NWL has made payments of $17.5m to local suppliers and staff during the financial year. Additionally, our $155,000 sponsorship programme further demonstrates our commitment to supporting our region. "We continue to maintain the electricity network with a dedicated workforce of 100 employees, ensuring high levels of reliability. "However, our greatest challenge is addressing the constraints in certain parts of our network, which could lead to disruptions during a hot and dry summer if demand exceeds capacity. We have precious little headroom therefore need to address this over the coming years. "To tackle this issue, the company is exploring various solutions, including the development of a new Grid Exit Point [GXP] that supports renewable energy sources such as solar and battery storage. It is crucial that any investment in a new GXP is carefully planned, timed and co-ordinated with all parties to ensure the fair distribution of costs, as we are mindful of the pricing impact on both current and future electricity customers." Network Waitaki sets distribution (lines) charges, which is the amount it charged electricity retailers to transport electricity to homes. It makes up about 27% of a total household power bill. Lines charges recently rose about 19%, effective from April 1,which is start of the company's 2026 financial year.
Otago Daily Times
21-06-2025
- Business
- Otago Daily Times
Power trust candidates sought
It is "not a job for the faint-hearted" but volunteers are needed to help keep the lights on across North Otago. The Waitaki Power Trust (WPT) elections are coming up and at least two new members will need to be elected to the consumer trust's five-person board. WPT holds all the shares in Oamaru-based lines company Network Waitaki Limited (NWL), on behalf of about 13,500 households and businesses connected to NWL's electricity distribution network. Long-serving trustee Herb Tonkin has been on the trust since retiring from work 23 years ago. "I was employed by the Waitaki Electric power board for 42 years and I thought it was over to me to give something back to the consumer." "It is the consumers' company — it belongs to every consumer." Fellow trustee John Clements agreed. "They are making a big song and dance about water, and how we're going to have three councils in charge of our water. "It's a very good parallel to draw with the network distribution company, which is ours." A big reason to vote in the election and stand for a seat on the trust was the annual consumer power rebate, which was only made possible through consumer ownership of the lines company, Mr Clements said. "Most consumers get about $79 which is a big help at Christmas time. "It's a rebate on the power, and appears as credit on the power account." Trustees serve a three-year term before becoming eligible to stand again for election or retire. Mr Tonkin and Mr Clements will retain their seats, while two trustees are stepping away and a third will stand for re-election. The WPT is administered by elected trustees and exists to provide oversight and represent the interests of consumers who are both owners and users of NWL's electricity distribution network. The trust monitors NWL's financial performance, ensuring profits are reasonable relative to asset value and capital works. It also undertakes an ownership review every 10 years. Mr Tonkin said being a trustee was an important job, requiring commitment, good knowledge of the trust deed, which established the trust legally, and the ability to foster good relations with NWL company directors. "A trustee is elected by consumers. "Their most important job is they interact with the directors of the company and approve any major transactions or new business undertaken by the company. "It's not a job for the faint-hearted. "The company is having to upgrade the electrical network and is spending a substantial amount to safeguard the continued supply of electricity in North Otago." The major project trustees provided oversight for at the moment is a $50million project to build a new grid exit point. Without it the region will run out of capacity to receive electricity from the national grid by 2027. "It's big biccies,"Mr Tonkin said. NWL chief executive Dylan Andrews said WPT trustees provided a crucial role in the annual setting and monitoring of the company's statement of corporate intent, as well as providing valuable customer insights. "There is an aligned commitment to ensure the company provides safe and reliable electricity service while investing in the network to meet future demands. "The WPT also provides valuable input into the company's annual pricing review. "Our relationship with the Waitaki Power Trust is positive and constructive, as demonstrated through joint activities such as the shared display at the annual North Otago A&P Show and the presentation of the Network Waitaki Sponsorship Awards, which celebrate and support local achievements. "The company is looking forward to working with current and future trustees who provide local insight from across our service areas." Nominations for candidates open on July 9 and close on July 30. Nomination forms are available on the Waitaki Power Trust website Postal voting ballots will be mailed to consumers on August 8 and voting closes on August 29.
