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Dunedin City Council – Kaunihera-a-rohe o Otepoti

Aurora Submission

Submission

Which option do you prefer?
Option Two – The alternative option – Keep Aurora Energy

Further comment
Aurora as an asset has value. The council notes that returns are uncertain. Given the regulatory environment returns are actually well known. Returns being a percentage of regulatory assets (RAB) can be earned as revenue and a portion of that revenue provided to council this is well set at the start of the regulatory year. A fund would have far more uncertain returns based on the ebs and flows of the stock market. The fact that the council considers returns uncertain indicates an issue with its management of the asset and an inability to use its control of the board to extract value. The council should look to change its asset management practices before selling the asset.

Supporting information

No associated documents with this submission.

Submitter

Submission id number: 1038397

Submitter name:

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