Submission
Which option do you prefer?
Option Two – The alternative option – Keep Aurora Energy
Further comment
Rates have doubled in real terms over the last forty years - service has not improved. This has happened all around NZ. The problem will not be fixed by the one-off sale of Aurora
This is not about the rates, but the delivery of what has become an essential commodity.
Lines are a natural monopoly. We cannot have a multiplicity of powerlines.
An essential service that is also a natural monopoly should never, ever be privatised.
I refer you to the “Listener” article by Andrew Anthony who talks of the effect of privatising England’s water supply, the running down of the assets, and that unless they are allowed to increase prices they will not reinvest, bankrupting the company!
I have attached a copy of the original article.
When the DCC Electricity department was corporatised to create Aurora, to generate the dividends we demanded of it Aurora invested in property whilst neglecting maintenance. Fortunately we owned it and could waive the dividends and demand that it do its job of delivering power to the residents of Otago.
Under private ownership the dividends to shareholders take absolute priority. The Commerce Commission may control price but rules with a light touch. To maintain dividends, maintenance will be neglected and/or prices will increase. Probably both. It is the natural trajectory of private companies running utility services.
It has been put to me that the Central Otago & Lakes District needs massive investment and the sale of Aurora is the only way to fund this.
I suggest the respective local councils be given their shares of Aurora to resolve their own issues.
Capital value is irrelevant, value lies only in the delivery of an essential service without which our society will collapse.
We cannot afford to sell off Aurora as long as we need electricity.
Supporting information
Submitter
Submission id number: 1044534
Submitter name:
Tony Williams
Organisation