Submission
Which option do you prefer?
Option Two – The alternative option – Keep Aurora Energy
Further comment
The DCC’s proposal to sell Aurora Energy, while seemingly well-intentioned, raises significant concerns. Let’s delve into why this move could have adverse consequences for our community.
1. Consistent Income Stream vs. Long-Term Sustainability: The proposal aims to increase the Council’s income by selling Aurora Energy. However, we must consider the long-term implications. Aurora Energy has not paid dividends since 2017, but selling it merely for short-term gains risks sacrificing a vital asset that could provide consistent revenue over generations.
2. Debt Reduction vs. Future Capital Requirements: Repaying Aurora Energy’s debt is crucial, but at what cost? By selling the company, we may inadvertently limit our ability to meet future capital requirements. Infrastructure investments are essential for our growing community, and Aurora Energy plays a pivotal role in ensuring reliable electricity distribution.
3. Diversified Investment Fund: A Double-Edged Sword: Creating an investment fund sounds appealing, but it’s a double-edged sword. While diversification can mitigate risk, we must recognize that managing such a fund requires expertise. Will the Council be equipped to navigate volatile markets and protect our capital? Moreover, transparency in fund management is essential to maintain public trust.
4. Consumer Protection and Regulatory Oversight: Aurora Energy operates in a regulated environment, safeguarding consumers through oversight by the Commerce Commission and Electricity Authority. Selling to a new owner could disrupt this balance. We risk compromising consumer rights and accountability.
5. The Confidential Minimum Price Conundrum: The Council would set a confidential minimum price for Aurora Energy. But who determines this value? Transparency is paramount. Citizens deserve to know how their assets are valued and whether the sale truly reflects market conditions.
While the proposal aims to address debt and boost income, we must tread carefully. Selling Aurora Energy could jeopardize our community’s long-term interests. Let’s explore alternative solutions that balance financial stability, sustainability, and consumer protection.
Supporting information
No associated documents with this submission.
Submitter
Submission id number: 1045082
Submitter name:
Organisation