Submission
Which option do you prefer?
Option Two – The alternative option – Keep Aurora Energy
Further comment
The submission document is inadequate for ratepayers to make an informed decision without considerable time and knowledge to research information about the current electricity market, investment needed and possible future value of AE. Council has slanted information to support its own preference.
1. Why is council wanting to sell? Was it a unanimous decision? Why sell now?
2. Why has DCHL recommended the divestment of AE? Are ratepayers to be informed of their reasons?
3. Is there a particular debt causing the Council concern?
4. A good regular annual return is not guaranteed on a diversified investment portfolio - the very point of diversification is to cover loss or failure of one or more parts of an investment. Returns and gains are long term. AE is a much surer investment if well managed as it’s a core service.
5. The submission documents states no dividend has been received since 2017. This appears to be disingenuous since Aurora Energy is not a drain on Council finances and recorded a net profit after tax of $7.7 million, as stated in an ODT article 2/12/22. Are figures not included in the article used in the accounting: a profit of over $7 million was made for DHCL companies, not a loss as stated. This is seriously misleading to readers.
6. Given the past history of AE’s management, what condition is the company (and its assets) in, in terms of compliance with regulations and relevant preparation for a sale? Any prudent buyer will do oversight and any weakness or lack of compliance will be used as a bargaining tool. Further, selling will require monies spent on preparation, consultants and projections (who?!), marketing and fees; all costly to ratepayers. The money should be invested in AE.
Supporting information
No associated documents with this submission.
Submitter
Submission id number: 1045723
Submitter name:
Eugénie Round-Turner
Organisation