Line Trust South Canterbury

FAQs

Isn't the LineTrust the company that is competing for electricity sales in South Canterbury?

There is no relationship between LineTrust South Canterbury and the electricity retailer.

What is the purpose of the LineTrust?

LineTrust South Canterbury holds 40% of the shares in Alpine Energy Limited, the company who owns the electricity lines in South Canterbury region.

What does Alpine Energy do?

Alpine Energy is the owner of the electrical network in South Canterbury.

I'm confused about the electrical network and electrical retail. I don't understand who owns the generation, who owns the big pylon lines I see in the country.

The follow diagram may help:

Who owns the LineTrust?

The Trust is not “owned” by anyone however all electricity consumers connected to Alpine Energy Ltd’s network are “beneficiaries” of the Trust.

Who controls the Trust?

Five persons elected from the community operate the Trust. Elections are held every three years. The last election was held during September, 2000.

If the LineTrust owns 40% of Alpine Energy, who owns the rest?

The Timaru District Council owns 47.5%, the Waimate District Council owns 7.54% and the Mackenzie District Council owns 4.96% of Alpine Energy.

Where does the Trust’s income come from?

The Trust receives dividends from Alpine Energy Ltd that is paid to the shareholders quarterly.

How much income does the Trust receive each year from Alpine Energy Ltd?

The Trust has received the following in recent years. Note that the large amount in 1999 included a special dividend as a result of the sale of United Electricity, a consequence of Government's intervention with the 1998 Electricity Act.

What does the Trust do with its profits?

The Trustees distribute approximately 90% of its profits, after deducting the Trust’s running expenses, by arranging a credit on consumers’ electricity accounts. This amounted to around $48.60 net per domestic customer in December 2011.

Does the Trust hold any reserves?

Yes, the Trust at its last balance date of 31 August 2006 was holding $1,172,278 in reserves which are invested with a trading bank.

What else does the Trust do on behalf of its beneficiaries?

The Trustees appoint directors to the board of Alpine Energy Ltd. There are two directors (five in total) appointed by the trust and they retire by rotation once every three years.

Can the Trustees influence the direction of Alpine Energy Ltd?

Yes, the Trustees, together with the other shareholders, annually review the company’s ‘Statement of Corporate Intent’. This statement lays down the rules under which the directors operate.

The Trust owns 40% of Alpine Energy. How big is the network?

Alpine’s network extends over all South Canterbury with a total length of lines exceeding 3,600 kilometres and connecting over 27,000 consumers.

Does Alpine Energy sell electricity?

No. Recent legislation changes specifically prohibit network companies from selling electricity.

How Does the LineTrust fit into the electricity network ownership in South Canterbury?

What is the value of Alpine Energy Ltd?

Approximaterly $90 million

Well at least I now understand that Trust Power and the LineTrust South Canterbury are completely different organisations. Is there more information available on this complex issue?

Yes, you can look up the library of this website by clicking here and there you will find a copy of the Deed of Trust among other documents. You could also personally contact one of the elected Trustees by clicking here for contact details.