Full Of It

3 Sep

I can’t find where my error is yet.  Smoke and mirrors I think.  Maybe Boniface couldn’t argue the facts so he thought he’d send me off on a wild goose chase.  That may backfire though, I’m learning so much;-)

I can confirm the following information as CORRECT and the same as I had originally

simple for neil

In 1998 government was putting electricity networks into trusts hence we have the Southland Electric Power Supply Consumer Trust.  It basically covers the SDC region.  Invercargill and Bluff were already predominately owned by ICC so they are not covered by the trust.  In 2007 the SEPSCT paid back $4.5M to their consumers.  I remember seeing an ad recently mentioning a $7M return to consumers.  Maybe someone in that region can enlighten us as to how it works – for the consumer.  Seemingly the Trustees are elected, maybe someone can shed light on that too.  Graham Sycamore is a Trustee along with four others

For us, under the reign of the Invercargill City Council, any benefits are filtered through the convoluted network of companies.  Boniface claimed a $7M profit from EIL yet Holdco are only providing about $4.5M to ICC.  It seems like money gets lost along the way.

That is my simplistic rundown of a part of the incestuous electricity network.  I will check up on some other parts and list the directors because that in itself is insightful.

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One Response to “Full Of It”

  1. Philip T September 4, 2013 at 12:32 am #

    Boniface is a master at snide comments but anytime you feel he is putting you down just ask him for the amount he makes by being an elected person. He does it at meetings or when walking away from meetings and gets away with it.
    Electricity Invercargill was set up for the consumers and ratepayers with the idea it would drive electricity prices down by running at break even. Southland Power Supply is the same so at the end of each year they give consumers a rebate depending on their connection. I think this year a house connection rebate is about $200 and a commercial rebate up to several hundred dollars. The idea is the rebate reflects usage so the more you use the bigger the rebate.
    Electricity Invercargill was hijacked and consumers get no rebate but instead the profit goes to the holding company and then the council. Max Skerrett was one of the few who picked up on the fact that by doing this electricity consumers who are also ratepayers are paying council twice. Firstly their rates and then be losing the advantages of owning their own power company , formally trusts. It is the only electricity company in NZ that can do this. I can hear people shouting but all other such ex trust companies put the profits back to the consumers. In Invercargill its the representatives of the consumers who can then do what they want.
    Its a cynical way of doing things because the rebate belongs to the people but council has grabbed it. They contribute nothing apart from greedy directors as it is fully funded by turnover. It is a shell company as it farms out all physical works and just sits between your power meter and the power supplier. I think the Power Company carries out all the work.
    The fact Boniface points to a profit of $7million is ridiculous as that just shows they have overcharged consumers. hard to work out how much as the boundaries are not the city boundaries but in reality it is just a $7million rate take. The greedies get in and after that the council get 4.5 million.
    Under its initial trust status all money would have to be returned to the consumers. The way the council run it the electricity consumers are subsidising airport upgrades, Stadium rebuilds and all manner of things which again is wrong. Why should one sector subsidise other things. The reason for this is because people have no business sense but get to sit on these boards. It takes a while to grasp the facts but once you do its very simple.

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