I Wonder…

28 Oct

Part 1 Section 6 of the Local Government Act 2002 says (in part)

energy

Click to enlarge

Am I correct that it is claiming an electricity company is excluded from being a CCO?  I know EIL is not ‘by definition’ a CCO but I always thought that  that came under (b)  an energy company within the meaning of the Energy Companies Act 1992; (and it’s reporting standards are within the Energy Companies Act).

If my interpretation of (a) is correct…I wonder…what if our council were clever bastards?

If a council truly wanted to hide their companies and have no transparent reporting standards (by LGA definition) wouldn’t they just set up an electricity company (under definition (a) NOT (b)) and then have all the other companies as subsidiaries?

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4 Responses to “I Wonder…”

  1. Tom October 28, 2013 at 9:20 pm #

    Is it “a body corporate” as in the first three words of that statement?

  2. Tom October 28, 2013 at 9:24 pm #

    Given the L in EIL stands for ltd I’m guessing its limited liability ‘company’. Not a trust or body corporate. Therefore its under b.

    • Kylie October 28, 2013 at 9:53 pm #

      As I said ‘… set up an electricity company (under definition (a) NOT (b))’.
      What I’m wondering is if a NEW body corporate was created that is ‘an electricity business (whether or not that business is its principal or only business)’.could they then have Invercargill City Forests, Property etc all under it? If it was not a CCO then they would not have to adhere to the same requirements and reporting. Food for thought and a bit of a loophole if it is possible

  3. Teviot October 29, 2013 at 10:56 pm #

    E.I.L. is a LATE (Local Authority Trading Enterprise) Formed from the old I.C.C. Municipal
    Electricity Dept. By rhe Invercargill Trading Committee. Members;- Warren Conway, Bruce Pagan, Murray Hercus, Dougal Soper, Bill Rowley. The result of Max Bradford’s-199? – decision to separate out the electricity operations of M.E.D.’s because they were being used as cash cows to finance council’s operation through inflated the price of supplying energy to the consumers.. My how that circle sure has turned

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