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.
If 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.
What does the Trust do with its profits?
The Trustees distribute up to 90% of its profits, after deducting the Trust’s running expenses, by arranging a credit on consumers’ electricity accounts.
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 32,000 consumers.
Does Alpine Energy sell electricity?
No.
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.
FAQ