Auckland's biggest electricity retailer, Mighty River Power, has asked the Government for incentives for its long-term customers to buy shares when it is partially privatised this year, the Herald understands.
Mighty River will be the first of three state-owned power companies - with coal miner Solid Energy - to be
partially sold to investors under the National Government's mixed-ownership model.
The sale or initial public offer (IPO) of up to 49 per cent of Mighty River is expected to be completed in November. Its board and management are working out details of the IPO process with Treasury officials, investment banking advisers and sharebrokers.
The Herald understands that during those talks Mighty River, which sells power in Auckland mostly under its Mercury Energy brand, has sought incentives for its long-term customers and staff to buy shares that would not be available to the rest of the public.
It is not clear whether the Treasury or Government are willing to back the proposal but officials opposed a wider proposal for share incentives for customers of all the power companies when they are partially privatised.
