Unison review puts forward options for Hawke's Bay power customers

A review of Unison's performance put forward several options for consumers to consider. File / Photo

Both company directors and accountants PwC have recommended that the Unison Group remain wholly owned by the Hawke's Bay Power Consumers Trust.

The Unison Group, which includes electricity distribution firm Unison Networks Ltd., is wholly owned by the Hawke's Bay Power Consumers' Trust (HBPCT) on behalf of power consumers in Hawke's Bay connected to Unison's electricity network.

The trust is made up of five elected trustees, who hold all the shares in Unison on behalf of the electricity consumers. Trustees review the ownership of shares in Unison every five years.

A five-year review of the company's performance, done by PwC last month, put forward several options for consumers to consider.

Besides the existing wholly owned structure, the review assessed the potential benefits of the company being run as a joint venture, the possibility of merger through equity exchange, the long-term lease of the assets of Unison Networks to a third party, the sale or distribution of 24.9 per cent or 49.9 per cent of shares to beneficiaries, the public, industry or institutional investors, or the sale or distribution of 100 per cent of shares to beneficiaries, the public, industry or institutional investors.

The review recommended the existing ownership model be retained.

"In the absence of a catalyst for change we consider the trust ownership model should be retained."

A statement from Unison directors agreed.

"In summary, while the directors recognise that the company's intention to grow may
bring a requirement for additional funding, they believe that there is considerable
flexibility to finance most growth opportunities under the existing ownership structure.

"Any material growth opportunities that require additional equity capital will succeed
(including obtaining all necessary approvals and accommodations from the trust) on the
strength of the particular opportunity and will require assessment, at the time, of the
various funding and structural implications and options.

"The directors, therefore, do not see the company's growth strategy, per se, as requiring a change to the current ownership structure at this point in time."

Both the PwC review and the directors' response can be viewed on the Unison website.

Power consumers connected to the Unison network can make written submissions on the directors' report to the trust by Wednesday, February 14.

Unison Networks Limited ("Unison" or "the Company") owns and operates the electricity distribution business (EDB) which services the Hawke's Bay, Taupo and Rotorua districts located in central and eastern North Island.

It also manages the neighbouring Centralines' electricity distribution network located in the southern part of the Hawke's Bay.

In addition, Unison owns several related businesses, including Unison Fibre Limited (UFL), Unison Contracting Services Limited (UCSL), Unison Insurance Limited (UIL) and ETEL Limited (ETEL).