Big power profit may mean little bills

Whangarei and Kaipara electricity users could be in line for a $4million bonus after electricity lines company Northpower raked in a record $11million profit.
It could mean an average $100 coming off the power bills of the company's 40,000 customers.
Northpower board chairman Warren Moyes yesterday announced a net profit for the financial year ending March 31 of $11.8million - up 16.7 percent on last year's $10.1million profit. The board will pay to the Northpower Electric Power Trust a dividend of $4,094,650, which is likely to go to company customers as a bill credit, as in previous years.
Mr Moyes said the profit came despite the company providing a $6.1million line-charge holiday to its roughly 40,000 customers in February and the company having the second-lowest average price for electricity delivery in the country.
"The financial performance was above expectations due to additional network income from the very high level of subdivision activity and very strong growth from the contracting business," Mr Moyes said. The profit showed the company was in good stead and operating effectively.
Northpower Electric Power Trust chairman Erc Angelo said a decision on what to do with the dividend would be made in September or October. The trust had given the dividend to customers as a credit in all previous years bar one, when it was re-invested in the company to upgrade its Wairua River power station.
Northpower's trust deed allows the trust to re-invest the money into the company or distribute it to customers. The dividend has to be held in company accounts for six months before being distributed, meaning if it is given to customers, they could get it around Christmas time.
Mr Angelo said a credit to customers would, in effect, be a cash bonus as it would clear up money they would have spent on their power bill for other uses. He said the continual profitability and dividends of the company was welcomed by the trust.
"We appoint the directors and we are pretty happy our decisions have been the right ones and we have a board of directors who are driving the company to the levels we are achieving," Mr Angelo said.
Last financial year Northpower's operating revenue increased by $26.1million on the previous year to $105.1million. The company's contracting business contributed $23.1million of the rise and now accounts for 66 percent of revenue.
In the last three years, Northpower's contracting business revenue has grown 251 percent from $27.6million to $69.4million.
During the year fulltime employees increased by more than 100 to 565. New Northpower field centres were established in Murupara, Hamilton and Wellington to complement ones in Whangarei, Dargaville, Maungaturoto, North Shore, East Tamaki, Tauranga and Rotorua.