Background

History of the MainPower Trust

The reform of the electricity industry has been on-going since the mid 1980's.

The Energy Companies Act 1992 required all Electric Power Boards, and City and District Councils who operated Municipal Electricity Departments, to establish these Boards and Departments as public companies and, where ownership of these companies was uncertain, to resolve ownership within a reasonable time frame.

The North Canterbury Electric Power Board, which had been established in 1927, was reconstituted as a public company during April 1993. Ultimate ownership of the Company was not determined at that time and therefore MainPower New Zealand Limited's shareholding was placed with the MainPower Trust. This Trust was established for the purpose of resolving ownership and a timetable of three years had been provided in the Trust Deed for this purpose. Following wide consultation, a final ownership arrangement was agreed and a second MainPower Trust was formed to carry forward this new ownership arrangement. The Trust Fund of the first MainPower Trust was re-settled in the new MainPower Trust on 1 October 1995.

Ownership of MainPower New Zealand Limited was resolved on the basis that all of the ordinary shares in the Company would be held on Trust by this new MainPower Trust. It was also resolved that any future distribution of ordinary shares by the MainPower Trust would be on the basis that 20% would be re-settled in a charitable trust to be known as the MainPower Foundation, with the balance being distributed to Qualifying Customers in accordance with the terms of the Trust Deed.

A Redeemable Preference Share structure was also established in 1995 to underpin MainPower New Zealand Limited's Qualifying Customer Rebate regime.

The Role of the MainPower Trust

The Trustees of the MainPower Trust administer the Trust's Trust Fund in accordance with the powers, duties and other requirements of its Trust Deed.

Trustees appoint the Directors of MainPower New Zealand Limited. Directors are required to make available to the Trust a Statement of Corporate Intent in accordance with the requirements of the Company's Constitution. This Statement sets out MainPower's intentions and the objectives agreed between the Board and the Trustees.It provides a summary of the Company's Strategic Intent, Scope of MainPower's business, Key Strategic Objectives and Initiatives, and MainPower's Key Performance Targets and other measures by which MainPower's performance will be judged.

The distribution of any ordinary shares in MainPower held by the Trust is strictly controlled and is only possible under certain circumstances and would always be subject to consultation.

Qualifying Customers

All customers whose premises are located within the previous Power Board franchised district and who take line services from MainPower are Qualifying Customers under the terms of the MainPower Trust Deed. This district covers both the North Canterbury and Kaikoura regions. Customers who have subsequently connected to MainPower's electricity network or who have become customers of the Company by way of an acquisition of another electricity network; and where, in these two circumstances, their premises are located outside of the historical franchised district; although customers of the Company, are not Qualifying Customers under the terms of the MainPower Trust Deed.

For example, customers who were previously connected to the Kaiapoi Electricity network, which MainPower acquired subsequent to the establishment of the 1995 MainPower Trust, are not Qualifying Customers under the terms of the Deed.

MainPower Trust Rebate Share

A Redeemable Preference Share (known as a Rebate Share) is issued to all Qualifying Customers and provides these customers with the right to receive, as rebates, all distributions of profits made by MainPower. During the past six years rebates totaling almost $42.5 million have been credited to Qualifying Customer' power accounts.

The MainPower Trustees

There are always seven trustees on the MainPower Trust. All Trustees must be Qualifying Customers of MainPower New Zealand Limited. Their term of office is usually three years but they can stand for re-election if they wish.

The current Trustees are: Tony Hall (Chairman), Richard Allison (Deputy Chair), Jim Abernethy, Brent Hassall, Catherine Elliott, Nigel Jones and Kevin Brookfield. The next election for Trustees will be held in 2014.

Click here to for more information on the elected Trustees.

Trustee Meetings

The trustees meet at varying times across the year to discuss the business of the MainPower Trust. Trust meetings are not public meetings. Five Trustees constitute a quorum.

Trustees are paid a small fee for their services and have travel and other reasonable costs reimbursed.