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How long does the Trust last for and who are the beneficiaries?
The Trust was established for a period of 80 years. It will continue until 2073 unless it decides that the purpose the Trust was established for has been completed. There are four categories of beneficiary:
The capital beneficiaries are Hamilton City Council (63%), Waikato District Council (35%) & Waipa District Council (2%). When the Trust is wound up these three councils will receive the capital in the percentages outlined. Income beneficiaries are those electricity customers connected to the WEL Networks power lines network in the Trust's traditional area. Above is a map encompassing the Trust’s district (inside the dotted line). Within this area reside the electors and beneficiaries of the Trust. How did the Trust come about?
The local regional power company had already been corporatised under its own Act of Parliament when the former Central Waikato Electric Power Board and the Hamilton City Council Municipal Electricity Department were merged in 1988 to become the WEL Energy Group. Ownership of the WEL Energy Group, or Waikato Electricity, as it traded then, was vested in the Waikato Electricity Authority (WEA). Even though the WEL Energy Group had already been corporatised, the WEA was required to prepare a share allocation plan for ownership in line with other power companies. The first plan proposed that ownership of WEL Energy Group be split between the American company UtiliCorp United and customers. When this was rejected after public consultation, the WEA proposed a three-way split between UtiliCorp, customers and a new entity, the WEL Energy Trust. The Minister of Energy accepted the share allocation plan and the WEL Energy Trust came into being on May 26, 1993. A parcel of 105 shares was allocated to each customer, worth $750 at the time. The Trust's original one-third shareholding and other assets at vesting date were valued at $45 million. In ensuing battles for ownership control, most of the 62,000 small shareholders sold their shares. The first election for Trustees was held on June 30, 1993. Since its formation, the WEL Energy Trust has purchased all of the shares in WEL Energy Group to become the 100 percent owner of the company that has since been renamed WEL Networks Ltd to reflect that it now owns only the lines network. The next triennial election will be in 2011. |
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The Trust was established in 1993 following earlier restructuring of the electricity industry by the Government of the day. Most power companies had ownership structures the Government considered to be inefficient. In 1992 the Electricity Companies Act required all electricity suppliers to become companies.