Alpine Energy Divestment Proposal - Timaru District Council

Making Our Investments Work Harder for You

TDHL’s investments have delivered value for ratepayers in the past, but returns from Alpine Energy have fallen sharply in recent years.

In this financially challenging environment, it’s important to ask the question:

Are our investments working as hard for our community as they should be? > Tell us what you think.

Timaru District Council must balance maintaining services, investing in infrastructure, and meeting rising costs while working within the new Government rates cap.

That means looking closely at every opportunity to reduce costs and increase alternative income to ease pressure on rates.

TDHL has about $130 million invested in Alpine Energy, yet that investment is delivering little meaningful financial return.

If you had $130 million, would you be happy with it providing little to no real return? > Tell us what you think.

A different approach: making our investments work harder for you

We are proposing to:

Enable TDHL to sell its 47.5% shareholding in Alpine Energy to a New Zealand-based company
Reinvest the proceeds into a ringfenced, diversified and independently managed fund expected to return on average $7 million a year, enabling TDHL to pay TDC a larger annual dividend.

What this means for you

A fund-based approach would provide a regular dividend stream to help:

Protect essential services
Reduce pressure on household rates
Preserve long-term community wealth
Ensure money works for future generations

The intention is to design any future fund so it is:

Ring-fenced — protected for long-term community benefit
Independently governed — with investment decisions made by experts
Transparent and accountable — with clear reporting back to the community

We know many people will instinctively worry that selling shares means losing something important. That concern is understandable.

That is exactly why any proceeds would need to be protected, independently managed, and used only for long-term community benefit not day-to-day spending.

Why can’t Alpine pay a larger dividend?

Alpine Energy will need to invest hundreds of millions of dollars into its network over the next decade.

That investment is essential to maintain a safe and reliable network, but it also means dividend returns are expected to remain extremely low.

$130 million of community wealth is locked into an investment that is delivering limited real benefits compared with our other investments.

A proven model elsewhere

This approach has already been implemented successfully in New Zealand.

Auckland Council sold a major asset and reinvested the proceeds into a ring‑fenced, independently managed fund. In its first reporting period, that fund delivered significantly higher returns than the previous investment would have achieved.

It shows that when capital is managed for returns, it can deliver stronger and more reliable outcomes for communities.

What about local control and consumer protection?

A common concern is whether selling shares would reduce local influence or lead to higher electricity prices.

Our ownership stake does not give us control over electricity prices.

Electricity prices are regulated independently by the Commerce Commission
Network performance and maintenance standards are strictly enforced
Ownership does not determine what consumers pay for network services

Our proposal does not change or affect the shares held on behalf of energy customers by LineTrust South Canterbury.

Didn’t we already try and do this?

A similar proposal was considered in 2018. At the time, it generated strong views in the community, and the decision was made not to proceed.

Since then, the context has changed:

Financial pressures on councils have increased
Forecast returns from Alpine have reduced
Proven examples of alternative approaches now exist
There is clearer thinking about how proceeds could be reinvested for community benefit

With hindsight, it is reasonable to think that acting earlier may have delivered stronger financial outcomes. We estimate that we would be at least $20 million better off now had we decided to sell in 2018.

However, the focus now is not on past decisions; it is about making the best decision with the information available today.

> Tell us what you think

Feedback closes 22 June. Councillors will consider whether to mandate the council’s holding company to proceed with a sale at the 30 June council meeting. If you would like to share your view, you can email alpine@timdc.govt.nz , write to Alpine Shares, Timaru District Council, PO Box 522, Timaru 7940 or fill in this online form.

Privacy Notice

Please note that submissions and the information that they contain will be used and managed as follows: All submissions are public information and will be included on Council’s website and/or in public documents located at Council offices and Libraries/Service Centres. This will include your name and, if applicable, the organisation you represent.The contact information (phone number and/or email address and/or postal address) that you provide at the beginning of the submission will be accessible to Council staff and used only for submission administration purposes. It will not be made publicly available. However, the content of the remainder of your submission (including any private information and attachments that you provide) may not be redacted.

Please contact us via alpine@timdc.govt.nz if you have any questions about this, before making your submission.All information is held by Council in accordance with the Privacy Act 2020. You have the right to access and correct personal information. Nothing in this Privacy Statement overrides, or will prevent Council meeting its obligations under, the Local Government Official Information and Meetings Act 1987, or any other relevant legislation.

Last updated: 04 Jun 2026