The Dunedin City Council's investment company yesterday released its annual result for the year ending June 30.
It stated $19.8 million was paid in dividends and interest to the city council, which owns DCHL.
Dr Macpherson said energy consumers in Central Otago were responsible for a significant amount of the profits of DCHL companies Delta Utility Services and Aurora Energy Ltd, which traded in the area.
He said he did not know how much of the profit was generated in Central Otago, but said the two companies were DCHL's star performers this year.
"If you took out Delta and Aurora it wouldn't be a very happy annual report. I think that's a reasonable conclusion to draw," he said.
But DCHL chairman Paul Hudson said the profit drawn from Central Otago was a "very small" proportion of the total, and this year activity in the district was less than in previous years.
"Profit from Central Otago has been considerably less this financial year as overall activity in the district has reduced," he said.
Mr Hudson said if Central Otago deserved a share of profits from DCHL, then Dunedin should receive profit from the Central Lakes Trust (CLT).
"Central Otago made the decision to sell its electricity lines business some years ago, and the profits from that sale were invested in the CLT, which funds charity in the district.
Dunedin invested in buying the lines business, so if there is an expectation that profits from lines companies should be returned to customers in Central Otago, then the profits from the CLT should be returned to the people of Dunedin," he said.
"You can't have one and not the other."
But Dr Macpherson maintained the Dunedin council should use its profit from DCHL to mitigate "excessive electricity distribution charges" set by Aurora.
"Without its Central Otago customers - those who pay Delta and Aurora - DCHL would be struggling to return a positive outcome, and the Dunedin council would be looking at funding liabilities rather than enjoying a $20 million cash benefit," he said.
Dr Macpherson said he would approach all companies involved to make his case for profit use in Central Otago - which could include contributions to a "winter relief fund" for those struggling to pay power bills in colder months.
He said because of high power prices, some larger electricity consumers in Central Otago were opting to use diesel to reduce costs, which was not best practice for sustainability or the environment.
