Network Waitaki financially sound

North Otago electricity consumers have been told the power lines company they own is in a ''sound financial position'' by the trustees they elect to hold all the shares on their behalf.

Network Waitaki group, in its annual report published in the Otago Daily Times yesterday, said it had a better year than expected, after paying out a discount to consumers and setting aside money for future capital development.

The company reported for the 2013-14 financial year a net profit of about $3.89 million before tax and after the $1.676 million discount, compared with $3.34 million the previous year.

All shares in the group are held by the Waitaki Power Trust, which released its annual report ahead of its annual meeting, open to the public, at 2.30pm today in the Brydone Hotel.

The trust said the level of Network Waitaki's profit had to be considered in relation to the capital works of $11.5 million planned for the 2014-15 financial year, compared with about $4 million in 2013-14.

''Consequently, there is a need for a healthy net profit and a good cashflow going into the years ahead.''

The major capital work the company plans is upgrading its substation at the Waitaki dam exit point from Transpower's grid.

The aim is to improve security of supply, meeting an expected growth in demand because of more irrigation in the Hakataramea Valley and irrigation development between Kurow and Duntroon.

However, if the company's financial result improved, the trust would try to increase the annual discount to consumers in the network's area from Shag Point to the Waitaki River, Hakataramea Valley and inland to Ohau.

The trust itself recorded a loss of $56,374 for the 2014-14 financial year, compared with $23,937 the previous year.

The increase was from the cost of elections of trustees held during the year.

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