Battle looms over Taupō’s $80m electricity nest egg

Tuesday, 30 June 2026

Taupō District Council is sitting on an $83 million electricity fund that residents fear could be swallowed up by a new entity if amalgamation goes ahead.

An $80 million community fund built from the sale of Taupō’s electricity assets has become a flashpoint in the district’s amalgamation debate, with residents demanding assurances it will continue to benefit local communities under any new council structure.

Residents recently surveyed by the council want guarantees the TEL Fund will remain for the benefit of local communities if Government reforms redraw council boundaries.

Ratepayers, and councillors spoken to by the Waikato Times, say they don’t want the fund to disappear into the hands of a larger organisation with one councillor suggesting it should be run by an independent community trust, not by the council.

Taupō deputy mayor Kevin Taylor said no decisions had been made about the TEL Fund, now worth more than $80 million.

The fund was set up in 1995 following the sale of local electricity and generation assets, and has been used in the past to cover the council’s insurance costs, and as a buffer against high rates rises.

According to council documents, its primary function is to act as a disaster recovery reserve to protect the community against unexpected, severe events, and as of October 31 last year, was worth $83.5 million.

Its portfolio is managed by investment company Forsyth Barr on behalf of the council.

Councillor Sandra Greenslade said the fund should be protected, and put into a trust managed by elected trustees.

Deputy mayor Kevin Taylor said the council was seeking further guidance about the fund and its future from council staff, and no decisions had been made.

Taylor, who would not be drawn on his preferences for the fund, said he “didn't get elected to sit around the table to do dumb stuff” and there were “a fair number of good heads around the table who are capable of making good decisions”.

“I know a number of people in the community are concerned … and it's something we have to pay attention to.”

He said there was the “very real potential” the fund could be used for other purposes if not properly protected.

“So whatever we do with the TEL Fund, [it] will be done in the best interests of Taupō ratepayers, and in consultation with the community.”

Tūrangi-Tongariro Ward councillor Sandra Greenslade is also a member of the King Country Trust (formerly the King Country Electric Power Trust) and said those trusts were set up to benefit specific consumers in specific locations, and would step up to protect the TEL Fund from outside interference.

She said Taupō’s TEL Fund was unusual as it was still managed by the council, not an independent trust.

“There's not been any discussion or talk about what's going to happen to it.

“But the sensible thing should be that it’s put in a trust … and have elected people managing it.

“I honestly don't think that most people in Taupō actually realise what it is and how they ended up with it.

“For Taupō people, this fund should not go into any amalgamation situation. I would stand beside them on that … it belongs to them.”

A council agenda report says feedback from the community has highlighted the importance of understanding the financial implications of different amalgamation options.

It says residents are protective of Taupō’s identity, assets, finances, and local decision-making.

A summary of more than 1000 survey responses found there was repeated concern that the council’s assets and investments, including the TEL Fund, should be ring-fenced and only used for the district’s benefit.

Many were sceptical that amalgamation would deliver lower costs, better services or improved accountability, with those surveyed asking for clear evidence of benefits before Taupō committed to any amalgamation arrangement.

There were also concerns Taupō ratepayers could end up subsidising councils that had higher debt or poorer infrastructure than Taupō.