Trustpower has announced that it is considering selling its retail business.

The announcement comes as the Tauranga-based company, which has more than 231,000 customers, plans a 'strategic review”.

The review will test market interest in its retail business, while also exploring the merits and business case to establish a standalone generation business.

Significant current and forecast changes in the energy and utility retailing markets are the primary driver of its review, says chairman Paul Ridley-Smith.

"Electrification and decarbonisation, decentralised energy, digital trends in service provision and utilities convergence are all shaking up traditional operating models.

'The Board intends to examine the options available for our market position, given these changes and opportunities.”

Chairman Paul Ridley-Smith. Supplied photo.

Trustpower has built a successful bundled retail business delivering electricity, gas, broadband and wireless connection services to 231,000 customers nationwide.

The strategic review is expected to take a number of months and no decision will be made to sell or retain the retail business until the completion of that process.

The announcement of the strategic review will also have fundamental implications for one of Trustpower's major shareholders, the Tauranga Energy Consumer Trust (TECT), and the existing rebate scheme, the TECT distribution, says Ridley-Smith.

'As a major shareholder, we have briefed TECT on the strategic review. Both Trustpower and TECT share a common goal of seeking the best possible outcome for the Trust beneficiaries, who are our customers,” he says.

'TECT has advised they will be addressing potential impacts on the Trust and the rebate distribution and will communicate with Trust beneficiaries.”

Trustpower has retained Forsyth Barr as a Financial Advisor to the company in respect of the strategic review.

In a statement released today, TECT says Trustpower has confirmed it has initiated a strategic review and potential sale of its retail electricity, gas and telecommunications businesses.

'As a 26.8 per centshareholder of Trustpower, and because a sale of Trustpower's retail business would require changes to the structure of TECT, TECT's Trustees were briefed by Trustpower on the review in advance of it being publicly announced,” says a TECT spokesperson.

'Trustees are well advanced in developing a proposal that outlines the changes to TECT's structure needed to meet the purpose of the Trust Deed, and to ensure that the best interests of the Trust and its beneficiaries are protected.

'In particular, Trustees are focused on protecting the TECT rebate for existing beneficiaries.

TECT expects to shortly provide a full update to beneficiaries on the proposed changes and undertake a consultation process.

'TECT will not be making any further media comment until the full update.”