About 95 Delta employees are expected to transfer to Aurora Energy by mid-year as the two companies separate.
The business divorce is one of the recommendations from an independent review by Dunedin City Holdings Limited. Delta and Aurora Energy Chair Steve Thompson says they expect no redundancies from either business.
Delta will employ just over 500 staff following the transition. Aurora Energy will be a network company with network renewal as its priority, while Delta will provide electricity distribution, green-space and solid waste services.