Proposal mooted to scrap TECT cheques

TECT chair Bill Holland. File photo.

The Tauranga Energy Consumer Trust could become a solely charitable trust, in a proposal that will undergo community consultation.

In 2018, TECT is proposing to offer consumers an additional $2500 cheque, the equivalent of five years' worth of the current average TECT cheque.

As well, TECT will continue to pay TECT cheques for the next five years and will commit to distribute $20 million annually to consumers through to 2022.

Based on current consumer numbers, future TECT cheques would equate to $360 per consumer account.

The average TECT cheque last year was $497.

From January 1 2023, TECT consumers will then cease to receive future cheque payments.

From 2019, TECT would increase funding available for community initiatives, and from 2023 would channel all future dividends exclusively to a host of community initiatives and organisations such as local clubs, associations and charities, tripling the amount of its investment in community-based groups.

Eligible Consumers for the $2500 would be those who held a Trustpower power account on January 1, 2018 and continuously through to June 30, 2018, and were located in the TECT district.

“We understand that this is an important change for consumers and to ensure the process is democratic, we intend to take a final proposal to a binding vote after a five-week consultation process,” says TECT chair Bill Holland.

“During the consultation process, we encourage consumers to give us their views on the form of the proposal.  Their opinions will then be taken into account and will be incorporated into a final proposal. Consumers will then be asked to vote.”

The consultation process will include:

  •   •  A clearly articulated proposal which will be available online and in hard-copy

  •   •  A series of consumer information sessions around the district

  •   •  Trustees will be available to talk about the proposal to interested groups

  •   •  The opportunity to provide written feed-back and to present submissions in person

Following the five-week consultation period, trustees will then deliberate and take into account all the feedback received with an open mind, before making a final proposal that is put forward for the vote.

“Consumers will then have the opportunity to vote on the proposal, which will only proceed if there is a majority of more than 50 per cent of the vote in favour,” says Bill.

“These changes are necessary because of rapid change to the electricity industry which now, 25 years after the trust was formed, is impacting on the future for TECT.

“This was most clearly shown in 2016 when Tilt Renewables Ltd was split off from Trustpower. For trustees, this signals a change in risk profile.”

Bill says the trustees' burden of stewardship was to protect the trust's purpose and value for current and future beneficiaries.

“If the change is implemented as proposed the original intention of the trust can be fulfilled. It will have a multigenerational impact on the Tauranga and Western Bay of Plenty community.”

If the change proposed is voted in, TECT will move from being a consumer trust to operating solely as a charitable trust.

If the vote is ‘Yes' the Trustees will then seek validation from the High Court for approval for the change.



14 Comments

Trustpower takes advantage of Tect cheque

Posted on 30-01-2018 15:42 | By G. Willekers

According to switchme Trust power is over $600 a year more expensive than say Mercury. This is because Trustpower plays on the Tect cheque while the other 74% of shareholders contribute nothing to this payment. If Tauranga consumers are smart enough (and I have doubts based on some of the comments) Trustpower will have to charge competitive prices here in order to keep its customers. So everyone wins except Trustpower's majority shareholders like Infratil. Consumers get paid out about 10 years of cheques, community groups get more money, and Trustpower has to compete in Tauranga because there's no cheque to confuse the real issue.

To Loyalty

Posted on 29-01-2018 08:56 | By Dollie

They had to have a cut off date, otherwise people would be signing up right now to claim the $2500. January 1st, people would not have known about the proposal.

@MaureenR

Posted on 28-01-2018 13:57 | By morepork

I agree. This is a BAD DEAL for TECT beneficiaries and it takes no account of previous loyalty. It will go through because people will only see the $2500, (just like kids offered some squares of chocolate NOW, or the whole bar if they wait 5 minutes...), but it should be voted AGAINST.

Have another look.................

Posted on 26-01-2018 22:33 | By ROCCO

This photoshot has all the hallmarks of a smiling assassin rearranging your finances.Spell it out in plain English TECT how much is being paid out now how much being retained by Trustees and what is the current annual dividend income.When the punters see that info' then my guess is they will be incensed with the cockeyed 3 card trick proposal.

About time too.What will the$ cost be ?

Posted on 26-01-2018 08:00 | By ROCCO

Should have done this 10years ago when had the chance to pay full dividends to consumers and scrap the charities charade .Are TECT cashing in Trustpower Shares or simply paying out from Reserves held. Money in huge dollops is simply given out to the largest squealing self interest parasites currently who are no more charitable than fly and wouldn't even know how to spell the word.Incidentally haven't TECT just built or building themselves a large new centre at Historic Village.What for ? L O L.

Carcass

Posted on 25-01-2018 20:43 | By Carcass

What bought this on look at the sweetener to make it happen.How much would the trustees know about the energy sector.They have made sure the elected replacements of the of Tect stopping it.There is no evidence to support what they are doing.Weasel words only.

tect cheque

Posted on 25-01-2018 12:44 | By MaureenR

So they are proposing to give a cheque of $2500 as a one off then a cheque for the next 5 years ..thats sounds ok to me really, but why should people who join up from 1 Jan-30 June receive it, what about the loyalty of the people who have stuck by Trustpower ...I really dont think it fair...

Rubbish

Posted on 25-01-2018 12:36 | By rastus

Quote"These changes are necessary because of rapid change to the electricity industry which now, 25 years after the trust was formed, is impacting on the future for TECT" At no stage in any of the published verbiage is there any indication of what these changes in the electricity supply will or would be and certainly hard to understand how guessing at what the future may bring can possibly allow the present trustees to come up with this proposal - methinks there is more involved which they are not advising of - time will tell

Trustpower

Posted on 25-01-2018 12:35 | By Raeleen

Trustpower is one of the more expensive providers, its only the cheque that makes them nearl equal to the others. What about those that went onto Trustpower Fibre on the promise of an extra $100 on their cheque, isn't that misleading the customer

Obviously

Posted on 25-01-2018 11:59 | By MISS ADVENTURE

Trust Power bills are more so as a cheque can be sent out annually, however you are still worse off overall for it. Certainly get cheaper power elsewhere.

When the TECT cheque

Posted on 25-01-2018 10:51 | By R1Squid

disappears, Trustpower will see me disappear to a cheaper provider.

Not Trustpower....

Posted on 25-01-2018 10:30 | By CCC

kinakat, Trustpower have nothing to do with this. TECT are the ones paying out the money. In fact I suspect that if TEXT stop the payments yo consumers the Trustpower would lose an awful lots of local customers.

Loyalty

Posted on 25-01-2018 07:34 | By kinakat

Why would Trustpower be giving away money to people who have only joined since the 1st of January 2018.Sounds ridiculously expensive. Imagine the amount of new customers if the new proposal had been promoted before the new year.

Show me the money

Posted on 25-01-2018 07:19 | By maildrop

No need to consult. Where do I sign?

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Hairy Maclary and his friends at dusk. Photo: Lynley Whitaker.

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