Uncertainty driving TECT proposal

TECT board chair Bill Holland believes it’s the right time to transform TECT into a solely charitable trust. Photo: Chris Callinan.

Uncertainty in the electricity sector is one of the driving factors behind a decision by Tauranga Energy Consumer Trust trustees to propose an end to issuing of the TECT cheque.

Speaking to SunLive, TECT chair Bill Holland says he and his fellow trustees have been discussing the matter for over a year.

He says it was his idea to move the trust towards a 100 per cent focus on charitable contributions.

“I’ve been unhappy and concerned with the situation we’re in. As a trustee I think we have a responsibility to look at the big picture. When I spoke to the other trustees they all agreed something needs to change.”

He says among other issues, there is perennial uncertainty in the electricity sector due to the risk of government interference.

“Two years after I came onto the board, our shares were worth around eight dollars. Then Labour and the Greens came out with a policy [NZ Power, which would have purchased all electricity generation for the country] and the price dropped to six dollars. Now, they didn’t get in at that election, but it shows what can happen.

“Power prices are very political – just last year we had someone from New Zealand First saying the government should be buying back the electricity companies.”

Bill knows all too well the effect press releases can have – Trustpower had almost four per cent of its value wiped from the share market on Thursday morning when news of the TECT trustees’ proposal broke. TECT, a major shareholder in Trustpower, lost around $20 million.

“It’s probably a good time to buy Trustpower shares,” he says.

However, he doesn’t believe the proposal will have an adverse effect on Trustpower, if TECT consumers vote in favour of it.

“Trustpower is very good company, and it’s as well-equipped as any other company to deal with the markets it is in.

“We have 58,000 consumers in our region, versus around 260,000 Trustpower customers nationwide. So we’re talking around a fifth of their business – it’s not like all of their money comes from Tauranga.

“There’s also an assumption that every Trustpower consumer in Tauranga will suddenly leave. But why would they when they still have the TECT cheque for the next five years? They might leave in five years’ time, but why would they if the price is the same as other electricity providers, which it should be?”

If the proposal is accepted by TECT consumers, Bill expects the $2500 cheques to be paid out ‘as soon as the High Court approves the process’.

“We’re hoping that’s by September.”

In regards to how the trustees came up with the figure for the one-off payment, he says it was a difficult number to land on.

“It’s more than five year of TECT cheques up front. What we’re trying to work out is intergenerational fairness. This trust potentially has another 125 years to run, so it’s not just for the benefit for the consumers of today, it’s supposed to be for the benefit of consumers for the duration of the trust.”

Bill says the current estimation for the cost of the initial $2500 pay out, plus the five years of $360 TECT cheques up until 2023, is around $250 million.

In regards to how that initial $2500 will be found, he says TECT has ‘a range of options’.

“We don’t have to pay this out until September. We have a diversified share portfolio of $170 million, which we could sell, or we could sell our Tilt Renewables shares, although we’re in no rush to do that.”

Consultation has already begun with TECT consumers, who should have received emails informing them of the proposal. Information packs have also been mailed out.

“I don’t think it will escape anyone’s notice. Some people have seen the headlines and thought it’s terrible the TECT cheque could be ending, while others are excited to possibly be receiving $2500.

“What we really want is submissions from Trustpower consumers in Tauranga. They’re the only ones who have a say on this, and their thoughts count.”

He says they have already had 120 submissions on the TECT website by Thursday morning.

“We call for submissions every year on other matters, and never get more than 100 responses, so this is great.”

The entire process is expected to be done and dusted before the TECT elections in July 2018, when three of the trustee positions will be up for nominations. Bill doesn’t expect this issue to be a feature of the elections, however, despite all trustees putting their support behind the proposal.

“If the vote is ‘yes’, I presume the people will be happy and re-elect the incumbents. But if the vote is ‘no’, then we won’t be changing it, and so they should still vote for the incumbents. But the election of trustees shouldn’t be on a single issue. That’s why we’re treating it as a separate ballot.”

Criticism has been levelled at the trustees for not offering consumers other options besides transforming TECT into an entirely charitable trust. Wrapping up the trust entirely and paying out a larger lump sum is one such option, but it’s not one Bill is willing to entertain.

“There’s no way we’re winding up the trust, it hasn’t reached that point. The argument then would be how much should be paid out to current consumers? If you want intergenerational fairness, you might pay out $250 million, which is what they’re getting anyway. There’s no way consumers would be paid out all of it, because it’s not just current consumers who are entitled to it.”

He says trustees looked at potentially paying out different amounts to consumers depending on how long they had been with Trustpower, but that proved too difficult to calculate when other factors, such as divorce, were taken into account.

As for the financial effect the proposal might have on Trustpower if it were to go ahead, Bill is unsympathetic.

“Trustpower is different to TECT. They’re a commercial company that exists to maximise its profits for the benefit of its shareholders. It is not there for the benefit of its customers, to be frank. We are not here for the benefit of Trustpower, we are here for the benefit of Trustpower customers in Tauranga,” he says.

“Trustpower shouldn’t be relying on the TECT cheque to maintain their market share. They should do that on their pricing, like any other business.”

If TECT transforms into an entirely charitable trust, Bill expects contributions to local charities could increase by three times as much, from $8 million to around $25 million.

TRUSTPOWER RESPONDS

For Trustpower CEO Vince Hawksworth, the issue is an important one for consumers because it will be irreversible.

“You won’t be able to turn the clock back. It will affect 55 years of distributions, because that’s how long the trust has to run.”

He says he’s surprised by the decision, as it will affect Trustpower’s share value. He’s also disappointed only two choices are being offered to consumers.

“At the moment people are only being offered the status quo or a specific change, which comes with an inducement. But it forgoes benefits for future consumers in the next 55 years.”

He says the 125 year figure Bill talks about is only possible with the proposal. If the TECT cheque continues to be paid, the trust is due to wind up in just over half a century.

“We think consultation by the trustees is good, but there should be a range of options, not just leading people to one option.”

He takes issue with the notion Trustpower ‘relies’ on the TECT cheque to retain customers in Tauranga, saying it is actually consumers who benefit the most.

“It definitely helps with loyalty, I don’t argue with that. But it’s not the only reason people stay with Trustpower. Obviously we will deal with the outcome whatever it is, but many of our customers take telecommunications products with their electricity, and some take gas as well.

“Our analysis is that the small users of electricity on fixed incomes will be worse of as a result if the cheque is taken away. Even if a customer switches to a lower provider, they will be worse off than if they had remained with Trustpower and kept the TECT cheque.”

In comments to the media, the Trust has also said that if its proposal is implemented ‘the original intention of the trust can be fulfilled’. Vince says the original intention of the Trust was and is to benefit the customers of Trustpower, which was formed following the electricity reforms of the 1990s.

The Trust has also stated TECT has since 1993 been charged with distributing its shareholding proceeds to consumers and the community – another false assertion, according to Vince.

“The Trust deed is explicit it is for the benefit of Trustpower customers,” he says.

Vince also describes the reasons outlined by the Trust for the proposed radical change as ‘complete nonsense’.

“If TECT are genuinely concerned about increasing risk to Trustpower in the electricity industry – and we fundamentally disagree with them on this – then they should be diversifying their investment portfolio, not changing who benefits from Trustpower’s success,” he says.

Given the misinformation, there are also concerns about the transparency and fairness of the consultation and vote process, says Vince, while the proposed timeline of events for reaching a decision ‘does not make sense’.

“TECT are proposing consultation, then a decision on the proposal, which will be put to a vote,” he says. “After that they’re suggesting going to the High Court to see if their actions to stop the TECT cheque and wind up the Trust are legal.

“If there are legal issues to be resolved – and I believe there are – then TECT should go to the High Court now before spending our customers’ money on an expensive consultation and vote process.

“We renew our call for TECT to present more information and more choice around possible changes to the way they distribute the TECT cheque during the consultation period before seeking a mandate to implement radical change.”


37 Comments

TECT PROPOSAL AWARENESS PAGE

Posted on 04-02-2018 20:13 | By Colleen Urry

I’ve been a Trust Power consumer for 30 plus years, I strongly disagree with TECT cheque money being funneled into community projects that only appease certain groups. I’m against the level of manipulation in proposing to end the TECT cheques. They have and always should be distributed to Trust power consumers as this was the original intent of the deed. If you feel the same way, please check out this link. https://www.facebook.com/Vote.no.to.TECT.proposal/?notify_field=blurb&modal=invite_friend¬if_id=1517539767121025¬if_t=page_fan&ref=notif

Where’s the fairness and integrity gone?

Posted on 02-02-2018 17:47 | By JoyceR

We have been Trustpower customers for nearly ten years and pay 24hr Power UnitCharges @35 cents, but our neighbour pays 24hr Anytime UnitCharges @25 cents with Mercury, whom they joined last year. Both our annual consumption is around 9800Units, so we pay Trustpower approximately $1000+per year more than our neighbour with similar living situation. I feel this is exploitation of the TECT cheque policy as even though we get half of our overpayment back via the TECT cheque, Trustpower profits from keeping the lot as TECT facilitate the payment, NOT Trustpower! Over years, from just our account, Trustpower has received $10 000 extra with their overpriced power bills that we have sometimes struggled to pay. Remember, this is not for the provision of some ancillary luxury home entertainment service; this is for an essential home electricity supply! Trustpower then cleverly put out sponsorships to make themselves look community focused.

Another Option for TECH & TECH Charitable Trust

Posted on 02-02-2018 04:06 | By PukehinaExile

TECH Trustees have a duty towards the 58,000 consumers - that’s their job, everything else is secondary, as per trust deed. There are arguments on both sides for change, so an equitable option might be as follows1) Wind up the assets of TECH - net assets $716 million as at 31 Mar 2017. Assets are liquid and there is not be a problem2) Give the consumers the option on payout, either receive their share ( approx $12,300 ) in cash, or donate to the TECH Charitable Trust, or a mix of the two.*Benefits*-TECH Charitable Trust can thereafter operate on a "standalone" basis -Current consumers have a choice-The community and downstream charities will both benefit from the consumers - either by consumer direct spending or gifting to the Charitable Trust.-Consumers could purchase energy equities-The energy market will automatically find equilibrium pricing

Agree with G. Willekers and others,

Posted on 01-02-2018 21:23 | By Tamati TK

Trustpower has played this game for many years, all to their own advantage, hence their fancy building and so on. So much for having their own customers interests at heart! Now the Trustpower gloss is starting to fade fast as these kinds of business practices are made more public. Everyone gets a fair go YEAH RIGHT! The joke is on us consumers as the Trustpower shareholders have got away with their overpricing tactics and feathered their nests by taking advantage of this TECT cheque situation.

@ G Willekers , best you redo your sums

Posted on 01-02-2018 19:02 | By Interesting ...

For those of us that live frugally and have smaller power bills than those in the larger mansions who are spouting this rubbish, we are worse off with the likes of Genesis and the other Auckland based companies . For my friend who gets phone and electricity she would be very much worse off with her Trustpower loyalty discounts built in Your 600 dollars of savings therefore does not stand up to scrutiny -like most of the TECT rhetoric . It is not true for the battlers and senior citizens -we know how to run a budget and can do our sums . Unlike the trustees who appear hell bent on destroying the very company they depend on using half truths and a bribe.

@By Interesting, The problem is Trustpower

Posted on 01-02-2018 12:32 | By G. Willekers

In light of your comments please explain why Trustpower is shown as the most expensive electricity provider in Tauranga, to the tune of about $600 a year? The TECT cheque does not come from Trustpower but from a 26% shareholder TECT. In my opinion the majority shareholders use TECT to exploit Tauranga consumers. With this proposal Trustpower would need to offer competitive prices here to retain customers. Fair enough?

The problem is not Trustpower

Posted on 31-01-2018 20:44 | By Interesting ...

The problem is simply what TECT proposes .The trust deed was set up for the benefit of Trustpower customers . TECTs job was simply to look after the shares on behalf of those customers .If you fundamentally want to change the deed then you have a responsibility to offer to return those shares to the customers- not a small bribe that signs that money away forever . This smells to high heaven * Can’t wait for the next election to test via reelection on this platform * Are using incoherent reasons - it does not wash if electricity land is in turmoil that changing the beneficiaries makes any difference , and is no one else concerned the mayor is in favour? - fat cat projects more likely and not the charities I suspect will benefit from this ill conceived shonkery.

@ BVG

Posted on 30-01-2018 20:53 | By AndyCap

You have very kind words, but in the real world, and especially Tauranga, there have been, and continue to be a network of movers and shakers (some slippery as snakes) that collude together to serve their own interests. Not saying that this is necessarily the case here, but it is certainly my experience within much of Tauranga, and it is evident that many others are starting to voice their concerns and opinions about issues such as this. Ask yourself - why anyone would want to take away the TECT payment from Tauranga households, many of which are dependent on it as we have heard here. Some may not need it, but many do. Another question is - where exactly will all the millions be channelled to if not to those that support Trustpower?

Why all the negative on TECT?

Posted on 30-01-2018 19:31 | By G. Willekers

It’s Trustpower that should be copping the flak for charging way more for electricity in Tauranga than their competitors. If approved (and it probably won’t be based on ignorant comments) it will see the consumer get paid out 10 years of cheques, community groups get more money and Trustpower lowering its Tauranga price differential. As for M. Guys mention of beneficiaries and the elderly, they would be better off with say Mercury who are around $600 cheaper on an average bill when you price check. It’s no savings scheme when you are charged more in the first place Mr Guy. Check the facts. Try and learn the difference between Tect and Trustpower and how outfits like Infratil in my opinion directly benefit from Trustpower charging so much here. Explain that one Mr Guy.

Keep Thinking.....

Posted on 30-01-2018 16:51 | By BVG

I actually think that the TECT trustees are doing a great job. This will not have been a random thought or decision.They gain nothing personally by asking for public debate on this subject.The nay sayers should perhaps contemplate why the decision has conspiracy theory connotations for them.It might just be good business practice on all our behalf perhaps?

Take heed Bill

Posted on 30-01-2018 16:42 | By penguin

Take very careful note of the comments being made by TECT beneficiaries. If you don’t or can’t then you should resign. My parents and I have been loyal customers of Trustpower and have respected the integrity of TECT for many years. However something does not feel right about your proposal! Again - listen to the people! After all, you are basically their servant.

Certainty

Posted on 29-01-2018 22:52 | By KittyKat

that after being a loyal customer since the beginning, if this goes through, will be finding a better and more affordable option.

MY family interests in Tauranga pay SUBSTANTIAL

Posted on 29-01-2018 22:10 | By The Caveman

Power bills in Tauranga EVERY year and have done so for 50 years !!! While the TECT cheques are NOT great (in terms of our total bills), the fact that there is a "rebate at the end of the year" - of a number of thousands on dollars across the family interests has meant that we have stayed loyal to the local mob. We have done the sums many times - without the rebate cheques - WE ARE GONE - there are far cheaper suppliers that TRUST POWER

I

Posted on 29-01-2018 09:34 | By Capt_Kaveman

would have thought doing this would been deemed as illegal due to TEPB being owned by the community, anyhow govt needs to step in as the power companies are ripping off the nz public, nz cost of power is the highest for considering it gets its energy for free, rain wind geo etc, i visited an asian city and did some research to find a city of 1m were 100% dedicated on imported coal and guess what? once converted to $NZ the price difference was minimal, power prices in nz is nothing short of company extortion

@ Murray Guy 28-01-2018 post

Posted on 29-01-2018 09:22 | By Dollie

Murray, you are a community minded person. TECT has helped Tauranga develop major facilities and given to non-profit community organisations to improve services in Tauranga. They are so numerous over the years. We all have the opportunity to partake of the use of these facilities and services. Most times, we don’t even know that they have been supported by TECT but we like what we’ve used or visited. If TECT proposal goes ahead, the amount of funding opportunities will increase considerably. TECT will continue to transform our built and people landscape. We would have helped to continue making our city and district a stand out community to the rest of New Zealand by raising it to the next level that will be of benefit to generations to come.

In support of Murray

Posted on 29-01-2018 01:29 | By TMcDonald

I wonder too what is really at play here? Could it be that the TCC boyz club are indeed aware that their fiscal plans are in desperate need of a charitable financial backer to assist in bringing their wants to fruition? First I hear the Mayor on the radio asking government for cash to fund Tauranga growth, and now this just pops up out of the blue. It is indeed sad when so many mistrust city bosses and officials. So, for the record, please tell us Mr Holland if you or any of your board have had any form of discussions, of any nature concerning the possibility of TECT funding any future TCC must have projects such as a museum, library, stadium or other "heart of the city" developments?

Time to let it go

Posted on 28-01-2018 21:20 | By elldee

Who is Bill Holland to say he wont entertain the idea of winding up the trust. Its not his to decide.I have been a customer of Trustpower ever since they started and several times over the years trustees have brought up the idea of only being a charitable trust. To give large amounts to golf clubs and very little to smaller charities.Time to let it go. divvy it up and put them out of their misery.

Sideline Trust power

Posted on 28-01-2018 21:15 | By Dollie

I’ve read in these comments that Trustpower charge 30% more than other electricity companies. They have done quite well out of us haven’t they? Most of us go with Trustpower for the TECT cheque. Trustpower should stay out of this, because you are nothing to do with recompense. You are only worried about losing customers which you will if things go the Trustees way. Then you will have to go down the food chain and join all the other electricity providers and be competitive. You have sat on a good thing for a long time. You are only accountable to your shareholders not us the consumers. Tauranga is only one of your areas that you work in. Be thankful for all that you have been given because of TECT.

Whats really going on ?

Posted on 28-01-2018 20:46 | By sobeit

The issue seems to be that TECT customers pay more than non TECT customers for their power. This extra is then returned to them via the TECT cheque. TECT trustees say they are concerned about this imbalance ? ? They propose a payout of some $4 / 5thousand over 5 / 6 years to buy out existing customers interests who they say they are acting in the best interests of. Residual balance will be paid out annually to community groups ?? Is this correct ? If so why don’t they payout the whole lot to the TECT consumers they represent? Trustpower equally could reduce TECT customers unit price to compete and help the situation with TECT concerns ?? Whats really going on.

Show me the money

Posted on 28-01-2018 18:05 | By maildrop

We could all be dead in 5 years, pay up now. 55 years is way too optimistic for us all.

Peter Pan

Posted on 28-01-2018 17:13 | By stephennel

I am being overcharged for electricity. Part of that money goes into a trust, where it is expected to grow. Towards the end of the year I get a portion of it back via the TECT cheque. That is, after huge sums are donated to charities, some of dubious merit that I would never support. The cheque is presented as a big "favour" and we fall for it. I suggest the trust be liquidated completely and the assets be distributed on the basis of time as a Truspower client. The proposal by Mr. Holland is grossly unfair - a consumer who joined Trustpower 18 months ago will get the same benefit that I would receive after being exploited for more than 18 years. I appreciate the trustees are unable to make these complicated calculations, but expertise is readily available. I have a suspicion some information is not disclosed.

Shame on you

Posted on 28-01-2018 16:24 | By Interesting ...

Joking that its a good time to buy shares when as a trustee youve wiped 20 million off a local company ? seriously you should be ashamed and step aside so someone who understands what looking after the funds you hold on MY behalf means. A consultation built at best in half truths - Ill take my 50 years more of cheques thanks not your bribe .

Still no real reasons

Posted on 28-01-2018 15:53 | By waxing

Chairman Holland’s reason given for the proposed changes stopping TECT cheques is increased risks/uncertainty in the electricity market. Putting aside what appears to be his highly National Party perspective, I don’t see that it stands up to scrutiny. TECT’s income depends primarily on Trustpower shares plus diversified investments. Income will vary with market changes. If this means the TECT cheque and community distributions vary accordingly, then that’s what happens, just the same as it does with Lotto distributions.But the most worrying aspect is that current Trustee Ron Scott and his business partner Frances Denz were elected at one stage on a platform of eliminating TECT cheques. Consumers gave their response at the next elections. Is this really an attempt by Scott to revive his idea?Holland should remember TECT is a consumer trust in lieu of consumers being given shares in Trustpower. Today’s trustees represent today’s consumers.

I'm with Bill

Posted on 28-01-2018 15:30 | By Kaimai

If Bill (and the other Trustees) says he’s going to give me $2500, fine, I’ll buy some Trustpower shares; if he’s not going to give me $2500, okay. I have enough faith and trust in the Trustees to know they will do the right thing.

Call it anything but TRUST Power

Posted on 28-01-2018 15:28 | By AndyCap

Consumers need to realise that there are far better, cheaper power deals out there that equate to more than an annual $500 cashback deal of your own money. I’m starting to like you again Murray you make sound sense on this matter as there may well be other things going on in the background that we do not know about. Trustpower knows very well that it would not be able to stand on its own merits without the cashback deal continuing or dramatically lowering its power charges.

Uncertainty?

Posted on 28-01-2018 14:24 | By backofthequeue

Is there any industry in the world that does not involve some measure of uncertainty. This in itself is a hollow justification for the current proposal and I believe we need to hear more about these "other issues" mentioned. If the trustees are truly concerned with the situation they’re in then surely dissolving the Trust entirely must also be an option.

Get it right

Posted on 28-01-2018 14:11 | By rastus

You have to make the distinction between TrustPower and TECT - It is TECT who are wanting to go down this new road at the expense of existing shareholders - thats you and I who are Trustpower consumers. I have always supported Bill Holland however on this one the load of pure junk he is purported to have said in the above interview does not add up at all and I still smell a very big rat - problem is by the time most of us work out what the real story is - it will be too late - the bribe will I am sure appeal to many who take short term gain over sensible long term investment - so invest in yourself - do not support this ’fishy deal’

Are TECT Trustees

Posted on 28-01-2018 14:09 | By SML

acting within their duty - to the best interests of TECT beneficiaries, as their duties are to protect ALL the rights Tauranga consumers gave up, when the Tauranga Electric Power Board was split into TRUSTPOWER and TECT TRUST, will be lost. The TECT cheque was part of that, and only Trustpower CUSTOMERS entitled to that. So now TECT wants to become purely a charity? Hang on a bit - the Trust deed is most explicit it is "for the benefit of Trustpower customers". I say the TECT trustees are failing in their duty of care, to even suggest stopping the cheques! The $4,300 over five years is way short of 55 years at say $350.00 ($19.250), ro on what my last cheque was $600.00 ($33,000).Are some Trustees looking for Knighthoods, for demolishing legal Trust deed rights?

Surprised and disgusted!

Posted on 28-01-2018 14:01 | By Maryfaith

I am surprised and disgusted that Bill holland could be party to trying to pull the wool over the eyes of Tauranga TECT beneficiaries! Murray Guy has hit the nail on the head with his comment - well said Murray! With 55 years of the Trust to run - ’for the benefit of TECT beneficiaries’ - a piddly $2500 plus $350 for the next 5 years is crumbs when compared to 55 x $500 + = $27.500.00!Enough of our ratepayers money is given to the towns ’fat cats’ without them getting their hands on our annual TECT cheques as well!!

Who do they think they are?

Posted on 28-01-2018 13:44 | By Active

The Trustees are only there to oversee and make sure the deed is adhered to for the benefit of the shares owners. That’s it. Where did this charity bit come from. They use the emotional blackmail twist that we should not begrudge them giving our money away to worthy causes. This is a unfair carrot bribe that will of course be attractive to some, so that the trustees can get there way and in future . Think carefully now.

Keep your eyes on the ball folks

Posted on 28-01-2018 13:41 | By Jayleen Wood

Taurangas fat cats want to protect their share(s). Have to agree with much of what Murray says on this one. Also, for our family of five the Trustpower TECT cheque is just that a savings scheme for Christmas. Having recently received a written quotation from another power provider, we now realise that we have for many years been paying around 30% more for our home power with Trustpower, and even with the TECT ’loyalty handout’ we are still loosing! Do not be fooled, it is very clear that without the cheque the Trustpower business model will come under immediate pressure as customers leave in droves. If everyone is so concerned about their customers and the community, why overcharge more than other power providers in the first place? Give loyal customers a fair deal of cheaper power AND the annual TECT cheque as normal.

Concerned

Posted on 28-01-2018 13:34 | By Taffy

So Bill Holland you are concerned regarding the future of the electricity industry,didn,t you do well with your press release knocked 4% off Trustpowers share price, and Tect own 26% of Trustpower good thinking Batman! Here,s a suggestion keep the status quo with the exception that all the current trustee,s resign and let the shareholders vote for new ones.If you are as concerned that you lead us to believe then wind up the Trust and distribute the entire proceeds to us the shareholders not some paltry $2500 up front and then $360 for 5 years.

@Murray.Guy

Posted on 28-01-2018 13:32 | By morepork

You are right that support to the "Community" is not necessarily support to TECT beneficiaries. And it will be galling to some to realize that what used to be their annual TECT cheque will now become support for projects you mentioned, which they could be very opposed to. It also seems like a "cop out" to me to say that it is "too hard" to calculate a fairer payment based on years of loyalty... Those of us who haven’t switched our provider whenever a new offer from someone else comes along, SHOULD reasonably expect some recognition for this if things are being wound down. The bottom line seems to be that the "Community" is being favoured over the actual beneficiaries, and while we would support the Community, the TECT beneficiaries SHOULD be the main concern. Despite the quick cash, this is NOT a good deal.

if

Posted on 28-01-2018 13:21 | By Capt_Kaveman

you on a low income trustpower would be the most expensive to use

Murray

Posted on 28-01-2018 13:12 | By overit

Well said.

The Model

Posted on 28-01-2018 12:46 | By Merlin

The model has worked for years so why change it.Trustpower are obviously worried that their customers might look around at other retailers if this goes ahead and their customers do not get their cheque.If it ain’t broke no need to change.

Still FAR from convinced, doesn't 'smell right'.

Posted on 28-01-2018 12:41 | By Murray.Guy

I haven’t read or heard ANYTHING that validates this decision by the TECT Trustees so. ALL corporations, sgare values fluctuate, and who cares where Trustpower derives it’s profits from. PLEASE, how is the TECT beneficiary today have his/her position enhanced by this process and proposed outcome? A Museum? All I can predict is many families, low income, fixed income elderly and beneficiaries having a Christmas bonus (savings scheme) taken from them to benefit the rich and wannabees (to fund with many $millions their grandiose ’museum, stadium and CBD dreams’, with a few pennies going to community support organisations. No question, from any angle, the $2500 is unfair, and a bribe, dished out like bread to seagulls regardless of years of loyalty and or need. The $millions spend annually on the Adams/CAG/Baldock/Mason/Clout/dreams will impact hugely on our rates to fund annual losses, approximately 10% of capital spent.

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