Households in for bigger payout from energy trust

NZ Herald

28 Aug, 2015 05:00 PM2 mins to read

AECT income beneficiaries are made up of Vector customers in Auckland, Manukau and the northern parts of Papakura. Photo / Richard Robinson

Hundreds of thousands of Auckland households can expect an increased dividend payment of $345 in late September from the community trust that owns most of Vector.

The Auckland Energy Consumer Trust has 318,000 beneficiaries and its annual dividend will increase from $335 to $345.

Trust chairman William Cairns said the dividend boosts Auckland's economy by more than $100 million, with a significant portion of the money being spent with local businesses across the city.

"We know this dividend makes a difference to many in our community - we discovered in a recent survey that more than 60 per cent of Aucklanders said their family needs their dividend to meet the rising costs of living in Auckland," he said.

The dividend distribution, which is New Zealand's largest, comes from AECT's majority shareholding in Vector, and has contributed more than $1 billion to Auckland since AECT was formed in 1993.

The trust owns 75 per cent of Vector, the Auckland gas and electricity distribution company, which posted a 2.8 per cent gain in pretax earnings in the year to June 30.

Net profit fell about 13 per cent to $149 million on mark-to-market accounting charges and higher interest costs. Sales rose 2.8 per cent to $1.29 billion. Cairns said it was pleasing to see Vector's dividend increase for the ninth consecutive year.

"Vector's financial results show a continuation of prudent investments outside of its regulated energy networks, diluting the impact of significant regulator-imposed price reductions to its energy distribution infrastructure."

AECT income beneficiaries are made up of Vector customers in Auckland, Manukau and the northern parts of Papakura.

He said Vector's investments in new technologies including smart metering, telecommunications and solar and battery solutions will contribute strongly to beneficiaries' dividend over the long term.