By CHRIS DANIELS consumer reporter
Prospects of a Christmas cheque of more than $650 for each of 269,000 Auckland homes and businesses now rest with a High Court judge.
After nearly three weeks of legal argument, Justice Barry Paterson has to decide whether an attempt by three local councils to stop the multimillion-dollar Vector dividend payout will succeed.
The civil case in the High Court at Auckland finished yesterday, and Justice Paterson reserved his decision.
All Vector shares are owned by the Auckland Energy Consumer Trust, which has the job of paying dividends to power consumers.
But the distribution of the past two years of dividends, which now total more than $180 million, has been held up by legal action by the Auckland, Manukau and Papakura councils.
They say the money comes from capital, not income, so should be put back into Vector, which they will own in 73 years.
The Powerlynk group, which holds three of the five trust seats, has promised that residential and business consumers will share equally in any payout, meaning about $650 for the 269,000 customers in Auckland, Manukau and Papakura if the challenge fails.
A pre-Christmas cheque will depend on when Justice Paterson delivers his decision and what the result is.
Trust chairwoman Karen Sherry said Vector would need at least one month's notice to organise a payout.
All parties have now spent millions of dollars on legal battles.
Raynor Asher, QC, representing consumers, questioned the councils' motives.
He told the court the trust had to consider the interests of current consumers, not think about reinvesting dividends for the future.
The three councils have made five legal challenges against the trust, for four losses and one still to be decided.
Vector payout case up to judge
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