The trust announced a proposed structural change that would allow them to continue rebate cheques for the next 30 years. Photo / Getty Images
The trust announced a proposed structural change that would allow them to continue rebate cheques for the next 30 years. Photo / Getty Images
Tauranga business leaders are calling a proposed Tauranga Energy Consumer Trust (TECT) structural change the "only realistic direction" to ensure 49,000 local Trustpower customers hold on to biannual rebate cheques.
Trustpower announced last month the possible sale of its retail arm, putting a question mark over the future of "TECTcheque" rebates. The TECT is a 26.8 per cent shareholder in the company.
TECT's proposed change would allow it to retain funds to continue the cheques for up to $500 a year for the next 30 years.
The trust would permanently become a long-term consumer and community trust, focused on grants for major projects and important services regionally such as the local rescue helicopter service, while also continuing to pay the cheques.
TECT chairman Bill Holland told the Bay of Plenty Times that the trust "clearly had to change" to ensure it fulfilled its number one priority of "protecting the cheque" for 49,000 local customers.
He said it would benefit the entire community as it was already the area's largest funder and would be able to give even more.
Not only that, but it would be "simpler" for community groups, especially charities and not-for-profits, to apply for funding as it would no longer be tied up with Trustpower obligations, he said.
He said the trust wanted to assure beneficiaries it was "making sure they are being looked after" with three public meetings on the proposal to be held in the next month.
"If our people are happy with it, they don't need to do anything at all."
Trustpower said its existing customers would have similar rights to the current TECT rebate under changes to the Trust Deed proposed by TECT.
Trustpower's headquarters in Durham St. Photo / File
"We know the TECT rebate is valued by our customers and it's pleasing to see our customers' rights are largely retained under the proposed amendments to the trust deed," Trustpower chief executive David Prentice said.
The proposal "preserves our customers' rights" and he encouraged people to read and engage with the proposed change.
"No decision has been made to retain or sell the business, but it is prudent of the Trust Board to consult with our customers in light of Trustpower's strategic review," Prentice said.
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / File
TECT deputy chairwoman Natalie Bridges said the trust had "no choice" but to change.
She said the proposed change would look after future generations while protecting the cheque for current Trustpower customers.
The change would allow TECT to continue to "deliver into the future" for the entire region, she said.
Tauranga's Chamber of Commerce chief executive Matt Cowley said if TECT did not change and Trustpower sold its retail business, only 120 wholesale Trustpower customers would eligible for the TECT cheque.
"TECT must do what's best for its beneficiaries in the long-term."
The new community trust would be "incredible" for the community as it would provide an investor for local projects and keep funding flowing for local charities and social services, he said.
"TECT Trustees have done well to navigate this complex governance issue to futureproof and protect the cheque for locals, while also creating a powerful new community trust that will be a golden asset for the community."
Nigel Tutt, chief executive of Tauranga economic development agency Priority One, said the structural change was the "only realistic direction" for TECT and would be "very positive" for the region.
"It strikes a good balance between strong support for community projects and maintaining the rebate for current Trustpower customers."
Priority One chief executive Nigel Tutt. Photo / Supplied
TECT was created in 1993 when the Tauranga Electric Power Board became Trustpower and all Tauranga and Western Bay residents became Trustpower customers by default. The TECT Charitable Trust followed in 2002.
According to its 2019/20 annual report, diversified investments now make up about 40 per cent of its portfolio.
It distributed $9.74m in grants and $46.8m to beneficiaries in that financial year. Since 1993 it has distributed $562.8m.
The consultation period started yesterday on the proposal and the views of TECT beneficiaries would be sought until March 22.
