Trustpower customers face important decision over future of TECT cheque

Trustpower wants to hear people's views on what should happen to the TECT cheque. Photo/file

The decision to potentially end the annual TECT cheque in five years has Trustpower concerned for superannuitants and low-income families who rely on the payment.

A change in how the Tauranga Energy Consumer Trust distributed its $30 million annual income could see each customer receive a one-off compensatory cheque worth $2500 later this year - but they had to be a Trustpower customer on January 1.

The issue would be decided by consumers in a binding referendum around April if, after a five-week consultation, the trust agreed to end the cheques in 2022.

Trustpower chief executive Vince Hawksworth said the energy generator and retailer was keen to hear people's views on what they thought should happen to the TECT cheque.

Hawksworth said the Tauranga Energy Consumer Trust's proposal to cease TECT payments in 2023 could have unintended negative consequences for some customers.

"In particular, we're concerned about the impacts on superannuitants and low-income families who rely on this annual payment for budgeting purposes," Hawksworth said.

He did not understand why the trustees were proposing such a "dramatic, irreversible change" which made "no sense".

"At the moment trustees are proposing a single option for radical change, which is strongly incentivised," Hawksworth said.

"Whereas we think our local electricity customers deserve to better understand why the change is needed, and to choose from a wider range of options."

Hawksworth said other options could include shifting a greater proportion of funds toward charitable distribution.

"Some of our customers will be implacably opposed and will want to protect the cheque, others will see merit in rebalancing the distribution between customers and community," he said.

"This is very important because customers are being asked to sign away their rights to annual TECT cheques for the next 55 years, which represents tens of thousands of dollars and is a very big decision to make."

Hawksworth said Trustpower will actively participate in the consultation process, including undertaking research with its customers to better understand their perspectives.

"We're very keen to hear people's views on the issue and what they think should happen to the TECT cheque, and how Trustpower can best support them in ensuring their voices are heard," he said.

"It is vitally important any final decision made by the trustees, following the proposed vote by beneficiaries of the Trust, is informed with a full understanding of the facts and the concerns people have with the option the trustees are proposing."