Entrust to pay $375 to Vector customers

The dividend paid to Vector customers is up this year on last year. Photo / Kenny Rodger

More than 336,000 Vector customers will get a $375 payout this year.

Entrust, 75 per cent owner of Vector, today announced its annual dividend will be $360, stemming from its shareholding in the listed energy company.

This year in addition to the $360 Entrust dividend payment, a further payment of $15 from Vector which is customers' share of a credit received from National Grid operator Transpower.

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The payment will be made to more than 336,000 Aucklanders and businesses in the Entrust district that are connected to Vector's electricity network in late September.

It will be paid to customers via direct credit, cheque or credit to electricity accounts. Customers are the person or people named on the power bill.

Entrust chairman William Cairns says paying the dividend will contribute more than $120 million to Auckland's economy.

"Entrust is determined to deliver for our beneficiaries. We know that some in our community really rely on the dividend, and that it makes a difference. A good portion of it will be spent in local neighbourhoods, with local businesses, which further benefits local communities."

The total dividend paid is just over $120m.

Entrust income beneficiaries are made up of Vector Electricity customers in the Entrust District which is Auckland, Manukau, northern Papakura and eastern Franklin (the old Auckland Electric Power Board area).

Last year the trust paid a $350 dividend.

Entrust dividends have contributed more than $1.7 billion to Auckland's economy over the last 26 years and it is New Zealand's largest dividend distribution.

Under the rules if your power charges are included in your rent and paid by your landlord or body corporate, they receive the dividend.

Last month Vector said its after-tax profit has taken a hit after it took a non-cash impairment from its E-co Products Group, which trades as HRV.

The lines company declared a net profit after tax of $84m in the year to June 30, 2019 after the $46.6m impairment. That was down from the previous year's profit of $149.8m which included a one-off tax gain of $16.7m.

Excluding the impairment, the company said its net profit of $130.6m was down slightly on the previous year.

Vector's adjusted earnings before interest, tax, depreciation and amortisation were $485.8m, which was up on the previous year's $470.1m.