Entrust warns Aucklanders cheques no longer issued for their dividends

The phasing out of cheques means changes for Entrust. Photo / Bevan Conley

More than 340,000 Aucklanders are now being asked how they want to be paid their dividend but told payment can't be made by cheque.

They will get their Entrust dividend in late September.

Entrust chairman, William Cairns, says the decision to phase out cheques was made by banks, not Entrust, and that trustees were aware the change would be frustrating for a lot of beneficiaries who had historically opted to receive their dividend by cheque each year.

"After the unprecedented year we've had and in these uncertain economic times, we understand many families and businesses will be relying on the Entrust dividend this year and need it more than ever,'' he said.

Cairns said Entrust wants to make it as easy as possible for dividend beneficiaries to receive their dividend. People who are used to receiving a cheque need to let Entrust know how they would like to receive their dividend this year.

Last year's dividend was $280 and Cairns urged householders to let the trust know the best way of getting the money to them.

"It's really important they send us their bank account details now, as it will slow down their payment if we haven't received their details by August 6,'' he said.

"By getting in touch with us now, we can start setting up payment methods ready for dividend day later in the year."

Entrust (formerly called the Auckland Energy Consumer Trust) is a private trust that owns the majority of Vector on behalf of its beneficiaries.

Entrust owns 75.1 per cent of shares in Vector which are held in trust for energy consumer beneficiaries in Auckland, Manukau, northern parts of Papakura and eastern Franklin. These beneficiaries are paid a cash dividend each year, usually in late September.

The organisation was created in 1993 to make sure power lines remained in the control of electricity consumers and was established under a trust deed on behalf of electricity consumers in the area previously served by the Auckland Electric Power Board.

The size of the dividend depends on the performance of Vector.

People have two payment options to choose from: direct credit to a bank account, or a credit to their electricity bill.

Payment preference forms for the Entrust dividend will be appearing in mailboxes this week.