National's former president out to win control of Vector

John Collinge

Former National Party president John Collinge has broken away from the party's de facto Auckland local government wing and launched a new ticket to contest the trust that owns most of power lines company Vector.

The election in October for the Auckland Energy Consumer Trust is now a battle between the traditional foes - the centre-right Citizens & Ratepayers Now and centre-left Powerlynk tickets - plus Mr Collinge's new ticket, Just Power, and five independent candidates.

The trust has a history of bitter infighting and shifting political allegiances since its inception in 1993.

Since the last election in 2003, Mr Collinge has left C&R Now, which won four of the five trust seats, and opposed the sale of 24.9 per cent of Vector shares in a $593 million public float.

In the past month, Vector has been accused by the Commerce Commission of favouring the interests of the 292,000 trust beneficiaries in Auckland by overcharging former UnitedNetworks customers in North Shore and Wellington, and Auckland businesses. The commission has threatened price control.

The commission's action has brought an admission from trust chairman Warren Kyd that the trust backed Vector steadily increasing the average Auckland household power bill by $165 a year to even out the charges.

This will eat into the annual dividend that trust beneficiaries get by way of a power credit. The credit was $180 last year and is expected to be $310 this year.

Mr Collinge yesterday said the aim of Just Power was to focus on security of supply for consumers at fair prices and remove politics from the trust. He accused C&R Now and Powerlynk of being "political tyros not versed and steeped in energy matters".

Just Power opposed further privatisation of Vector, speculative investments and the appointment of trustees as directors on the Vector board, he said.

The trust appointed Powerlynk member Shale Chambers and C&R Now member Karen Sherry to the board last month. Mr Collinge has sat on the board in the past.

C&R Now president John Slater, who is also a former National Party president, said it was a democracy and Mr Collinge could do what he pleased.

C&R Now sources said Mr Collinge had been asked to resign after a history of creating bad blood within the organisation. Former C&R Now secretary Maurice Chatfield had also left and joined Just Power.

Mr Collinge said he was not asked to resign, and it was "entirely my decision" to leave after five years on the ticket.

Mr Slater said C&R Now would release its policy for the election in the next couple of days but said it was "unlikely" C&R Now would support further privatisation of Vector.

Mr Chambers, who opposed the partial privatisation, said Powerlynk would ensure that Vector stayed in community ownership.

He said it was all very well to cite high company growth and promise increased dividends from Vector's growth strategy but it had a resulted in higher power bills than any benefits received. "It's voodoo economics and Aucklanders know it," said Mr Chambers.


THE AUCKLAND ENERGY CONSUMER TRUST

* The trust was formed in 1993 and owns 75.1 per cent of the shares in the power lines company Vector on behalf of 292,000 consumers in Auckland City, Manukau and part of Papakura.

* The trust receives an annual divided from Vector, which it distributes to consumers as a credit on their power bill. This year's dividend is expected to be about $310 ($180 last year).

* Only consumers in Auckland City, Manukau and part of Papakura receive a power credit and a vote at trust elections.

* The trust holds a postal election every three years for five trustees.

* Voting papers go out on October 11 and must be in the hands of the returning officer by 5pm on October 27.

Who's standing?

* Citizens & Ratepayers Now (centre-right ticket with National and Act Party connections).

* Just Power (breakaway ticket led by former C&R Now and National Party president John Collinge).

* Powerlynk (centre-left ticket with Labour Party connections).

* Five independent candidates.