big read: the inside story on the tect cheque proposal - electricity storage

Gulf energy consumers will soon decide whether to end their long term
In a binding referendum, the annual TECT check.
However, stakeholders believe that misconceptions about trust, technology and the relationship between the two cast a shadow over the debate.
Chen guangpi reports.
Proposal snapshot the TECT trustee announced at the end of last month a proposal that trust consumers stop receiving annual cheques and instead pay $2500 later this year, followed by about $360 in five years
The trustees say they are working on the future.
Demonstrate the organization in an environment of rapid technological and political change.
They want to transform TECT from a consumer trust fund representing about 58,000 consumers in West Bay on behalf of Trustpower to a charity trust fund that distributes revenue to community groups.
Read more: Tauranga Energy consumer trust check controversy: why fix it if it's not broken?
The application for the TECT sport scholarship was set as an openTECT check dispute that flooded the rival power company, but the Trustpower official said it was unfair to ask the customer to give up $20,000 --
TECT checks over 55 years are valued at $30,000 and only $4300.
History trustpower originated in Tauranga of the first a power station was established in 1915, is in order to deal with Energy Department of relax control and in 1992 set up.
Trust fund for energy consumers (TECT)
Founded in 1993, it holds a stake in Trustpower for customers of Trustpower in Tauranga and West Bay.
According to Vince hawxworth, chief executive of Trustpower, TECT ensures that local power customers have part of the business, and TECT checks ensure that Trustpower's success is shared with local power customers.
TECT is one of New Zealand's largest energy trust funds.
Over the past 25 years, it has returned millions of dollars to consumers and West Bay communities, funding community facilities such as construction and sports centres;
Community development covering equipment and operating costs;
And community events such as the Tauranga Jazz Festival and AIMS Games.
On Wednesday night, TECT and Trustpower-Plenty Times spoke with TECT chairman Bill Holland over the weekend, shortly after he and other trustees concluded the community consultation meeting at Te Puke.
The Netherlands says the relationship between TECT and Trustpower is "a huge mess ".
"People say, why not lower the electricity bill instead of paying the check?
We're just a 26 cents [26.
According to the data of the TECT website]
Shareholders of Trustpower.
We are not responsible for what Trustpower does.
People are completely confused about this.
Hornsworth, chief executive of Trustpower, agreed.
On February 3, he wrote in an article published in the rich age weekend: "So far, most people believe that trust and trust are one thing.
Thanks to the advice of many who now understand that we are independent entities: TECT allocates funds due to dividends received by the success of the trust power.
"Hawworth worth told me in an interview at the company's Tauranga headquarters on Thursday that the confusion was enough for TECT to extend the time for public consultation beyond March 1.
"These letters are only arrived [last]
Weekend. . . They were asked if they supported the proposal.
It doesn't encourage people to say anything else they support or don't.
"Hawworth worth hopes that a different view can be made at a formal public hearing, rather than giving up --
In the Information Conference
"A greater degree of transparency than what is happening will greatly improve the quality of discussion and debate.
The Netherlands said that in order to avoid conflicts with the trustee election scheduled for April, it was necessary to vote on the future of the TECT cheque on June.
"We hope to complete the process before the trustee election.
It's two different issues and I don't want it to be an election issue.
"The reason for the free giveaway to stop the annual check is listed on the TECT website (www. tect. org. nz).
The Netherlands said that the trustee voted unanimously on the current proposal, which gave trusted consumers the final say to decide whether to close the check or continue the check.
The Netherlands cited three main reasons for the plan, the first being the rapid technological change in the energy sector.
More and more people use solar energy, he said;
The whole community exists. grid;
A potential shutdown of an aluminum smelter near Bluff will lead to more power supply across the country.
The second reason is regulation.
The Netherlands says a joint government partner is discussing a electricity price survey.
"I'm not trying to scare people,
I don't know what the result of the investigation will be . . . . . . But the impact on the energy sector has great potential.
"The third reason is the potential future uncertainty of who will have Trustpower shares.
Infratil, an investment company in Wellington, owns 51 shares.
The Netherlands indicated that if the Infratil chose to sell, the new buyer might not issue a dividend, which would affect the ability of TECT to deliver the check.
"As trustees, we agree that it is not an option to do nothing.
When a change is about to happen, it is best to do it in accordance with the terms that are good for you.
"The TECT proposal will be funded by its fund (
According to the Netherlands, $0. 82 billion)
For Community subsidies.
In 2017, organizations received TECT funds, while customers of Trustpower received 80.
Starting next year, TECT will provide three times the $7 funding for community groups.
About $7 to $25 a year.
This year's funding targets include the Gulf Oval Trust ($1m);
Sports and Entertainment Association (Omokoroa)$400,000);
And The Elms Foundation ($250,000).
$703 in grants (
Church of the Baptist Church (computer)
Improvements to the Bay Oval facility cost $1 million.
Three weeks from the end of five weeks.
The Netherlands said that more than 1300 Trustpower customers had submitted submissions during the week's consultation period.
"Obviously, they are in favor.
More than 50 cents-far more than that.
"Trustpower consumers who hold power accounts in the TECT region from January 1, 2018 to June 30, 2018 will be eligible for this account --
If the trustee's proposal is adopted, the time is $2500 for 5 years and the subsequent cheque of $360.
The average amount of TECT checks last year was $497.
Welcome to the bay by Noel Pope in a letter to the bay many times (February 5)
Congratulate the TECT trustee on his plan, saying it was generous.
"The proposal brings certainty to the considerable asset base that TECT has built over the last 25 years . . . . . . This proposal will make everyone potential in some form or form of large-scale charity activities and should not ignore the value of trust and trust . . . . . . " Craig Greenlees wrote in February 6 that he believes that the TECT structure that has worked in the past may not be suitable for the future.
"With the rapid decline in the cost of rapidly improving power storage technology and renewable/solar energy, it seems that the energy sector is inevitably in a period of turmoil.
"Greenris says his own business uses a lot of electricity and finds that they can save a lot of money by looking elsewhere in the market.
"Maybe all electricity consumers in Tauranga/West Bay can enjoy an unsubsidized fair competition in the local electricity market.
"Keep the check hawworth worth wants other options besides payment and status quo.
He believes a lump sum of $2500 will affect the vote.
"The money makes a big difference to a lot of people in a day.
So I can understand.
By asking this question, we missed the opportunity to do something better.
"He disagrees with the idea that consumers pay more electricity bills than other energy consumers.
"It's not hard to find examples of consumers, and if the check goes away, they go to other worse players.
It can be seen from the core discussion: What should the future of TECT look like?
The Netherlands said that while trustees would like to hear from consumers, it would be too complicated to suggest other options.
"We are very open to this.
This is not perfect.
But this is a good starting point.
We will consider their views.
We will never please everyone.
We will vote on the proposal-whether it is in favor or against the status quo, and we will act according to the will of the people.
"Many of these aspirations appear on Facebook pages a lot of the time, and some writers say they will leave a right of trust if the check is cashed.
Nancy Baird of Kati wrote on TECT's own Facebook page, "No matter what it is.
I always trust [sic]
Many, many years.
I will change the power company if they change things.
"Tauranga resident DL Gibbs said in a letter to Plenty Times that stopping the check means that the household income of Trustpower customers has dropped by $500, although Tauranga taxpayers who buy electricity elsewhere will not experience change.
"In the remaining 55 years, your TECT check will be equivalent to about $27,500, and TECT proposes to buy this right secretly for $4300.
Gibbs wrote that the loss of the cheque would result in a decrease in the income of TECT, resulting in a decrease in the distribution of charity.
The perceived impact of the stock price impact of the proposed TECT check phase-out on the stock price is another contention.
Hawkworth, the Fengsheng Bay Times said last week that the value of the $ TECT 42 m investment in the $200 m discount Trustpower was announced.
"The market does not like uncertainty, and it is not clear why or what the result is.
"Trustpower threatens to take legal action to prevent TECT from becoming a trust company that is no longer responsible to customers in Trustpower West Bay.
TECT can sell Trustpower shares without experiencing what he calls "value destruction.
Consumer trust has 55 years left, he said.
The Netherlands says a bill passed by parliament this year will extend that trust by 100.
He objected to the idea that Trustpower's stock had fallen due to a proposal to stop the check.
He said TECT had no plans to sell its trust fund.
"Of course, shares of Trustpower will fall a little bit.
It is far from falling when Labor/Green policy [of 2013]came out.
The Netherlands says the proposals by political parties to control electricity prices have led Trustpower's share price to drop from around $8 to $6. 40 in 2013.
When National was elected, the share price returned to its original level, he said.
He said the joint government partners discussed the electricity price survey again.
"I'm not trying to scare people,
I don't know what the result of the investigation will be . . . . . . But the impact on the energy sector has great potential.
Trustpower has gone through a shift in technology, structure and government, says Hawworth worth.
"The TECT check was $20, $490 on 1994-
Some of the things of last year and all of them have arrived, because Trustpower has successfully completed this change and we will successfully complete this change in the future.
The Netherlands said Trustpower's share price was $5 in February 2. 40.
"As of March 31 . . . . . . They are worth $4. 60.
They are from $4.
$60 to $6 then the price dropped when we announced $5. 40.
We are fully confident that the stock will go public again to a certain extent.
Tauranga's consumers are only a small part of the Trustpower business, he said.
The company has about 270,000 customers nationwide and is the fourth largest telecom operator in the country.
The Netherlands says most of Trustpower's money comes from other businesses, including power generation.
"If people start selling now, they may find that what they are doing is completely wrong.
"The company's share price at the close of this Friday (9th February)was $5. 16.
An investment expert wrote in The Plenty Times Weekend of February 3 that the investor's response to the TECT proposal was negative.
He said Trustpower's share price fell by ten per cent from $5. 92 to $5.
33 since the announcement.
Brian Geithner, executive director of Milford Asset Management, said Trustpower has stagnated in recent years, "… There are many reasons, including increased competition in the power industry and costs associated with expanding into the broadband industry.
While doubling community grants is a worthwhile gesture, it will effectively transfer the income of electricity consumers to communities and charities, Geithner said.
"Trustpower has a loyal customer base, in part because of this year's [TECT cheque]
This allows it to charge customers higher than the average price.
Investors are concerned that the cancellation of annual distribution will have a negative impact on customer loyalty and loss of customers.
Trustpower can respond by lowering prices, which will damage profitability and dividend distribution, he said.
Next, Trustpower threatened to take legal action to prevent TECT from becoming a charitable trust.
TECT is in the process of community consultation and submission of comments on the proposal by March 1.
The trustee will decide on the final proposal on March 9 and then make it public later in the month or early in April.
Customers of Trustpower will vote on April.
The Netherlands says if the decision is to maintain the status quo, it is the end.
However, if the customer chooses to gradually cancel the check and change the TECT from consumer trust to Charity Trust, the TECT will apply to the high court for a re-decisionaffirmed.
"We already have two legal positions and say we did a good job.
"If the consumer of Trustpower TECT voted to approve the proposal
Christmas checks for TECT consumers will end on January 1, 2023.
Many consumers say they still use Trustpower because they can buy packages including gas, the Internet, electricity and home phone services.
However, the number of residential power companies in Tauranga has reached a record.
Between January 1-20 and December 31, there were 9794 switches, up from 9472 in 2016.
Trustpower lost the most, with 2415 switches switching to another company in 2017.
The website Powerswitch lists Trustpower as the most expensive power company in Tauranga.
But instead of calculating actual consumer savings, Powerswitch tracks price trends, says a Trustpower official.
"Trustpower is also based in Tauranga, providing a great deal of employment and support in the community and having a long term relationship with many of our clients, this means that new competitors entering the region must weaken our strength to win customers, "said the general manager of Craig Neutroski's market.
Brubruin, manager of budget consulting services at Tauranga, said the difference between power companies could reach $500 a year.
She suggested visiting www. powerswitch. org.
New Zealand compares the price with your electricity bill.
On Wednesday, Tauranga's Tam McDonald said in the Times report that he and his wife used the power switch website to compare prices and switch from Trustpower to Genesis.
"I am with Trustpower and responsible for the power and origin of natural gas.
The electricity bill went up and there were only two of us at home, and at some point in the year the electricity bill was close to $200 plus the gas cost was $100.
"TECT investment value of tecpower shares before restructuring announcement: $492 inclined renewable energy stocks: $165 * TECT Management Fund: $170 * Wind Power Online split www. tect. org. nz www. trustpower. co.