PROPOSAL ON THE EVOLUTION OF TECT
TECT TRUSTEES WITHDRAW EVOLUTION PROPOSAL
In January, TECT Trustees sought Consumers' views on a proposal regarding the future of the Trust. Trustees have appreciated the efforts of TECT Consumers for their thoughtful engagement with this process and thank those that took the time to submit and speak to their submissions at the oral hearings.
After completion of the consultation process and consideration of the submissions, the TECT Trustees have announced that they are withdrawing the proposal.
The full media release about the withdrawl of the proposal can be viewed HERE
Submissions on the TECT proposal closed at 4pm, Thursday 1st March 2018. Thank you to all those that submitted – we certainly appreciate you taking the time to provide us with your feedback.
Verbal submissions were heard from March 7-12. Thank you to those who took the time to speak to the Trustees and to those came along to hear the thoughts of Consumers.
Access to Submissions
Those Consumers who wish to view the submissions received can do so at the TECT office. Our office is at 525 Cameron Road, Tauranga.
PROPOSAL ON THE EVOLUTION OF TECT
A lot has happened in the last twenty-five years since TECT was formed. There’s now more choice in electricity retailers, accelerating disruptive technological change, high population growth and different expectations from local communities.
There’s no doubt these changes are impacting TECT and TECT’s Consumers. The 2016 demerger of Tilt Renewables from Trustpower was further evidence that more change is inevitable.
Doing nothing is no longer an option for TECT.
As a result, the Trustees believe now is an appropriate time to look at how TECT can be future proofed. In line with this view, we have developed a proposal, for consultation with Consumers, that seeks to balance the interests of current and future beneficiaries.
HERE'S WHAT THE TRUSTEES PROPOSED:
• The assets of the Tauranga Energy Consumer Trust would be distributed or transferred to the TECT Charitable Trust, after a one-off $2,500 payment to Consumers as outlined below.
• TECT Charitable Trust’s focus would be solely a provider of funds to community and charitable groups and over time Trustees would aim to triple the amount available for community projects and groups (in 2017 it was $7.7m). Increased distributions would commence from 2019.
• TECT cheques would change:
- Eligible Consumers* would receive a one-off lump sum TECT cheque payment of $2,500, representing about five years’ payments based on the current average annual TECT cheque (in 2017 it was $497).
- There would be five more years of TECT cheques. $20M would be distributed annually to Consumers from 2018 through to 2022 (based on the number of 2017 eligible Consumers this equates to approximately $360 per Consumer account).
- After 2022, there would be no further Consumer cheques, and the Tauranga Energy Consumer Trust would be wound up.
• From 2023, income would be distributed exclusively into Tauranga and Western Bay of Plenty community and charitable organisations through the TECT Charitable Trust.
* Eligible Consumers will be those with a Trustpower power account in the TECT District in the same name from 1 January 2018 and continuously through to 30 June 2018.
Trustees are clear that this is a once in a lifetime transformational opportunity to effect meaningful change in Tauranga and the Western Bay of Plenty.
We will listen openly to your feedback during the consultation process. The Board will respect the wishes of Consumers.
Natalie Bridges, Paul Tustin, Ron Scott, Bill Holland (Chair), Amanda Sutcliffe, Pete Blackwell