PROPOSAL ON THE EVOLUTION OF TECT

TECT TRUSTEES WITHDRAW EVOLUTION PROPOSAL

In January 2018, TECT Trustees sought Consumers' views on a proposal regarding the future of the Trust.  After completion of the consultation process and consideration of the submissions, the TECT Trustees  announced in March 2018 that they would withdraw the proposal.

A summary of the consultation feedback is available HERE

 

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.

Natalie Bridges, Paul Tustin, Ron Scott, Bill Holland (Chair), Amanda Sutcliffe, Pete Blackwell

 

FURTHER INFORMATION

Notice of Proposal
Information Booklet
Trust Deed - Tauranga Energy Consumer Trust
Trust Deed - TECT Charitable Trust
Proposed Trust Deed for TECT Charitable Trust
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