Opinion: TECT proposal will benefit community

TECT Deputy Chair Paul Tustin gives his view on TECT's proposal to be a charitable trust.

Deputy chairman Paul Tustin on TECT's proposal to become charitable trust.

In an environment of disruptive and rapid change, particularly in the electricity sector, the trustees of Tauranga Energy Consumer Trust have put forward a proposal that they consider will future-proof TECT and benefit consumers and the community. The proposal balances the interests of the current and future beneficiaries.

Over the next four weeks, TECT beneficiaries who are Trustpower customers in the Tauranga and Western Bay of Plenty, will have the opportunity to comment on this proposal.

The proposal, if accepted, is that TECT consumers will first receive a one-off cheque of $2500 later this year (approximately five TECT cheques on average) and continue to receive annual cheques of approximately $360 annually for the next five years. These amounts would be tax-free.

TECT assets would be transferred to the TECT Charitable Trust (which is also a beneficiary of TECT) to be used for community grants as a means of making our community a better one and therefore benefiting future consumers. From 2019 there would be up to three times the amount available for community initiatives and organisations.

This would mean an infusion of up to $25 million a year into the community forever. The proposal would be transformational for Tauranga, which up until now has lacked the community resources of similar sized cities. Whether TECT is supporting Waipuna Hospice, the local surf-club, the rescue helicopter, local schools, or other worthy causes, the entire community will benefit in some way.

Trustees will continue to be democratically elected, and TECT will also continue to operate under a robust consultation process with the community for its grants policies and decisions.

Trustpower will have the benefit of another five years to adjust to the new structure so as to retain customer loyalty, market share and profitability. The trustees have every confidence in Trustpower and its management to successfully navigate this transition.

But this is a decision that is ultimately up to consumers.

TECT will consult with consumers in good faith. We are actively seeking their views. Those views will be taken into account and, if the proposal has support, will be incorporated into a final proposal, which consumers will then vote on.

If you are a TECT consumer, you can submit your proposal online, in hard-copy or in person. There will also be a series of consumer information sessions around the Tauranga and Western Bay district and trustees are available to talk about the proposal to interested groups.

If the result is in favour of the move, then TECT will seek validation from the High Court for approval for the change.

This present proposal, if voted in, will ensure that current consumers are compensated, while the community and future generations will benefit for many years to come.

Paul Tustin
TECT deputy chairman