TECT Chairman Bill Holland said the change was subject to a five-week consultation process with Trustpower consumers who were entitled to receive cheques.Photo/File
TECT Chairman Bill Holland said the change was subject to a five-week consultation process with Trustpower consumers who were entitled to receive cheques.Photo/File
The end of an era could be looming for Trustpower customers' big freebie - TECT cheques.
As reported this week, Trustpower customers' annual TECT cheque windfall could end in five years if the majority agree to put the money into community projects.
It represents a potentially huge change in howthe Tauranga Energy Consumer Trust (TECT) distributes its $30 million annual income.
The deal to cease payments at the end of 2022 will see each Trustpower consumer receive a one-off $2500 cheque later this year plus a further five annual TECT cheques worth $360 each.
The proposed change will be subject to a five-week consultation process with consumers. If, after consultation, the trust agrees to end the cheques in 2022, the issue will be decided by consumers in a binding referendum around April.
The story has generated a lot of debate online, with most posters supporting the status quo on the grounds that the TECT cheque is a boost to family budgets.
Such concerns are understandable. The payments are a significant bonus for Trustpower customers - the average cheque last year was worth $497.
This point has been raised by chief executive Vince Hawksworth who says the proposal to cease TECT payments in 2023 could have unintended negative consequences for some customers.
In particular, he notes the impact it could have on superannuitants and low-income families who rely on annual payment.
He suggests a greater range of options should be presented to consumers, including shifting a greater proportion of funds toward charitable distribution.
It's a fair point.
However, the strength of the proposal put forward by TECT is huge funding stream it could open up for community projects in the city.
Under the plan, it's estimated that the amount donated to community organisations would more than triple under the proposal to reach $24m to $25m a year if the change goes ahead.
Having lived in a city that had a licensing trust and seeing the impact its annual grants have on that community in terms of public facilities, the proposal put forward by TECT is an interesting one.
Such a massive increase in community funding could make a huge difference to our growing city.
An often-heard complaint is that Tauranga lacks facilities that other much smaller centres take for granted. Even that we are city without a soul - such is the is the pace of growth. The counter-argument to keeping the cheques is that $25m could put a lot of soul into New Zealand's lifestyle capital.
