Switching to a charitable trust would give TECT greater flexibility in the long term to diversify its investment portfolio by selling some of its Trustpower shares, he said.
Holland said TECT's 26 per cent shareholding in Trustpower was vulnerable to changes in the energy sector. He cited technology changes like household solar power units, structural changes in the industry like takeovers, and political interference in the electricity pricing market.
However it would be crazy if TECT restructured into a charitable trust but continued to pay cheques to Trustpower consumers living in the Western Bay, he said.
''It would make a nonsense of the whole thing.''
As an example of the uncertainties, he said TECT was contacted last October by a power company operating in New Zealand, with the same company contacting him again yesterday.
Holland assumed that the company was ''sniffing around with a view to buying into Trustpower.'' He said he did not ask and they did not tell him, and nor did they tell TECT last October, although valuing Trustpower did come up in conversation. He would not disclose the identity of the power company.
Trustpower had told TECT that there was no deal on the table with another power company, but this was not to say it could not happen in the future, he said.
Vince Hawksworth, Trustpower's chief executive, said there had been no talks with rival energy companies in the recent past except the already announced takeover bid for King Country Energy.
He speculated that it sounded like a good competitive strategy for one of Trustpower's competitors to ring up one of its shareholders and get them all worried.
Hawksworth said Trustpower was a listed company that had to disclose material information like that. ''No one has been to even begin to make an offer.'''
Holland illustrated further uncertainties in the energy market by pointing to a story in the New Zealand Herald's business liftout yesterday. The article said the electricity industry was ''rife with gossip'' about the Government's review of the sector.
It said Energy Minister Megan Woods was talking about ''future proofing'' the system to cope with new technology, while New Zealand First ministers were focused on the price people paid and their dislike of the current regulator, the Electricity Authority. The Greens were focused on renewables and also had strong views about pricing mechanisms.
''Things are happening . . . we are trying to provide certainty and to de-risk the whole thing,'' Holland said.
Derisking TECT's investment portfolio could not be achieved without this restructuring, and the majority of submissions from consumers yesterday supported the direction proposed by the trustees, he said.
''We cannot assume that the TECT cheques will continue in their present form . . . what happens if we end up having shares in a company that is not paying dividends.''
Holland insisted that the trust had an open mind and he wanted to hear from people who felt the trust had missed something.
He said TECT had recognised that Trustpower had to maintain as much of its current consumer base as it could, and trustees were proposing to give the company five years to achieve that goal.
''It is not like it is an overnight thing. There is no need for people to shift (to another power company),'' he said.
Fifty-one per cent of Trustpower's shares were held by infrastructure investment company Infratil and 26 per cent by TECT.
Tauranga's mayor Greg Brownless said that in the long term, the changes would be good and the proposal deserved serious consideration.
''Without the TECT cheque, Trustpower might look at its price variation compared with the rest of the country.''
Brownless said it could end up being a win-win for Trustpower customers and community organisations whose donations from TECT would treble to about $24m or $25m a year.
Hawkesworth responded that he was not sure where the mayor was getting his information from, but he was prepared to take the Bay of Plenty Times through this perception around Trustpower's electricity prices.
Brownless said it was good that Trustpower customers would get to vote on the issue by a binding referendum.
What people think about losing the TECT cheques.
''The outcome rests with Trustpower consumers and I deem they will opt for the status quo. In this economic environment, getting the November cheque is a definite bonus for the community which I think people will not want to lose.''
John MacClure, 70, Brookfield 20180125_140938.JPG
''It is very nice when you get it. I usually give it to me wife. It is something people look forward to - getting something back for nothing. I would like it to stay.''
Doug Harrison, 88, Te Puna 20180125_141320.JPG
''I always enjoy getting the cheque. It comes at a time of the year when it is more helpful, but TECT have got to look at the long term. I would miss it, but I see what they are trying to do and how it would benefit community organisations.''
Grant Vincent, 58, The Lakes 20180125_141934.JPG
''I like the idea of the community aspect but I want to think about it some more. It is not something I am dead set against and what I want to understand is what are the changing conditions, what is driving it.''
Craig Cleary, 46, Otumoetai 20180125_143800.JPG
