TECT trustees have agreed to go ahead with a structural change that will see the trust wound up within 30 years - which will also spell the eventual end of TECT cheques.
The decision followed Trustpower's announcement in January that it was undertaking a strategic review of its retail business, including a possible sale.
It also follows a month-long consultation period with its Tauranga Energy Consumer Trust beneficiaries.
People who were customers of Trustpower as of January 28 are expected to continue to receive a rebate from TECT for the next 30 years, provided the funds are there.
The rebate will be $500 a year for the first 10 years. This will increase to $600 in 2030 and increase further to $700 in 2040, to take account of inflation. The average median rebate payment over the five previous years was $500.
In a statement released this afternoon, TECT said a sale of Trustpower's retail business to a third party would mean that TECT beneficiaries would no longer be Trustpower's 53,000 Tauranga and Western Bay local retail customers.
Instead, TECT's beneficiaries would only be a small number of larger commercial electricity users that will remain customers of the Trustpower Generation business.
The proposal that was consulted on balanced the protection of the annual TECT rebate for existing beneficiaries with the purposes for which TECT was established, while providing long-term benefit for everyone in Tauranga and the Western Bay, the statement said.
Trustees will now apply to the High Court for directions. The restructure will only take effect if the High Court makes those directions.
Trustees will seek an independent QC to be appointed to help in scrutinising whether trustees were exercising their powers appropriately.
TECT beneficiaries will be notified once the application is filed.
The statement said all beneficiaries had the right to take part in the High Court process and have their views heard.
TECT chairman Bill Holland said in the statement 791 written submissions were received during the consultation period, and 32 of these were heard during the oral hearing that took place on March 25.
"After a comprehensive consultation process, trustees have reviewed all the feedback and have today adopted a final proposal for changes to the trust.
"Approximately two-thirds of submissions received were supportive of the changes in the proposal and its focus on protecting the rebate, which is very encouraging and has given us the confidence to proceed to the next stage in the process.
"As a result of these deliberations, trustees are satisfied that the proposal that was consulted on is the best solution to take forward.
"Trustees would like to again thank all those who engaged with the process and provided their views through a written submission, attendance at one of our consumer information sessions or at the oral hearing.
"We know how important TECT is to the Tauranga and Western Bay communities and it has been heartening to see the level of engagement from beneficiaries over the last month.
"We are confident that the final proposal will ensure that TECT will continue to bring long-lasting benefits to the Tauranga and Western Bay communities while future-proofing the rebate for existing beneficiaries," Holland said.
For more information on the proposal and changes that were consulted on, please visit www.tect.org.nz.
