A cheque for $150 will be posted late this month to more than 55,000 electricity account holders in Napier and Hastings, injecting almost $9 million into the local economy.
The cheque is from the Hawke's Bay Power Consumers' Trust dividend distribution from consumer-owned Unison Networks.
Trust chairman John Newland said the $150 payment was tax free.
He said a leaked Inland Revenue memo, which revealed the government department was considering taxing electricity dividends at 28 per cent, did not apply to Hawke's Bay.
Mr Newland said Inland Revenue was focusing on distributions from electricity trusts because some people were not aware of the tax liability associated with their dividend payment.