Hands up if you’ve got any questions
Our first responsibility is to our beneficiaries, so it’s important that you understand how we run the Trust, why we make the decisions we do and everything to do with the dividend payment. So if you don’t find the answer you’re looking for in this section, click here to send us your question and we’ll answer it as quickly as we can.
Who receives an AECT dividend?
AECT income beneficiaries receive the dividend. People and organisations that receive an AECT dividend are called income beneficiaries, because they benefit from the AECT’s Vector shareholding by receiving a dividend (that’s the income). AECT income beneficiaries are made up of Vector Electricity customers in the Trust district of Auckland, Manukau and northern Papakura (the old AEPB area). The AECT has more than 310,000 income beneficiaries, making it the largest consumer trust in New Zealand. Your choice of electricity retailer doesn’t affect your dividend.
Your AECT dividend is paid if you are a Vector Electricity customer living in the AECT area on the dividend date. Vector is a lines company, not an electricity retailer. So whichever electricity retailer you choose, you are probably still a Vector Electricity customer, since your power is supplied by the Vector network. (Electricity retailers in the Trust area include Mercury Energy, Contact Energy, Energy Online, Pulse Utilities, Powershop, Bosco, Auckland Gas, Genesis, Meridian and Trustpower.) If your name is on the electricity bill, you’re the beneficiary. A Vector Electricity customer is the person or organisation with their name on the power bill at the dividend date. So even if you’re renting a house, flat or commercial building, if you pay your own power bill you’ll usually be the one to receive the dividend – not the landlord.
The eligibility date – helping us decide who qualifies each year
To receive a dividend, you need to have had a power account inside the Trust area on the eligibility date. (This date is not made public until after it passes.)
What happens if you’re an Easy Meter or Glo-bug customer?
You still get a dividend just like any other AECT beneficiary.
Why Vector customers outside the AECT area don’t get a dividend?
Customers in the UnitedNetworks areas of the Vector network do not get an AECT dividend because, when the electricity reforms took place in 1994, those customers received shares in their lines company, UnitedNetworks. Those shares have since been bought by Vector, and all shareholders paid. Instead of a direct shareholding in their lines company (Vector), customers in Auckland City, Manukau City and parts of Papakura became AECT beneficiaries and receive an annual dividend from the AECT’s shareholding in Vector.
Why Vector pays the AECT a dividend?
Like any commercial company, Vector is expected to make returns to its shareholders by paying them a dividend. Dividends are paid out of the company’s profits. However the company does hold on to some of its profit to reinvest in the business and to pay for the undergrounding of power lines. The AECT has an agreement with Vector that commits it to spend a significant amount every year on undergrounding projects. Without the undergrounding projects the dividend would probably be higher, but because of its benefits to the network and beneficiaries, the AECT and Vector have agreed to this ongoing investment.
For answers to questions specifically about the dividend, click here.
Call us free on 0508 AECTINFO (0508 232 846)
Or write to AECT Freepost 3539 Private Bag 92119 Auckland 1142