18 September 2008

The Auckland Energy Consumer Trust (AECT) today confirmed its 305,000 beneficiaries in Auckland, Manukau and Papakura would each receive $320 as this year’s return from the Trust’s ownership of Vector - an injection into the local economy of $99.7 million.

Last month Vector announced a full-year dividend of 13.25c per share. As Vector’s majority shareholder with 75.1%, the Trust’s duty is to distribute dividends earned from Vector each year to its income beneficiaries.

The AECT is the largest consumer trust in New Zealand. Its income beneficiaries are made up of Vector Electricity customers in Auckland City, Manukau City and parts of Papakura within the boundaries of the former Auckland Electric Power Board.

Trust Chairman, Warren Kyd said the number of eligible income beneficiaries who will benefit from the Trust’s ownership of Vector has grown this year by 3,000. “Maintaining the $320 return for all existing and new AECT beneficiaries in what has been a challenging year reflects a solid performance from Vector and the prudent management of the Vector asset,” he said.

“Under AECT ownership, Vector has grown from a local power lines company to become one of New Zealand’s most innovative energy and network companies. The Trust’s shareholding is worth approximately $1.73 billion at current share price levels.”

“The Trust’s stewardship and support of Vector’s strategy for growth and development has seen total returns paid to its beneficiaries of over $740 million, showing the significant benefits for the people within the Trust’s area of their ownership of Vector.”

Warren Kyd said the AECT payments to income beneficiaries this week represented a ‘very good’ annual return for households and businesses within the Trust’s area and would be welcomed after a tough winter. The Trust’s beneficiaries receive their payments via cheque, direct credit, or credit to their power accounts.

He said there was a strong move amongst beneficiaries to now have their AECT payment made straight into their bank account and those payments should be showing today (Saturday 20 September). Those who opted to have the $320 credited directly to their power accounts will see the credit on their bill at the end of the month.

AECT income beneficiaries who will receive this year’s payment are Vector Electricity customers in Auckland, Manukau and parts of Papapkura when the dividend roll was compiled.

The dividend is paid to AECT beneficiaries regardless of who their electricity retailer is. The customer is the person whose name is on the power bill sent by their electricity retailer. In the case of rental properties, this is usually the tenant rather than the owner of the building.

The AECT’s website www.aect.co.nz has a section on the dividend to answer any questions or its beneficiaries can call 0508 AECTINFO (0508 232 846).

For media enquiries, Trust Chairman, Warren Kyd can be contacted on 027 446 2489.

About the AECT:
AECT was established in 1993 to own the assets of the former Auckland Electric Power Board (“AEPB”). These assets currently consist of a 75.1% shareholding in Vector Limited, worth approximately $1.71 billion at current share values.

AECT holds these assets in trust for the energy consumers (income beneficiaries) living within the former AEPB boundaries (i.e. in Auckland, Manukau and Papakura) until 2073, at which point they will pass to the local government body or bodies (capital beneficiaries) functioning within the boundaries of the former AEPB. If no such body or bodies exist, the assets will pass to the Crown.

The Trust has five Trustees who are elected every three years by the income beneficiaries within the boundaries of the former AEPB. The Trustees duty is to distribute income earned to income beneficiaries and to maintain or enhance the value of the trust fund, which is the 75.1% shareholding in Vector.

The AECT Trustees are: 
Warren Kyd (Chairman) 
Michael Buczkowski (Deputy Chairman) 
James Carmichael 
Shale Chambers 
Karen Sherry