ENTRUST ELECTION: Frequently Asked Questions (FAQs)
What is Entrust?
Entrust (formerly known as Auckland Energy Consumer Trust) is New Zealand’s largest community energy trust. As part of the electricity reforms of the 1990’s the lines business of the old Electric Power Boards was put into community trusts.
The Entrust District covers approximately 365,000 households in the former Auckland Electric Power Board area.
What does Entrust do?
Entrust owns 75.1% of Vector. Vector is Auckland’s lines company with the sole responsibility for the distribution of electricity in the Auckland region. The “lines charge” on the power account is paid to Vector.
Entrust is best known for paying an annual dividend to “beneficiaries,” the person on the power account in the Entrust District.
Entrust is a community trust set up to serve the community via its ownership of a historically community-built asset. It’s prime responsibility is to serve the interests of “consumers”, the community.
For an electricity trust, we believe the ‘interests of consumers’ are specifically in:
Lower power bills
Increased security of supply
Greater resilience during emergencies
Addressing energy poverty
Advancing decarbonisation
How much is the dividend?
The dividend is the return on Entrust’s majority shareholding in Vector.
In 2006, the annual dividend was $310, which would be $483.44 in today’s money. In real terms the dividend has decreased by 27.5% over 18 years.
(For dividend enquiries call 0800 436 878 - we’ve heard that some people have ignored emails about the dividend because they think it is a scam)
Why do some Aucklanders receive the dividend but not others?
Waitakere and North Shore consumers sold their assets in the old Waitemata Power Board for a one-off windfall. At the time this represented a massive transfer of public assets into private ownership of a historically community-built asset.
What happened to 24.9% of Entrust’s shareholding in Vector?
In the 2003 trustee election, C&R were elected on a policy to “Keep Vector in public hands.” A little over a year later 24.9% of Vector shares were floated to pay for the takeover of gas lines company NGC.
The October 2000 election was the only time a non-C&R majority has been elected. The centre-left Powerlynk team won a majority on the trust board by pledging that Vector, would not be privatised-wholly or partly if elected. Karen Sherry, leader of Powerlynk, said at the time “Powerlynk is a team of independent, concerned Aucklanders who will keep 100 per cent ownership…”We do not favour any change from 100 per cent community ownership. Privatisation will put profits above fairness and service.”
After being elected as a strong advocate against the privatisation of Vector, Karen Sherry then re-joined the C&R trustees and used her vote 3 years later to ensure 24.9% of Vector ended up in private not trust ownership.
What influence do the Trustees have over Vector?
The Trustees appoint two directors directly to the Vector Board. But also as majority shareholder maintain significant influence over all board appointments. Therefore Entrust Trustees have, or should have, defining influence in all governance matters at Vector, such as setting high order strategy, overseeing compliance and audit practices, defining key risks, interaction with the regulators, and appointing the CE.
How can Entrust impact power prices?
The three principle ways Entrust can influence power prices in general are through setting the strategic direction of Vector, which will have a bearing on the lines company’s overall network costs, which are recouped through our bills.
Second, by lobbying the regulatory bodies and central government of the day to alter the wider electricity market parameters, structures, and processes. The latter is particularly important as market reform is long overdue.
Thirdly, and most importantly, enabling and accelerating a rollout of the cheapest ever means of generating electricity -solar and batteries, across our biggest city is the single most powerful and cost effective move available to bring down power prices.
How much are Trustees paid?
There are 5 Entrust trustees. The total trustee remuneration pool paid in 2023 was $370,650.00. Individual Trustees receive $68,000, the chair nearer to $100,000.
In addition, two Trustees are appointed to the Vector Board. In 2023 Alastair Bell and Paul Hutchinson received a combined $259,000 in addition to their Trustee fees.
What do Trustees do?
At a minimum Trustees attend monthly meetings and sub-committee meetings. The two Vector board directors have additional responsibilities. The current commitment of the incumbents is not fully known because they do not regularly report on their activities.
In 2023, Entrust’s AGM, and the only public meeting fronted by the Trustees, lasted for 34 minutes and was attended by 29 people. The 2024 AGM is scheduled to take place the day before voting closes on 25 October so the majority of voters do not have full disclosure of information from Entrust when voting.
Why does this election matter?
Entrust is owned by the people of Auckland. Entrust can influence power prices, security of energy supply, community resilience, emissions reductions, undergrounding as well as the return received from Entrust’s majority shareholding in Vector.
The incumbent team, C&R has controlled Entrust for over 30 years. Read here about why fresh leadership is needed.
Why haven’t I heard about the Entrust election before?
Traditionally there is very little media coverage of the election. The incumbent Trustees control the election rules and have not allocated any budget to allow Entrust to promote the election. Low-key elections with general confusion and disengagement has served the incumbents well for 30 years. They have not acted to change this.
There is also only one vote per household regardless of how many people live in the home. You may not be aware that the power account holder has received the voting papers especially if you are renting. (Apartment dwellers may not even have the right to vote if the power account is in the name of the body corporate).
Who are More for You, Better for Auckland ?
More for You, Better for Auckland is an independent team of passionate Aucklanders. Pippa Coom, Emma McInnes, Jonaan McLeod, Patrick Reynolds, Paul Young who have come together to challenge 30 years of C&R’s control of Entrust.
The team has a range of political backgrounds and draws on support from wide networks across Auckland.
We are building on the More for You, Better for Climate campaign 2021 which first challenged the status quo to sustainably increase Vector’s dividend, a reduction in energy poverty and an Auckland better prepared for climate change. The 2021 election was particularly difficult due to covid restrictions and low turnout (only 9.6%!) but it showed the importance of an independent team challenging C&R to a real debate on the energy issues of our time.
More information about the team on our website
What will More for You, Better for Auckland do differently?
We will be active trustees, not simply passively taking the fees then waking up once every three years to claim the dividend payouts are only from us. In particular we will lead Vector to prepare the Auckland market to deal with the risks and opportunities of the age: develop a distributed market structure, to accelerate the rollout of solar and batteries. To catch up with comparable cities in Australia, and to give users an opportunity for relief from the overwhelming power of the big gentailers. More about our policies on our website
In addition, More for You, Better for Auckland will make Entrust more accountable and transparent. For example, as a minimum we will maintain a register of interests, publish minutes after every meeting, hold regular community meetings and adopt public friendly disclosure rules used by publicly elected organisations in New Zealand.
Will I still receive a dividend if I vote for More for You, Better for Auckland?
Yes, More for You, Better for Auckland want to increase the return from Entrust’s shareholding in Vector. This can only happen with new leadership committed to a sustainable, future focus for Vector.
Who can vote for the Trustees?
The person with their name on the power account gets to vote every three year in the Entrust election for the 5 Trustees. This generally means there is just one voting paper per household. If there are two people on the power account, the voting papers will go to the person named first. Voting papers started arriving in mail boxes from Thursday 10 October and should have arrived no later than Tuesday 15 October.
How do I vote?
UPDATED following confirmation from the Returning Officer:
Pop the pre-paid envelope with your voting papers in a NZ Post Mail box OR a DXMail mail box no later than 5pm Thursday 24 October to arrive in time; OR
Drop off voting papers in the Entrust provided envelope one of the 10 Woolworths with orange ballet boxes (Waiheke Island, Quay Street, Mt Eden, Mt Roskill, Greenlane, St Johns, Mangere Mall, Manukau City Centre, Botany Downs, Pakuranga) or at the Election Office: Marketing Impact, Level 1, 79 Hugo Johnston Drive, Penrose right up until 5pm on Election Day Friday 25 October.
Resources provided by the Returning Officer here about where to find mail boxes https://www.electionz.com/entrust/
Voting papers should have arrived no later than Tuesday 15 October. If you didn’t receive your papers contact 0800 666 030.
Can the Entrust Election be modernised?
Yes, Trustees can take steps to amend the Trust Deed (by application to the High Court if necessary) to modernise the election so that it is no longer just by postal vote and to extend the time available to vote. The voting rules in the Trust Deed were drafted in 1993 and are no longer fit for purpose.
