Cynically-timed “windfall” hides C&R’s poor performance governing Entrust

Media release: 23 September 2024

Entrust, Auckland's community-owned power trust, has just announced this year’s annual dividend to power account holders derived from its majority shareholding in listed energy company, Vector.

But the “windfall” is an illusion that covers up a downward spiral of investment, says Patrick Reyonds, spokesperson for More for You, Better for Auckland, the independent ticket challenging C&R’s grip on the community trust.

“Households and businesses struggling with power bills in a cost-of-living crisis and uncertain power supply deserve a more future-focused approach.”

“C&R have controlled Entrust for over 30 years. Every year they claim the dividend as an unexpected win for consumers. In reality, it’s a cynical ‘sugar-hit’ which masks consistent decline in real value, due to decades of C&R inaction,” says Reynolds.

Entrust’s official communications, fronted by C&R Trustees, make the misleading claim:  We’ve been putting money in your hands and boosting the Auckland economy every year since 1996 and our numbers increase each year.  

“This is simply not true,” says Reynolds. “Under C&R, Entrust takes money from consumers with one hand, and hands back a small, shrinking, and taxable fraction of it with the other. Moreover, under C&R, these returns on the community's asset have steadily reduced in value.”  (See accompanying graph)

“In 2006, the annual dividend was $310, which would be $483.44 in today’s money. So in real terms, C&R have overseen a 27.5% decrease over 18 years, while doing little to encourage the adoption of cheap and proven innovative technology that would realistically lower power bills for Aucklanders.”

It’s also no coincidence that the dividend – and extensive paid advertising about it – appears just before the election of new trustees. “Aucklanders need to ask: is this effectively a bribe?” says Reynolds. “It certainly comes across as blatant, self-serving electioneering, and we believe Aucklanders can see through it.”

More for You, Better for Auckland notes that as the incumbents, C&R controls the timing and process of the election. In 2021, turnout in the election for the 5 trustees of Entrust hit an all time low of 9.5% from a short two-week postal election.

“Auckland households are struggling with increasing power bills in a cost-of-living crisis. It’s grossly misleading for C&R to trumpet the dividend as a ‘windfall’, when it comes directly out of the pocket of the households who are paying the bills,” says Reynolds. 

“Our alternative is far better for Auckland, and for Aucklanders’ wallets. More for You, Better for Auckland offers fresh leadership and a 21st century approach: rolling out solar and batteries onto all sorts of buildings, to free up Aucklanders from ever-rising power prices, ensure security against outages, and invest in growing this vital community asset.”

Contact:

Patrick Reynolds

Phone 0274 722 388

patrick@patrickreynolds.co.nz