Entrust (community trust)

Entrust, formerly named Auckland Energy Consumer Trust (AECT) prior to June 2016,[1] is a trust for electricity consumers in Auckland, New Zealand. Formed in 1993 as sole owner of the original Mercury Energy Limited, it is now majority owner of electricity and gas distributor Vector Limited, a child of the original Mercury, the other child being the retailing division of Mercury Energy. The Trust will be wound up in 2073 (80 years after its formation) and its assets transferred to the local government authority or authorities in the Trust district[2] (at present this would be Auckland Council). There have been calls for the Trust to be wound up sooner.[3][4]

AECT owned 75.1% of the shares in Vector in 2015, worth about $2 billion.[5] It holds the shares on behalf of Vector's 300,000 customers and distributes dividends from Vector to its customers. The remaining 24.9% of Vector shares are traded on the NZX Main Board stock exchange.

As part of electricity industry reforms in 1993, the consumer-owned Auckland Electric Power Board became Mercury Energy Limited and AECT was set up to own it, keeping control in the hands of electricity consumers. Similar trusts were established elsewhere in the country. Mercury was the electricity distributor and retailer for Auckland, Manukau and Papakura. In 1998 the government split the electricity sector into distributors (lines companies) and retailers, and accordingly Mercury was split. The retail business was sold to Mighty River Power and the lines business being kept and renamed Vector Limited. AECT was the sole owner of Vector until 2005, when it allowed Vector to make a public float of 24.9% of its shares to raise capital to buy gas company NGC Holdings.[6][7]

  1. ^ "Media releases". Entrust. Retrieved 19 June 2016.
  2. ^ "Who qualifies". Auckland Energy Consumer Trust. Retrieved 24 October 2015.
  3. ^ O'Sullivan, Fran (24 December 2006). "Switch off energy trust". The New Zealand Herald. Retrieved 24 October 2015.
  4. ^ Slade, Maria (11 December 2014). "Campaign to scrap Auckland power dividend cheque gains momentum". Stuff. Retrieved 24 October 2015.
  5. ^ "About Vector". Auckland Energy Consumer Trust. Retrieved 24 October 2015.
  6. ^ "AECT history". Auckland Energy Consumer Trust. Retrieved 13 June 2009.
  7. ^ "History". Vector Limited. Archived from the original on 30 May 2009. Retrieved 13 June 2009.