7 December 2016
Every Northpower electricity consumer in Kaipara and Whangarei districts is to receive $80 from the Northpower Electric Power Trust.
NORTHPOWER currently returns a share of its profits to Whangarei and Kaipara residents connected to its electricity lines network as follows:
The Northpower Electric Power Trust (NEPT) returns a share of the operating profit by awarding a fixed amount to be paid to each connected customer as at the declared eligibility date. This payment is exempt from GST (tax free). It often occurs in November or December each year. The date and amount are announced via media and a press release on Northpower’s website. Following any NEPT Distribution announcement, a credit should appear on the subsequent power bill you receive from your electricity retailer and is referred to as something like – ‘Northpower Trust Distribution’.
The Northpower Electric Power Trust owns Northpower on behalf of those consumers connected to Northpower’s electricity lines network in the Kaipara and Whangarei Districts.
In 1992 legislation was passed that required North Auckland Electric Power board to become a legal corporate entity. Northpower began its first year in 1993, with the Northpower Electric Power Trust (NEPT) holding 100% of the shares in the company, on behalf of the consumers.
Since then, the Trust has received an annual dividend from Northpower. The Trust can either reinvest this amount in the company or redistribute it to consumers. The Trust maintains the philosophy of returning money back to consumers and has returned over $90 million since 1993.
This is so Northpower’s consumers directly benefit from the growing success of Northpower.
Changes to the way your Northpower dividend is paid
In the past you would have received a payment from the Trust around December and a line charge rebate from Northpower around February each year. Both payments would have appeared on your electricity retail bill. From this year, all distributions will be made from Northpower to the Trust, who will then make distributions to its beneficiaries (the electricity consumers in Whangarei and Kaipara). While we recognise our consumers will be used to seeing two separate rebates on your electricity bill, we anticipate that taking this step now and consolidating the two payments into one, will improve the transparency of pricing information. In addition, some of the benefits to the company of splitting the payments are no longer available to us.
Over the coming years some essential investments are also planned. One of these is the $30 million investment we are making in expanding the Northpower Fibre network to 12 more towns around Kaipara and Whangarei. In the medium to long term we expect these investments to result in increased Northpower Trust dividends to our consumer beneficiaries.
If you would like further information please contact Steve Macmillan - 0800 667 847