Time to rethink rebate payout

During the electricity reforms in the early 1990s, there were many decisions made around the country as to how electricity consumers would benefit from “ownership” of power networks.

Trusts were formed to manage and administer the funds.

Some opted to return dividends to consumers by giving customers a credit on their power bill. It ensures consumers receive the money, but the consumer has no choice on how it is spent — it pays for their power.

Other trusts invest the dividend in a central fund, investing the investment, in other words.

The money is put back into the community via grants and donations.

This mode works well in a regional economy that welcomes a kickstart for prosperity projects, as well as grassroots community project involvement.

Rotorua employs this model.

The downside is that money does not go into the pocket of the consumer. But the community benefits.

Here in Hawke’s Bay, consumers receive a cheque from the Hawke’s Bay Power Consumers’ Trust, which owns electricity distributor Unison Networks.

This year the payout is $220.

And each year, about 1500 cheques are not claimed. That’s roughly $300,000 that does not get paid out, and stays in the trust’s coffers.

The Hawke’s Bay Foundation is a local charitable trust which recognises that not everyone cashes their cheque, and is asking that those people donate the $220 to the foundation instead.

The foundation has now set up an online donation facility on its website to make it easy for people to gift some or all of their HBPCT dividend to charity.

With the Hawke’s Bay Power Consumers’ Trust contemplating its distribution future in the coming year, perhaps now is the time to suggest some timely changes.

A hybrid distribution model whereby communities and individuals benefit would be ideal for Hawke’s Bay.

The current model could be adapted so cheques unclaimed by an agreed date are automatically donated to a trust responsible for investing and distributing the money.

And if the consumer trust ever stops writing cheques and adopts direct crediting, an agreed percentage — based on the number of cheques unclaimed historically — could go to the new trust.

Changes like these are not easy — trusts have watertight deeds for good reason, to protect the core investment.

But if there is a collective will, a region like Hawke’s Bay can easily achieve the “way”.

■ To donate your $220, visit hawkesbayfoundation.org.nz or phone 870 4648. All donations over $5 are eligible for a 33.3 per cent tax rebate.