Network Tasman Consumers Benefit By $300 Million

This year Network Tasman Trust celebrates 30 years of consumer ownership, a decision that trustees Patrick Adamson and Judene Edgar say was pivotal in the region’s history and puts the region in a good position for the future.

In 1993 communities throughout New Zealand debated what should happen to their local power board. Options included public companies, takeover by the local authority, or consumer or community ownership.

“It was a big issue at the time,” says Patrick, “but the decision was made for Tasman Power Board to become consumer owned, so the Trust and Network Tasman Ltd were established.”

At the same time, Nelson Electricity was a Municipal Electricity Department run by Nelson City Council, and they formed a commercial company, Nelson Electricity Limited, which they subsequently sold for $30 million in 1996.

The first Network Tasman trustees were elected with the inaugural board chaired by the former Prime Minister, the late Sir Wallace (Bill) Rowling. Now representing over 42,000 households and businesses, consumer ownership has provided significant benefits including more than $300 million in discounts and dividends.

“Importantly, this is money that has stayed within the region,” says Judene. “And over that time Network Tasman Ltd has grown significantly in value and continues to upgrade and expand its network to serve more people.”

“We are in an enviable position,” says Judene, “Network Tasman has no debt and continued growth and has one of the lowest lines charges in the country.”

The trustees appoint the directors of Network Tasman Ltd (the company) and oversee their financial and asset management and strategic direction on behalf of its consumers. In addition to the line discounts, this year to the value of $14.1 million, by achieving its targets the company can pay a dividend to the Trust who provide a distribution to the consumers and supports the community through annual grants to community organisations and scholarships.

“Last year we granted $222,000 to a wide range of organisations that do amazing work in our community, as well as supporting people representing New Zealand overseas and providing scholarships to four students going on to study at university,” says Patrick.

There are six trustees on the Trust, five which are elected by the consumers, and one who is appointed by the three largest consumers. This year the election is for three trustees – Ian Barker who served as a trustee for 12 years is not re-standing and trustees Patrick Adamson and Judene Edgar, who have both served for six years, are re-standing for election this year.

The election is conducted by postal and online voting with the election day being Thursday 22 August. Voting papers and instructions will be delivered to all customers connected to the Network Tasman network between 1 and 7 August.

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