A Fair Share For Auckland Power Customers

Industry Updates
Loss rental rebates (LRRs) are the surplus created once the costs in the electricity wholesale market have been worked out. We receive this as a credit note from Transpower.

Previously, we’ve passed this on to power retailers, with an expectation that the benefits are then passed on to power account holders on our network.

This year, we’ve made the call to make this process more transparent. Instead of passing the credit back to retailers, we will return $16 million directly to account holders. To us, this change is simply about ensuring a fair deal for Aucklanders when it comes to electricity expenses.

Loss Rental Rebates FAQS

Please see answers to common questions below. If your question isn’t covered, you can call us on 0800 388 820.

Loss Rental Rebates FAQs

Am I on the Vector electricity network?
I lost/never received the cheque, what can I do?
Please call us on 0800 388 820. We will check your eligibility details and can arrange payment   
Cheque has wrong name on it, can I get it reissued?
Please call us on 0800 388 820. We will check your eligibility details and can arrange payment   
 
My bank won’t let me deposit the cheque as they say it has gone stale – how do I get a new cheque?
Banks normally won’t deposit a cheque more than 6 months after the date of issue (17 August 2018) as they are considered stale - unfortunately we are not reissuing these cheques. 
 
I didn’t get my Entrust Dividend – please help:
Entrust manages the dividend process, Vector doesn’t have access to it, so please contact them to discuss this issue: https://www.entrustnz.co.nz/contact-us/

 
How will the payment be made? / Can I have the payment direct credited to my bank account?
If you’re part of the Entrust district in Auckland, the refund will come with your dividend payment in September, so payment will be via Direct credit, cheque or bill credit, depending on which method you selected to receive your dividend. 
If you’re on the Northern network, payment will be via cheque in August. There is no provision for direct crediting bank accounts of customers on the Northern network. 
See map here for the network areas.
What if I move out before I get the payment – will I get my payment?
The payment will be made to those who hold a power account at a specified date later this year, so if you’ve moved out of the area before this date you will not be eligible for the payment.
Will I need to pay tax on this?
You should not need to pay tax if you’re a homeowner, but you may need to declare this payment for tax purposes if you’re a business, however, we recommend you seek your own independent tax advice.
 
What area does this apply to?
We’ll make the payment to every home and business with a power account on the Vector owned and operated electricity networks. If you live in the Entrust District, you’ll also receive an Entrust Dividend each year as your share of Vector’s annual profit; this payment does not affect your entitlement to the dividend. (Entrust owns 75.1% of Vector on behalf of people living in the Entrust District.)  See map here for the network areas.   
You can see entrustnz.co.nz for more information about the dividend.
Will this happen every year?
Our plan is to make payments directly to you on an annual basis for as long as we keep receiving loss rental rebates (LRRs). If there are any legal or other changes around the way power is paid for or how we receive LRRs, then the payment could end too or be paid in another way.
Why is this happening now / what used to happen?
Up until about 18 months ago we’ve passed the loss rental rebate surplus in its entirety through to power retailers by including credit notes in our lines charges invoices. We relied on power retailers to then pass this benefit on to Auckland customers only.
We think its fairer and more transparent to return the money directly to Aucklanders.
Where does the money come from? / How is it calculated?

This money is from Loss rental rebates (LRRs) which are the surplus created once the costs in the electricity wholesale market have been worked out. It’s a very common outcome that is due to the way the industry economics are structured.  Think of it like a rounding difference in a large or complicated equation. The power payment that you receive is your proportionate share of the LRR after we have deducted our reasonable costs for distributing this.
 

How much will I get?

All electricity customers will receive $30 for each installation control point (ICP) on their power account/s. Most residential customers have just one ICP and receive one payment. Customers such as businesses with more than one ICP will receive more than one payment. We won’t know the exact amount for each ICP until we know how many payments need to be made.

Do I need to let you know if I move?
No, because we get the names of all eligible customers from the power retailers, so make sure you keep them informed if you move.
I was a power account holder for part of the year, am I entitled to some of the payment?

Unfortunately, there is no provision for part-payment. The payment will be made to those who hold a power account at a specified date later this year, so if you’ve moved out of the area before this date you will not be eligible for the payment.


 
My bank charges me to deposit a cheque, can you transfer the money into my account instead,
or will Vector cover the cost for depositing the cheque?
We explored giving customers the option to have the payment direct credited, however paying by cheque was the fastest and most cost effective method, so we went with that. Please speak to your bank about your options for depositing the cheque. 
 
What about Globug customers?
Globug customers on the Northern network will be getting a letter in the post from Vector with a form to fill in to claim their $30. They'll get their letter in the post in August.
I didn’t get the email, will I get the money?
If you are the power account payer, then yes you will. Some customers didn’t get the email because we don’t have an email address for them, however we do have names and physical addresses to send cheques.  We get your name and address from your power retailer, so it would pay to make sure they have your details up to date.