$15 in your pocket for Auckland power customers

Industry Updates

If you are a family or a business who gets your electricity via the Vector network, you are eligible to receive a payment of $15.

This is your share of a credit that we receive from Transpower known as loss rental rebates (LRRs)

Loss rental rebates (LRRs) are the surplus created once the costs in the electricity wholesale market have been worked out.

This year, we will be passing on $15 to each power account holder on the Vector network in the Entrust District.

For customers on the Northern network, we will be passing this payment on to power companies who should then provide their customers with a credit on their power bill of $15 later this year.

Loss Rental Rebates FAQS

Please see answers to common questions below. If your question isn’t covered, you can call us on 0508 832 867.

Loss Rental Rebates FAQs

How do I know if I’m eligible for the $15 Loss Rental Rebate payment?
If you are a power account holder who lives in the Entrust District (highlighted orange in the map below), you will receive $15 from Vector that will be added to your Entrust dividend payment.  If you are a customer on the Northern network (highlighted green on the map below), we will be passing this payment on to power companies who should then provide their customers with a credit on their power bill of $15 later this year.
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, we will be passing this payment on to power companies who should then provide their customers with a credit on their power bill of $15.

See map here for the network areas.
Last year Vector paid $30 in loss rental rebates, why is it less this year?
Loss rental rebates may vary each year depending on the dynamics of the electricity market. In addition, last year’s payment covered a period of 15 months whereas this year’s payment is for a 12-month period.
I didn’t get my Entrust Dividend – please help:
Entrust is the majority shareholder of Vector and pays a dividend to its income beneficiaries. To see if you are eligible for the Entrust dividend see https://www.entrustnz.co.nz/entrust-dividend/who-qualifies/

 
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.
 
Will this happen every year?
Our plan is to make payments on an annual basis for as long as we keep receiving loss rental rebates (LRRs), unless there are any legal or other changes around the way power is paid for or how we receive LRRs.
Where does the money come from? / How is it calculated?
This money is from Loss Rental Rebates (LRRs) which is 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?
Electricity customers on Vector’s network will receive $15 for each installation control point (ICP) on their power account/s. Most residential customers have just one ICP and will receive one payment. Customers such as businesses with more than one ICP will receive more than one payment.
When will I receive this payment?
Customers in the Entrust District will receive the $15 loss rental rebate payment together with their dividend payment sometime in September 2019. Northern customers should contact their power companies about when the $15 loss rental rebate payment will be credited on their power bill.
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.