20 September 2023

$30 in your pocket for Auckland electricity 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 $30.

This is due to a credit we have received from Transpower known as loss rental rebates (LRRs). LRRs are the surplus created once the costs in the electricity wholesale market have been worked out.

This year, we will be passing on $30 to each electricity account holder on the Vector network in the Entrust District. This payment will be added to the Entrust dividend you will receive.

For customers on the Northern network, we will be passing this payment on to energy retailers who should then provide their customers with a credit on their power bill of $30 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 $30 loss rental rebate payment?

If you are an electricity account holder who lives in the Entrust district (highlighted orange in the map below), you will receive $30 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 energy retailers who should then provide their customers with a credit on their power bill of $30 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, or credit to your power account, 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 energy retailers who should then provide their customers with a credit on their power bill of $30.

See map here for the network areas.

Why does the LRR payment vary?

The main reason is that the amount Transpower credits Vector is different every year.

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?

We expect this will be the last year of issuing LRR payments direct to Vector customers via the Entrust dividend process. This is because the Electricity Authority has changed the payment to customers process and decided that electricity distributors such as Vector are from 1 April 2023 required to pass on all LRRs to energy retailers so they can provide these to customers.

Where does the money come from? / how is it calculated?

This money is from loss rental rebates 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 $30 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 $30 loss rental rebate payment together with their dividend payment in late September 2023. Northern customers should contact their energy retailers about when the $30 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.

Does this mean we won’t have any increases on our power bills?

No. Vector’s charges are only part of the bill you receive from your retailer. The bill you receive from your retailer includes charges from Transpower, your distribution company such as Vector and your retailer. An increase in your power bill could be a result of an increase in any of these charges.

Is this linked to the Entrust dividend?

No. Although being distributed together, this is separate. The Entrust website has information about the dividend payment here.

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