Consumer Trust Ownership Of Network Tasman Limited To Continue For Another Five Years
- 18 November 2021
Network Tasman Trust has unanimously voted to maintain its consumer trust ownership of Network Tasman Limited (NTL).
In making this decision at a recent public meeting, the trustees took into account an independent report the NTL directors commissioned from Key Business Partners of Christchurch, followed by a public consultation process.
In its report, Key Business Partners (KBP) noted that NTL is in robust shape, concluding that “the Trust as owner should be more than satisfied, as should consumers.”
“NTL is a stellar example of a consumer trust, with Network Tasman Trust acting effectively as the collective (lobbying) voice of all network users from large manufacturers to small consumers, such as rural public halls and artists,” the report stated.
NTL Chairman John McCliskie added: “We believe the KBP report confirms that the company is performing well in terms of consumer service, pricing and reliability and that there is no alternative form of ownership which would provide consumers with greater benefits than trust ownership.”
Network Tasman Trust Chairperson Gwenny Davis said the trustees considered two major factors in making its decision regarding ownership.
“NTL needs to be a successful business as well as a good investment for us, as its shareholder,” Davis said, adding that it’s clear, from the KBP report, that NTL as an investment is performing well.
“As Key Business Partners said in their report, when the interests of local consumers are truly paramount, the consumer trust model remains hard to beat,” she said.
“It also enables us to make an annual tax-free and GST-free distribution to all consumers connected to Network Tasman Limited’s network as well as allocate up to $200,000 each year in grants and scholarships, though the through Network Tasman Charitable Trust, to individuals and groups in our local community.”
NTL owns and operates the electricity distribution network in the wider Nelson and Tasman areas. A review of NTL’s ownership structure takes place every five years.
“Keeping this valuable and growing asset in the hands of local people and distributing electricity to them at very competitive prices means it’s the best outcome for consumers and for the region,” said Davis. “The decision is a vote of confidence in the consumer trust model.”