The Trust
Company Ownership
Horizon Energy Distribution Limited is the only majority Trust-owned Energy Company listed on the NZ stock exchange. This listing impacts on the Trust's governance rules prohibiting the interference of Trustees in the management of Horizon. As the majority owner, the Trust's only role is in the nomination and election of company directors. This process is carried out in consultation with Horizon to ensure that both parties achieve their desired outcomes. Once elected, directors must act in the interests of the company, and all shareholders. It is therefore the Trust's role to ensure that the Directors of Horizon are of the highest possible calibre.
The Trust's faith in the ability of the Horizon directors and management to continue to return sound profits and dividends to its shareholders is such that the Trust intends to remain the majority shareholder for the medium to long-term future.
Industry Reforms
There have been a number of reforms of the electricity industry over recent years. The current Government has continued this process with the enactment of the Electricity Amendment Act 2000, which received assent in August 2000. This amendment, together with the passing of time, means that changes are now required to the Trust Deed.
Distributions
The purpose of the Trust as dictated by the Trust Deed is "to enable the Trustees to apply the Trust Fund for or towards energy related purposes for consumers".
The Trustees originally considered distributing the dividends to its beneficiaries by direct subsidy of consumers' power accounts. However, with the reducing availability of funding sources for community facilities and activities, it was decided that the Trust fund would have a greater beneficial impact if the distribution of its dividends to beneficiaries was made through applications for energy-related projects from schools, marae, Councils, community groups and so on.
As well as the reactive grants programme, the Trust is currently involved in a number of proactive projects. It is a leader in funding the retrofitting of insulation in homes in the Eastern Bay of Plenty. Along side this run other initiatives such as the testing of electric blankets and a scholarship programme.
The Trust aims to ensure that the building projects in which it is involved benefit from energy efficient heating and lighting systems. In some cases, the Trust will increase funding above the original amount applied for in order to ensure a more efficient delivery of energy. By adopting this philosophy, the Trust ensures long-term energy and cost savings are obtained for its beneficiaries.
By managing its funds in this manner, the Trust not only fulfils its obligations under its Deed of Trust, but achieves beneficial outcomes for its various communities. The Trust will continue to fulfil its purpose by being involved in energy-related projects, which would not otherwise happen, or would not be as successful without its support.
Conclusion
It is the wish of the Trustees that the Trust continues to be a major benefactor and provider of funds, where there is an energy-related component, for the development and growth of the Eastern Bay of Plenty. The Trust fund, which the Trustees manage, belongs to all Horizon's electricity consumers (the Trust's beneficiaries), with benefits radiating out to each and every person in the community. The Trustees are proud of the Trust's achievements and the impact it is having on the local community.
'Energising our community'.
