TECT and Trustpower have each accused the other of causing ‘confusion and concern' among consumers, as the deadline for submissions on the TECT proposal looms.

Submissions on the proposal by TECT trustees to transform the organisation into a solely charitable trust must be made by 4pm Thursday March 1.

Trustpower chief executive Vince Hawskworth says Trustpower customers are ‘suspicious' TECT is ‘deliberately withholding information over its controversial proposal'.

He says Trustpower has been inundated with thousands of public queries about TECT's proposal, and that the confusion and concern customers are expressing are of TECT's own making.

'We think it's time the trustees pulled the plug on this and reconsidered the whole process and proposal, perhaps starting with: do Trustpower customers actually want change?”

TECT seem to be unaware of the extent of public confusion and suspicion about the trustees' intentions and motives, he says.

'TECT aren't telling people the real reasons for this irreversible change or what's going to happen after. People are worried because there are so many unanswered questions.”

Trustpower alleges TECT has not informed the public about when verbal submissions on the proposal can be heard or when and where.

'People don't know when TECT will publish a final proposal and when voting will be held. There is no clarity around the independence and integrity of the vote process, nor whether the votes will be postal or electronic,” says Vince.

'This is basic information that – only days out from the final deadline for submissions – we still don't know,” he says. 'On the current trajectory it appears TECT wants to hold the vote over Easter and the school holidays, which would reduce the number of people voting.

'We've heard from people who say they ticked the wrong box because the form was unclear and others who would have ticked a different box if they knew then what they know now.

'Surely TECT wants every affected person to have a say on what happens to their money, given TECT holds Trustpower shares on our customers' behalf,” says Vince. 'This is too important a decision for people to be denied the relevant information about what happens with their assets.”

In response, TECT has issued a statement saying they are ‘becoming increasingly alarmed at attempts by Trustpower to muddy the waters for consumers in the current public consultation process'.

'We are worried Trustpower's well-financed campaign is having an effect on the integrity of the consultation process,” says TECT chair Bill Holland.

He says Trustpower's ‘subversive campaign' against the TECT proposal includes critical advertising in the media, holding its own rival public meetings, sending out ‘scaremongering media releases', legal threats and seeking public submissions on several contradictory proposals at the same time TECT is undertaking its consultations on the formal proposal.'

'These moves by Trustpower are causing confusion and concern among consumers,” says Bill.

'Trustpower is spreading unfounded fear around the proposal. For instance, the suggestion that the trust be wound up so consumers can get a final pay-out of $15,000. Trustees could never agree to that concept because it makes no provision at all for future consumers.

'It is mischievous for Trustpower to suggest it as a valid option.”

He says the trustees have always had the interests of all consumers at heart.

'We need to look after not only the consumer of today but also the consumer of tomorrow.”

He says the trustees believe TECT was established to provide for the current and future generations of Tauranga.

'If we accept that change in the industry is inevitable, we must also accept that there are no guarantees that the current way we operate will be sustainable forever.

'Of course we want Trustpower to be successful. The current proposal allows for another five years of cheques which gives Trustpower time to reposition their marking strategies to ensure they retain market share and remain competitive in the Tauranga market.

'Their diversified earnings base will help them do this, as the vast majority of their profit comes from their generation business and the rest of the country makes up the largest percentage of their retail customer base.

'That said, the TECT cheque was never designed to distort pricing in a competitive electricity market. Much of the feedback we have received already makes the point that the value of the cheque consumers receive does not justify the higher electricity prices people pay to Trustpower.”

Bill says TECT has received more than 10,000 submissions to date from consumers and the volume of material means it will take time for the trust to review the results.

'Verbal submissions will be heard at times and places that will be determined when the trustees know how many people want to be heard and where they live,” he says.

'I can assure consumers that the Trustees have the best interests of the consumers, both current and future, in mind and their goal in the consultation is to find a solution that is fair and provides the greatest certainty for current and future generations.”