q-a - mept2

“The Trust Distribution and the Network Discount are two separate payments which will appear directly on your electricity account - the distribution will appear around February and the discount around March.

The Trust distribution is paid to each beneficiary. It is the derived from the dividend the Trust receives from Marlborough Lines as shareholder of the company on behalf of beneficiaries. 

The Network Discount is a payment from Marlborough Lines to its customers as a part of its trading and operating a successful business.

2. NETWORK DISCOUNT

It is calculated as a portion of the revenue that Marlborough Lines receives from an Installation Connection Point (ICP) during the year from 1 February until 31 January. For an average residential consumer this amount will currently be around $225.

Currently around mid March each year. The ICP must be actively connected and not vacant at the qualification date. The discount is not paid to those ICPs located in remote areas as they are uneconomic to supply.

It is paid as a credit to your electricity account that your retailer provides. The amount would typically show up in your April invoice.

The discount payment is not apportioned in the event the property changes hands. It is paid to the user of the ICP as at the qualification date. If you are selling your house you may want to consider making some form of arrangement to recognise an apportionment of the anticipated distribution in your sale and purchase....

3. TRUST DISTRIBUTION

Marlborough Lines pays a dividend to the Marlborough Electric Power Trust (MEPT) and the MEPT then determines an amount to be paid to each of its beneficiaries (the ICPs connected to the Marlborough Lines network).

Currently around mid-January each year. The ICP must be actively connected and not vacant at the qualification date. The distribution is paid to all ICPs, including those in remote areas.

It is paid to your electricity account. The amount is expected to show up.....around your February invoice.

The discount payment is not apportioned in the event the property changes hands. It is paid to the user of the ICP as at the qualification date. 

If you are selling your house you may want to consider making some form of arrangement to recognise an apportionment of the anticipated distribution in your sale and purchase if you are selling your house you may want to consider making some form of arrangement in your sale and purchase agreement. However note that the amount is not confirmed until January.

͚Most recently the annual Trust distribution was $50 per ICP. The increased cash flows provided by Marlborough Lines investment in Yealands saw the distribution made to each beneficiary increase to $150 and the timing of the payment change from December to February. 

Marlborough Lines is bound by regulation to operate as a successful business, as such part of operating as a successful business is that it must make profit. In turn Marlborough Lines either re-invests the profit back into the company or distributes it to the beneficiaries by way of taxable dividend to the Trust as shareholders. It is from this dividend the Trust makes distributions to its beneficiaries. The availability of any distribution is dependent on the profitability of the company and its prudent business decisions regarding what it does with its profits.

Marlborough Electric Power Trust is made up of six trustees, each trustee holds for the time being a proportion of shares “in trust” on behalf of the beneficiaries. The beneficiaries are those for the time being have a connection to the Marlborough Lines network known as an “ICP” or installation control point. It is important to note that the trustees not only serve for the betterment of the current beneficiaries but also for the future beneficiaries.

‘The Trust is made up of six trustees whom are elected by the beneficiaries. Every second year three trustees resign by rotation and an election is held. Existing trustees are entitled to stand again.’

The Marlborough Lines Network takes in some of the most stunning but difficult terrain in NZ for the egress of electrical lines. The remote nature and maintenance costs of these lines is high, particularly in the Marlborough Sounds and some areas on the east coast. This means that beneficiaries in high density areas subsides those with connections in the remote or “uneconomic zones”. Given this is unfair on beneficiaries in high density areas the discounts are distributed to those areas only.