Auckland Energy Consumer Trust
Encyclopedia
Auckland Energy Consumer Trust (AECT) is a trust for electricity
consumers in Auckland
, New Zealand
. Formed in 1993 as sole owner of the original Mercury Energy Limited, it is now majority owner of energy distributor Vector Limited
, a child of the original Mercury, the other child being the Mercury Energy
retailing division of Mighty River Power.
AECT owns 75.1% of the shares in Vector, an electricity and gas distributor. It holds the shares on behalf of Vector's 300,000 customers and distributes dividend
s from Vector to its customers. The remaining 24.9% of Vector shares are traded on the NZX.
As part of electricity industry reforms in 1993, the consumer-owned Auckland Electric Power Board became Mercury Energy Limited and AECT was set up to own it, keeping control in the hands of electricity consumers. Similar trusts were established elsewhere in the country. Mercury was the electricity distributor
and retailer
for Auckland, Manukau and Papakura. In 1998 the government split the electricity sector into distributors (lines companies) and retailers, and accordingly Mercury was split. The retail business was sold to Mighty River Power and the lines business being kept and renamed Vector Limited. AECT was the sole owner of Vector until 2005, when it allowed Vector to make a public float of 24.9% of its shares to raise capital to buy gas company NGC Holdings.
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
consumers in Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. Formed in 1993 as sole owner of the original Mercury Energy Limited, it is now majority owner of energy distributor Vector Limited
Vector Limited
Vector Limited is a multi-network infrastructure company in New Zealand. It is the national number one provider of electricity distribution, number one provider of gas transmission and distribution, number one provider of electricity and gas metering, number two wholesaler of LPG and number three...
, a child of the original Mercury, the other child being the Mercury Energy
Mercury Energy
Mercury Energy is the retail operating division of Mighty River Power, a New Zealand State-owned enterprise. It retails electricity and gas to customers, primarily in the North Island of New Zealand...
retailing division of Mighty River Power.
AECT owns 75.1% of the shares in Vector, an electricity and gas distributor. It holds the shares on behalf of Vector's 300,000 customers and distributes dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
s from Vector to its customers. The remaining 24.9% of Vector shares are traded on the NZX.
As part of electricity industry reforms in 1993, the consumer-owned Auckland Electric Power Board became Mercury Energy Limited and AECT was set up to own it, keeping control in the hands of electricity consumers. Similar trusts were established elsewhere in the country. Mercury was the electricity distributor
Electricity distribution
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...
and retailer
Electricity retailing
Electricity retailing is the final process in the delivery of electricity from generation to the consumer. The other main processes are transmission and distribution.- Beginnings :...
for Auckland, Manukau and Papakura. In 1998 the government split the electricity sector into distributors (lines companies) and retailers, and accordingly Mercury was split. The retail business was sold to Mighty River Power and the lines business being kept and renamed Vector Limited. AECT was the sole owner of Vector until 2005, when it allowed Vector to make a public float of 24.9% of its shares to raise capital to buy gas company NGC Holdings.