Each year the owners of a trust that holds most of Vector's shares gather in Auckland to account for how their wealth is managed, and this year that ritual grew sharp. Beneficiaries pressed on dividends, on who audits the books, on how trustees answer to the people they serve, and on what the electricity network charges those building new homes. The chair held that the ballot box is the proper judge of trust, while the questions themselves reveal an old tension in public stewardship: a common fund is only as trusted as the means by which ordinary people can see it, and few of them can. The mat
Entrust Annual Meeting: Beneficiaries Press Trustees on Accountability and Vector Pricing
"It's something called an election, Mr Body."
Mark
Why did a routine auditor vote become the flashpoint?
Mimi
Because it let critics tie three things together: the size of the Vector holding, the dividend, and Vector's rising debt. Tex Edwards argued a Big Four firm was warranted.
Luke
Keep in mind that's his argument. The reporting doesn't show the audit work was deficient. Entrust's answer was that Big Four firms either didn't bid or had independence problems through work for Vector.
Mark
And the voice vote objection?
Mimi
Four Vector representatives present weren't beneficiaries. Andrew Body said that raised a potential conflict. Lee declined to rerun the vote.
Luke
We don't know whether those four actually voted. Body asked the question; the source doesn't say they did.
Mark
What about the accountability exchange?
Mimi
Lee says trustees get annual reviews with independent advice, and elections every three years. Body says turnout was 9.39% in 2024, so the election tells beneficiaries little.
Luke
The turnout figure is Body's, as relayed. Lee didn't dispute it but argued low turnout is common elsewhere. The review results aren't public as far as this reporting shows.
Mark
And the double dipping claim?
Mimi
Blenkiron says growth pays for growth, and that lines charges are $4 higher than in 2013 in today's money.
Luke
That's Vector's own figure, and Body's counter-claim is also unverified here. Both sides are asserting; neither has been independently checked in this piece.
The Pulse
- A routine reappointment of the auditor became a flashpoint, with critics demanding a Big Four firm and questioning the scale of Vector's debt and dividend.
- A voice vote was challenged over whether non-beneficiary Vector representatives took part, and the chair refused to rerun it.
- Beneficiaries pressed for a referendum on the trust's continuation and accused Vector of 'double dipping' on new connections, but the chair ruled out any referendum.
- Vector's chief executive rejected the double-dipping claim, insisting growth pays for growth, while Entrust's chair stands by a three-yearly election as the decisive test.
Each year the owners of a trust that holds most of Vector's shares gather in Auckland to account for how their wealth is managed, and this year that ritual grew sharp. Beneficiaries pressed on dividends, on who audits the books, on how trustees answer to the people they serve, and on what the electricity network charges those building new homes. The chair held that the ballot box is the proper judge of trust, while the questions themselves reveal an old tension in public stewardship: a common fund is only as trusted as the means by which ordinary people can see it, and few of them can. The matter now rests with the next trustee election, where the quiet majority who did not vote in 2024 will be asked whether they consent to the arrangement.
Entrust's annual meeting in Auckland turned combative last night. The trust holds the majority of Vector, and beneficiaries came with questions about its dividends, its auditor, how its trustees are held to account, and what Vector charges for new connections.
The chair, Lee, opened with the numbers. The trust paid $377 for each eligible power connection this year, sending more than $141m to about 374,000 Auckland households and businesses. Distributions since 1994 have passed $2.5b. She cited a beneficiary survey in which 90% wanted dividends to continue, and described Entrust as a stable majority shareholder in it for the long haul. On infrastructure, she said 73.07% of local power lines are now underground.
Vector's chief executive, Chris Blenkiron, described a 20-year, $10b investment programme and argued that the task is building a smarter network rather than a bigger one. Over 13,000 connections were added in the past year.
The mood shifted during the routine reappointment of the auditor. Tex Edwards of Monopoly Watch argued that a Big Four firm should be used given the scale of the Vector holding and the rise in debt. The meeting reappointed Moore Markhams anyway. A challenge to a voice vote, over whether non-beneficiary Vector representatives had taken part, was rejected, and the chair refused to rerun it.
Andrew Body pressed the trustees on how beneficiaries could judge them. Lee answered simply that the election is the measure. Body replied that only 9.39% of voters took part in 2024. He also accused Vector of double dipping on new connections and called for a referendum on the trust. Lee ruled that out.
Afterwards Blenkiron rejected the double-dipping charge, saying growth pays for itself. Lee said she was satisfied with the trust's accountability and called the three-yearly election the ultimate job interview. Whether turnout rises from 9.39% will be the test.
Entrust's annual meeting in Auckland last night turned combative. The trust, which holds the majority of Vector, faced beneficiaries who questioned its dividends, its auditor, the way its trustees are held to account, and what Vector charges for new connections.
The chair, Lee, opened with the numbers. The latest total comprised $191.5m of Vector dividends and $2.9m of interest income. Entrust's 751 million Vector shares were valued at $3.8 billion at June 30. This year the trust paid $377 for each eligible power connection, sending more than $141m to about 374,000 Auckland households and businesses. Distributions since 1994 have passed $2.5b. Lee cited an October 2025 beneficiary survey in which 90% wanted dividends to continue and 87% called the payment important or extremely important. She described Entrust as a stable, consistent majority shareholder since the early 1990s and said it was "in it for the long haul."
On infrastructure, she said 73.07% of power lines in the district are now underground. Entrust's agreement with Vector requires at least $12.5m a year on undergrounding and resilience projects; $16.6m was spent in the latest financial year, including work at Beachlands, Waiheke, Glendowie and along Maraetai Coast Rd.
Vector chief executive Chris Blenkiron then described a 20-year, $10b gross capital expenditure programme for the electricity industry. Some $4.7b has been spent over 13 years, with $5.4b still to come. He said Vector's lines charges remain among the lowest of the six largest distribution businesses, and that the task is building a smarter, more capable network rather than a bigger one. More than 642,000 homes and businesses are connected, and over 13,000 connections were added in the past year, which he compared to adding a community the size of Panmure and Point England.
The mood changed during what is normally a routine resolution, the reappointment of Entrust's auditor, Moore Markhams Auckland Audit. Tex Edwards of Monopoly Watch argued a Big Four firm should be used given the scale and complexity of the Vector holding. He pointed to Vector's cash flows, the size of the dividend and year-on-year rises in debt, and said the dividend was not in context of the business's financial performance. Chief operating officer Helen Keir said Entrust went to market about three years ago but struggled to attract Big Four firms, several of which do other work for Vector and so face independence problems. The meeting voted to reappoint Moore Markhams.
Investment banker and Entrust critic Andrew Body then questioned whether Vector representatives had joined the voice vote. A show of hands showed four Vector representatives present were not beneficiaries, and Body said their participation could be a potential conflict of interest. Lee rejected the objection and refused to rerun the vote, saying it had been declared carried.
Matt Gilligan, representing subdivision advocate SANZ, asked what formal process exists to assess the two trustee-directors on Vector's board, Alastair Bell and Paul Hutchison, who sit as non-independent directors. SANZ has been challenging Vector over the cost and availability of connections for new housing developments. Lee said both are assessed annually, around June, using independent advice and a 360-degree review.
Body asked how beneficiaries could judge their own trustees. Lee answered bluntly: "It's something called an election, Mr Body." He replied that only 9.39% of those entitled to vote took part in the 2024 trustee election, and that beneficiaries lack the information to tell good trustees from poor ones. Lee said the election remains the key measure, candidate information is widely available, and turnout is a struggle for elections across New Zealand. She said all five trustees are reviewed with external input, and that Vector's performance is another yardstick. Trustees are elected every three years.
Body also accused Vector of "double dipping" by charging new connection applicants the full connection cost and then the same monthly line fee paid by customers who did not pay it. He called for a referendum on whether Entrust should continue. Lee said no referendum on terminating the trust would be held.
Afterwards Blenkiron rejected the double-dipping claim. He said developers and new customers pay the incremental cost of growth so it is not passed to existing Auckland users, and that lines charges in today's money are $4 higher than in 2013 despite $4.7b of investment. Lee said she was satisfied with Entrust's accountability and called the three-yearly election "the ultimate job interview." The next trustee election, and whether turnout rises from 9.39%, will be the test.
Notable Quotes
We're very mindful of electricity costs and that's why we actually ask growth to pay for growth.— Chris Blenkiron, Vector chief executive
No, we will not be holding a referendum on the termination of the trust.— Lee, Entrust chair
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