FNZC slashes Trustpower target price on threat to sweetheart deal in Tauranga

Sun, 28 Jan 2018

By Pattrick Smellie Jan. 29 (BusinessDesk) - Trustpower's profit could drop by up to $30 million a year if the Tauranga Electricity Consumers Trust stops paying Trustpower customers in Tauranga around $500 a year in dividends that let the locally headquartered power company charge inflated electricity tariffs without major customer losses. In a note to clients, First New Zealand Capital says Tauranga-based customers of Trustpower may only get a true benefit of around $50 to $100 a year from the annual TECT dividends, because of the high t...

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