Possible Tax Rebates will leave CHB Power Consumers Worse Off

16 November 2016 – The Central Hawke’s Bay Consumers’ Power Trust says power consumers could lose around a quarter of their annual power rebate if Inland Revenue’s plan to tax rebates goes ahead.

A confidential Inland Revenue memo that was released to the public showed it is considering taxing rebates, or discounts on power bills, nationally by 28 percent.

Trust Chairman, Alistair Setter said, "In the first instance, we want to reassure customers that at the moment nothing has changed. The discount we announced in October is unaffected by this proposal.

"We are concerned about this proposal long-term however, with consumers worse off should this go ahead. We know people rely on this discount, which can be equivalent to a month’s bill for some."

Mr Setter says the Trust is working in the interest of CHB power users to address the issue.

"We are working with Centralines Management and their tax advisors to understand the issues and implications of what this proposal may mean. We note that Revenue Minister Michael Woodhouse has now requested a meeting and that the timeframe for response has been extended to 28 February.

"In the meantime, we urge concerned consumers to get in touch with their local MP and voice their views," he says.

The discount for the 2015/16 year has already been passed on to retailers to apply to customers’ power accounts.

For more information, contact:

Danny Gough Relationship Manager 021 739461