REDUCED TARIFFS

Ashburton Guardian, Volume 64, Issue 30, 15 November 1943, Page 4

REDUCED TARIFFS

POWER IN ASHBURTON COUNTY.

RATES TO DOMESTIC CONSUMERS. PRICE TRIBUNAL APPROVES. The Price Tribunal had agreed to the proposed reductions in tariffs sent forAvard from the' last meeting of the Board, the chairman (Mr E. F. Nicoll) told the Ashburton Electric PoAver Board this morning. An investigation of proposed reductions sliowed that the annual loss in revenue Avould be about £2250. This could be safely incurred and as the reduction Avould not take place till November only a portion of the deficit Avould he experienced in the current year, said the chairman.

The business of the Board had reached a stage Avhere a simple tariff > applicable to all domestic consumers 1 had much to commend it. The pro--1 posed neAv scale of charges had been - given the fullest consideration both from the point of vieAv of the equit- £ able treatment of consumers and of 1 the effect on the Board’s finance. A > single tariff applicable to the domes- - tic load and Avhich Avould do away 1 with the more complicated system - hitherto in vogue, Avould be a definite L and justifiable advance and. could be regarded not only as a concession to consumers hut Avould also simplify a< certain branch of office Avork as well 1 as facilitating further alterations in the tariff. Commercial Tariffs. It had not been found possible meantime to consider commercial charges. A substantial reduction was made since the current domestic tariff came into operation and it was at that time understood that the latter must have first consideration Avlien the time Avas opportune. When next the rates generally came up for discussion, the Board Avould not overlook the commercial tariff and the general, circumstances then prevailing would give direction to any decisions. The Engineer-Secretary (Mr H. G. Kemp) in a statement said that the

advantages to be secured by puttim the bulk of the consumers on a uni form tariff Avere considerable. A present a general average of threi itemised calculations per account A\ r a: necessary, setting out the variom charges. On a single tariff, it wai proposed to print the tariff on the ac count form and slioav the amoum charges on a single line. The desirability of reducing tin price of high rate units from Sd hat been felt for some time, hut at the same time the necessity for higli 'rate- units as a means of getting a reasonably quick return for Avorking costs from all consumers could not he neglected. As a general principal all consumers must share more oi less equally in maintenance and overhead costs and in a proportion of power and capital costs to the extent that lines and equipment and a certain amount *of power must be provided to give supply to each consumer. After that stage the larger consumer became responsible- for the increased capital and poAver charges incurred through load increases on their account.

Influencing Factors,

A straight reduction from Sd to say Gd would cost 2d per unit over sa.y 10 per month or £1 per consumer per annum, giving a total reduction of about £4500. This Avas too much to be laced at once and the situation could only he met, if such a reduction Avas desired, by extending the number of units charged at the high rate.

The variation proposed in other unit rates had been influenced by three factors: (a) The permissible average reduction, estimated at an average of 12s per consumer per annum; (b) an endeavour to spread this equitably over all consumers; (c) tljp effort to amalgamate all four tariffs into a new one. The principal difficulty Avas a number of consumers on each tariff who had a heavy average consumption for their particular tariff. As the general line of the tariff swung away from them to treat reasonably those on the next lower tariff, these high users secured a higher reduction. This, however, was considered Avarranted. Another difficulty avus in- the storage range users Avfio had othenvise a small consumption. These people hail the benefit of an excellent service at a very reasonable rate for the storage range i and, the amount of reduction to them I could be kept low to allorv for the higher reductions in other special cases.

Water Heaters. A number of anomalies had arisen in the past, due to the dividing of houses, perhaps not directly as fiats, but Avliero tenants pay part of the .electricity account, Mr Kemp continued. It wasi suggested tlial a clause •should be incorporated in the domestic tariff stipulating that Avhere a house Avas divided or rooms were sublet on condition that, the‘tenant, was metered independently, each portion should be treated as an independent consumer and charged on the lower scale of liigli-rate units. In connection with water heaters, Mr Kemp reported that under the Electrical Water-lieating Order for 194:3, Avater heaters on existing flat rates must be metered after the next electrical repairs to the installations. The principal object of the order was to reduce the waste' of potver which was fairly general in flat-rate water heaters. The average annual consumption of metered water heaters in the country Avas 2500 units compared with 2270 in the town. “We are more or less breaking faith With our consumers by metering the

water heaters,” said Mr R. .T. Mulligan. Mr Nicoll: “We have no optici. We must obey the law.” AnsAvering a question by Mr H. G. Crofhers, Mr Kemp said that, the Installation of meters would he a. charge against the Board. Tt Avas decided that the no y concVitions would be imposed from November 19.