BULK POWER

Ashburton Guardian, Volume 66, Issue 191, 27 May 1946, Page 2

BULK POWER

MINISTER’S VIEW CRITICISED

ASHBURTON CHAIRMAN’S COMMENT Some measure of disagreement with the Minister of Works, in his contentions regarding the fre-quently-debated issue of bulk power charges, was expressed by the chairman of the Ashburton Electric Power Board, Mr E. F. Nicoll, in his annual report placed before members this morning. On this subject, the chairman had the following to say: “A remit was again passed at the last Power Boards’ conference asking that the standard charges lie on some basis which would bring the average price paid by the smaller authorities into line with that charged. to the larger bodies. The executive of the association was requested to take up the matter with the Minister of Works and this was done. The Minister’s reply was that the acceptance of any such proposal would mean a reduction in revenue which could not be considered, and he further argued that unit costs showed that there was little difference, as between the larger and smaller authorities. “It has been clearly stated that, in any readjustment of standard rates, no decrease in the Department’s revenue was in question—on the other hand it might. easily be increased. What is claimed is -that those boards and supply authorities which regularly show large surpluses could fairly be asked to cut those profits down and fall into line with, perhaps, an average all round charge, or, alternatively, that the higher steps be decreased witli an increase in the lower ones. What Mini ster Overlooked

“The Minister indicated that, as power boards in most cases sell by the unit, they are concerned only, with the unit purchase cost, but is not the fact overlooked that all tariffs are designed to give an adequate return in k.w. of maximum demand, on which basis we purchase from the Government ? The load factor enters very largely into the question, and it is certain that a straight unit charge for bulk power would cause difficulty to boards which have built up a high load factor.

“No doubt-hhe subject will not be allowed to rest, but, meantime, the attitude of the Department is not sympathetic, though it has to be conceded that the Government’s> long-range plans for the extension of its generating plants, which will no doubt be a costly business, may be used as an argument against claims meantime. This has already been mentioned by the Department, and it- has been suggested that an increase in charges is not outside the bounds of possibility. Sueh a move would be strenuously opposed by the smaller authorities and could only be justified in connection with the lower steps of the standard rates.

Bulk Power Supplies

“The serious position in the North Island is a warning to the South Island power boards and supply authorities that there should be no relaxation in their pressure on the Government to push on with additional generating power in the South Island. At the moment we appear to be in a safe position but so great is the general .increase in demand, that, unless •the proposed work is speedily pressed on, _we may later find ourselves for a period in the same position as the North Island.

“There seems to he no doubt that the Government is now fully seized with the importance of the electrical requirements of the country, but we in the South Island would like, to see our own schemes pressed on with energetically, and every possible step taken To ensure that there will always be the power available to meet our needs. It is certain that the undeveloped power resources of the South Island are sufficient to provide for many times its population, and for almost any- possible increase in industrial undertakings, and no effort should be spared to see that the increased power supply is made available ahead of the demand.”