DEVONPORT'S ELECTRICITY.

Auckland Star, Volume LV, Issue 151, 27 June 1924, Page 6

DEVONPORT'S ELECTRICITY.

XO CHANGE IN THE CHARGES. One of the most interesting documents presented to the Devonport Borough Council last night for consideration, when framing its rating estimates for tlie year, was a report on the municipal electricity undertaking, prepared by Mr. L. C. H. Sparrow, engineer-manager of the concern. This undertaking was purchased in 1922 by the municipality for £25,000, and a loan of £40,000 was raised to provide the cost and to further improve the plant. Since the present council took office another loan of £21,000 has been floated to permit necessary equipment and expansion to bp arranged. The venture thus stands capitalised at £61,000. The plant at present has a capacity of 220 kilowatts, which, when the A.C. reticulation is completed, will be increased to 400 kilowatts. The total number of consumers is at present 1385, an increase of 234 during the year. The problem of successful management, as explained by Mr. Sparrow, centres round the fact that current consumption is mainly a domestic lighting load with an abrupt evening peak. The. total number of units e»ld is 451.110. with a balance of 26P.130 lighting units again?t 181.OS!) required for power. I The revenue of the undertaking for the past year was £0400. and (lie working costs £6784: but on the debit side there were also charged interest, depreriation and sinking fund, which revealed that on the year's working there was a lo?s of £1581, and for the whole period of the Council's ownership from August. 1022. there had been a total actual loss of £2514. The engineer's recommendations were that the charge for domestic lighting should be increased to Sd per unit net, domestic power to 4d net, and the charge for street lighting to 6d per unit, which ■would increase the lighting rafp to 9-16ths of a penny in the £ on the ratable value as against' 5-16tha last year. Improved street lighting was to be provide! for by the addition of 70 extra lamps. These alterations in current prices, as calculated by Mr. Sparrow, would enable the Council's undertaking to show a credit balance on the next financial year. Considerable discussion ensued anions Council members on the presentation of the report, when the Mayor propoFcrt that the recommendations of the engineer should be adopted. The debate centred around the necessity for depreciation on a municipal trading concern. Ultimately the motion was lost by seven to three. The charses for electricity will therefore remain as at present.