CHEAPER CURRENT.

Auckland Star, Volume LXII, Issue 151, 29 June 1931, Page 3

CHEAPER CURRENT.

POWER BOARD CHARGES, PROPOSED CONCESSIONS. TOTAL OF £31,000 A YEAR. Proposals for the modification of its charges for electricity aggregating a conceesipn of £31,000 a year were before the meeting of the Auckland Electric Power Board to-day, when definite recommendations on the subject were made by the general manager.. Mr. R. H. Bartlcy. The board intends to hand on to the public the saving it will make from the reduction in the wages of its staft, together with an amount to be received from the Government in connection with the maintenance of the King's wharf steam plant. In addition it proposes to reduce its charges by a further amount. Mr. Bartlcy dealt first of all with the sliding scale power rate, giving illustrations at random of consumers' adjustments in order to show how the recommended alterations would affect the position. Under existing rates a consumption of 128,320 units a year costs £700, whereas under the proposed rates the cost would be £547, representing a reduction in the cost per unit of from 15d to 1.06 d. Other reductions would be respectively as follows: Units 91,580, present cost £500, proposed cost £428, iinii reduction, L47d to 1.12 d; 7«.<>Sb, £410, £373, 1.3d to Lied; 56,200, £339, £290 1.45 d to 1.26 d; 31,388, £193, £181, ■147d'to 1.38 d; 18,780, £126, £110, l.Od. to 1.4 d. Commercial Rates. The second modification suggested affects the commercial lighting rate; readjustment of the maximum demand fate making the economies of this rate available to a large number ol commercial consumers. Following are some examples ot tne operation of the second modification: — 185,000 units consumption per annum, present cost £2305 per annum, proposed cost £2068, saving £237; 12,490 units £178, £151, and £27; 45,250 units, £853, £793, and £59 8/; 9950 units, £124, £108, and £16 S/; 11,060 units, £205, £167, and £37 10/. "While advertising and night power supply rates are not particularly urgent at the present time," said Mr. Bartley, "these could be dealt with advantageously, avoiding future alterations, particularly the printing of the schedule of charges. From experience we have found that the class of consumer to which this rate appeals most is the baker, and 1 estimate that the maximum reduction during the year will not exceed £1000, and must, in the near future, operate beneficially to this board." Relief for Industry. In another report made before the end of the financial year, Mr. Bartley said that the question of reducing the board's charges called for special attention, in view of the difficult times through which industry was passing. The board's supply rates compared favourably with those of other supply authorities, but nevertheless contained anomalies. One in particular reacted on the large power user and medium' power user operating only over the ordinary working day. The maximum demand rate, which offered considerable concessions to the longer hours of running, did not benefit this class of consumer, and he was therefore forced to come under the graduated unit rate, which was too high. Secondly, the commercial lighting consumer did not receive the reduction in rate that his class of loading warranted. These were the two principal items which called for correction before any general reduction in the board's rates was applied. They affected a large proportion of the board's consumers, and would represent a substantial sum. There were other rates which could, with advantage, be modified—the advertising sign rate and night power supply. With the adjustments suggested the board would have established correct proportions, and all rates could then be subjected to reduction on a percentage basis from time to time.

Benefit to All Consumers. With the re-establishment of Arapiuii hydro-electric supply, together with the arrangement with the Government in. respect to the King's wharf plant, there was little doubt that the board would be able to carry its anticipations in this direction into effect, to the benefit of- all consumers of electricity. The fir?" modification covered the graduated unit rate, which Mr. Bartley suggested should be as follows: —100 units at 2Jdj up to 3500 units, and all over this amount, Id; the existing rates being as follows:—100 units at 2-idj 3300 units at l£d; all over 3300 units at 1 5-8 d; and all over 8000 units at 1 l-3d. The modification of this rate, was estimated to produce a saving to. the consumers affected of £18,000 a year, and a consequent reduction in revenue to the board of an equivalent amount. The second modification suggested constitutes an alteration in the commercial lighting maximum demand, and in this connection the report states: "The present maximum demand rate is based on three hours' burning of maximum demand per day for 30 days a month. This three hours' burning is charged at 5d per unit, and the balance of the units consumed at 2d per unit. For the new rate I suggest that we base the high rate of units on two hours' burning pur day for 30 days per month of maximum demand, chargeable at 3d, and the balance at 2d per unit. The new rate will have the effect of making a saving to the consumers of approximately £9000 per annum. The two modifications, if adopted, will result in a total saving to the consumers of £27,000 and a drop in our revenue of that amount per annum. Whether the board will think it desirable to make this reduction at the present time is a matter for careful consideration."