ELECTRICITY CHARGES.

Auckland Star, Volume LXIII, Issue 183, 4 August 1932, Page 20

ELECTRICITY CHARGES.

COMPARISON BETWEEN CITIES CRITICISM AND EXPLANATION THE COST OP CURRENT. "Puzzled Consumer" -writes: May I make a protest against the cost of electricity in Auckland? During the last 18 months the majority of the consumers have suffered a 20 per cent reduction in wages, but the cost of electricity has remained the same, except for a slight increase in the discount rate. In your issue of the 26th inst., there appeared a statement made by the chairman of the Electric Power Board stating that the cost of power in Auckland compared favourably with the other main centres. But the chairman docs not compare the retail prices with the other centres. Now, sir, may I be permitted to compare the retail prices between Auckland and Wellington? 'According to the statement, the.. Auckland Electric Power Board sells approximately 250. per cent more power than the Wellington Electricity Department, and buys it at a lower rate - than the latter. - Could the chairman .explain to the consumers why his power board, with the greater consumption of the two, have to retail the power at double the rate and cannot make as much profit per unit?

When the matter was referred to Mr. R. H. Bartley, general manager of the Auckland Electric Power Board, he said: "Such a statement was made by the chairman and he was perfectly correct. In making it he took into consideration the amount of rural area contained in the areas supplied by the four centres, Dunedin, Christchurch, Wellington and Auckland, all of which, with the exception of Auckland, are municipally controlled and supply city and suburban areas, more or less thickly populated and covering an area of approximately 20 or 30 square miles. As far as the Auckland Board is concerned, it is a power board, not run for the benefit of the city alone, but run for the whole of the ratepayers contained in an area of 380 square miles. In consequence, it has to run hundreds, in fact, thousands, of miles of line to supply sparsely-popu-lated areas at the same cost as to city consumers. Therefore, it is necessary to make comparisons on an equal basis. The only true way to compare costß of electric supply undertakings is to take the average amount that that undertaking receives per unit sold. In Auckland the figure is 1.393 d, Wellington 1.03 d, Christchurch 1.138 d and Dunedin .9233 d per unit sold.

"To explain the matter in regard to the two cities where they receive less, it might be interesting to observe what they pay for their current. For the year ended March, 1931, Christchurch paid for 15,145 k.w. actually £22,910 less than Auckland would have to pay for the same amount, according to its agreement with the Government for Arapuni power; in other words, Christchurch paid £4 10/ per k.w., as against Auckland's £7. During the year in question Auckland actually paid nearly £40,000 more'for the same amount of power, because it had to run its steam plant owing to the failure of Arapuni, As for Dunedin, it has its own hydro-electric scheme, built and constructed during a period of very cheap money, and in that it was particularly fortunate. Dunedin also covers a very much smaller area, having a lesser proportion of rural reticulation than the Auckland district. Summing up the position, it can be said that the statement made by the chairman of the Auckland Power Board was perfectly correct.

"Mention is made of a 'slight increase' in the discount allowed by the Auckland Board. It might be interesting to know that since 1023 the Auckland Board has reduced its rates to a figure representing 52 per cent, or rather nearer 54 per cent, under its pre-war charges. It is true that the latest discount given on the domestic supply, representing an additional 6 per cent, may not seem a very large amount to the individual whose account is only £3 or £4 a year, but if considered on the total revenue received from domestic supply, bVer £250,000, this discount would be appreciated as a very substantial item. 1 It is the aim and object of the board to run its organisation as cheaply as possible, consistent with sound economy, and pass on any savings that can be made to the consumer, and it sincerely hopes that as soon as Arapuni is fully back again it will be able to do even more in the future than it has done in the past."