SURPLUS SHOWN.

Auckland Star, Volume LXVII, Issue 285, 1 December 1936, Page 11

SURPLUS SHOWN.

POWER BOARD REVIEW

SIX MONTHS' ACTIVITIES. SATISFACTION EXPRESSED. Satisfaction with the activities of the Auckland Electric Power Board for the first six months of the financial year, ended September 30, was expressed by the general manager, Mr. R. H. Bartley, in a report presented to the board at its meeting yesterday afternoon. Results were better than he had dared to anticipate, in view of the large reductions that had been passed on to consumers, said Mr. Bartley. He predicted a satisfactory result at the end of March next. "We have been waiting anxiously for the completion of this half-yearly state" ment to check up on the position resulting from the very large rate reductions passed by the board in July last, also in connection with our special policy dealing with the purchase, assisted purchase and rental stove, coupled with free installation," said Mr. Bartley. "At the present time we are not in a position to present a complete account setting out the relative position of revenue and expenditure" concerning this latter item, and 1 would prefer that we should not attempt to do this until the end of the year, when our figures will be complete and a correct statement of the position can be presented. Nevertheless, we can see sufficiently from the results to date that we are entitled to expect quite a saisfactory result from this new business." Expenses Rise. Commenting on the financial statement, Mr. Bartley said it would be observed that working expenses were approximately £17,000 more than for the corresponding period of last year. The main items accounting for this were power purchased £9000, cost of loadbuilding campaign £4255, and rents and rates £000. The largest item was the £9000, representing power purchased, and this was a good sign providing that an equivalent proportional number of units were sold in relation-to the added maximum demand. The balance in the trading account was an item which did not appear last year, and covers the cost of the scheme (financial assistance, hire purchase, rentals, etc.) from its commencement until the end of September. It would be observed that capital charges had increased by approximately £2000, due almost entirely to the increase in provision for depreciation brought about by the added capital expended during the past 12 months.

"After taking all these items into consideration," continued the manager, "it will be seen that the surplus for the six months is shown as £18,515, compared with the figure of £30,352 for the corresponding period of last year. This lower surplus reflects the several reductions in rates made some few months ago, and taking this into consideration, the result, I am sure, will be regarded as highly satisfactory." Total Net Revenue. The reason for the betterment, said Mr. Bartley, was very substantially due to the • progressive policy adopted to obtain added consumers and added loading. There had been an increase in the units sold under all classes of supply, the greatest increase taking place in the domestic supply return. That was shown at approximately four and a quarter million units more sold during the six months, and was a highly satisfactory Total net revenue was £346,809, which is approximately a £7-400 increase on the corresponding of last year. The average net revenue per unit sold showed a decrease und,fer all classifications of supply. That vas to be expected, and was the very ppint that the board had aimed to aphieve. Likewise working costs reduced from .6403 dto .6318 d, and ithe capital charges from .3323 dto ,3001 d. Total costs had been reduced from, .9786 d to .9379 d.

The whole statement, declared Mr. Bartley, indicated clearly the marked progress that was being made by the board. It was not an easy matter to keep abreast of the demands.

"The board has every reason to be well satisfied in view of the cuts that were made to consumers some months ago," commented the chairman, Mr. W. J. Holdsworth, "When we made the cuts we knew that the effect must be reflected in our financial statement. The figures for six months, however, revealed a steady progressive policy, and successful returns in practically every department."

The report and financial statements were adopted.