OPERATIONS OF POWER BOARD

Bay of Plenty Times, Volume LXXV, Issue 14376, 28 May 1947, Page 3

OPERATIONS OF POWER BOARD

NETT PROMT FOR YEAR Secretary's Annual Report Future Prospects Difficult To Forecast "The result over the whole of the board's operations for the year is a nett profit of £3269, of which the sum of £(2.741 is being transferred to wipe off the outstanding balance of the suspense account," said the secretary of the Tauranga Electric Power Board (Mr J. R. Chambers) in his annual report for the year ended MaVch 31. The secretary explained that this result had been brought about by the considerable increase in revenue from sales of current coupled, with the measures adopted by the board to arrest the adverse* position disclosed in the early portion of the year. The prospects for the coming year would be difficult to forecast, owing to the altered conditions brought about by the enforced rationing of power. At the present time, the board's daily sales were down by approximately 30 per cent. Unit Sales The unit sales for the year totalled 18,024,953 of which 1,355,190 were sold in bulk to the Te Puke Borough Council. This left retail sales at 16,669,763, compared with 15,266,348 for the previous year., an increase of 1,403,415. . The board's unit sales, added the report, showed an increase of 9.5 per cent, above last year's figures, the l-espective variations being: Domestic 9.1 per cent, increase; power, 1.8 per cent increase; commercial,

23.7 per cent increase; - street light, 12.7 per cent decrease; bulk 36.6 per cent, increase. The cost of power per unit sold was .442 d while the revenue per unit sold was .86d. Revenue from sales of current showed an increase of £G,CI7, dc ficiencies under guarantee an increase of £6B, rental from staff houses an increase of £64, while line maintenance receivable had decreased by £416. This reduction' was accounted for by an alteration in the, method of treatment of service line payments and charges in order to even out the annual commitments for service line maintenance. On the expenditure side purchase of power had increased by £3237, management and general by £3OB, capital charges by £sll, while maintenance, testing and canvassing had decreased by £458, due to thebringing back into stock of material to the value 0f.£440 that had previously been charged out to primary line maintenance. The board's contribution to the Rural Reticulation Council amounting to £145 appear-, ed as an item of expense for the first time. Increase In Trading The turnover in trading sales had increased by' £1250, and stocks on hand had been conservatively valued at £slOl. The profit from this department for the year was £IOO7. Capital expenditure during the year totalled £19,143 made up as follow: '". Transmission lines etc., £12,206; meters, £3144; land and buildings, £2482; sub-stations, £l3ll. Debentures to the extent of £23,000 were disposed of bringing total loans raised to date up to £ 274,050, of which the sum of £66,587 had been repaid and a further sum of £9469 set aside as a sinking fund thus reducing the board's nett indebtedness on loans to £197,994. The total assets of the board as at March 31, excluding sinking fund investments, amounted to £338,466. Deducing sundry creditors at £13,362 this left the board with assets of 325,104, against nett loan liabilities of £197,994.

Of the loan of £50,000 authorised by a poll of ratepayers last year, the board had already spent £16,716. Included in the loan proposals were the following: Buildings £15,000; polemaking, plant and site, £5000; peak control equipment, £IO,OOO Out of the total expenditure of £16,716, the sum of £I4OO had been spent on buildings. The board would have to give early consideration to its possible demands under the above -three headings, as at the present rate of expenditure on reticulation it would find in the near future that there would not be sufhcient loan moneys available to provide for the above requirements. In 1939, the board sold 4* per cent debentures over the counter amounting, to £30,000, and, in order to provide for repayment set up local commissioners to whom annual sums of £IOSO had been paid. The first portion of the loan, name-

ly £9OOO, fell due # for payment on August 1, and it'was pleasing to note that the commissioners would have sufficient funds in hand to redeem these debentures. ~ . V;