The Press TUESDAY, JUNE 8, 1937. Electricity Charges

Press, Volume LXXIII, Issue 22113, 8 June 1937, Page 8

The Press TUESDAY, JUNE 8, 1937. Electricity Charges

It does not matter very much whether the commercial consumers who have united to cut off their electric lights at night are making the wisest possible form of protest or not. They are certainly doing what they have a right to do, as the chairman of the City Council's electricity committee agrees; and it may be agreed, further, that if they continued to switch off the city would be a much duller place. The Municipal Electricity Department would also be a poorer body; but it could stand the loss of the money much better than the city could stand the loss of the light. It would be much better for the electricity committee to consider that than to consider its own dignity too much and refuse to concede anything under pressure. It is not really under pressure at all; and it can afford, in every sense, to look over its figures and, when the next report comes down, announce new rates, more generous to the commercial user. We have several times before pointed out how onesidedly the department has dispensed its favours. It has steadily inclined to tiring down domestic rates faster than commercial rates, and has been able to show good business reasons for doing it. The growth of the load is chiefly in the lower priced units, naturally enough, and the department has statistical proof, which may be accepted, that domestic consumption responds to lower costs more rapidly than commercial consumption. Hence the department has pursued expansion along the line that promised the easiest and largest success. But so much may be granted in the way of reason without granting that the principle is wholly fair. In 1926 both domestic and commercial rates were above 2d—2.15d and 2.82 d respectively. By 1930 the domestic rate had been almost halved; the commercial rate had been reduced only by 10 or 11 per cent, and did not fall below 2d until 1934, when it was 1.96 d. By that year the domestic rate was less than half that price. When the last report was issued, the domestic rate, at .851 d, was still less than half the commercial rate, 1.79 d; and the relative reductions, since 1926, have been 60 per cent, and 36 per cent. The department, undoubtedly, has done very well out of this policy; but it has been the policy of a profitmaking concern, not of a public utility, which owed the city's commerce greater encouragement and better help. Moreover, that such encouragement and help could have been given without withholding benefits from the domestic consumer is very clear from the department's figures. Last year, for example, after providing for operation, purchase of power, interest, and depreciation, it was able to transfer to the allocations account almost £40,000; and .the general reserve stood at £290,862. Over a period of years, also, the department has been milked for purposes quite foreign to its function to the extent of many thousands of pounds. One result of these policies—excessive profittaking, excessive reserve-building, and diversion of funds—is very probably to be seen in the new contract, which imposes on the city severer terms, against which the figures and facts could sustain no plea. It is to be hoped, although the department's position is to that extent less favourable, that the warning will be taken and a policy more directly in the city's interests be followed. Such a policy would make fuller allowance than has yet been made for the civic advantage of giving commercial consumers good terms.