The Press WEDNESDAY, JUNE 16, 1937. Electricity Charges

Press, Volume LXXIII, Issue 22120, 16 June 1937, Page 8

The Press WEDNESDAY, JUNE 16, 1937. Electricity Charges

The chairman of the Christchurch City Council's electricity committee, Mr M. E. Lyons, has dealt trenchantly, and up "to a point effectively, with the city businessmen who organised a "black-out" in protest against the rates charged for electricity for commercial use. There is, however, some danger of the issues becoming confused. It can be. admitted that the " black-out" was not a wise form of protest, particularly as its promoters did not beforehand present any clear and detailed statement to the Christchurch City Council of their case for reduced commercial rates. It can also be admitted that commercial rates in Christchurch compare favourably with similar rates in other parts of New Zealand and that, since the commercial load is an inconvenient and relatively inelastic one, there is some justification for the present differential system of charging. But commercial users of electricity are convinced, and nothing in the statement by Mr Lyons is likely to shake their conviction, that the council could, without injustice to other classes of consumers and without embarrassment to the finances of its electricity department, treat them a little more generously. There are, indeed, certain points in the statement which could be regarded as supporting the contention that commercial users have not been equitably treated. One point is that the reduction in the commercial rate over the last 10 years has been only 36 per cent., compared with a reduction of 61 per cent, in the domestic rate. Another is that the difference between commercial and domestic charges has widened considerably in this period. However, it is encouraging to find that, although members of the council have little sympathy for the authors of the Saturday night demonstration, they are still prepared to discuss the whole question of commercial rates with open minds. At present a committee of the Chamber of Commerce is preparing a report on the subject; and when this report is ready it should provide the basis for a comprehensive review of the position of commercial electricity users.