LOWER RATES FOR POWER

Press, Volume LXXIII, Issue 22134, 2 July 1937, Page 12

LOWER RATES FOR POWER

TIME NOT THOUGHT APPROPRIATE

COMMERCIAL USERS' VIEW

INCREASED COSTS OK CITY DEPARTMENT

The present is not an appropriate time to press for a reduction in the commercial and industrial rates charged by the Municipal Electricity Department, in the opinion of the electricity vigilance committee of the Canterbury Chamber of Commerce and the Canterbury Manufacturers' Association. The committee reported to the council of the chamber last evening that increased expenditure by the department in the current year made it appear unlikely that reduction could be recommended at present. The committee conferred with the chairman of the City Council electricity committee (Mr M. E. Lyons i, and with officers of the Municipal Electricity Department. It was assured that the increased cost to the department under the new contract with the Public Works Department, and through the 40-hour week, would be approximately £49,000 a year. In view of this extra cost, the report stated, it would appear unlikely that the department could recommend reductions at present. The profit shown in the department's • alance-sheet for the year ended March 31, 1937, was £29,500, and the average profit for the last five years was approximately £ 27.500. Mr Lyons told Mie committee, the report stated, that it the department's balance-sheet for the year ended Marcn 31, 1938, were satisiactory. he would recommend reductions in the commercial and industrial rates. Officers of the department stated that the rates compared very favourably with those in other centres, and that the practice of a lower rate lor domestic current was common throughout the world.

"In view of Iho facts which have been placed before the committee, it does not feci justified in pressing for reductions in the rates at present: although it is believed that the conference with the chairman of the electricity committee and the department's officers will be useful .in paving the way for future reductions in commercial and industrial rates. The commiti e is continuing to watch the situt'tinu, and is particularly interested in the suggestion that lias been made by certain users, that electric current for power and lighting might be made available by the department during periods of low demand, at a special low rate; conferring an advantage on the industrial and commercial users who could take advantage of such a rate, and at the same time increasing the department's revenue from the current available." The report was received.