COST OF POWER SHORTAGE

Press, Volume LXXXIII, Issue 25299, 26 September 1947, Page 6

COST OF POWER SHORTAGE

STATE SPENT ABOUT £500,000

5 PER CENT. REBATES TO SUPPLY AUTHORITIES (P.A.) AUCKLAND, Sept. 25. The power shortage had cost the State Hydro-electric Department possibly £500,000 in running fuel plant and in buying units from miscellaneous sources in endeavouring to meet power authorities’ demands, said the general manager of the department (Mr F. T. M. Kissel) to-day. Mr Kissel said 5 per cent, rebates would be paid to North Island power authorities for the quarter ended June 31, 1947. and to South Island power authorities for the quarter ended September 30, 1947. The rebates would amount in total to £37,000. He said the rebates were to cover some of the revenue boards might have lost in keeping the demand for power down to the department’s “We are advised that we have no legal, obligation," added Mr KisseL “It must be acknowledged, however, that supply authorities could have expected to have sold more units.” Earlier in the day, the rebates had been announced by the Minister in charge of the department (Mr R. Semple) in an address to the annual conference of the Power Boards and Supply Authorities’ Association. Saying that the rebate was for 1947 only, Mr Semple added that efforts had been made to have it applied to Sower supplied during 1946 also, but lis was refused by the Treasury. “If you want to get it for 1946 also you had better fight again,” Mr Semple added.

The president (Mr J. A. Nash, Mana-watu-Oroua) said it was not the intention of the association to let the matter of the 1946 rebate drop. In a statement to the conference before Mr Semple’s arrival. Mr Nash had said many boards suffered a serious loss of revenue through being called upon to reduce substantially their unit of consumption.