HIGHER CHARGES FOR POWER

Press, Volume LXXXIV, Issue 25548, 16 July 1948, Page 6

HIGHER CHARGES FOR POWER

Proposals of State Department RETAIL COST MAY RISE SHARPLY (P.A.) WELLINGTON, July 15. Increased rates for the supply of bulk electric power are being negotiated by the State Hydro-electric Department with various power boards as existing contracts expire. The increase sought'is substantial and may amount to as much as £lOO,OOO in the case of a big power board. There may be no increase in other cases. The changes may lead to fairly substantial increased retail costs to consumers. The Auckland Power Board is stated to have already met representatives of the department and proposals and counter-proposals are being prepared in preparation for a further meeting. The Christchurch City Council’s Municipal Electricity Department is to begin talks shortly and about 50 per cent, of the other power boards have been informed by the department that the charge will be reviewed when their contracts are due for renewal.

Increased costs of maintenance and materials are, it is understood, the reason for the increased revenue need of the department, which has to set aside a considerable sum for income tax each year. The income tax payment by the department was mentioned by Mr F. T. M. Kissel, when he retired recently from the position of general manager. He said then that he hoped the tax would be lifted.

A special committee of the New Zealand Electric-power Boards and Supply Authorities’ Association has for the last three months been investigating the cost side of power generation and supply. This committee has arranged a meeting in Auckland next week at which its report to the parent organisation is to be completed.