POWER SUPPLY

Press, Volume XCII, Issue 27733, 10 August 1955, Page 14

POWER SUPPLY

SOUTH ISLAND RISE OF 3.2 PER CENT. ANNUAL REPORT OF DEPARTMENT (From Our Parliamentary Reporter; WELLINGTON. August 9. An increase in power supply in the South Island of 3.2 per cent, last year, compared with 6.3 per cent, in the previous year, is reported by the State Hydro-electric Department in its annual report, presented to the House of Representatives today. The shortage of waier affected the amount of power available, said the Minister in charge of the department (Mr W. S. Goosman), and the actual generation fell short of the estimate. Generation at Roxburgh, where work was proceding well, should begin towards the end of next year, the report said. At that stage, power shortage would end, and it should be possible thereafter to keep pace with the demand. In general, the position was that Nelson-Marlborough had adequate power; the main South Island system would be adequately served after next winter, and the Government was doing all’ it could to improve future conditions in the North Island, said the report. For the remaining three years of the five-year bulk supply contracts, it was not proposed to alter the basic price, the report said. For the first two years, the revenue was almost £16,500.000. and the surplus was less than £ 10.000. The revenue last year was £8.565.154, operating costs were £3,700.264.000, and capital charges £3,602.213, leaving a balance of £1.262,677.

The net operating capital was £76,559.214 of the total invested capital of £112,599.445, the report said. The report showed that, of the capital expenditure of £13,920,667. £4,301,425 was spent at Roxburgh, £387,230 at Lake Hawea, £71,456 at Waitaki and Tekapo, and £693,479 at Cobb.

The department reported that the General Manager (Mr A. E. Davenport) had been unable to recruit sufficient tradesmeh. Fewer suitable engineering graduates were available and that, together with a large number of resignations, had reduced the professional engineering staff.