POWER TARIFFS

Press, Volume XCII, Issue 27795, 21 October 1955, Page 9

POWER TARIFFS

LOWERING AT COST OF CAPITAL

Many power supply authorities had. over the years, lowered their tarifls too much, and had not provided for a certain amount of revenue to be used on capital expenditure, said Mr K. W. Eglinton in his presidential address to the Electrical Supply Authorities’ Secretaries’ Association. Had they not done so, he said, they would not now all be on the market for loan money. Capital expenditure was still “looming large on the horizon,” Mr Eglinton said. It was caused not only by extension of lines, but also by the growing demand for increased capa city in existing reticulation. Many authorities had had to install extra high tension lines and that would be too expensive to carry out from revenue, but there were smaller jobs which should be capitalised from revenue.

Trading by supply authorities was causing concern in some quarters, Mr Eglinton said, but many boards would not be in their present positions without their trading concerns. “I am afraid we shall still have our difficulties in the future, and at the same time we shall have to cope with an ever-increasing load for increased copulation.” he said. “However, these difficulties should not be insurmountable if the same energy as in the past is put into our efforts.”