COST OF POWER AT ROXBURGH

Press, Volume XCIII, Issue 27989, 8 June 1956, Page 7

COST OF POWER AT ROXBURGH

“Very Dear For Few Years”

EXPLANATION BY MR GOOSMAN

Power generated by the Roxburgh hydro-electric station will cost more to produce than the output of three stations of a similar total generating capacity. The Minister in charge of the State Hydro-electric Department (Mr W. S. Goosman) said this at a political meeting at Little River last evening.

All over New Zealand the price charged for bulk power was the same, Mr Goosman said. As only a portion of the Roxburgh capacity would be required immediately, electricity cost would be “very dear for a few years,” but it would come down as Roxburgh gradually came into full production when the demand required it to do so. Interest was charged on capital until the whole scheme went into production. and interest was then charged to the current account, said the Minister. Interest on Roxburgh was £3OOO a day. and yearly charges, including depreciation and capital repayment, would be £1.250,000.

“That makes the power very dear, and it will be dear until a big proportion of Roxburgh is used, and thenit will keep coming down: but it is going to be dear for a while,” Mr Goosman said.

If a 100.090-ki’owatt scheme had been put in by itself, and had been followed by a similar one two or three years later, and then another a few years later still, the power would have been cheaper, because it would have been used up as so n as it was brought in, said the Minister. Peak Load Costs

One of the biggest costs was providing for the peak load, said Mr Goosman. Providing for the greatest demand at any one time cost a lot of money, becau'e in New Zealand the average use a power station had was only 59 per cent, of its total generating capaziy.

‘ln the last six years, we have spen< £74.000.000 on hy-tro-electricity and we have to continue to spend at the r te of £15.00P,090 a year,” Mr Gocsnnn said. “By 1961, the capital in the State Hydro-electric Account will b * more than £200.000,000.”

The total generating capacity of the North Island was 695.000 kilowatts, and when Roxburgh <320,000 kilowatts) came into production, the South Island would have a capacity of 615,000 kilowatts. Mr Goosman said. As the North Island had approximately double the population of the South Island, it would be necessary to increase the North Island generating capacity to 1,230,000 kilowatts to put it on an equal footing with the South Island.

Schemes being planned or under Construction in the North Island would bring its total to 1,191,000 kilowatts. or 38.000 kilowatts short of double the South Island capacity. “It is necessary to bring the North Island up level with the South Island, find I tell you this to make you understand why we will have to concentrate there for the next year or two,” Mr Goosman said. “You people might think electricity has been a worry to you, but the biggest worry to anyone in New Zealand has been to me.” Cook Strait Link The cost of building hydro-electric power stations in the South Island for the proposed Cook Strait power link would be £150,000,000, Mr Goostnan. said. This sum would be spent in 10 years if it was found that the link tvas feasible. “No-one can tell me that it would Dot be an advantage to the South Island to have all that money spent here.” he said. It was estimated that Roxburgh *ould supply the South Island sufficiently up to 1966, but works under Way in the North Island would last only until 1933. said the Minister. Nuclear stations had been suggested as an answer to New Zealand’s power problems, but three Government advisers who had been to Geneva had recommended that other countries’ experiments and experiences should be watched, especially while the Dominion had plenty of water power.

“We have rot to build a 350,000kilowatt station and the cable, and that will cost £3B 000.000 for the link. If we are going to snend that money. We have got to be dead sure we can Fet the cable across the strait,” Mr Goosman said.