Power Charges Up From October 1

Press, Volume C, Issue 29504, 4 May 1961, Page 14

Power Charges Up From October 1

(From Our Own Reporter)

WELLINGTON, May 3. The Electrical Supply Authorities Association has agreed to Government proposals for higher power charges to provide a proportion of capital requirements from revenue. A spokesman for the association said today that the Government proposals were identical with those proposed and accepted in 1957, but which the Labour Government did not operate. This means that from October 1 the national power bill will increase by about £1 million a year. The Minister of Electricity (Mr Goosman), speaking by telephone from his home in Morrinsville tonight, said that he was pleased that agreement had been reached. "The rise in charges should not mean any hardships,” he said. “The cost of power is supposed to be only 60 per cent, of power board tariffs, so that should cushion the effect.” Mr Goosman said supply authorities could now begin to prepare new tariffs. The Government had no plans to make the new charges effec-

tive before October 1 for that reason. There would be no need for legislation during the forthcoming session of Parliament. Provisions of the State Supply of Electrical Energy Act, 1957, suspended by the Labour Government, will automatically become effective from October 1. Two-monthly electricity bills could rise by at least 3s 8d and possibly more than ss. This will meet the agreed levy of a 25 per cent, charge on electricity to provide money for part of the capital cost of generation.