Power Charges

Press, Volume C, Issue 29669, 13 November 1961, Page 3

Power Charges

Sir,—Why has the Banks Peninsula Power Board increased the cost of electricity to consumers by such a large amount? I understand the increase in the cost to supply authorities is 6 2-3 per cent., whereas the power board increase to the consumer on a consumption of 200 units for two months, from £2 12s 6d to £3 12s 10d, is 38.7 per cent. The cost of 200 units in the MI.D. area, under their new charges, is only £1 7s 3d. If the board had made a loss last year the increase would be understood, but according to the annual statement of the New Zealand Electricity Department the board made a profit. It looks as if the consumer can be charged anything.— Yours, etc.. HARASSED CONSUMER. November 7, 1961. [The engineer to the Banks Peninsula Electricpower Board (Mr R. PThomson) replied; “As the basis of the board's tariff has been altered its effect will vary from consumer to consumer. The new tariff is designed to yield 93 per cent, additional revenue from domestic consumers to meet, in addition to increased bulk supply charges. increased labour costs, and increased capital charges, and to provide a greater working margin. As 'Harassed Consumer s’ comparison of two units on various tariffs is not understood, this aspect cannot be commented on. The profit envisaged from the increased tariff is much less than the Dominion average for all supply authorities as shown by the 1951 statistics.']