“Substantial” Increases In Bulk Power Charges

Press, Volume CIII, Issue 30575, 19 October 1964, Page 14

“Substantial” Increases In Bulk Power Charges

“Quite substantial increases in the bulk supply of electricity,” when the charges came up for review in 1967, were forecast by the Minister of Electricity (Mr Shand), when he officially opened the new administration and showroom building of the North Canterbury Electric Power Board at Rangiora on Saturday.

Outlining the capital expenditure that would be required to keep the power supply ahead of the demand, Mr Shand said cheap sources of electricity were running out. In 20 years time New Zealand would no longer be advantageously situated in regard to cheap electricity charges. Forecasting an expenditure of £4BO million to provide new supplies of electricity, Mr Shand said that at the next stage of electric supply development New Zealand would have to use coal and oil.

With the expanding capital expenditure power boards could look forward to quite substantial increases in bulk supply charges, said Mr Shand. He was sure, however, that everyone would prefer to pay a bit more for their electricity than run the risk of shortages in the future. “Neutral” New Zealand would have to rationalise its fuel supply, and this wpuld mean reconciling persons who had thought they were opposed, said Mr Shand. As he had

never been a member of a power board or a borough council he had some chance of starting off in a neutral position when he assumed the portfolio of Minister of Electreity. In the early stages of electricity supply some boroughs had joined power boards and others had remained out, said Mr Shand. The Government then had considered that boroughs with their supply should contribute to getting power to outlying areas, and that was the reason for providing the “on-cost” in the bulk supply charges from

power boards to boroughs with their own supplies. He did not know of an area where it had been easy to reach agreement on these charges. It was quite unreasonable, however, for boroughs to give up their electrical undertakings unless they were compensated for direct and indirect benefits they received from having their own supply systems, said Mr Shand. His job was to resolve this problem to provide a basis of rational distribution, said Mr Shand. He could see both points of view and it was only when one could see both points that economies could be effected. Remote Areas

Power for remote areas at the same rates as those for towns, was advocated by the member for the district, Mr H. L. Pickering. This would benefit not only those peri sons in outlying areas directly, but also would benefit the national economy by helping to boost the production of the country. Although it was not possible to x have power everywhere, if the costs were too high, he hoped the board would give serious consideration to taking supplies to those in remote areas. An outline of the history and development of the board was given by Mr H. T. Metherell, who was chairman of the board for a long period. Constituted in 1928, the Hurunui board had amalgamated with the North Canterbury board in 1933, and, thus, it could be claimed the board had pioneered amalgamation—a very controversial subject at the present time. “I feel that all supply authorities north of the Waimakariri river receiving bulk supply could amalgamate with benefit to all, thus implementing the original intention of the Power Boards Act,” said Mr Metherell, who added that the door was still open.

The Mayor of Rangiora (Mr L. E. Farr) spoke briefly and the chairman of the board (Mr W. R. Bainbridge) welcomed representatives of other power supply authorities and local bodies and the board’s area.