M.E.D. Surplus Drops To £104,000

Press, Volume CIV, Issue 30783, 22 June 1965, Page 12

M.E.D. Surplus Drops To £104,000

A gross surplus on power sales of £104,021 for 1964-65 was reported by the Municipal Electricity Department last evening. This compares with a £233,056 surplus last year.

With a trading profit of £6064, interest on investments amounting to £15,474 and a surplus from last year of £53,345, the department had £178,904 surplus. From that £164,555 has been appropriated for loan repayments and the loan redemption reserve and £698 for other sundry payments, leaving a net surplus of £13,651. Commenting on the accounts, the chairman of the electricity committee (Cr. W. E. Olds) said the year had been an unusual one and emphasised that results depended entirely on the weather, while estimates could only be in anticipation of an average climatic year. Mild Winter

There was an unusually mild winter, followed by a dry, warm spring and summer. This resulted in an acute shortage of lake storage water necessitating some power rationing in August.

The annual peak was 2 i per cent less than estimated.

“As a final blow to hopes of a successful year.” a most unseasonable short cold spell in March of this year put the cost of power up for that quarter by approximately £64,000, and there was no corresponding increase in revenue. The result was a total power bill for the year £21,385 less than expected, but the sales of power were £177.111 less than estimated. All sections of expenditure were within the estimates, Cr. Olds said. The showroom sales, while showing a lower total, resulted in a small increase in profit of £226. It was not considered appropriate to transfer any sum this year to the bulk power payments reserve, which stood at £30,000, or to the decimal currency reserve of £lO,OOO. Cr. Olds showed that the average revenue a unit was 1.3557 d. For domestic consumers the average was 1.058 d, for commercial users

2.893 d and for industrial 1.681 d. From each £ of revenue bulk power cost 13s 4Jd (13s 91d last year), capital charges were 2s Ud (2s 3?d). working expenses 3s 2ld (3s 4d). balance for loan repayments. 7d (6Jd) and balance An estimated income of £4,029.551, compared with £3,955,785, last year was made up in the main of £3,573.740 by the sale of power, £63.586 for street lighting. £15,475 from interest on investments, £53.344 from last year's surplus, and £316.515 from loans. Major items of expenditure were given as £2.506.477 as the cost of bulk power. £476.238 for salaries and wages. £630.365 for materials and equipment, £80.686 for interest and £164,555 for repayment of loans. Mr J. P. Shelley, the general manager, said there had been a revival in the rate of development in new subdivisions which had resulted in a higher rate of connexion of new consumers.