Power Shortage Warning In Critical Report

Press, Volume CIV, Issue 30803, 15 July 1965, Page 3

Power Shortage Warning In Critical Report

(From Our Parliamentary Reporter)

WELLINGTON, July 14.

The Electricity Advisory Council is strongly critical of present power planning which it claimed could result in shortages of supply in nine of the next 10 years.

The report of the power planning committee last year shows only in one of the next 10 years, 1969-70, is planned generation adequate for expected needs on a dry-year basis.

“We do not accept this as a proper planning to meet the demands for electricity,” says the council in its annual report tabled in Parliament today. “For many years the supply of electricity has been on a marginal basis, with the result that from time to time crises have developed. The committee in its report stresses the great increase in loading in recent years, yet admits there is little provision for emergencies. “It does appear to us that the recent upsurge in demand could have served to mark the end of an era when planning was sometimes compelled to wait until demand itself pointed out the require ments.” The council says that the oil fired station at Marsden point and the gas based sta tion at Kapuni are both included in estimated generation capacity for the 10-year period. The power planning report listed Marsden point as coming into generation in 1967-68 with a capacity of 657 million

units rising to 1049 million in 1968-69 and 1526 million in 1969-70.

The Kapuni station, the committee’s report shows as coming into operation in 1968-69 with a capacity of 760 million units.

The Advisory Council says that in 1963 the alternative to the use of Kapuni gas was stage three of Wairakei geothermal power development. “This can no longer be relied on and extra generation at Marsden point is recommended as the alternative. It would be informative to show the maximum extent to which generation at Marsden point is estimated to be possible without recourse to the use of specially imported fuel. “This we suggest because both Marsden point and Kapuni are included in tables of estimated generation over the next 10 years. “Unless Kapuni is to be wholly for electricity, generation figures in the committee’s report appear to be incorrect and there is no clear indication as to what the alternative to Kapuni’s estimated output will be.” The council reiterates suggestions that power planning should be on a schedule two

years ahead of estimated requirements and construction one year ahead. “We recommend that in the available time between now and the preparation of next year’s report an all out effort be made to produce a plan which will provide for the full expansion of load indicated by the committee to review power requirements with a margin of two years.” STARTING POINT The starting point for planning, the council suggests, should be an assessment of an adequate supply uiidenthe most difficult conditions. The forecasts of load growth are fairly thoroughly covered at present but the investigation of power sources does not appear to be keeping pace. “With the ever-increasing importance of electricity in

our national economy, we consider the cost of employing consultants to assist in expediting survey and investigation work should be weighed against the cost of an inadequate service.” The committee had stated last year it would go no further in its recommendations on planning in view of the very large and costly construction programme which lay ahead. “The council appreciates the committee’s concern but would remark that costs are made more formidable in appearance by the inflation of currency. “The electrical supply industry has for some decades paid its way. it has given a unique service at a competitive price. There is no reason to believe this will not cortinue and even improve in character. “If, as a result of high capital expenditure, retail prices were to increase so as to no longer be competitive, demand would fall and construction expenditure taper off. “The committee to review power requirements points out that over estimation of power needs could bring no problem so difficult .-s those produced by under estimation,” the council says.