Consumers’ Electricity Charges To Be Raised

Press, Volume CVI, Issue 31335, 4 April 1967, Page 3

Consumers ’ Electricity Charges To Be Raised

(New Zealand Press Association)

WELLINGTON, April 3. The Minister of Electricity (Mr Shand) announced today that electricity charges would be increased by an average of 121 per cent from October 1.

He said the increased levy over. the fiveyear period ending March, 1972, would produce a further £4O million from revenue for capital works. Mr Shand said the actual increases would vary slightly between supply authorities.

Stating that the increased charges were necessary because of the sharp fall in New Zealand’s overseas earnings, he said the Government had been obliged to choose the lesser of two evils for the electricity consumer: An increase in the charge of of electricity, or The possibility that essential work should be delayed through lack of funds.

Mr Shand said the increased levy would enable the New Zealand Electricity Department to meet approximately 50 per cent of the cost of new works from revenue.

He emphasised that the levy was not a tax on consumers—but rather anticipation of expenditure. “Considerable Savings”

“It will make possible considerable savings in interest charges and loan repayments, and have a marked effect in stabilising electricity charges.”

The Minister pointed out that as a result of imposing the present 25 per cent levy in 1961, it had been possible to maintain the charge for bulk supply to supply authorities from April 1 this year at the same level as the previous five-year period. “The change now being made will have the effect of

maintaining similar stability in electricity charges in the years to come,” he said. Method Detailed Detailing the method by which electricity charges would be increased, he said that after consultation with the executive of the Electric Supply Authorities' Associa-i tion, the Government proposed to increase the amount

of the capital costs included in the bulk supply price for electricity sold to supply authorities from 25 per cent to 50 per cent of production cost—or by an average of .15d per unit Mr Shand said the Government made statutory provision for an increase in the State Supply of Electrical Energy Amendment Act 1965.