M.E.D. Will Take Time Over Change

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

M.E.D. Will Take Time Over Change

The Municipal Electricity Department may not decide for some time on new charges to Christchurch consumers resulting from the Government’s announcement yesterday.

“This news will necessitate a complete review,” said the chairman of the City Council’s electricity committee (Cr. W. E. Olds) last evening. “The M.E.D. has not altered its charges since 1961,” said Mr Olds. “Over the last two years we have been working on a revision which would give equitable balance of domestic, commercial, and industrial tariffs. “We have absorbed extra costs and had hoped not to be affected too greatly by the new contract which came into force on April 1. “But now we must consider also the charges to come into force next October and make some provision for our capital requirements out of revenue.

“Some power authorities have already increased their charges,” said Cr. Olds. “The M.E.D. will take time to consolidate recent changes and at least two months notice will be given after our

recommendations are approved by the council.” Industry carried the bulk of the last power increase so people could enjoy cheap power in their homes, and it would be a pity if the present increase was passed on to industry, said Mr T. L. Uren, chairman of the power and fuel committee of the Christchurch Manufacturers' Association yesterday. “A lot of power is wasted in homes because it is so cheap, and it is unfair that industry should continue to subsidise power used for domestic consumption," said Mr Uren.

He said that when industry was expected to manufacture for export at marginal or below cost, it would be a bitter pill if the power costs were increased. For some industries in Christchurch, the average charge per unit for some types of load was more than 50 per cent dearer than the charge in Auckland.