Economic Situation Hits Power Sales

Press, Volume CVII, Issue 31551, 13 December 1967, Page 1

Economic Situation Hits Power Sales

Sales of electric power had not been maintained because consumers had reacted to the national economic situation by tightening their purse strings, the retiring chairman of the Central Canterbury Electric Power Board (Mr W. A. Newton) said yesterday.

This had made it necessary to revise the estimates and to study ways of economising without affecting the efficiency and safety of the undertaking. Mr Newton told the annual meeting that expansion and development were being restricted by the amount of loan money available. The decision of the Electricity Department to increase capital development charges to 50 per cent had meant an increase of 12 per cent to consumers. Coming in the middle of the year, the increase did not help the board’s financial position.

Mr Newton said the board should support' whatever the

newly formed Electricity Distribution Commission did to improve the efficiency of the electricity industry. . He said the new commission would allow the industry to determine its future rather than be under the control of the Local Government Commission or subject to local bills. If the commission followed previous recommendations, New Zealand could be served by area electricity authorities instead of the power boards and municipal supply authorities.

This would mean a substantial reduction in the number of authorities. Britain and New South Wales had found this worked well.