Minister’s Policy On Power Rates Queried
There was a move in official circles to change the method of bulk charging for electricity to make it less competitive with other fuels, said Mr W. A. Newton, at a meeting of the Central Canterbury Electric Power Board yesterday.
He said it looked as though the Minister of Electricity (Mr Shand) had made up his mind on the new bulk charges for the next contractual period with supply authorities, although this was supposed to be done only after consultation and agreement with the authorities.
Mr Newton, who is .a member of the executive of the Electric Supply Authorities’ Association, said, he based his remarks on a reply from the Minister, just received by the executive- in reply, to a remit from the 1968 conference. This related to the method to be used for heating Rutherford House, the multi-storey block now being built in Wellington as headquarters for the New Zealand Electricity Department “L can only assume from the reply that the N.Z.E.D. has no faith in the product it produces, and that, for sbme reason known only to themselves, some members of the N.Z.ED. are trying to discourage the use of electricity,” said Mr Newton. "A very disturbing conclusion is that there is a soften-ing-up going on which is trying to educate people to accept the fact that there is going to be a change in the incidence of the two-part bulk power tariff for the next contractual period.”
The Minister’s letter, which related to Government policy on the heating of Government buildings, showed that he seemed to be working on the assumption that new bulk charges had already been fixed, said Mr Newton. “Right To Criticise”
The supply authorities’ experts contended that, under the present tariff, it would be feasible to use electricity to heat Rutherford House. As the N.Z.E.D. was financed entirely by electricity consumers, they bad every right to criticise the N.Z.E.D. for using other than electricity to heat the building. “The department had no right to dictate to the electricity consumers that fuel will be used, yet that is virtually what the department
is doing,” he said. The chairman (Mr T. F. Carter) said the remit was “a hot one” at the conference.
“If you were manufacturing cloth, you wouldn’t get a suit made with someone else’s material,” said Mr Newton. “It's the implications of this that are worrying.” Answering questions, Mr Newton said that the Minister, in his reply, implied that in the new rate, the incidence of charge would be changed. The present bulk rate was at so much a unit and so much on maximum demand. The Mil
inister talked as though be contemplated a doubling of the unit charge, and a lowering of the demand rate. “There" is definitely a move to restrict the use ,of electricity in some respects,” said the General Manager of the board (Mr S. E. Slatter) “The two-part tariff is charged not because the Government wants more revenue, but to bear a greater reflection of costs. It depends who holds the mirror.” A reallocation of the rate would not increase revenue, but would vastly change the charges to individual supply authorities. Some would pay more, some less. Those who had done their
best to make an even load would be penalised ,if ' the unit charge were raised, said Mr Newton. Mr Slatter said that the Na. tional Development Conference had recommended that a panel should be set up to Study costs in the electrical industry, but this job was already being done on an annual basis by two other committees.
There was no doubt In his mind that there was a wish, in certain circles, to dampen down the demand for electricity to the advantage of other fuels. Meeting Demand He slid he did not think the industry had ever tried to promote the wasteful use of electricity. All it was try-
ing to (Io was to meet the demand of the man in the street for the power supply he wanted.
“This move can only be seen as an attempt, to put other fuels on a better parity,” said Mr L. T. Griffith. “The Government has to find vast amounts of capital for power development, but private capital is used to supply other fuels.
“We should try to force this into \the open. Surely we have the right to prior discussions on any new tariff.”
The hoard, on Mr Newton’s motion, decided to tell the Minister of its concern and disappointment at the decision to heat Rutherford House with a fuel other than electricity.
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Bibliographic details
Press, Volume CIX, Issue 31987, 14 May 1969, Page 7
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765Minister’s Policy On Power Rates Queried Press, Volume CIX, Issue 31987, 14 May 1969, Page 7
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