“Adamant” View On Power Issue

Press, Volume CIX, Issue 32034, 8 July 1969, Page 14

“Adamant” View On Power Issue

Power boards are adamant that electricity should not be made to support municipal and community undertakings and that it is a basic commodity that must be distributed with no other interest than to give the best supply at the lowest rates, says a statement issued by the Electric Power Boards of New Zealand.

The Municipal Electrical Supply Authorities’ Association recently asked city, borough and county councils to support the creation of area authorities with the power to distribute profits up to 2] per cent of the capital value of the electricity undertaking of the area authority. Should profits from the sale of electricity be used only to improve the distribution of electricity and reduce tariffs, or should they be used also for other purposes? the power boards' statement asks. “The matter is of more than academic interest for twothirds of New Zealand’s electricity consumers, who receive their electricity supply from power boards,” the statement continues. “As special - purpose authorities, power boards do not distribute profits. Being concerned only with the distribution of electricity, they use profits only to extend or improve their service, or to reduce tariffs.

“The municipal authorities can and do distribute profits for the relief of rates and for other purposes.” The statement goes on to refer to the powers of the Electricity Distribution Commission to set up area authorities, in which power board and council suppliers may be amalgamated, and

says that these authorities may be given power to distribute profits.

“Substantial amounts of money for distribution can be only obtained from tariffs,” the statement continues. “Th# electricity tariffs must, therefore, be dearer than they would otherwise be. “The electricity consumer is not necessarily a ratepayer and where there is distribution of profits, consumers could be called on to subsidise ratepayers.” If area electricity authorities are allowed to distribute surpluses to their constituent territorial councils, an average of $10.33 for each of its consumers will come from the Central Canterbury Electric Power Board, the statement says.