Smelter Power At ‘Reduced Rates’

Press, Volume CX, Issue 32381, 21 August 1970, Page 26

Smelter Power At ‘Reduced Rates’

(New Zealand Press Association) WELLINGTON, August 20. Evidence that Comalco will get substantially reduced rates for power was heard at the Commission of Inquiry into the proposed raising of Lake Manapouri todav.

Mr C. McFarlane, a consulting engineer from Invercargill, said Comalco would be getting electricity in 90 years time at one-sixth of the rate to i regular supply authorities.

Ninety years is the length of time covered by the electricity supply agreement with Comalco.

Under the terms of the agreement, Comalco was now being asked to pay 0227 c a

unit, while supply authorities were paying 0.5 c a unit, Mr McFarlane said. At an inflation rate of 3 per cent Comalco, in 90 years time, would be asked to pay I.lBc a unit, he said. Supply authorities would then be paying 7c a unit

The chairman of the Commission (Sir Douglas Hutchison) asked Mr McFarlane whether the consumer would have a proportionately larger income by then. Mr McFarlane said the

consumer would, but by the same token Comalco would also have a proportionately larger income. An answer to the Comaleo claim that it would regard power from elsewhere than Lake Manapouri as subsidised was given by Mr McFarlane. Mr McFarlane, who has been engaged by Comalco, appeared today in a private capacity with the company’s knowledge. He said that if a thermal power station in the North Island and the upper Waitaki system in the South Island were to be economic their development must be accelerated.

If Manapouri were raised —in fact in opposition to these two schemes—the effect would be to retard rather than accelerate these alternatives.

Development of thermal as well as hydro power would make for a more reliable supply, he said. Under examination, he said he saw the use of Manapouri at a lower level compensated

for by the use of 60 megawatts from a New Plymouth thermal station. . As a previous witness had said, one kilowatt was as good as another, and it would be advantageous for the smelter to be on the national grid, Mr McFarlane said.