Reserves reduced by power board

Press, Volume CXI, Issue 32634, 16 June 1971, Page 10

Reserves reduced by power board

It was disturbing to see that reserves had been eaten into to the extent of $146,000 in the last year, said Mr W. A. Newton when the Central Canterbury Electric Power Board was considering its annual accounts yesterday. It was not a pretty picture, he added, but he hoped the recent tariff increase would restore the position.

Earlier the board was told that its debit balance of $439,863 at the end of April had been reduced to a debit balance of $351,596 on May 31, and the chairman (Mr L. F. Chamberlain) said he was’ less concerned about the loss of reserves than about the loss of liquidity, though he Was sure the position would be recovered.

“How about a telegram to the F.O.L. and the Government saying if you can’t reconcile this present one, it will be worse next year?” asked Mr L. T. Griffith.

The secretary (Mr I. S. Smith) said that the board’s electricity ■ revenue, at $2,808,102, showed an increase of 8.5 per cent. Revenue from domestic sales had increased 4.9 per cent, and other sales .were up 10.8 per cent. . The'gross operating surplus was $672,900, but as capital and loan charges amounted to $368,991, renewals required $73,467 and $490,523 was taken from revenue for capital work, the accumulated, surplus had been reduced by $146,664. The general manager (Mr S. E. Slatter) said that the board’s growth had been

above the national average. The actual cost of bulk power was $1,648,919, and revenue totalled $2,808,103. The revenue a unit sold was 1.295 c, compared with 1.3 c last year and 1.307 c in 1969. From revenue, $657,347 had been transferred to capital works, or 68.5 per cent of the total spent. Since 1957, the purchase price of electricity had risen 17.9 per cent and the board’s costs 30 per cent, but revenue a unit from sales had risen only 13.6 per cent.

Mr Slatter said that in the next five years at least $3.75m would be needed for expanding the system. He referred especially to the need to improve the supply round Lyttelton Harbour, to Banks Peninsula, at Lincoln, Christchurch Airport, and Spring-field-Sheffield.