Power boards may get into difficulty

Press, Volume CXIV, Issue 33455, 9 February 1974, Page 3

Power boards may get into difficulty

Zealand Association) AUCKLAND, February 8. A cold snap this winter could pul power boards in deep financial trouble and lead to applications to the Government for permission to raise prices, the president ol the Electrical Supply Authorities' Association (Mr A. W . Gooder) said in Auckland today.

He said the power boards escaped a similar situation last winter only because temperatures were consistently mild. A cold snap would cause high demand for electricity, and 70 per cent of the cost of power from the Elec-

;tricity Department was for peak demand. Power Board costs to the • Department were calculated lon a complicated formula; ‘that took into account peak , demand and the number ofj units used, he said. Last winter, although the j number of units used was 'below expectation because of ' power savings, there was no jcold snap to push demand, ’peaks up, and the cost fori each unit of electricity from ithe department was low. I Mr Gooder said power boards had received notice' ■ that the cost of electricity; from the department would' be held until March 1975. “That means that if any power board is in trouble financially, it will have to] sapply to the Government fori i permission to raise its tartiffs,” he said. j The Wellington Municipal (Electricity Department had (lost 8332,000 in the nine-, 'month period ended Decem'ber 31, 1973, the chairman of the Wellington City ; Council trading committee, (Cr S. H. J. Duffl said in ■'Wellington today. ! The department would, ■ make a substantial operating; ' “ - I

oss in the present financial ear. and the department rauld have to seek pernission for a price increase n addition to one which ame into effect this month.