Price of power

Press, 14 August 1976, Page 12

Price of power

Sir, — As a member of the electrical supply industry who accepted an invitation to take part in the forum discussion as a part of the recent Environmental Vanguard Organisation seminar on “Energy Conservation and Planning,” I think it is a pity that Patrick Neary could not have been present as he has obviously got an incorrect impression of views expressed. A fair price for electricity that discouraged waste is a sound # objective in promoting energy ’conservation. However, I am sure that most of those present were unaware that the N.Z. Electricity Department had sustained a loss over the last two years prior to the recent increase in bulk charges. Even now the department can hardly be considered to be more than selfsupporting if one considers the current estimates for 1976-77. The anticipated capital expenditure is S3OSM, and the cash receipts S2OOM«

Expenditure is expected to be S79M working costs, S9SM interest, S2M contribution to superannuation schemes, SI6M loan redemption payments, leaving SBM surplus as a contribution to the capital programme. This is indeed a very small contribution to capital development and surely makes the point that electricity is far from over priced. — Yours, etc., G. B. COLLIE, District Manager, New Zealand Electricity Department. August 12, 1976.