Power up ‘by March’

Press, 14 September 1976, Page 11

Power up ‘by March’

PA Wellington j. The Government’s energy|. plan will result in electricity? price increases of between j 20 and 40 per cent, according to the vice-president of j. the Electrical Supply! Authorities Association (Mr' Stewart Duff). Supply authorities would: not be able to absorb anyj. Government increase in bulk? electricity charges, he said,!, and the increases would' have to be passed on. He< predicted that they would be introduced at the end of . March. The E.S.A.A. is having' talks with the Government about the energy plan, which the Minister of Energy Resources (Mr Hol- ' land) said this week would become law this Parliamentary session. Mr Duff said that no official details of the new|i plan had been given to the association, as had been suggested by the broadcasting 1 media. A 40 per cent increase in! bulk charges would mean that electricity charges have? almost doubled since the Government was elected in November. Yesterday afternoon. Mr Holland said in a supplied statement that some of the energy price increases being predic’ed were ‘•ludicrous " i “Details of the energy i pricing policy will not be announced until I have consulted with groups in the? energy sector, such as the electrical supply authorities.” He was commenting on a Wellington newspaper report that said the Government was planning big rises in. the domestic price of elec-’ tricitygas and coal.

■ But speaking last night in ij Te Anau, Mr Holland j strongly hinted that costs of < producing electricity would t be fully recovered in prices, ] “Initially, the approach ; should be based on a cost- i :plus basis, and should allow j institutions in the energy; sector to recover full costs! ■of production and allow rea-j isonable contributions to be' 'made to capital works,” hej itold the annual conferencei of the Electrical Contractors! ' Federation. “Adequate provision must| be made so that there are’ funds for exploration, re-’ search and development,” he 1 said, adding this would ie-’ suit in increased prices fori some forms of energy. Conservation and pricing were two important, related features of the proposed energy policy, he said. Conservation included deterrents aimed at eliminating wasteful and extravagant uses of energy. i Energy prices must reflect I the value of resources, in economic, social and environmental terms. “Energy pricing has been determined by production costs and by the very dubious political considerations of economic stabilisation. There has been little,! if any, concern for the dep'-1 etion of non-renewable re-1 sources.” Mr Holland said the Government intended to investigate possible future hydro-electric schemes, particularly small ones with a capacity of 50 megawatts or less. The new pricing policy, would encourage smaller: ■ schemes, he said. An inhib-! 'iting factor in the past had 'been the cost of electricity!

produced; unless it could be, produced cheaper than ii could be bought from the national grid, there was no point in going ahead. "More realistic pricing of electricity from the grid will provide the solution.”