S.I. power measures released soon

Press, 24 February 1979, Page 6

S.I. power measures released soon

The criteria for power concessions to South Island

industries are expected to be released by the Government next week, with guidelines on the increases in retail electricity charges. Once the concession criteria arrive, the Canterbury Manufacturers’ Federation energy committee will discuss them and send proposals back to the Government, said the federation’s president (Mr I. D. Howell). Many firms were looking at ways of cutting their energy bills, but those who had enforced conservation measures in the last few years had probably gone as far as they could go, he said. The general manager of the Municipal Electricity Department (Mr J. H. Donald) has warned companies against changing from electricity to other power sources.

“Most industries have been through the exercise of conservation recently, and may be thinking about changing,

but it would be dangerous to do so before they have seen the Government’s guidelines,” he said.

One Christchurch maker of solar heaters has reported a “colossal” number of inquiries from industries, farmers and householders interested in cutting power bills. Increases in retail power tariffs are likely to be higher than the 42 per cent forecast by the Government when it announced the 60 per cent increase in bulk tariffs.

Mr Donald said that a 42 per cent increase would certainly not cover the costs incurred by the M.E.D. Supply authorities were also concerned that they would have little time in which to work out what increase would be necessary.

But the M.E.D. could not even start to work out its own increase until it had received the guidelines from the Government, he said. It would then have to give one

month’s notice of an increase, and have all the details ready for the March meeting of the Christchurch City Council. “We have less than a month,” he said. “Supply authorities are very unhappy about the way it has been handled, but they have no control over that. It affects every consumer, and we do not like to to see our consumers treated like this.” The costs that would have to be recovered by supply authorities included a likely permanent drop in sales that could only be recovered by higher charges, unless other fuels were priced in relation to electricity. “I think it will be a more permanent drop than the last time charges went up, because the economy was more buoyant then,” said Mr Donald.

Supply authorities would also have to recover increased debts, and the effect of inflation on stock, stores and wages.