Cheap power for big Chch users

Press, 27 August 1980, Page 1

Cheap power for big Chch users

A big Christchurch industry could soon be paying less for electricity in exchange for reducing its use of power during periods of peak loads. The industry’s name was not disclosed to the Christchurch City Council’s public utilities committee yesterday, but councillors were told it was in Woolston and would be the city’s largest power consumer , if — as planned — it changed from oil to electricity fur its steam requirements. The M.E.D.’s general manager (Mr J. H. Donald) said he hoped the new type of tariff would discourage large industries from moving out of Canterbury. It could also encourage others to move to the province. He said the reduced tariff was similar to one used by the Auckland Power Board for very big consumers. For the local industry, it would give a

lower power price than the Auckland tariff.

The tariff would be complex to ensure that money received from the consumer was “closely related" to the M.E.D.’s costs in supplying power to the industry, Mr Donald said.

Only three or four Christchurch consumers could probably qualify for the new tariff recommended by the council committee.

The . special power charge would come on top of the 25 per cent regional development - rebate on electricity costs for South Island industries. Mr Donald said the charge would encourage big consumers _ to switch off large loads in the factory when that would save the M.E.D. on its peak loads. That saving .would be passed on to the industrial consumer through the lower tariff. The M.E.D. would

always receive an adequate return from the tarriff, but with a very small margin. The Canterbury Manufacturers’ Association had asked local electricity supply authorities to consider cheaper charges to prevent the drift of big industries to the North Island.

A new charge would be available to consumers taking supply at 11,000 volts and with an annual consumption exceeding 10 million units.

The Woolston industry would receive peak load warnings possibly 30 times a year on past experience, and had the ability to shut down a substantial part of its plant, Mr Donald said.

A special alarm circuit between the M.E.D. and the industry could give a quick warning. In the past, the M.E.D.’s peak loads have occurred from 4.30 p.m. to 6 p.m. during the winter. But peaks could happen during the morning or at other times of day.