Power concession hopes

Press, 28 August 1980, Page 1

Power concession hopes

Parliamentary reporter The Minister pf Energy (Mr Birch) gave no promise of a 25 per cent cut in the cost of electricity to South Island domestic consumers yesterday, but he did not reject the idea. The South Island Local Bodies Association has pinned its hopes on this. “We . had a fair hearing. We are optimistic we will get it,” said Mr O. H. Jack-

son, the leader of an association delegation to Mr Birch yesterday. “If you keep chipping away at a stone, you will wear it away eventually.” The delegation sought a 25 per cent cut in the South Island bulk domestic charge, to bring consumers into line with concessions granted late last year for South Island industry, tourism, commerce, and some farming, after

representations from the association. The visit yesterday was the association’s third to Mr Birch' on South Island electricity prices. The delegation based its domestic tariff case on lower production and transmission costs in the South Island, the difficulties of naturalgas supply, climatic differences, and the Swedish example of differential rates for colder areas.

The matter will now go to the association’s conference, in a fortnight, which Mr Birch will address. Members of the delegation said privately that Mr Birch’s reluctance to grant a concession quickly to South Island domestic consumers was linked with political backlash from North Island consumers, who would also seek concessions.