Electricity prices

Press, 2 September 1980, Page 20

Electricity prices

Sir, — The argument justifying cheaper electricity for the South Island is incomplete if there is an omission of that vital comparison, made by the South Island Local Bodies Association in its 1979 submissions for a reduced electricity tariff here: on,e subheading read: “Recent electricity tariff increases mean those without natural gas will have to pay up to 300 per cent more” (for energy)' Today natural gas is priced at $1.59 a gigajoule, compared to electricity, at $8.33 a gigajoule. Hutt Valley residents for example have the choice of natural gas or electricity and are in a privileged position relative tc their Christchurch counterparts. Not only that, their power board has the advantage of trading in two commodities with all the possibilities of reducing peak demand and electricity costs. I insist that a historical survey of energy use and development in Christchurch would show conclusively that we have been shabbily treated by the Government. — Yours, etc., PATRICK NEARY. August 29, 1980.

Sir, —’ Your leader of August 30 brought to light

many good * points; ; ” You’ might have added another — that distributing authorities have a good look at their own cost structure as the middle man between the State and the consumer. The State has, in many cases, relieved both borough and board of massive generating costs. I recollect that when I joined! the Invercargill Electricity Department "we were generating our own power from local coal and selling to consumers at seven pence per unit. At that time some Canterbury consumers were paying 11 pence per unit. Electricity is one of the few commodities costing the consumer less today. From my observations of the administration of . the Kaiapoi Borough Council and- the operation of its departments I would suggest that’ South Island distributors might' better serve their consumers by: first looking inwardly and seeking to cut - all their: own unnecessary costs. — Yours, ;etc„ = ‘ C. W. D. HODGSON. August 30, 1980.