Will council refuse to pay power rise?

Press, 26 November 1980, Page 6

Will council refuse to pay power rise?

Legal implications of refusing to pay the Government’s announced 9 per cent bulk-power price rise next year will be studied by the Christchurch City Council. Because of steep price rises the year before, the council absorbed this year’s 6 per cent rise without passing in on to consumers. -Cr Vicki Buck told the council’s public utilities committee yesterday that next year’s rise seemed artifically low considering the Government’s pricing policies. In future years, a yearly rise of 15 - 20 per cent was likely. “I do not find that acceptable,” she said. It was time to ask consumers if - they were prepared to make a stand and support a council refusal to pay the ncrease.. - , ; .'“That may result in Christchurch not ?.. having power, ’’ she -said. “Are they prepared to pay that cost?”

An agreement to pay the 9 per cent was tantamount

to the council’s saying it would not fight the- rise. The committee’s chairman, Cr Rex Lester, said the 9 per cent rise related only to about 80. per cent of the M.E.D.’s total expenses. Inflation in. wages and..! materials costs* had to be added, along with; some capital works •requirements.

Cr Lester said he was concerned about ■-w information that it could cost the M.E.D. about $2.25 Trillion just-to provide additional electric power to gas consumers who would -be cut off in 1982.

“It is frightening that this is thrust upon us at short notice,”he said. . Much of the conversion load would be in the central business district. With the extra load, : there could be freqeunt breakdowns -and possible supply interruptions' in the city centre j if?!‘the .work ■ was .not .done, an M.E.D. report said. ' '

Cables transformers, and associated equipment, for the

conversion accounted for the cost. The M.E.D.’s general manager,' Mr J. H. Donald, said the higher cost of cable had a lot to do with the big conversion bill. Councillors said that Gas Council for the. change I-should ; be. sought, from - tli'e"t .Government, which had t jected ; a council plea for compensation for private hospitals that must concert from ga'S’.. . . Cr Lester said, the social costs ’of [Conversion Were disturbing, and so was the Government's reply. said: that the Minister-. Aof Energy '(Mr Birch) should by approached a£ b With a' report detailing conversion costs for private hospitals and other community, organisations.-' . ■• Cr Lester said? there - would also (be discussions with other metropolitan, local bodies ■ about the .best -approach on the power price issue. ‘ ,i- .1 <.