Bulk electricity will cost consumers less

Press, 19 May 1982, Page 3

Bulk electricity will cost consumers less

Bulk consumers of the Central Canterbury Electric Power Board will pay less for electricity from July 1. At yesterday’s meeting the board endorsed a management recommendation to reduce the bulk tariff for commercial and industrial consumers by 2 per cent.

The reduction stems from the board's decision to abolish three-monthly accounts in favour of monthly invoices. This would give tne board more money in the short term to inve'st, said the general manager, Mr P. D. Rutledge. The bulk tariff re-

ductions would be funded from the increased revenue to the board from investments.

All the benefits of the board’s ‘improved cash flow would be passed back to consumers, said the chairman, Mr C. W. White. The new tariff also meant some “rationalisation” with other power authorities, he said.

One' reason behind the move to monthly statements was the bankruptcy of customer firms. Two large firms had gone out of business recently, leaving “considerable debts” owing to the board, said Mr Rutledge. One customer’s debt had amounted to $BO,OOO. “We are at risk under a three-monthly payment system,” he said. Domestic sales Domestic sales of electricity were 10 per cent above

estimates for April, the board was told. This was a 16.7 per cent increase oq April of last year, said Mr White. Lightning Sixteen transformers had to be replaced in April because of lightning damage, board members were told. Lightning on April 4 also damaged equipment at the Hororata and Hare wood substations. Control panels A saving of between $15,000 and $28,000 had been made by workshop staff constructing 12 new control panels, said the chief engineer, Mr D. L. Lewis. Tenders for made-up control units ranged from $59,000 to $71,000, he said. The board staff had completed the job for $42,000.