Board soon debt-free?

Press, 16 June 1982, Page 3

Board soon debt-free?

By staying clear of the loan market for capital re-, quirements, the Central Canterbury Electric Power Board should be debt-free within a few years, a meeting Of the board was told yesterday. The board’s deputy chairman, Mr B- M. Faulkner, said that the board's. policy of staying off the loan market and putting capital into ■working activities rather than into servicing borrowing “had more than paid off.” The board has not borrowed for almost four years and would be reluctant to do so now, at present borrowing rates, he said. In the financial year, interest on loans was down 14.4 per cent to $143,000, from $167,000 in 1981. “The board’s current debt liability was ■ .only $733,000 - after allowing ; -for sinking • funds of $792,300 set aside for debt redemption.” . The board’s annual accounts, which were presented yesterday, also showed “the board’s expansion up’’ in comparison with last year.

The cost of electricity purchases had risen from $9.5 million to $ll million, while revenue from sales of electricity had increased from $14.5 million to $16.8 million. The units of electricity sold had also risen to 333 million kilowatt, hours from 311 million kilowatt hours. The board finished the financial year with a 5 per cent reduction in its working surplus. Chatham Islands. Chatham Islanders will soon have a new “manager” of the islands’ electricity distribution system. The board decided that it would undertake the management of electricity distribution and hydro-electric investigation on the islands. Its decision follows up a formal request by the Chatham Islands County Council last May. Finance for the project, which will connect 40 consumers in the first year, will come from the Internal Affairs Department and from electricity sales on the islands.

Mr Faulkner said that work would not affect tariffs paid by the board’s local consumers. The board w.ill start work on building distribution lines round Chatham Island to link consumers with a diesel generator, towards the end of the year. Remote supply A joint venture in developing a small hydro station at Grasmere station was considered by the board yesterday. The scheme could provide a limited public supply to a few people in the Waimakariri Basin. The board hopes to make a final decision on the venture within two months. The board is also considering provision of a point of supply for the Castle Hill area. Planning approval was recently granted by the Malvern County Council for the development of the Castle Hill village, and this development may provide a base load that "will justify a point of supply.