Four-tariff power structure planned

Press, 4 August 1983, Page 8

Four-tariff power structure planned

Details of the proposed restructuring of the New Zealand Electricity Division’s bulk tariff fees may be announced at the Electrical Supply Authorities’ national conference at Nelson next month.

An Electricity Division commercial engineer, Mr M. C. Underhill, said investigations were under way to introduce a new four-tariff structure. He said the investigation of the proposal followed the Government’s announcement last year of attaining a more energyintensive tariff. Mr Underhill made the comments to more than 90 delegates of the southern region combined meeting of the Electrical Supply Authorities’ Association in Christchurch yesterday. The department was assessing response to the new tariff structure from supply authorities and manufacturers throughout New Zea-

land, he said. The new tariff structure was aimed at reflecting the Electricity Division’s cost of producing and transmitting electricity. Mr Underhill said the new structure would reflect the cost more equitably. “Its purpose is not to produce more revenue,” he said.

The department’s bulk tariff is structured in two parts, based on energy and peak charges. The new structure is proposed in four sections.

Mr Underhill said if the new structure was adopted, there would be more emphasis on energy with highenergy users being hardest hit. They could expect up to a 2.5 per cent increase in tariff.

Bulk tariffs are designed to recover the cost of man-* aging and running generation and transmitting stations from the retail supply authorities.

Hydro importance

The development of small hydro stations by supply authorities was now an im'portant part of electricity generation, Mr Underhill told delegates.

Of the 61 electrical authorities in New Zealand, 19 had their own generating equipment, producing 3% per cent of the total electricity generation. Mr Underhill said that the importance of such schemes was evident in the Government’s policy of encouraging electrical supply, authorities to develop their own hydro schemes.

Mr Underhill said there were “quite a lot” of schemes under consideration.

Amalgamation

A decision on the amalgamation of counties supply authorities and power boards may be made by the Minister of Energy, Mr Birch, later this year. In his opening remarks to the combined meeting, the president of the supply authorities association, Mr I. E. Kerr-Taylor, said representatives of the association had met with Mr Birch in the last six weeks to discuss the matter. Mr Birch earlier asked the association to investigate the benefits of such an amalgamation. Mr Kerr-Taylor said that Mr Birch was unlikely to make an announcement on amalgamation before the local body elections in October.