Power prices to drop

Press, 22 September 1983, Page 1

Power prices to drop

PA Wellington Electricity consumers will pay less for power at off-peak periods from April 1, 1984, under a new method the Government has drawn up for charging out bulk electricity. The Minister of Energy, Mr Birch, announced the new structure when he addressed the Electrical Supply Authorities’ annual conference in Nelson yesterday. The change means that supply authorities will be charged at different rates for the bulk electricity they use. One rate will apply between the hours of 7 a.m. and 11 p.m. and a lower rate will apply outside those hours. There will also be rates to cater for power peaks. The highest charges would apply between 7 a.m. and 11 p.m. during the winter zone period between May 15 and September 15, and during peaks occurring any time of the year, Mr Birch said.

The new structure applies to the cost of power to supply authorities, which base their charges to consumers on the prices they are charged by the Government.

Bulk electricity charges to apply under the new structure are expected to be announced in December. Mr Birch said in a statement that the tariff change was designed to provide the Government the same amount of money as the present tariff, but in a way which more accurately reflected the cost of supply.

Mr Birch’s address, page 3