Dunedin power increase 8 p.c.

Press, 28 February 1986, Page 29

Dunedin power increase 8 p.c.

PA Dunedin Dunedin retail electricity prices could not be held at the 4 per cent of the bulk tariff increase when inflation was 16 per cent, said a City Council official. “It is not possible without a reduction in services,” said the general manager of the council’s electricity department, Mr Geoff McDermid. The Minister of Energy, Mr Tizard, is reported to be writing to all South Island supply authorities to express concern at excessive price rises. The Minister said he was particularly disappointed with some of the increases in view of the holding of bulk price rises in the South Island to 4 per cent, bringing the differential at 22 per cent in favour of South Island authorities.

The Dunedin City Council will increase retail tariffs an average of 8 per cent from April 1 — 9 per cent for domestic Risers

and 7 per cent for nondomestic consumers. Mr McDermid said bulk supply charges formed about 75 per cent of the annual costs for most supply authorities, with the remaining 25 per cent "subject to general rates of inflation."

“About 50 per cent of Dunedin City Council costs are related to bulk power — the rest is in generating activity and other costs,” he said.