Electricity tariffs to rise 13 p.c. in April

Press, 24 February 1987, Page 1

Electricity tariffs to rise 13 p.c. in April

Electricity users in Christchurch face a 13 per cent tariff increase from April 1.

The tariff increases were approved by a special meeting of the Christchurch City Council yesterday, after being discussed at a public utilities committee meeting. The increases will apply at least until October when the new Electricity Corporation comes into being. The chairman of the public utilities committee, Cr Maurice Carter, said the increases were exclusive of GST. The general manager of the M.E.D., Mr Chris Laurie, said the bulk supply

tariff would increase 9 per cent from April 1 and will be effective until October 1. He had received no indication

whether the new corporation would increase or decrease the bulk supply tariff in October. The 13 per cent increase was recommended

in the M.E.D. draft budget, which is traditionally the first examined each year by the council. Last year’s tariff increase was 7 per cent. The cost of bulk electricity for the M.E.D. in 1987-88 will be about $83.8 million compared with $73 million last year, an increase of 10.9 per cent.

It is proposed $12.3

million will be spent on the capital works programme, a decrease of about $3.3 million on last year. The capital works will be funded by a loan of $7 million and revenue of $5.3 million. Cr Carter said that while the loan was large, the M.E.D.’s level of indebtedness was only $7 million for assets with a book value of $BO million. The budget represents a 10.2 per cent increase on spending. The level of capital works is likely to remain high over the next three years and will in-

clude the underground cabling programme. At the earlier committee meeting, Cr David Close failed in a bid to

increase the underground cabling programme to 20km a year over the next three years. He proposed that $400,000 be taken from the appropriation

account to employ additional engineering staff for planning on more underground work. The motion was lost at committee level but an amendment at the council meeting was carried. Cr Close successfully moved that $200,000 be transferred from the appropriation account to employ additional staff,

and that provision be

made in the capital works programme to increase underground cabling to 20km a year. “This is very bland because it does not include a timing criteria. But it means the stated intention of the council is to move forward in a realistic way,” said Cr Close. “Technically the M.E.D. has always been in front, but this is an area where we have been dragging the chain.” Cr Dennis Rich opposed the motion, saying it would add to the tariff in coming years.

“I do not believe we would get thanks from consumers who will not have underground cabling in their lifetimes.”

Cr Ronald Wright said the efficiency of the present plan should be looked at first. The motion was carried, 9-5.

The total length of street converted in the 1985-86 year was 6km. The figure for 1986-87 is expected to be less again because of an increase in essential work on the system which has left less gang time available for conversions. The length of street in urban areas requiring conversion is estimated at 780 km. -—■<