Power price to rise 8.9 per cent

Press, 26 February 1987, Page 40

Power price to rise 8.9 per cent

The cost of electricity for the average domestic consumer in Marlborough will be increased 8.85 per cent from April 1. For the average nondomestic consumer the increase will be 4.23 per cent and for the above average domestic consumer and larger nondomestic consumer it will be about 3.8 per cent Estimates requiring increases in the tariff schedule were adopted at a special meeting of the Marlborough Electric Power Board yesterday, i The general manager, Mr K. J. Forrest said the schedule has been prepared in accordance with recommendations of the Electrical Supply Authorities Association and board policy of relating tariffs to the cost of supply. Estim-

ates approved require an increase in the board’s electricity income of 9.2 per cent. Mr Forrest said the new tariffs compare favourably with those of other boards and are lower than those for many other supply authorities. The supply tariff for 13hour water and space heating has been increased by 13.8 per cent as a result of their Increased contribution to the board’s peak charges. The new supply charge of $7.50 a month is an increase of 13.3 per cent on the present charge. The proposed level of increase for all other tariffs is 3.8 per cent The board chairman, Mr L. J. Munro, said it was disappointing to see an 8.85 per cent increase

torf Hie typical domestic consumer but the board hid no alternative to adopting the estimates and tariff schedule. The Increase was made necessary by the bulk tariff increase of 9 per cent and inflation running about 15 per cent “Board staff have achieved a good result in a situation where inflation is running rampant,” he said. The advent of taxation for supply authorities has prompted the board to undertake an increased level of capital works from loans in 1987-88. The new revenue to loan capital . expenditure ratio is 67.8 to 32.2. This is a reversal of the board’s previous policy in recognition of the fact that interest paid on loans is tax deductible.