Cheaper power for Christchurch?

Press, 22 January 1988, Page 4

Cheaper power for Christchurch?

By

GLEN PERKINSON

Electricity could be cheaper for Christchurch consumers after May this year, according to the Municipal Electricity Department.

The department’s general manager, Mr Hal Mace, said yesterday that a television broadcast from Electricorp on January 29 was expected to outline new bulk tariffs. He said the new tariff was likely to place more emphasis on power usage. Up until now authorities had paid for power on a basis of 60 per cent for usage and 40 per cent on peak demand. He predicted the new tariff to be reduced to 80/20 or 100/ zero tariffs making it favourable for Christchurch and other authorities with low load factors. However, rural authori-

ties, like the Ashburton Electric Power Board and the Central Canterbury Electric Power Board, may be worse off, according to Mr Eric Johnstone, the president of the Electrical Supply Authorities Association. It had been believed authorities would not be able to start charging new prices from the traditional April 1 date because of delays in valuing Electricorp assets. The announcement of the wholesale electricity price has been made for the last 30 years at the authorities’ annual conference in September/Octo-

ber giving the 60 different authorities time to strike new rates and give consumers 28 days notice. Mr Mace believed Electricorp would give authorities three months to decide new rates which would then not come into effect until May. Electricorp’s marketing manager, Mr Drew Stein, yesterday denied the broadcast had to do with bulk tariffs but described it as the “cheapest way to convey messages to our customers.” He added it might contain some “frameworks of pricing structures.” Mr Stein said last week

that supply authorities should be told by the end of this month what the new pricing structure would be. He indicated it would be a radically new system eliminating the single supply tariff in favour of individual contracts. Mr Johnstone said if the tariff changes meant some authorities would face more expensive electricity there would no doubt be other measures announced to level those increases. He did not expect the. changes announced next Friday to be too “dramatic.”