Dramatic changes for generating and supply

Press, 5 August 1988, Page 23

Dramatic changes for generating and supply

Electricity and its supply can easily be taken for granted. In fact, the only time anyone might consider electricity seriously is when the city lights suddenly go out.

Yet, there are some dramatic changes in electricity generation that could affect us all. For example, an Australian company is proposing to set up an independent power station in Auckland which will burn imported coal.

Also, a company could be free to set up a power station on the Waimakariri (as the Christchurch City Council had once intended to). New regulations open up all sorts of possibilities for the future. In the meantime, however, the generation and supply of electricity in New Zealand is managed by four business groups. These are: Electricorp Marketing, Production (which is mainly concerned with the generation), National Grid (which is responsible for the high voltage transmis-

sion system), and PowerDesignßuild, (the group involved in design and construction work.) Electricorp Marketing, is perhaps the most interesting of the new units, it could be seen as the wholesaler of electricity. The electricity is sold to a retailer such as the M.E.D. in Christchurch. At present, the M.E.D is spending about $9O million purchasing electricity from Electricorp for its 106,000 consumers. One of the aims of Electricorp Marketing is to help retailers become more market and commercially oriented. The end result will hopefully mean better utilisation of expensive generating plants. “The challenge ahead promises to make electricity a very cost effective energy source for all users from large industrial processors down to domestic users,” says Mr Graham Hodge, the regional marketing manager for Electricorp Marketing. Electricorp, along with

the M.E.D. will be going out and asking industrial users about their future requirements. They will ..■■(.also be involved with ' architects and builders to make sure they have all the necessary knowledge about electricity while buildings are still on the drawing board. The future could see some changes for the domestic user too. At present, night rates can be taken avantage of only by those consumers who have storage heaters. One question electricity marketing people have to consider is whether the private consumer would be interested in utilising variable rates during the day. This could result in lower rates being charged for non-peak periods during the day and night. To take advantage of this arrangement, consumers may need to change living styles. There would have to be a change in metering methods as well. These would be “Time of Use” meters to measure the

variable charges through a 24-hour period. At present, meters measure only units and charging is made on an averaging system between the various peak and nonpeak rates. Mr Hodge believes that a cost related system could be desirable, but it would take some years to implement throughout Christchurch.

The aim of any proposed changes to electricity supply is to control long-term costs through higher utilisation of expensive generating plants. “It is important that electricity systems are profitable since this helps to keep the price of electricity down in real terms,” Mr Hodge says.

There have been many changes since Reefton blazed into life on August 4, 1888 and it seems that in future the changes will be much faster. If changes result in electrical systems to benefit end-users, then they will, no doubt, be welcomed.