Little interest in irrigation tariff

Press, 7 October 1988, Page 19

Little interest in irrigation tariff

Irrigators seem reluctant to take up a new electricity tariff offered by the Central Canterbury Electric Power Board. The new 13 tariff, which doubles the fixed capacity charge, but cuts the daily useage rate by 35 per cent, began on October 1. The consumer sendees engineer for the board, Mr Perry Shepard, said only 50 people, or 7 per cent of irrigators, had gone on to the new tariff. The board had expected at least twice the number to sign on than had done so far, said Mr Shepard. He thought others would change to the new tariff later, although the “initial rush” had passed.

The tariff had been designed to spread the cost of irrigation through the year. The higher fixed charge, which was included in every monthly bill, allowed for a lower unit charge. Running costs as crops were growing, and returns to farmers were several months away, would be lower.

“The tariff was worked out for Mr Average,” said Mr Shephard. “The irrigator who used his plant for an average amount of time would pay the same over all as those on the old tariff, but could spread their costs. Someone who used their plant more than average would save money while those who made little use of their equipment would pay more.”

The II and 12 tariffs had been retained so that noone would be disadvantaged.

“It is entirely optional and is available whenever someone asks for it,” he said.

Although farmers had asked for a tariff which spread the cost of irrigating, they Drobablv were

not taking advantage of it because it was not designed to save them money, Mr Shepard said. An agricultural consultant with MAF Tech at Darfield, Mr Ken Mus-croft-Taylor, said the 13 tariff probably was not very popular because there was little difference in cost between it and the Il tariff. While someone who was a heavy user during the day might save $l5OO a year, others would save little or nothing so they "don't bother” to change over.

“People are also not sure how much irrigating they will have to do,” he said.

A member of the board, Mr Hugh Williams, said there had also been a reduction of .22 cents in the unit price under the night rate. The starting time for the night rate had been moved from 9.30 p.m. to 11 p.m.

There would be no point for people who did most of their irrigating at night to move onto the 13 tariff.

“People who are using their plant to the full and are irrigating 20 to 24 hours a day would be best suited to the 13 tariff,” said Mr Williams. The new tariff also made it more economical to begin irrigating early or late in the season. “It makes the cost of irrigating at those times less marginal,” he said.

The tariff had been created after a meeting between the board at the Central Plains Irrigation Association at Dunsandel in July.

If someone wanted to go on to the new tariff, they had to agree to stay on it for at least 12 months, said Mr Williams.