ELECTRIC SUPPLY

Dominion, Volume 29, Issue 302, 17 September 1936, Page 13

ELECTRIC SUPPLY

Evidence of Increasing Demands CENTRALISED CONTROL DESIRABLE "During recent months the indication of the approach of more prosperous times has given a stimulus to the electrical industry, and everywhere there are indications of increasing demands, ’ said Mr. Semple in his Public Works Statement. "To provide for this additional transformers and switch-gear will be necessary in many of the existing sub-stations, and arrangements, to secure the necessary plant are being made.” ' The principal construction work being carried on was the installation at Arapuni of two additional units, each of 21,000 kw„ which was commenced by his predecessor. The difficult work in connection with the foundations for the power-house extensions had been completed and the installation of the machines commenced. The general position to date was that the electric supply account had been able to meet all operating and interest charges, had provided £950,988 toward the statutory requirements of £1,350,303 for depreciation, and, in addition had provided £326,500 to sinking fund and £175,809 to general reserve from profits made from time to time on Lake Coleridge and Horahora systems. In other words, the electric supply system a§ a whole had paid interest and operating charges and provided £1,453,297 in reserves, of which £308,945 had already been utilised by the Treasury for the paying-off of loans which formed part of the original capital. n , North Island Services.

The Arapuni - Mangahao - Waikaremoana plants had operated satisfactorily throughout the past year, and the revenue showed an increase of £82,62d over that of the previous year. The result of the year’s operations was as follows: Capital investment at end of year, £8,635,000; revenue, £795,391; operating expenses, , £144,068; ■ balance, £651,323. " , . The balance had been used, in paying interest charges (£408,051), and £38,148 as the department’s share of the capital charges on the King’s Wharf generating plant of the Auckland Electric Power Board, also £17,591 to provide the full statutory contribution to depreciation. Accumulated losses to date amounted to £399,315, ‘but the reserve accounts established in connection with this system showed that £961;757 had been credited to depreciation and £55,930 to sinking fund, wlilch latter amount had been utilised in the redemption of loans. 4 ‘Power generated in. bulk is in the main sold to local authorities for distribution to the actual consumers, said Mr. Semple. “The local authorities are thus really partners with the department in the complete business of giving supply to consumers, and their action and administration has a very considerable influence on the success of the undertaking. In fact, as the Government receives on the average only 0.34 d. for each unit sold, and as the consumer pays on the average 1.25 d. per unit purchased, it can readily be seen that these supply authorities can have a very considerable influence on the success or otherwise of the whole business. Relations Between Authorities. "On the whole I think it can be said that the general result is good, as there is considerable evidence to prove that the cost and general availability of electricity in New Zealand, particularly in rural areas, compares quite favourably with other places. I have not yet had opportunity to go as fully into the matter as I intend, but there are undoubtedly one or two aspects of distribution and of the relation between the generating authority and the distributing authority which are not quite perfect. There undoubtedly appears in some cases to be lack of cooperation between different owners of generating-plant. It is difficult under any contract to be sure that our available resources are being worked in the way best suited to the national interest. This particular problem has been considered in other places, and there certainly seems to be quite a decided consensus of opinion among power authorities that there should be some centralised control of generatingplants.” The capital invested in the electric supply systems operating throughout the Dominion totalled £33,181,503, which included £13,095,382 of Government expenditure, and the gross revenue received for the year was £4,823,324. After paying working costs, interest, sinking fund, and depreciation charges, the net profit for the year under review was £554,154, as compared with £449,499 for 1935. which indicated that the electric-supply business as a whole was in a healthy condition.