CHARGES FOR CURRENT

Ellesmere Guardian, Volume LIII, Issue 55, 12 July 1932, Page 2

CHARGES FOR CURRENT

REDUCTIONS PROPOSED.

RECOMMENDATIONS BEFORE LOCAL BOARD.

Proposals for a reduction in some of the schedule rates charged for current by the Springs-Ellesmere Electric Power Board were made to the Board at yesterday's meeting by the engineer-secretary. After some discussion it was decided to secure additional information and to discuss the proposals further at next meeting. Mr Vicary's recommendations were as under: —

I have to report that for the quarter ending June 30, the, installation and sales amount to £283 9s 7d, and the cash received amounts to £343 15s Bd. £ s. d. Total revenue for quarter 7700 14 7 Expenditure 3888, 15 9 £3811 18 10 Less interest, sinking fund and assessed depreciation .. 3169 12 3 Net profit of • . .. 642 6 7 Add debenture tax of approximately £700 per annum .. 175 0 0 £817 6 7 In view of this I recommend the Board to alter the charges for current to consumers as follows:

Domestic Lighting an& Heating.— The high rate to be 16 units per month at 6d, and all units consumed in excess of this amount to be at 2d per unit. The reduction of revenue from this source is estimated to be £444. ,

Commercial Lighting.—This to be reduced to 6d per unit. The estimated reduction here is fa6l.

Ranges. —The present rate of 2d per unit for the first 100 units per month, lid per unit for the next 100 units per month, and Id per unit for all units in excess of 200 units per month, to be altered to a straight meter rate of l|d per unit. The estimated reduction in revenue from this alteration would be £213. The total reductions amount to £818 per annum.

The chairman (Mr Langdale Hunt) said that the suggestion for reductions was on the line which the Board should take. The chairman asked what was the effect on the small cottage. The engineer replied that the small man would get more for his money. The chairman: Supposing one used from eight to ten units, he would never get the benefit of the cheap rate. The engineer said that they would not be penalised. The minimum rate was lower in this district than in some others. -If the minimum rate , were reduced to 5/- it might meet the same need. Mr McMillan remarked that the proposal to reduce the charges for current would be very welcome, for the consumers felt the time was opportune for it. He thought, however, that the Board could meet the small householder a little better, also the man with the guarantee. If it could be done, it would be wise to make some alterations, but those proposed did not relieve the man with a guarantee or a small cottage.

Mr Rowell suggested that a large proportion of the consumers would not be affected by the reduction.

Members explained that the proposal would make the position worse for the guarantee consumers. If they were not using all their guarantee the reduced rates would mean, in effect, that they would have to pay more for it. The 12| per cent, guarantee was just enough to cover costs. Mr McMillan suggested a reduction by a percentage amount. The present rates should,be kept and a general reduction by means of a percentage as a discount be allowed. The engineer remarked that the reduction of a flat rate of lid per unit would probably increase the demand for ranges. Mr Neave suggested that a statement should be prepared showing the amount of guarantee paid and showings the difference in the amount paid by guarantors and the amount of current actually consumed. The engineer said that the differ-

ence between the amount paid and the cost of current not used up was approximately £420.

The chairman remarked that other guarantors used more than double their guaranteed supply. Mr Maginness said that the profit was not coming from the guaranteed lines. The fact that £420. per year was paid in excess of the current consumed indicated that there would be no profit for these lines. Mr Neave said he would like to see a reduction made in the guarantees in some way. Complaints were made not so much in regard to schedule charges but in regard to the guarantees. Mr Rowell said that the Board would have to look to the day when the guarantees would run out and when it would not get the same quantity of revenue.

Members sought other information regarding revenue and it was finally decided that the engineer-secretary supply them with the answers during the month, also regarding the reduction on a percentage basis, the matter to be further considered at next monthly meeting.