ELECTRIC SUPPLY

Evening Post, Volume CVII, Issue 90, 19 April 1929, Page 11

ELECTRIC SUPPLY

THE CITY CHARGES

MR. NASH.CRITICISES'

Mr. Walter Nash, the. Labour candidate for the Mayoralty, speaking at Miramax last night, dealt with the City Electrical Department and the charges made to various users for current. He argued that the charges made for household lighting.were out of proportion to the charges made to other users.

The following comparison sets out the alteration in the average charges per unit during the past eight years;— Private light: 1921, s.3'Jd;, 1924,-5.44i1; 1028, 4.87 d. Heating: 1921, 1.50(1; 1924, 2.00 d; 1928, l.Old. Public lighting: 1921, 3.40' d; 1924, .3.0.1(1; 1928, 2.05 d.

Whilst the cost of distribution ;iiul collection was much greater for household accounts, the differences in prices did not appear equitable, and whilst the reduction in the charges for public lighting (including.. all . maintenance costs) was 40 per cent., the charges for household lighting had been reduced by 10 per cent. only. This reduction was unfair in its incidence in that the reduced charge for public lighting mainly benefited the large ratepayers,.whereas the higher charges for household lighting boro heavily on the income of the average worker.

An examination of the appropriation account shows that the profits made during the past eight years were so substantial that an immediate reduction in charges would hot affect the stability of the accounts. During 192(5----27-28, £8000 had been set aside each year; iClS,t>97 11s lOd had been expended on the work of re-erecting the city station plant in , the new power station at Evans Bay; and, in addition to. these charges,.■/.the following payments had been made in connection, with extensions and change-over:—l 92---3-24: Extensions, £12,434-19s 4d. 1925:, Extensions, £5400 16s 4d; . general, £5026 6s Id; change-over consumers'promises, £8187 12s. 2d. 1926: Extensions, £4295 14s Id; general,. £20,374' 3s 4d; change-over consumers' premises, £12,677 Is 2d. 1927: Extensions, £6663 7s 7cl; general, £27,473 12s 8d; change-over consumers'. premises, £17,825 -Is 2d. 1928: Extensions, £8019 9s 8d; general, £27,786 2s lOd; change-over consumers' premises, £18,----825 6s 3d. Totals: Extensions, £36,814 7s; general, £81,260 4s lid; ijhangcover consumers' premises, £57,515 0s od. These charges- totalled '£175,589 12s Bd. '.' ..'■•.-' ; .'-// "..'■' ;" '

There was- something to be said "for charging the cost of the change-over against current profits; but the policy of debiting the cost of extension meant that tho present consumers wore meeting capital costs. However, after all these charges had been debited against profits, there was still a net -balance over the period of £155,025, and £51,617 -of this profit was -made last year. A new scale:.of charges was introduced in November last; but the evidence available showed, Mr. Nash said, that the charge for . household lighting could be reduced by one penny per unit without affecting the financial stability of the undertaking.:.

. The Department had also made. its contribution towards the cost of funning the city, in that" during tlie eight years under review it had paid rates into the general fund' 'amounting- to £12,705 15s Id. . ' '