ELECTRIC POWER

Evening Post, Volume CIX, Issue 120, 23 May 1930, Page 10

ELECTRIC POWER

USE IN HUTT VALLEY/

CHAIRMAN'S REVIEW OF YEAR

CONTINUED PEOGEESS

A review of the financial operations of tho Hutt Valley Electric Power Board for the year ended 31st March, 1930, was given by the retiring chairman (Mr. A. W. Press) at the meeting of the board yesterday.

"Capital expenditure from loan account for the year was £.24,970 11s 3d, which shows a decrease of £11,150 11s 2d by comparison with the previous year's outlay," said Mr. Press. "The balance of available loan money, including advances to consumers, £7207 Os Id, is £25,557 0s 7d, and it-is confidently anticipated that this amount will enable the present year's operations to bo carried out without the necessity of raising further capita-1, although should necessity arise, the board has power unaor authorisation already obtained' to. borrow a further £-15,000. From a. revenue point it is "ratifying to note the continued progress "of the board's operations, the revenue for the year being £98,002 Is Sd, which shows an increase of £21,770 15s-7d, or 29.5 per cent., while the balance carried to not revenue account is £39,520 10a 10(1, being an-increase of £5423 4s 2d over the previous year. "The cost of power purchased ad., vanccd 39.7 percent.—a slight decrease by comparison with the previous year's cost, which showed a 50.G per cent, increase. PROFIT FROM INVESTMENTS. "For the first time, through careful arrangement of the various accounts, the board has this year earned ,an amount of £907 7s Od by investing sums of money which have in tho past been allowed "to remain idle. After allowing for certain fixed standing charges, including provision for depreciation £8691, the balance' available in the net revenue account is £10,482 3s Id, which is the actual profit for the year; an increase of £440S 5s 3d, and it has been allotted for. appropriation in the following manner: Sinking fund reserve, £2140; debenture redemption, £1582 ,16s 3d; renewal reserve, £.2000; preliminary expenses, £1800 5s 8(1, and bad debts reserve, £2750', permitting £209 Is 2d to be carried to net revenue, "Grants of assistance to consumers on range connections amounted to £630 during the year. The total amount granted in this manner was £3071 19s 2d. I feel the money has been ; well expended, as it enabled the board to build its load more speedily, which object being achieved the board has now withdrawn the special concession. Consumers increased from 8247 to 9521 throughout the' year, an increase of 15.4 per cent. OFFICE REORGANISATION. "I feel that the operations for tfie year must be considered satisfactory. Members and the public will probably view with alarm the amount provided for bad debts. This, as will be readily recognised, is a contingency, but unfortunately a very real one, as owing to unsatisfactory management, which I found in existence on assuming the chairmanship, arrears had been allowed to accumulate, and will in all probability bo lost. The amount allotted is confidently expected to cover all outstandings eventually found irrecoverable. .Tlio. office and . clerical system has been completely reorganised and mechanical book-keeping and adding machines installed and necessary safeguards taken to obviate recurrences. In passing, I .hope that this item alone will be-evidence to the board's consumers of the undoubted necessity for the . precautionary measures taken by the board in its new schedule to protect itself should necessity arise where accounts are not paid on duo date, after the necessary tolerance has been permitted. Collection depots, which I have advocated since the board commenced supplying current, in the various districts would, in my opinion, not only be of-assistance to consumers, by providing 'a quick and easy method of settling accounts, but also prove an economic factor to .the board, and I am hopeful that the board will sanction a scheme shortly to be put before' it for the establishment of such depots. "Mr. E. F. Hollands, lOnginccr-Gcn-eral Manager, took charge .of the board's operations in December last, and Mr. Jlathaway, accountant, commenced duties in February. These two officers have had a very strenuous time picking up arrears and straightening affairs both technical and clerical,, but have succeeded in putting the board's affairs in such shape as-is confidently hoped will -enable considerable, progress to be reported next year. The new rate schedule and conditions operate this month, and while a substantial reduction has been -made generally, the General Manager is satisfied that, the rates will prove more equitable to,both consumers and the board. "I have to thank the members of the board for the assistance and support accorded me as chadrman throughout my term, also to the executive and general staff.- I ieel lam correct in voicing the opinion that the Hutt Valley Power Board's field is prospectivoly the richest of any in the Dominion, and that by careful management in the future it should be possible to adjust the rates again at no distant dato to the benefit of consumers."

Mr. Press moved that the balancesheet and Engineer-General Manager's statement of accounts be received and that they be considered and dealt with at the board's next meeting, to be held on the sth June.

The motion was carried.