CITY POWER RATES

Evening Post, Volume CXX, Issue 140, 10 December 1935, Page 10

CITY POWER RATES

-REDUCTIONS SOUGHT

MANUFACTURERS' PLEA

AUCKLAND COMPARED

A reduction in the present electric power charges made by the Wellington City Council was sought by a deputation to the electric lighting and tramways committee today from the Wellington Manufacturers' Association, consisting of Messrs. I. Matheson (president), W. McLay, J. W. Penman, B. M. Taylor, R. Burns, and A. W. Nisbec (secretary). The speakers made a comparison of Wellington's charges for these services as compared with those of Auckland, which were said to be much lower. The parties are to confer further. Wellington manufacturers, said Mr. Matheson, had felt for some time that they were handicapped by the cost of obtaining electric current, and as electricity was playing an increasingly important part in manufacture, both in costs and methods of manufacturing, it was considered that it was time to take up the matter seriously. The prosperity of Wellington was bound up with the manufacturing industries. He knew of one case where a company had decided to start manufacturing in New Zealand, but the cost of obtaining electric current was the determining factor in making them establish that j factory elsewhere. Ignoring the queo-j tion of added competition, the association felt that the.long view should be taken, and the cost of current was a factor that would operate against the best interests of the city. The bulk of the current used by manufacturers must be at a time which should be very convenient to the supply authorities. Motors in normal cases would be turned off when the cooking, tramway, and lighting load was at its peak, while the distributing costs to large factory consumers would be low when compared with the reticulation and wiring necessary in the case of other supplies. FIGURES QUOTED. Mr. McLay said that figures had been taken out for comparison with charges in Auckland. It would have been more favourable to have taken Dunedin or Christchurch charges for comparison, but some factors were not similar. Wellington charges per unit were, 300, 3d; 700, 2Jd; 1000, 2d; succeeding units, ljd. Auckland charges were 100, 2£d; 3500, Id; above that, 3d. For one of their factories, the power rate in Wellington ran out at 1.04 d per unit, while a comparison worked out at Auckland rates was only .66d per unit. Taking it all round, they were paying 50 per cent, more than Auckland for power. Why should Wellington manufacturers suffer from that disability? The Wellington cooking rate was jjd, though it must be more costly to distribute the current. ONE METER FOR ALL CURRENT. Mr. Burns referred to the cost of the equipment and means of purchasing current. It appeared as though there would be greater demands for products on manufacturers, and if they were to supply them the costs of production must be in proportion. If they bought current on demand, X.V.A., figures taken from actual accounts over the same periods showed that in Wellington they paid £276 6s 9d as against £195 4s Id in Auckland, a difference of £81'2s Bd, or 41.7 per cent. Lighting current, purchased in Wellington factories, cost 300 per cent, more than it would in Auckland. The actual figures in this instance' were Wellington 3.22 d, Auckland: .777 d. He suggested that manufacturers should p:urchase the current on one meter for all three ways of. using current. It seemed to be ridiculous to have two switches coming in on the same wire while they were paying about 500 per cent, difference in the rates. When old factories were being remodelled, or new ones being built,, this could be considered. It would mean a tremendous saving in factory costs. The Corporation should consider letting them purchase current on one meter. Light, apart from the safety factor,.was paying a much moro .important part in modern industry than formerly. In order itoi place the matter clearly before the' committee, the following figures relating to four Wellington factories, ■ worked out ■ over the same pariod as the Auckland rates after rebates had been deducted, were handed in to assist> the committee in its de^ liberations, the Auckland figures being mentioned fjrst in each case:—(a) £525 3s 7d, £385 8s lOd; (b) £484 10s Id, £354 18s Sd; (c) £164 9s 3d, £119 Is 4d; (d) £175 18s lOd, £112 12s lid. Councillor R. McKeen, M.P., said that there was a great disparity in some of the rates, 100 per cent, more in Wellington than Auckland. LONG-HOUR USERS. The general manager of the Tramways £nd Electric Lighting Department (Mr. M. Cable)- took exception to some .of the figures cited as not being correct. The demand tariff in Wellington favoured long-hour users at a very low rate, andthe whole scale was more attractive than in Auckland for all-day users. There were people getting current under .7d. They were unable to make a reduction in the unit tariff owing to the Government regulation to pay on demand. Auckland was better, off th&h Wellington because of the large power load built up in Wellington in the early days. In Wellington there were many small consumers. No reference had been made to commercial heating, for which Auckland's charge was 4d,. while Wellington's ■was ljd. 1 I

Asked by the Moyar (Mr. T. C. A. Hislop) how the Wellington cost for all purposes would compare with Auckland, Mr. Mathesont said that it would be difficult to work out, as many factors and consideraitions entered into individual cases.

One of the complaints, said Mr. Nisbet, was in of the charges made for other thain power current; Wellington should be able to stimulate the factories more Chan it did.

"A large steel comcern is approaching us," said Mr. ! Cable," and our terms to them are more favourable than those of any otjier place in New Zealand. They are lung-hour users."

Answering the querjy why everybody did not go on demgjid, Mr. Cable said that it was chiefly attractive to the long-hour users, i As soon as arrangements . could be made with the Government, the department was willing to" fix up the unSf tariff. Manufacturers had the choice of working on the-demand or; unit basis.

It was decided to obtain a report on the position, inspectors to be sent to the various factories to make the tests necessary, with the idea of giving the best tariff possible. ''