ELECTRICITY SUPPLY

Evening Post, Volume CXXII, Issue 67, 16 September 1936, Page 13

ELECTRICITY SUPPLY

NATIONAL ACCOUNTS

EARNINGS ARE 6.55 PER

CENT,

Despite the addition of a large amount of extra capital, the national electric supply account has been able to earn during the past year 6.55 per cent, on the operating capital after paying net operating expenses, according to the Public Works Statement, which1 was tabled in the House of Representatives this afternoon by the Minister of Poblic Works (the Hon. R. Semple).

In the North Island the depreciation reserve required by the State Supply of Electrical Energy Act —viz., 124 per cent, of the capital invested —has now been reached, says the Statement, and a considerably reduced amount is therefore.chargeable to depreciation, with a consequential considerable credit balance of £187;533 on the year's operations. The balance has been used to reduce tlie_ amount of deficiency which has been accumulated iniearlier years and which now stands at £399,315. In the South Island, where in the past the depreciation reserve had reached the 12{» per cent, limit mentioned above, the addition of a large amount of additional capital has necessitated, the resumption of full payments into the depreciation reserve fund, with the result that the year's operations show a loss of £65,609. To meet this loss the general reserve has been drawn on, and has been reduced to £175,809.

The general position to date is that j the Electric Supply Account has been able to meet all operating and interest charges, has provided £950,988 towards the statutory requirements of £1,350,303 for. depreciation, and, in addition, has 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 as a whole has paid interest and operating charges arid provided £1,453,297 in reserves, o£ which. £308,945 has already been utilised by Treasury for the payingofE of loans which formed part of the original capital. CAPITAL INVESTED "The capital invested in the electricsupply systems operating throughout the Dominion totals £33,181,503, which includes. £13,095,382 of Government expenditure, and the gross revepue 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 indicates that the electric-supply business as a whole is in a healthy condition.

"It is gratifying to notice there is distinct evidence of expansion of business among the electric-supply authorities. ■An analysis and summary of the operating results and other statistics furnished by each elec-tric-supply authority reveals the fact that there has" been an increased consumption of electrical energy amounting in the aggregate to approximately 8.25 per cent, over that of 1935.

"The statistics also indicate that during the past year new consumers have been connected at an average rate of approximately 1100 p.er month, and the completed figures for the year show that the ratio of number of consumers of electricity to, the total population of the Dominion (1,573,482) is 22.7 per cent., or 24.35 per cent, of population in areas supplied with electricity. ■

Commenting on the position generally, the Minister said that during recent months the indication of the approach of more prosperous times had given a great stimulus to the electrical industry, and everywhere there were indications of increasing demands. To provide for this, additional transformers and switch gear would be necessary in many of the existing substations, and arrangements to secure the necessary plant were being made.

The position is .summarised in the following table:— , . ; . •- <-. .-..- -,■.■■.---'--. .,.->. Averaso.,. .--..- .-, -■ '" ■ '." . . '.-."' ' opisriitltiis .'" .'fifpsa'-" capital revenue. £ . £ Norlli Island system S,«r,,7n7 V95.3D1 South Island system .... 4,431,919 2J5,2;">fi. ■Totals 12,Sr7,6S0 1,040, (519 Percentage of net balance to ■:.'.■. . • ■ V Working Set ■ operating ■ , expenses, balance, capital. '.£■"£■ Per cent: North Island system ■I«.0(i8: C51.32:) 7.71 Soufir Island' system 53,1)00 ■ J91/35S' 4.S2 Totals .■'.,' 197,.96S .842.6S1' G.r>5