Increase In Charges For Electric Power In Bulk Supply

Gisborne Herald, Volume LXXV, Issue 22759, 4 October 1948, Page 6

Increase In Charges For Electric Power In Bulk Supply

(P.A.) DUNEDIN, Sept. 30. The size of the reductions in the retail tariff charges by electricity authorities over the past 25 years had amazed him, said the president of the Electric Power Boards’ and Supply Authorities’ Association of New Zealand, Mr. J. A. Nash, in his annual report. Untortunately, Mr. Nash continued, the industry had now reached the position where it could not continue to absorb the ever-rising costs of labour, materials and ancillary services without passing them on in some measure to the consuming public.

The Government was at the moment in the act of bringing into operation fairly substantial increases in its bulk supply charges, said Mr. Nash. In consequence some supply authorities would have no alternative but to get authority to increase their rates for retail power. Since 1942 a total of £2,400,000 had been paid by the State Hydro-Electric Department by way of income tax, while of the increase of £324,904 now being sought £186,819 would be claimed by the Income Tax Department before the State Hydro Department was permitted to carry out its statutory requirements in connection with sinking fund payments or before any beneficial effect of the increased bulk supply tariff was felt by the department.’ “The distribution authorities, as trustees of the consuming public, cannot stand idly by and accept such large increases, knowing that these increases will in many cases be passed on to the public, merely to create a surplus in the consolidated fund,” said Mr. Nash.