POWER BOARD FINANCES

Hawke's Bay Tribune, Volume XXII, Issue 270, 29 October 1932, Page 5

POWER BOARD FINANCES

POSITION IN CENTRAL H.B. REPORTS OF OFFICIALS. (Special Representative.) The secretary-manager’s half-yearly report to the Central Hawke’s Bay Power Board stated:— "On tho six months’ working, the board’s revenue was £12,471 14s 9<l, with an expenditure of £11,812 5s Ud. so that the half year ended with a profit of £659 8s lOd. Of the profit, howf»«r, the interest Mrnvd on fixed de-

posit, guarantees, etc., was £329 2s Id, so that the electrical sales show an actual profit of £330 6s 9d for the period under review, which represents per consumer 4 l-9d. It must be remembered of course, that the first half year's returns are always the best financially for the board, and I do not estimate the same revenue during tho latter six months of the current financial year. Later on in the report it will be observed that the average return received from each consumer was 7s less than in the same period last year. Despite this, the drop in costs (1) energy, (2) salaries and wages, has enabled the board to maintain its position at least equal to that of last year. Revenue No. 1 area (excluding Waipukurau Borough): The revenue received from this portion of the board’s area for the six months was £8398 15s Bd, as compared with £8622 for the same period in the previous year, which is a decrease of £223 4s 4d The de crease is 2.5 per cent, on last year. The board’s estimate of revenue from this portion of its area for the 12 months was £15,721 18s lid. "Revenue No. 2 area (Waipukurau Waipukurau Borough during the six months was £3134 8s 7d, as against £3224 5s 4d for the same period in 1931. The decrease in revenue was therefore £B9 16s 9d, which is 2.7 per cent, on last year’s revenue. Tho boards’ estimate for tho year for this area was £5510 3s Id. The revenue from the whole area for energy sales for the six months was therefore £11,533 4s 3d, as compared with £11,846 5s 4d, for the same period in 1931, which decrease totals £313 Is Id. The decrease in revenue over the whole area, was 2.64 per cent. A pleasing feature to record, is the fact that whilst the decrease in revenue has been 2.64 per cent., the demand on tho Public Works Department has been reduced 5.6 per cent. This is the first time we have been able to show the revenue ratio more favourable as compared with the maximum demand ratio. Close attention will continue to be given to the hot water clocks, by which method only has the board any control over the load. REVIEW OF REVENUE. “Statistics: The increase or decrease in revenue for the period under review, viz., the half year ending September 30, 1932, over the past five five years has been as follows:—1928, revenue increased 17.1 per cent.; 1929, revenue increased 20.03 per cent.; 1930, revenue increased 12.2 per cent, (lighting charges reduced over the whole area); 1931, revenue decreased .29 per cent, (minimum charge reduced, business lighting reduced, range charges reduced); 1932, revenue decreased 2.64 per cent, (domestic lighting reduced over the whole area. Reduction in costs is 4s Bid per consumer. The 2s 8?d engineer’s car can also be deducted from cost, as the investment of depreciation paid for this. The true saving was therefore 7s sfd per consumer, as compared with the previous year.

“Cost of Energy Supplied by the Public Works Department to the Board: The cost of energy purchased from the Public Works Department for the six months ending 30/9/32 was £3620, as compared with £3838 3/8 for the similar period in 1931, which is a decrease of 5.60 per cent., as against an increase in 1931 period, of 4.36 per cent. We purchased in all for the six months 2,307,921 units, of whjch 1,148,127 were purchased in the April-June quarter, and 1,159,794 in the July-September quarter. “Value of Reduced Charges: The value to consumers of the }d reduction in domestic lighting for the six months was as follows:—Waipukurau Borough £57 6/1. No. 1 area £154 16/10; total £202 2/11. It may interest members to note that through the abolition of the h.p. charge on milking motors, reduction in domestic and business lighting charges, range charge reductions and minimum charge reductions, the board has reduced the price to its consumers by over £lBOO per year, as compared with original energy charges. INTEREST.

“Interest Earned: The sum of £59 19/6 was earned during the period, as interest on fixed deposit, whilst a further £7 10/2 was earned in Australia on interest prepayment, making a total of £67 9/8. The drop in interest is due (1) to the temporary loaning of £lOOO to loan account, and (2) financing the depreciation work, etc., carried out to date from general account. The bank has paid the board £1755 0/1, interest on temporary deposits to date.

“No Overdraft: The board again finished the half year without recourse to overdraft, maintaining its position of having paid no interest since jt commenced active operations. “Guarantees: The amount of guarantees called up for the year ending 30/9/32 was £251 7/5, which was payable by 48 guarantors. Of these guarantees there were only four which expired in 1932, so that it can be seen that guarantors are utilising, to a major extent, energy beyond which their guarantee was given. The unexpired guarantees on the board's lines are a decreasing quantity, being now 85 (on 30/9/31 there were 180 guarantees) as per the table below: Expiring 1933, 17, 1934, 37, 1935 6, 1936 1, 1937 2, 1938 0, 1939 5, 1949 13, 1941 I. AM the board’s consumers, with the exception of the 48 tuarantors, mentioned above, participated last year in the board’s various charge reductions for energy. It will be remembered that the Central Hawke’s Bay Electric Power Board was practically the pioneer so far as guarantees are concerned, and no board had more guarantees in existence, per ratio of the consumers, than was the case with this board. The system can new be weighed up with clear judgment after so many years of experience and it is safe to say that the guarantee system has been an integral part m the successful growth of the board’s load. The past hatf year has been one of great economic stress to consumers, hut despite this, obligations have been very well met, and a tribute must be made to our consumers for the manner in which their liabilities with the board b*ve been met.’!