POWER CHARGES

Hauraki Plains Gazette, Volume 53, Issue 32428, 8 May 1944, Page 5

POWER CHARGES

REDUCTION IN RATE SPIRITED DISCUSSION MILKING MOTORS & HEATERS Spirited discussion took place at the May meeting of the Thames Valley Electric Power Board regarding the recommendation of the manager, Mr R. Sprague, that a reduction of a half-penny per unit be made on charges for milking motors. This would reduce the charges on the first 48 units to 2}d net from 2|d net. At a previous meeting of the board a reduction of a half-penny per unit had been made for the first 30 units for domestic users, the two reductions amounting to £9OOO. Easing The Burden In moving an amendment to the adoption of the manager’s report, Mr H. L. Boughton (Waihi) stated that he was not electioneering as, so far as he was aware, he was. not being opposed. Instead of adopting the manager’s recommendation he was going to move that the burden be eased on consumers with electric water heaters.

There were several ways of doing this, but he considered' that the best way was to increase the present water heating block by 50 units per month to every consumer with a hot-water service.

At present the domestic consumer was paying 2id per unit for the first 30 units; then 120' units at one penny; then with a 600* watt element, 240 units at l-3d, for his hot water; then reverting to one penny per unit. He was not in favour of extending the hot water block and leaving the initial charges as they were as that wouldi defeat the object of metering, which was. to save power.

His proposal was to reduce the number of units from 120 at one penny to 70 at one penny, and to add the' 50 units, to the present hot water block at l-3d. This would make the charges 30' units at 2sd, 70' at one penny, and in the case of a 600' watt element, 290 at l-3d, and then revert to the penny rate. The 50 units would apply to all services, irrespective of the size of the element. Farmers would benefit under his proposal to a greater extent than under the manager’s scale. Profit and Loss Account Continuing, Mr Boughton stated that a reference to the profit and loss account showed a profit of over £20,000' for the year. At the beginning of the year a profit of only £2OO had been budgeted for. For the first time in the history of the board, power* purchases were down and revenue up. That could only be due to metering watei* heating services. He admitted that 54 per cent, of the units sold were for hot water, which yielded only 16 per cent, of the revenue, but that was not all the story.

It had to be borne in mind, that consumers with water heating services had contributed materially to the board’s present sound position and they were entitled to every consideration.

Before metering the loading had been fairly even, but now the load curve took' sharp rises and drops. There was no hope of selling the units saved in the next two or three years because of the difficulty in obtaining appliances. Dealing with the amount of money involved, Mr Boughton said that there were approximately 6500 1 water heaters in commission, so that the scale of charges he proposed would involve a reduction of something like £ll,OOO. The manager’s reductions would involve £4'500, so that he’ was asking for another £6500. This would mean a total reduction for the year of about £15,500' but he was confident that the board’s finances could stand it. Views of Manager The manager, Mr R. Sprague, said he agreed to a large extent with Mr Boughton’s arguments, but it was really too early to form a definite opinion as to the effect of metering. He was of the same opinion as Mr Boughton that some relief should be given to domestic users as soon as possible. A report before the board that day would show that farmers were paying less for their hot water at present than under the old flat rate. However, he had been informed by the engineer, Mr N. G. McLeod, that power purchases would probably increase by about £3OOO for this year, and he suggested that the matter could be reviewed at the end of the first three months of the financial year, when he thought some concession could be given the domestic user. The chairman, Mr J. Price, said he

sympathised with Mr Boughton, hut he felt that it was too early to make substantial reductions and it was 'better to wait until the financial returns were available before making further reductions. He would like to see the whole scale revised. Opinions of Members Mr J. F. Mayn said he would oppose the amendment. 'Domestic consumers had been given a reduction a short time ago and the farmer was ; entitled to a reduction.

Mr Boughton: But my scale gives the farmer a bigger reduction than that proposed by the manager. Continuing, Mr Mayn' said he was of the opinion that the board should be guided by the manager’s opinion as he was responsible for the finances of the board. It would be unwise to reduce the charges as suggested and then find it necessary to make an increase. H.e favoured waiting until the board’s finances warranted a further reduction.

Mr P. R. Hawke said he agreed largely with Mr Boughton and suggested that the manager’s recommendation should be deleted from the report and the finance committee should examine and report on Mr Boughton’s proposals. Mi’ C. We'bb, who seconded the amendment, said he wanted to see the small consumer get a benefit and under the proposal he would get some benefit.

The engineer, Mr N. G. McLeod thought it unwise to make the proposed reductions. Already the load was increasing with the approach of winter, and to reduce charges was to increase consumption. “ Back Where Were Before”

Mi- Boughton: ’But we are not reducing charges; we are only getting them back to somewhere near what they were 'before. The stop rate will prevent waste. Upon the amendment being put, it was defeated by six votes 1 to four and the manager’s report adopted. later in connection with the finance committee’s report which recommended the adoption of the manager’s reductions, Mr Boughton said he would return to the attack later and moved that the finance committee bring down a report with a view to reducing the charges on hot water services.—Carried.