FOR FIVE YEARS

Hauraki Plains Gazette, Volume 57, Issue 4028, 11 August 1948, Page 7

FOR FIVE YEARS

POWER RESTRICTIONS FINANCES OF THE BOARD IMPROVED POSITION SHOWN An increase of £8307 in the net revenue of the Thames Valley Electric-Power Board for the quarter ended June, 1948, as compared with June, 1947, was realised, stated the report of the manager, Mr R, Sprague, presented to the August meeting of the board. “ The gross sales of electricity for the period amounted to £58,546 against ,£48,738 last year, an increase of £9BOB. All services show most satisfactory increases,” stated the report. “ This improvement is due to the method of application of cuts in electricity by the board 1 , when restrictions were imposed by the State Hydro Department during the recent (or annual) power shortage. Notwithstanding the increase in revenue, the board’s financial position has shown the improvement due only to the control of our maximum demand during peak hours.

Increase in Revenue « Through the control of our maximum demand, power charges increased by only £157, whereas revenue increased by £9BlO. All expenditure items show increases, and will, I am afraid, continue to show increases. Power charges from the State Hydro Department will be increased by £6700 per annum from October 1 next.

“ In addition a further increase of Id per hour in the electrical workers’ award has been approved and comes into operation as from April 1, 1948. This increase in wages will mean additional cost of £BOO per annum. However, the board is in a most satisfactory position, especially as effecting its power charges to consumers. These charges compare more than favourably with other rural power boards in the Dominion. “ It must not be overlooked that anti! Maraetai is completed restrictions by t|ie State Hydro Department will be enforced, and may mean a period of four or five years duration. Whilst the controls are in operation by the department the board’s revenue is also restricted, but unfortunately for the board, costs are not also controlled, which means that unless the ratio of revenue to expenditure is maintained, the board’s financial position may become embarrassing.”