POWER BOARD’S WORK

Manawatu Standard, Volume L, Issue 140, 13 May 1930, Page 10

POWER BOARD’S WORK

OPERATIONS DURING YEAR. DISCUSSION ON TARIFF. The annual meeting of the Mana-watu-Oroua Electric Power Board was held yesterday, Mr J. A. Nash, M.P., presiding. Others present were Messrs J. Linldater, M.P., M. A. Eliott, P. J. Small, J. H. Perrett, H. H. Hunt, F. Roberts, L. T. McLean, P. G. Guy, and J. Hodgens. Commenting upon tho year’s activities. the chairman stated that the business being done was very gratifying and tho ranges were within 200 of the number in the densely populated Hutt Valley district. It was strange that the board, like all others, was receiving less in proportion from its turnover than previously, due mainly to tho installation of water heaters. There had been a big shrinkage there, and the estimates for the purchase of current were over £IOOO out compared with the cost. Tho position was a common ono with other boards. After meeting the expenditure and providing £5268 .‘ls lid for depreciation, there was a surplus of £348 Is qn the year’s worknig. It was for* the hoard to decide whether tho depreciation allowance should be reduced and a larger amount carried forward to meet special expenditure. In two years anvthing overdue on the depreciation account could be wiped out. The depreciation fund now invested amounted to over £3OOO. and that was available for renewals. Personally, the chairman thought that the cost of transport must be reduced and he proposed a meeting of the executive to go into the question. MINIMUM CHARGE. Speaking of the tariff and the effect of a reduction, Mr Nash stated that Id reduction on lighting charges would mean a loss of over £2OOO in revenue to the board, and it was a question for it to consider, together with what benefit might accrue from a decrease of Id in the charge per lighting unit. Naturally the farmers would also seek a reduction. There had been suggestions made that the minimum charge should be reduced. Palmerston North had reduced its charge, but it was dealing with a congested area and was not in the same position as the Power Board, one of whose trouble men and meter readers had covered 36,000 miles in 18 months. It was an important factor in the board’s operations to deal with troubles at the minimum cost. He did not think that a reduction was at all possible, unless a differential area was made at Feilding which was against the board’s principle that all consumers should be treated alike. It was a matter for great congratulation to the staff that bad debts 'amounted to only £SO 12s lOd out of a turnover of £71,500. Tho chairman moved the adoption of the report. Air Eliott, in seconding, stated that it was truly remarkable how the percentage of cost of current compared with the revenue had increased yearly until last year it was half as much again as in the first year of operations. In the first year the percentage of cost was 25.9 of the revenue and then it increased respectively to 30.9, 31.9, 36, 38.5, and this year the estimate was. 39.8. Mr Small added his congratulations to the chairman on the report. He stated that in supplying distant areas the line losses were heavy. He agreed that the time had arrived when the fleet of motor vehicles should be considerably reduced and thus save £IOOO per annum. There was another bugbear, and that was the amount paid to the Government undertakings on the peak load basis, which meant that tlieboard paid thousands of pounds lor current which it did not use. There should be a saving of £3OOO or £4OOO on the top end of the load. The chief engineer (Air Waters) stated, that the board had to pay a higher price per k.v.a. than Wellington City. The country districts were penalised, and there would have to be an alteration. 'The bulk of the supply was of low-priced return and that would account for the decrease in the ratio of revenue to costs. CHARGE FOR LIGHTING. Air Guy said ho could compliment the chairman on his report, but not tho board for failing to follow the example of other supply areas. He urged a reduction in the charge for lighting units. Ho stated that Palmerston North was the bugbear of the situation so far as the minimum charge and general rates to consumers throughout tho district were He thought the congested area of Fcilding should be on a different basis from the other districts. Mr Eglinton (the secretary) stated that under the board’s license no differentiation could be made. Air Perrett expressed the opinion that it would be sounder not to reduce tho depreciation contingency. Air Hodgens suggested that portion should be held for emergency expenditure. Air Hodgens moved that, in place of over £SOOO being set aside for depreciation, the amount be £4OOO and the balance be carried, forward. Air Guy seconded the motion which was lost. The chairman's report was approved and adopted.. STATEMENT OF ACCOUNTS. Tire secretary, Air K. W. Eglinton, submitted the following statement as at April 30, 1930 Amount of loans raised, £60t),000; expended to date, £487,311; balance, £2bß9; power hind advance, £11,948. Installations and sales: Total installations, £IIO,JP? 8s 3d; collected, £109,025 Is sd; balance outstanding, £7893 6s lOd. Consumers: Lighting and heating, 43ii; water heaters, 1228; milking motors, 830; miscellaneous motors, 5<4; dairy factories, 18; freezing works, _ 2; industrial, 97; street lights, 255; community lights, 76; ranges) 654.