BULK ELECTRICITY

Manawatu Standard, Volume LV, Issue 246, 14 September 1935, Page 9

BULK ELECTRICITY

BOARDS DISCUSS CHARGES. STANDARD RATE URGED. Per Press Association. AVELLINGTON, Sept. 13. Tlie Power Boards’ Conference discussed the report of the special committee set up to inquire into the position of tlie Public Works Department and to investigate the possibility of obtaining a reduction in the charges for bulk supply of electricity. The report, in short, recommended that all supply authorities in the country be put on a standard rate. The department relies on a steadily increasing load to make its schemes pay, but the committee feels that the present Government tariff is too high to encourage successfully the development of loads and recommends that an inducement rate bo given and a temporarily low rate to induce new business, the higher rate to be paid when the position is consolidated. There is a proposal for a legislative amendment to enable accumulated losses to be capitalised at 4 per cent interest and 1 per cent sinking fund, so that the wiping out of losses can bo spread over a longer period. The chairman of the committee (Air J. G. Lancaster) reviewed the work of the committee and gave the main points that had been considered. The committee, lie mentioned, was agreeable that steam and hydro schemes should be co-ordinated to prevent- heavy capital expenditure on future extensions and considered that stand-by plants, at least in certain cases, were necessary and some might be in the national interest, and m these eases proposals had been brought down whereby a payment to authorities would bo made by the department.

On the motion of Mr J. Dean (Franklin) the following clause was added: “That in cases of special hardship any board or authority may apply to the Public Works Department tor assistance.”

Air 1. Dalmer (Waitaki) registered the protest of his board against the perpetration of a principle whereby taxpayers in the country districts were equally responsible with those in the cities. His board was disappointed that the suggested scale provided for substantially higher rates being charged to smaller supply authorities than to authorities for metropolitan areas. Air O’Shea, for the municipal supply authorities, contended that the scale

of bulk supply charges should not apply to authorities having standby plants. It was suggested, lie said, that those authorities should have the right of supply up to one-third of their demand totally dissociated from the supplies by the department. Standby plants were necessary and there should lie mutual forbearance between authorities. He moved certain amend-i inents to the scale of charges, but these were heavily defeated. Tt was decided to send a deputation with all the conference’s recommendations to the Prime Minister, the Alin-, ister of Finance, and the Alinister of Public Works. ELECTION OF OFFICERS. The conference then closed with the election of officers, which resulted: — President, Air J. A. Nash, AI.P. (Ala-nawatu-Oroua); executive, Messrs G. A. Monk (Horowhenua), F. Purnell (Wanganui-Rangitikei), S. J- Harbutt (Auckland), W. Hinchey (Southland), A. C. Pearce (Wairarapa), G. Dash (South Canterbury). A. C. Russe (Central Hawke’s Bay), F. Nicholl (Ashburton), J. 'l'. Johnson (Te Awamutu), A. E. Russell (Otago), S. Blackley (Hutt Valley), Al. Cable (representing the North Island supply

authorities), K. Hitchcock (Soutli Island supply authorities), H. F. TooRood (Kn gineers’ Association), and K. W. Eglinton (Secretaries’ Committee); secretary, treasurer and legal adviser, Mr F. M. Martin (Wellington); auditors, Messrs Clark, Menzies, Griffin and Ross.