ELECTRIC SUPPLY

Manawatu Standard, Volume LVI, Issue 248, 17 September 1936, Page 11

ELECTRIC SUPPLY

DEMAND INCREASING. HINT OF CENTRALISED CONTROL. “During recent months the indication of the approach of more prosperous times has given a stimulus to the electrical industry, and everywhere there are indications of increasing demands,” said Hon. R. Semple in his Public Works Statement, presented in the House of Representatives yesterday. “To provide for this additional transformers and switch-gear will he necessary in many of the existing substations. and arrangements to secure the necessary plant are being made.” The principal construction work being carried on was the installation at Arapuni of two additional units, each of 21,000 k.w., which was commenced by his predecessor. The difficult work in connection with the foundations for the power-house extensions lin'd been completed and the installation of the machines commenced.

The general position to date was that the electric supply account li«*rl been able to meet all operating and interest charges, had provided £950,988 toward the statutory requirements of £1,350,303 for depreciation, and in addition. had provided £326,500 to sinking fund and £175.809 to general reserve from profits made from time to time on the Lake Coleridge and Horahora systems. In other words, the electric supply system as a whole had paid interest and operating charges and provided £1.453.297 in reserves, of which £308.945 had already been utilised by the Treasury for the paying off of_ loans which formed part of the original capital. NORTH ISLAND SERVICES. The Arapuni-Mangahao-Waikare-moana plants had operated satisfactorily’throughout the past year, and the revenue showed an increase of £82,625 over that of the previous year. The result of the year’s operations was as follows: Capital investment at end of year, £8,635,000; revenue, £795,391; operating cxiienses, £144,068; balance, £651,323. The balance had been used in paying interest charges (£408,051), and £38,148 as the department’s share of the capital charges on the King’s Wharf generating plant of the Auckland Electric Power Board, also £17,591 to provide the full statutory contribution to depreciation. Accumulated losses to date amounted to £399,315, but the reserve accounts established in connection with this system showed that £961,757 had been credited to depreciation and £55,930 to sinking fund, which latter amount had been utilised in the redemption of loans. “Power generated in bulk is in the main sold to local authorities, for distribution to the actual consumers,” said Air Semple. “The local authorities are thus really partners with the department in the complete business of giving supply to consumers, and their action and administration has a very considerable influence on the success of the undertaking. In fact, as the Government receives on the average only 0.34 d for each unit sold, and as the consumer pays on the average 1.25 d per unit purchased, it can readily

be seen that these supply authorities can have a very considerable influence on the success or otherwise of the whole business.

CONTROL OF GENERATING PLANTS. “Oil the whole I think it can be said that the general result is good, as there is considerable evidence to prove that the cost and general availability of electricity in New Zealand, particularly in rural areas, compares quite favourably with other places. I have not yet had opportunity to go as fully into the matter as I intend, but there are undoubtedly one or two aspects of distribution and of the relation between the generating authority and the distributing authority which are not quite perfect.

“There undoubtedly appears in some cases to be lack of co-operation between different owners or generating

plant. It is difficult under any contract to be sure that our available resources are being worked in the: way best suited to the national in-| terest. This particular problem has been considered in other places, and there certainly seems to be quite aj decided consensus of opinion among power authorities that there should' be some centralised control of gener-j ating plants.” j

The capital invested in the electric supply systems operating throughout j the Dominion totalled £33,181,503,1' which included £13,095,382 of Government expenditure, and the gross revenue, received for the year was £4,-, 823,324. After paying working costs,! interest, sinking tund, and deprecia-. tion charges, the net profit tor the year under review was £554,154, asi compared with £449,499 for 1935, which indicated that the electric supply business as a whole was in ■>( healthy condition.