Electric Power in Manawatu-Oroua

Manawatu Times, Volume LV, Issue 6834, 15 April 1932, Page 3

Electric Power in Manawatu-Oroua

KAIRANGA farmers join CONSUMERS’ ASSN. The activities of the ManawatuOroua Electricity Consumers’ Assooiation were continued on Wednesday evening, when opportunity was taken to place tho association’s proposals before a meeting of Kairanga farmers. Mr. IN. Campbell, who was in the chair, said that through constant agitation 1 there had been a reduction in power I charges and of the flat rate. He contended that tho supply of power to Palmerston North was increasing the Mana-watu-Oroua Board’s peak load, for which tho farmers eventually had to pay. Ho said he understood the district paid the most per unit for electricity of all the power board areas in the country. Mr. W. Salt, representing the Electricity Consumers' Association, stated that there were seven local bodies in the board's area. Representation was based on population, the number of ratepayers, capital value and unimproved value. The speaker briefly traced the negotiations leading up to the establishment of the Power Board, which, ho said, had at times expressed its intentions ns being in conformity with the object of giving electricity supply to country consumers as cheaply as lo those in the town, but it. had operated a different nolicy.

Palmerston North was not fully included in the scheme; only so far as its guarantee of responsibility if the venture was a failure was concerned. Dealing with the revenue and expenditure of the Power Board, Mr. Salt stated that, there had been a. large growth in its turnover since it commenced operations, and the ratio of Tevcnue to the bulk cost of electricity had increased considerably. For £2OOO more expenditure the- Wanganui-Rangitikei Power Board had received £26,000 more return. The Manawatu-Oroua Board received from Palmerston North city for bulk power exactly what, the board paid to the Government for it, plus a service charge for the transmission line Bulk power sold by the Power Board to the city accounted for nearly half of its supply, Mr. Salt compared the scale of charges of the Wanganui-Rangitikci Board witli those of the Manawatu-Oroua Board. He quoted the instance of a farmer milking 35 cows who used 1010 units of electricity last year and paid to the Manawatu-Oroua Board £l4 14/2. For the same amount of electricity he would have paid in the Wanganui-Rangitikci area £G 6/2. After meeting all expenses I the Palmerston North City Council had shown a net profit of £12,000 last year in its electrical department. Had it been fully included in the scheme that amount and much more, probably a total of £IS,OOO to £20,000, would have been distributed among some 9000 consumers. Actually the farmer was milking a cow or two to pay for Palmerston North’s footpaths. If the board did not supply Palmerston North it would never have hod to erect lines costing £BOOO, on which interest and allied charges amounted to £6BO. The profit of £3O on the line was negligible. Considering the board’s turnover, its profit was remarkably small, and seemed to indicate that there was room for improvement somewhere W’hcn consumers had to pay so much for supply. Palmerston North, proceeded the speaker, had the right under its renewed ' contract with the board to receive an unlimited supply of power at cost price. Industrial motors and other consumption in Palmerston North forced up the peak load at, 11 a.in., and it was on the peak load that, the Government was paid. Palmerston North was increasing the peak load and incidentally the cost. Palmerston North paid only for the electricity which it actually used, as it kept its peak load figures down with its stand-by plant, but the board had to pay for the top of its peak load. The minimum charge was too high, the speaker continued, and there should bo better conditions for meter testing.

The Consumers' Association believed in. bringing Palmerston North fully into the Alanawatu-Oroua area by legislation, treaty or otherwise. Petitions had been submitted to the Alinister, but would have to await the consideration of a select committee of the House of Representatives in Juno. One way of bringing Palmerston North into tho scheme was to strike a small rate over the whole aroa if tho board showed a loss ou its trading, and if tho loss was not then remedied the board could levy a special rate over a special area. There were now 13 branches of the Consumers’ Association, one having been formed at Kopane the previous evening. Nominations put forward for the Power Board election included those of Alcssrs. O. AlcElroy, C. G. C. Dermer and E. O. Bond. The objects of the Consumers’ Association were also stressed by Air. Bond, who said it was considered that a change in the personnel of tho Power Board was needed.

Numbers of those present signiiied their willingness to join the association, and signed up as members. It was decided that Air. N. Campbell should be nominated by tho Electricity Consumers’ Association for election to tho Power Board.