Cost of Power in in Bulk

Manawatu Times, Volume 60, Issue 134, 10 June 1935, Page 6

Cost of Power in in Bulk

No Chance of Reduction Says Minister WOULD NOT INCREASE CONSUMPTION With electrical costs uppermost in the minds of the community at the moment, it is interesting to note that the executive of the National Dairy Association has also been concerned with the price of power as purchased in bulk from the Government, and approached the Minister with the view of persuading him to make reductions. The annual report of the National Dairy Association just to hand declares that the Government's reply cannot bo regarded as encouraging, and there did not appear to bo any immediate pros pect of relief from "the present high price of current." The Minister summed up the situation as follows: "The cost of power supplied in bulk to the various power boards represents only about lit) per cent of the total cost of power as delivered to the actual consumers. The conditions of the Government's electric supply account is not such that it can -simile c any reduction in the cost of power supplied by it unless it can obtain nmo definite assurance that its total revenue is likely to be increased thereby. ‘ ‘ There is no particular indication that any reasonable reduction in bulk supply charges would make such a reduction in the total cost of power to ordinary consumers that there would be a substantial incro"i in revenue.

“The cases of tho dairy factories which operate their own plants, is, no doubt, due to the fact that these factories require steam for process work of various kinds, m which case a combination of steam generation for both power and process work may be economical. The arranging of special contracts with such consumers is really a matter for the electric supply authorities who deal with the general distribution. The Department’s business is limited to supply power in bulk, and there is not enough diversity in a business of this kind to enable us to make special contracts to suit all the varying conditions that are met with in the general distribution side.” In reply to further urging that the Government should adopt a strong progressive policy with a view to popularising tho use of electricity in rural industries, tho Minister replied:— ‘‘l appreciate the interest taken by your conference in the question of electric supply in the dairying districts, and of course will make every endeavour to gradually reduce the cost of power to the industry. This must not, however, be done at the expense of sound finance or with any suggestion of panic.”

Power Board v. City Council

(To (.lie Editor.) yir—The Government gives certain social services which are uniform—• for instance the application of the Mortgage Corporation Act will lie the same in each and every town in -Now Zealand; the Stuto Fire Office has a uniform charge provided the risk is comparable—the fees of the Courts ot Justice are on a uniform set scale. In order to maintain good government this is absolutely necessary and is a fundamental of our British constitution. Now, Mr. Editor, how can you justify the fact that Palmerston Notrh is being required to pay for a Government service, as per the Power Board’s latest offer, H3SOO per year more than the amount Hamilton Borough is paying, or, in other words, for a live year contract, Hit),oUo more than Hamilton would have to pay 1 ? This H ,000 very nearly covers the cost of the extra plant. Is further comment necessary! except, perhaps, to say that the facts as here set out do not tally with the amount, HOSo, quoted by you in your Saturday’s leader. I am, etc., J. HODGENS. Palmerston North, June Stli, ID.jCv