Reductions In N.A. Power Charges

Northern Advocate, 23 May 1941, Page 3

Reductions In N.A. Power Charges

Reductions in the charges of electricity in the North Auckland Electricpower Board’s area were approved at the annual meeting of the board in Dargaville yesterday. Recommendations brought before the board, following previous proposals by the chairman (Mr. J. A. McLean), the engineer (Mr. T. R. Overton) and the secretary (Mr. S. P. Day) were as follows:

Lighting: Reduction of id per unit from 7d to 6£d, less 10 per cent., making an effective rate of 5.85 d per unit. Cooking: Reduction in the third rate on the schedule, over 20 units, of .jd per unit from l£d to ljd, less 10 per cent., making an effective rate of 1.125 d per unit. Milking and small industrial motors not under special contract: The same unit scale, but the first scale to be reduced by jd from 3jd to 3d, less 10 per cent., making an effective rate of 2.7 d per unit.

Ilikurangi, Kamo Mines The recommendations also covered a reduction of £2OO per annum to the Hikurangi mine and to the Kamo mine in proportion. The estimate of the whole cost of reduction was £SOOO.

Questioned regarding the position at Hikurangi, the engineer traced negotiations which had taken place and said that if the mine were domiciled in the Waikato its electricity costs would be 10 per cent. less. “If the Hikurangi mine goes out the town of Hikurangi more or less will go out with it and the board has to consider that the town provides a large consumption,” he haid. "A grant from the board of about £2OO a year is worth while.” Mr. J. A. S. Mac Kay said that any failure of the Hikurangi mine must affect the town. Regarding the other proposed reductions he would have preferred to see them made where there was competition such as in cooking and water heating. There was no competitive method of lighting.

Cheaper Cooking

"In this town (Dargaville) there arc about 500 users of gas for some purpose,” he said. “No doubt gas is a more ecenomical means of cooking and it is quite as satisfactory at the present charge. Therefore 1 would like to see a reduction there. Regarding waterheating, people feel that they are paying more than they have been accustomed to.

"I have heard no complaints regarding lighting or milking charges, but there are many complaints about the cooking charges as food can be- cooked cheaper by other methods. I would like to see a reduction of £3OOO or £4OOO applied to the mines and cooking.” The chairman: The water-heating l'ate is the cheapest in the area.

Sold Below Cost

Over 8,000,000 units, or over half the units sold were used lor water-heating, said the secretary. The board was selling more than half the units it purchased at less than cost for this service, buying at 3.23 d and selling at 2.32 d.

Mr. E. G. Appleton said that dairy companies would also have to be taken into consideration when reductions were being proposed. If a bump came it was against ihe primary producer, and his position should be considered seriously. In view of the uncertainty of , the future the board did not want to move ’too fast, although ail members wanted to see reductions in charges/ made.

Reducing the charge to dairy companies would be of benefit to the farmers, just as the proposed reduction to the Hikurangi mine was involved with the welfare of the township, Mr. W. Collins considered.

Less Revenue Possibility Mr. D. H. Cochrane supported the recommendations as well as a reduction in the future to the charges to dairy companies. Back-block settlers had received no reduction previously, but had paid more, said Mr. J. H. McCarroll. The chairman: We will try to rectify that. Mr. J. N. McCarroll questioned whether in making the reductions the possibility of a reduction in revenue during the coming year, such as would result from black-outs, had been considered. The secretary said that the board had been informed that if it kept within the 23 per cent, increase everything would be in order. All factors had to be considered, and the board had to take into consideration that the consumers may use less, continued Mr. McCarroll. Guarantees Question “Those..who have to cough up the guarantees should also be considered,” he said. The chairman: They will be considered. Because the board could go up to 23 per cent, in increase, the estimate of £85.000 for the coming year would be realised and exceeded, said the secretary. He could not see how the board could fail to make another good profit during the coming year. While against decreasing hastily, Mr. R. Coates said the time appeared opportnue to give a little assistance to the consumers. A motion adopting the recommendations was carried unanimously.