NOT ACCEPTABLE

Nelson Evening Mail, Volume 80, 30 November 1945, Page 4

NOT ACCEPTABLE

PRICE TRIBUNAL’S PROPOSAL

HOSPITAL ELECTRICITY TARIFF

ELSON CITY COUNCIL’S DECISION The Nelson City Council last evening decided to advise the Price Tribunal that the electricity tariff suggested by the tribunal for consumers (including the Nelson Hospital) with 150 kw. or more of connected load, was no 1 acceptable to the council. In February of this year the Public Works Department asked the City Council if it would give the hospital an “all-in” price for all electricity used at the hospital, through a one meter system, on the maximum demand principle. The City Council made proposals to which the Public Works Electrical Engineer agreed, and which in effect would have reduced the Hospital Board’s payments for electricity by at least 50 per cent. Such a reduction had to be approved by the Price Tribunal. The tribunal, according to a letter considered at last night’s meeting of the Council, suggested that the hospital and other consumers of 150 kw. and over should be supplied at a tariff rate considerably below that offered by the council to the hospital. TRIBUNAL’S LETTER The letter from the tribunal was as follows: “The tribunal wishes to confirm the decision given verbally to the representatives of the Nelson City Council, Messrs E. R. Neale and E. Fleming, at a meeting held with the Tribunal on Tuesday, 20th November, in respect of the tariff to be charged for the supply of electricity to consumers of 150 kw. of connected load and, in particular, to the Nelson Public Hospital. “After due consideration of the circumstances the tribunal has authorised the following charge: consumers of 150 kw., of connected load, on maximum demand system, of £2 10s per kw., quarter plus id for all units consumed. This tariff is to be applicable to the supply of electricity to the Nelson Pub, lice Hospital and is to cover the ‘all in’ tariff desired by the hospital. The tribunal is, however, prepared to review this tariff should the council to desire after a period of operation of not less than 12 months or as soon as the council has been able to collate sufficient information relating to the actual costs of the supply of electricity to the hospital and any other details which may be sufficient to show that the approved tariff is in . any way uuremunerative to the council. As no such information has been supplied up to the present time the tribunal considers that, after an examination of the available information, the tariff now authorised is a reasonable charge to be made for the supply of electricity to the Nelson Public Hospital as an ‘all in’ tariff.” LESS THAN CHARGES ELSEWHERE It was stated in reply to a question by Councillor S. I. Russell that the Price Tribunal was suggesting that the council’s charges to the hospital be less than those charged other similar institutions in other parts of the Dominion. Several councillors were of the opinion that the council should withdraw its application to make a reduction in the charges, as the tribunal’s suggestion was not acceptable. It was finally decided on the motion o‘ Councillor J. A. Harley, seconded by Councillor N. Rout that the council thank the tribunal for consideration of the application and state that the price suggested by the tribunal was not acceptable. MEMBERSHIP OF ASSOCIATION The Municipal Electric Supply Association forwarded a report to the council on the recent conference (at which the council was represented by the Mayor) held in Wellington with reference to the recommendations of the Local Government Committee regarding municipal electrical operations.

It was decided that the council renew its membership with the Association and pay the levy (£7 10s) decided on at the conference. The Mayor (Mr E. R. Neale) expressed the opinion that the council should continue in the Association which intended to oppose the suggestion that the control of electrical supply should be taken away from municipalities. Councillor S. I. Russell suggested that thj Government might make an early decision on the subject and he thought the council might delay any decision on paying the levy until next February. He personally agreed with the proposal to reduce the number o' electrical supply authorities. Councillor F. H. Sharland said he thought the Council should join up with the Association. If the City Council could not undercut the tVaiinea Electric Power Board’s charges by 25 per cent th-. council should go out of the electrical supply business, he said. The council was doing a good job with its supply at present and it should try to retain its control in the city as long as possible. The council was not using its electricity profits for purposes outside the electricity department. However he felt that the day was not far distant when the city area would be included in the Power Board control. He considered the board did not want to control supply in Nelson at present as the board was making £2OOO a year out of the city.