HORAHORA POWER CHARGES

New Zealand Herald, Volume LX, Issue 18316, 5 February 1923, Page 8

HORAHORA POWER CHARGES

HELD TO BE EXORBITANT.

MAXIMUM LOAD SYSTEM. [BY TELEGRAPH. — CORRESPONDENT.]

IV CAMBRIDGE. Saturday. I At a meeting of the Cambridge Electric Power Board on Thursday correspondence was received. from the Ashburton Power Board with reference to the charges for current made by the Government on maximum load. The South Island body contended that the prices charged were exorbitant.

Mr. J. 8. Fisher agreed with the Ashburton Board's contention, and was of opinion that the Horahora power system would not be satisfactory until controlled by the power boards directly interested. Mr. H. Roache adversely criticised the system under which the Public Works Department controlled its plants, ' and its methods of distribution. Few people realised the unfair position created by the Government in its sale of electrical current to bulk customers. The charge of £10 per h.p. was a fair charge if consumers or boards were only charged on the ratio of current used, but such was not the case, for they paid on maximum load, which worked out at about 60 per cent, more than they used. This meant a payment equivalent to £25 per h.p. used. They paid also on the K.V.A. basis, which resulted in an extra charge of 10 per cent. Thus boards had actually paid approximately £30 per h.p. for current. • The speaker maintained that current could be generated by steam for about £10 per h.p. If the Government charged that figure it would" bo a reasonable one. It was impossible for the boards to make a reduction of charges for power and lighting while the Government made such exorbitant charges. It was decided to support . the Ashburton board. ' "" ' '.' '