RATES FOR ELECTRICITY.

New Zealand Herald, Volume LX, Issue 18495, 4 September 1923, Page 6

RATES FOR ELECTRICITY.

The statement made by the Minister for Public Works in explanation of the rating provisions in the :.recent amendment of the ElectricPower Boards Act depends wholly on the presumption that the new legislation does not extend the existing power but defines its operation and renders it more equitable. This may have been the intention of the Minister and his advisers, but the language of the Bill makes it abundantly clear that the original power is preserved and that additional power is created. As Mr. Coates says, power boards had authority to levy rates, but this is specifically to meet the estimated deficiency in revenue and as security for loans, and these rates ; must be uniform over the whole district. To these rates, the limitations mentioned by Mr. Coates do not apply. The last amendment sanctions the levying of rates within portions of a district "in addition to any rate made or levied under the principal Act or this Act." There is no provision restricting the amount of these additional rates to revenue deficiency, and whatever may have been the intention, it is evident that a board might use this power simply to compel persons to use electricity. Consumers are to receive electricity free of charge up to the amount of rates paid; non-consumers within the area of supply are to pay rates not because the board's revenue is inadequate original power provided for such deficiency— simply because they do not purchase power. Indeed, so lo'osely drawn is the section that there is no limitation upon the rate except that the charge to individuals shall not be more than £30 nor less than £l—presumably: a board determined to compel everyone within reach of its mains and its punitive powers, might impose such a rate that the minimum would be, £30. Mr. Coates argues that the supply of electricity is a public service the cost of which should be distributed among all those to whom it is available, and that anyone ! who refuses to take power is oimply ' standing in his own light. But it is surely carrying the case for electricity too far to contend that its advantages are so great that only the ignorant deny them, and that they should be compelled by punitive taxation to recognise their error. By the same process of logic, authority might be given to a gas company to levy a rate upon persons refusing to use gas:for heating purposes. Indeed, several companies are supplying electricity in various parts of the Dominion: are they also to be invested with these extraordinary rating powers It is certainly desirable that the use of electricity should be developed as widely and as rapidly as possible, but it should be regarded as a commercial undertaking to be expanded by the voluntary acceptance of supply by those who are persuaded of its ad vantages, and extended only when adequate guarantees of rentiinera live business are obtained. 1