POWER FOR DAIRYING.

New Zealand Herald, Volume LXV, Issue 19916, 9 April 1928, Page 8

POWER FOR DAIRYING.

THAMES VALLEY DIFFICULTY. USE OF COMPANIES' PLANTS, [BY TELEGRAPH. —OWN CORRESPONDENT.] HAMILTON, Saturday. Dissatisfaction with the decision of-the Public Works Department in requiring dairy companies to make their own arrangements for electric power as from April 1 has been expressed by companies and by the Thames Valley Power Board, through which the power is supplied. . The department's attitude is that it entered into an arrangement with the Auckland Power Board to supply that authority with power, a guarantee of £12,000 a year being made to the department. The dairy companies represented that they could produce their own power at a certain low cost and only agreed to take power from the department if power could be supplied at a rate which compared favourably with .their own production figures. Tho department had surplus power available at the time and agreed to supply power at a cut rate, reserving the right to cut tho duiry companies off if circumstances made it necessary. Tho delay incompleting the Arapuni works and the increased demand for power at tho standard . rate created a shortage, and in accordance with the terms of the agreement the dairy companies were notified to use their own plant as from April 1. At several factories the plant has been in use since the trouble with- silt occurred , at Horahora shortly after January 1 last, when the Arapuni lake was filled. It is understood that tho difficulty with the dairy companies' has been accentuated by the increased cost of slack coal, which has mada the production costs of electricity in connection with their own plant considerably higher than it was when the original arrangement with the Public Works Department was made. The companies' attitude is that they have been harshly treated and that tho primary producers* interests aro being sacrificed to those of the city, which is still receiving power. The Thames Valley Board receives considerable reveuuo out of power sold to the dairy companies, owing to tho special arrangement it has with the department. In this arrangement tho diversity factor, which often operates to tho board's advantage, has an important bearing. The board estimates its loss during the last three months, during which the dairy companies have been principally dependent on their own sources of electricity supply, at £2OOO. The Power Board and dairy companies are making joint representations to the Government on _ the matter and a delegation will proceed to Wellington to interview the Minister of Public Works and the chief electrical engineer.