POWER AT WHENUAPAI

New Zealand Herald, Volume LXXI, Issue 21763, 31 March 1934, Page 13

POWER AT WHENUAPAI

POSITION OF GUARANTEES CONSUMERS SEEK RELIEF. Several complaints relating to the supply of electric power in the Whenuapai district were laid before Mr. W. H. Mackie. a member of the Waitemata Electric-Power Board, at a wellattended meeting of residents at Wlienuapai 011 Wednesday evening. The chairman. Mr. F. Grigg, said the meeting was the outcome of fairly general dissatisfaction on the part of consumers. and had been convened by the I?at ©payers' Association. In his opinion, all guarantors should be relieved of their responsibility, aud the board should charge only for the jxiwer consumed. In support of his contention. he said the board was making a profit of 17£ per cent, and jh other areas guarantees had been abolished. Discontent had also arisen through the lack of uniformity in the guarantees required. Mr. Mackie said two years ago, when the residents petitioned for, power, the board had been careful to' explain that a guaranteed consumption equivalent to interest at the rate of 17i per cent a year would be required. This rate of interest did not represent a profit to the board. It comprised 12J per cent to cover loan interest and sinking fund charges, and the remaining 5 per cent provided for overhead expenses and profit. It was estimated that the amount necessary would bo £843. Of this amount, only £643 was guaranteed by the people. The board had made up the deficiency from revenue, and had appropriated from the loan only the amount guaranteed. The line had never paid. He thought a request to be relieved of the guarantees? sounded like going back 011 a bargain. It was not correct that guarantees had been lifted elsewhere.