POWER CHARGES

New Zealand Herald, Volume LXXII, Issue 22161, 15 July 1935, Page 12

POWER CHARGES

'COST OF BULK SUPPLY PROPOSALS TO BOARDS 'SPECIAL COMMITTEE'S REPORT IBT TELEGRAPH —OWN CORRESPONDENT ] WELLINGTON*. Sunday Numbers of recommendations bearing on the bnlk supply charges for electricity are contained in a report prepared by the special committee formed by the Electric-Power Boards and Supply Authorities' Association to investigate the subject. The report will go forward for adoption at the annua! conference of power board representatives next month.

The report states that the members of tbe committee, while recognising the able manner in which the hydro-electric undertakings of the Government ha\e been administered since their inception in 1912, could not in the course of their discussions tail to realise the very grave individual administrative responsibility that had developed in connection with the undertakings. In view of the immensity of the investments, the. individual responsibility mentioned had now reached a magnitude greater than could be considered in the best intere'sts of the community as a whole.

The committee, in consequence, recommended the association to submit to the Government proposal.'; by which the views of the supply authorities, as well as those of the Government, could be justly considered in reaching vital decisions of policy. The committee further recommended that the net accumulated losses to March 31, 1934, £316,382, should be capitalised at 4 per cent interest and 1 per cent sinking i'und. Interest was now being charged at about 5 per cent on the accumulated loss. The sinking fund of 1 per cent would spread over 40 years, the period of making godd the losses, instead of the limited profits of the next few years being used for the purpose. It was recommended that the annual charge for depreciation on the amalgamated accounts should be 1 per cent; of the capital outlay, instead of 2 per cent as at present, the existing limit to be retained. It was further proposed that the present contingent liability on account of sinking fund should be cancelled, but a, sinking fund of 1 per cent ' should be definitely charged in the future.

Consideration of reductions in bulk .supply charges in conjunction with any proposed appropriation to reserve fund wa3 suggested. Other recommendations in the report concerned suggested alterations in the scale of charges for increased demand, and revised charges in connection with the conditions of supply in the case of supply authorities purchasing their power from the Public Works Department, the conditions to apply at the termination Of the respective contracts.