LARGER SURPLUS

New Zealand Herald, Volume LXXIII, Issue 22352, 25 February 1936, Page 10

LARGER SURPLUS

POWER BOARD RETURNS £28,463 IN NINE MONTHS REDUCED SUPPLY CHARGES An increased surplus for the nine months ended December 31, 1935, in spite of reduced power charges, was shown in the report of the operations of the Auckland Electric-Power Board for that period presented at a meeting of the board yesterday by the Renoral manager, Mr. 11. H. Bartley. Although reductions in supply rates were made at the beginning of the-finan-cial year, the surplus for the period was £28,463, compared with £26,791 in the corresponding months of the previous year. Total revenue charges were £291,863, an increase of £9IOO, while capital charges were £161,189, a decrease of £14,660, due in part to mortgages on the board's building and a portion of its loan liability and London overdraft having been paid off. Revenue from sales of current totalled £488,188, an increase of £2805. Greater Domestic Revenue In spite of the reductions in rates, commercial lighting and domestic supply both showed substantially increased revenue. The return from otht>r classes of supply, although comparing well in units consumed, still showed reduced revenue, as the result of the lower price schedules, and required a longer period to build up before they could approximate to the old returns. Units generated and purchased amounted to 132,394,322, an increase of about 7,500,000 over the same period in 1934. The cost of power purchased from the Government increased by £9713 owing to this increased consumption. The total revenue per unit sold was 1.0478 d, compared with 1.117 d, and the cost .9724 d, compared with 1.054 d. There were 1523 new consumers connected during the period, making the total 53,454, of whom 12,192 had electric water heaters and 6154 electric stoves. The chairman, Mr. W. J. Holdsworth, said the board had every reason to be satisfied with the results, which revealed steady progress. It was hoped that with the extra effort that was to be made in the very near future, this progress would be maintained. It was likely there would be a further substantial increase in the number of stoves and water heaters before the end of the financial year. Employment ol Capital Mr. F.. H. Potter said the report went to show what a wonderful asset the province -had in Lake Taupo and the Waikato River. When the board's sinking fund matured, in under 20 years, the cost of power would go down by at least half. He hoped the watersupply problem would be dealt with I on similar lines. Mr. S. Irwin Crookes said he did not understand how the maturing of the sinking fund would reduce the cost of power by half. The report showed that the total capital charges accounted for only .346 d of the cost of .9742 d per unit. The general manager agreed that Mr. Potter was optimistic in hoping, costs would be cut in two. At the same i time he would point out the tendency for the board to employ its capital to a greater extent. The same capital was producing more units of electricity, and this was reducing costs.