TE AROHA POWER

New Zealand Herald, Volume LXXIII, Issue 22489, 5 August 1936, Page 18

TE AROHA POWER

SUPPLY FROM BOARD ANNUAL FIXED CHARGES LOAN CONVERSION SAVINGS [BY TELEGRAPH —OWN CORRESPONDENT] TE AROHA, Tuesday "I want to point out that during the past year your two bulk purchase customers, the boroughs of Thames and Te Arolia, provided half the board's profits," said Mr. C. A. Arthur at today's meeting of the Thames Valley Power Board, when the board was discussing the terms upon which it would supply the borough of Te Arolia with power for the next five years. Following upon recent negotiations between the board and borough the engineer to the board tabled a special report in which was outlined the proposed new charges to be paid by the borough. Subject, to certain increases in consumption the borough will pay to the hoard the actual standard rates paid to the Government by the board, plus a fixed charge of £625 per annum. Must Take Whole Supply It is conditional that the borough must take the whole of its supply from the board and, except in cases of emergency due to failure or shortage of power, or for testing purposes, or at the request of the board, i the borough must not use its own ! plant for the generation of power. Until such time as a new transformer, i capable of taking the whole load, is provided, the hoard may require the borough's plant to operate. The manager reported that advice had been received from the borough 1 council that it accepted the new | basis of charges, but required that the i new agreement should contain a proI viso that in the event of the Thames | Valley Board's loan conversion scheme I resulting in reduced overhead the j standing annual charge of £625 be pro- ' portionately reduced. ! The chairman, Mr. J. Price, said he ! could not agree to this proviso. The board had not made any excessive charges in the past and, although the annual overhead would certainly be re- , dueed by the conversion of loans in September next the resultant saving would doubtless be offset by increased labour costs. Recent Concessions Mr. Arthur reminded the board that the boroughs of Thames and Te Aroha had been very good customers. The board during recent years had made concessions totalling some £12,000 to its own consumers. The borough consumers had not shared in those concessions, as they were tinder contract. In view of this he thought the board i could well grant the possible reduction ! that the borough asked for in annual ; fixed charges when the loan conversion j was finalised. Mr. W. V. Kennedy: All the i borough asks is that its consumers get | equal treatment with the board's own consumers. If the board would merely l give an assurance that the boroughs | would share proportionately in any reduction of charges the board might make generally then the borough would . be satisfied. In answer to a question the engineer stated that both board and borough were in complete agreement on all points of the new schedule save the one proviso concerning reduced annual fixed charges, j On being put to the vote the new | basis was adopted for a five-year term, j subject to the deletion of the j borough's request for a possible reduction.