POWER SUPPLY

New Zealand Herald, Volume LXXIV, Issue 22754, 14 June 1937, Page 11

POWER SUPPLY

EXPANSION IN DEMAND THE AUCKLAND BOARD PAST YEAR'S OPERATIONS te SURPLUS OF £17,600 SHOWN A gratifying financial result in spite of lower charges for supply is recorded by the chairman, Mr. W. J. Holdsworth, and the dcputv-chairman, Mr. S. J. Harbutt, in a joint report to be placed before the Auckland lilectricPower Board at its annual meeting today. The report states that a year ago the board decided on further charge reductions totalling approximately £51,310 for a full year's operation. It was anticipated that as a result of these reductions, the board's revenue would' be seriously affected and that it would probably tako two years for the position to recover. It was, therefore, gratifying to state that the year had closed with a surplus of £.17,656. The large increase in power units sold but more particularly the phenomenal growth in domestic supply, as a result of a range campaign entered into a year ago, were mainly responsible for that position. The Revenue Figures

Units sold during the .year totalled 165,2,35.530, compared with 148,834,433 the previous year. The increase was 16,401.097 units, as against an increase for tlie previous year of 10,000,000. It was the largo increase of units which had so materially improved the board's position compared with that forecast a year ago.

Total revenue for the past year at £650.693 was approximately £10,300 higher than for 1935-36, but total costs at £633,037 had increased by approximately £30,000. Units sold for lighting had increased by about 1,000,000, for power by about 5,500,000, and for domestic supply by about 9,000,000. Units sold for traction supply and for public lighting showed only slight increases.

Net revenue from lighting showed a reduction of about £6OOO, compared with ]935-36, from power an increase of £BOOO, from domestic supply an increase of £16.500. from traction a decrease of £SOOO, and from public lighting a decrease of £IOOO. Increases in Costs Power purchased from the Government cost £21,000 more than in the previous year, the amount paid being £230,042. Duo to increased costs of materials and to higher wages working costs at £409,333 were approximately £33.000 higher. Capital charges at £223,703 were about £3OOO less than in 1935-36, and payments on account of sinking funds at £72,766 were about £IOOO greater.

Capital expenditure added during the year was £56,055, making a total capital expenditure to date of £3,387,932. No major works were constructed during the year. The capital account showed that capital expenditure was £718,832 in excess of loan liability. The total revenue per unit from all sources was .9451 d, compared with 1.0273 d the previous year. The total costs also showed a reduction under all headings, the figure being .9194 d per unit, compared with .9679 d in 1935-36. The maximum load showed a considerable increase, being 41,784 kilowatts, against 37.176. A total of 2158 consumers were connected during the year, making a total of 56.072 at March 31 last. The average number of units consumed by private houses increased from 539 in 1935-36 to 616 last year.

"It will be apparent that our business has continued to expand and progress during the year," the report adds. "Indeed the year has been one of great activity in all departments, and this has necessitated constant supervision and reorganisation by the management and the various departments concerned."