SUPPLY OF POWER

New Zealand Herald, Volume LXXV, Issue 23042, 20 May 1938, Page 15

SUPPLY OF POWER

AUCKLAND BOARD iYEAB REVIEWED i I SURPLUS OF £20,353 I ■ EXPANSION of operations STATEMENT by chairman - I (Extended Keport by Arrangement.) . A. surplus of £20,35!) for the year fenced on March 31 was announced by >lr| S. J- Harbutt, chairman of the .jAuokland Electric-Power Board, at the 16th annual meeting of the board yesterday. "The year past has been one of steady progress and development," Mr. Harbutt said. "You will remember that when in 1936 the reduction in supply ja t^ s totalling approximately £51,310 wal made, it was anticipated that it trould be two years before we would reaver from the effects of the reduction., JThis has proved to be correct. "It is very gratifying to report the lurplus for the year ended March 31, 1938, to be £20,353. This happy position is the direct result of the phenomenal growth of our domestic supply business, stimulated as it has been by the reduction above referred to, coupled with the board's policy of assisting consumers to instal labour-saving appliances. Community Lighting "During the year there has been a great development in community lighting, in both our outer areas and in the city. Unfortunately, it was found that under the Municipal Corporations 'Act there was no provision whereby local authorities could undertake the responsibility for this work. Consequently it was necessary for associations of shopkeepers to be formed before the board was able to undertake these installations. "SteDs are being taken to have legislation .enacted to clarify the position, and when this is accomplished no doubt many more areas will be dealt with. The results so far have proved most beneficial to the shopping centres, and the uniform lighting system has made much greater attractiveness, and considerably improved business. Accounts Reviewed

''Your attention is drawn to the statement of accounts. In the first place, the net surplus for the year amounts to £20,353. The total net revenue for the year was £710,021, compared with £650,693 last year, an increase of £59,328, but our total operating expenses have increased during the year from £409,333 to £474,624, a total increase of £65,291. "This increase is largely the result of working under conditions over which .we have no control. Fortunately, we hiave been able to effect a saving in our capital charges of £8655, consequent upon paying off a loan of £225,000, and this has reduced the total additional costs to £56,636. "Tfie total- units sold were 187,618,909, against 165,235,530 last year. This represents approximately 22j

.Ia submitting this comparison, the striking development in tne domestic supply is Aost remarkable. The reduction m rates from an average of 4.34 d to the present average of .7930 d reQuires some explanation. "In 1922, when the board was _ formed, the domestic rate was 5d during the winter and 3d during the summer, with a meter rental of 10s per annum. To-day meter rentals are abolished, 3d is- charged for the first 36 units per month and £d for all in excess, all less 10 per cent if paid on the due date, with a minimum charge of ■3 18 Per nwmth. Tt will be seen, therefore, that J?king the 36 units as consumption for {'Bating the cost to-day is considerably le ® than half what it was originally. . The advantages of hot water serand cooking ranges are within toe reach of all, under the deferred Payment and, hire systems now in vogue and the unit rates charged for these Be rrices make them cheaper than what *ould bo possible by any other form heating. The board has every reason , P e proud of the wonderful results achieved, results more than comparable with other parts of the Dominion and overseas. Hansard Extract . "I note from Hansard of December A where a Labour speaker is reported to have said : 'lt has been said that the Auckland Electric-Power Board has Hot dealt fairly with the small consumer. That is not borne out by examination of facts, because there have been reductions almost every year, and in those reductions the small continier has shared with the big consumer. But when it comes to the point that a reduction which it is possible make only amounts to 1.40 d and when there are a largo number of consumers who only consume perhaps 2s or 3s worth- of power per month, it is ery difficult to give a reduction to that consumer, when the reduction Wermg is only 1.40 d. However, the Kures I have given show that reduces nave been made to all consumers, are getting a benefit in . y " e y hrtve no meter rent to pay fL?et a 10 per cent av. ® of the earlier loans raised by 6 undertaking' fell due for repayment

in London on March 1 last. The amount was £224,500, and as the board had a sufficient sinking fund available to completely redeem the loan, the necessary transfer to London for this purpose was made. The transfer necessitated a payment of £55,000 for exchange, and this amount was provided out of the board's cash resources. "The present loan liability of the undertaking is £2,411,700, against which is held a sinking fund of £1,054,859, invested with the Public Trustee. Space in Building "The cash receiving office and show room, which was established on the ground floor of this building some 12 months ago, has proved of great benefit to the public, and the facilities there provided havo been much eppreciated by the board's customers. "The steady growth of business has necessitated the taking over of further space in this building, and in a few weeks' time the board will be occupying in addition to the ground, third and fourth floors and portion of the fifth floor, the greater part of the sixth floor. "The wisdom of providing adequately for future needs by the erection some years ago of its own building has been amply justified, and it is only a matter of time before the whole building will be required. Engineer's Tour "During the past year, the board, in accordance with its policy, sent Mr. A. O. Glasse, chief engineer, overseas for seven months to inspect and study the latest developments in the "United States of America, England, and in European countries. On his return, the reports which he has presented prove the wisdom of keeping our responsible officers in personal touch with the world's latest developments. His reports have, of necessity, covered many considerations of a highly technical nature, but there is much which can readily bo grasped by the lay mind. The reports are very valuable and informative and after the members have had the opportunity of studying them they will require careful consideration by the now board. "On behalf of the board I desire to express our appreciation of the many facilities offered our chief engineer by the overseas organisations visited, and of the many courtesies extended to him.

Range Campaign "The facilities placed at the disposal of our customers to enable them to purchase on easy terms, or to hire, electric ranges, have met with wonderful success, and we have dealt with no less than 3000 applications during the year. Of this number, 906 represent ranges purchased by the consumers, and thfe balance 2095 are on terms of hire of 4s monthly. The all-electric house is now within the reach of all, and our returns show that the average cost of running an all-electrio house is approximately 5s 6d a week. The board's service department has also proved to be of the utmost benefit to our consumers, who have not been slow to take advantage of the service facilities offered. A nominal charge only is made for the service rendered, and consumers have merely to telephone their request and a serviceman is despatched immediately to attend to their requirements. , "This arrangement undoubtedly saves the consumer much delay and expense, and is another instance of the fulfilment of the aim of the board, to supply electrical energy to everyone at the least possible cost. ' ■ > Tramway Charge "A new agreement has been entered into with the Transport Board, which will enable adjustments to be made at stated intervals, should anything special call for variation. The total unit consumption during the year was 20,007,255, representing a cost to the Transport Board of £51,794, or .6213 d 'per CorripSre this with 1925, the first year when we supplied their full requirements of sixteen and two-third million units at a cost of £93,803, or 1.35 d per unit. "It should be remembered that tramway power is supplied to the Transport Board at bare cost, the rate this year being less than two-thirds of a penny per unit. Loan Capital

"Since 1928 the board has not raised any fresh loan capital, all extensions and work connected with the changeover from direct current to alternating current having been financed out of depreciation and other reserves. "During the past year we have exceeded - the allocations very considerably in an endeavour to keep pace with the fast growing demand, but great care will be required during the coming year in" this connection. "The past year has been one of exceptional difficulty for our executive staff in re-arranging the working conditions of our organisation, consequent upon the new Labour legislation and the advent of the 40-hour week. Every effort possible has been made to apply the hew legislation to our daily 24hour service. Thanks to Staff

"To Mr. R. H. Bartley, general manager, and his executive staff, I wish to express sincere thanks and appreciation for the very thorough and efficient way in which they have carried out their duties during the year. Without the hearty co-operation of all the officers, the present results could not have been achieved. "I feel it is due that a word of appreciation should be recorded to our station and outside staff. While the board does not come much in personal contact with them, from the reports and results achieved, we wish to assure all our employees that we appreciate the loyal service rendered by all departments. "To you gentlemen, members of the board, will you accept my hearty thanks for your loyal support and cooperation, It has never before been my good fortune to serve with a band of men so enthusiastic and singleminded in giving of their best in the interests of the electrical development of the metropolitan area."

NORTH AUCKLAND SURPLUS MOST SATISFACTORY YEAR [by telegraph—OWN correspondent] DARGAVTLLE, Thursday "The results achieved over the past year have exceeded expectations, and will enable the board to lay solid foundations upon which to build a sound and successful undertaking," stated the secretary, Mr. P. Day, in his annual financial report to the North Auckland Electric-Power Board. The surplus for the year amounted to £5842. WAIKATO ELECTRICITY INCREASE IN CONSUMERS [from our own correspondent] HAMILTON. Thursday The number of consumers on the board's mains showed an increase of 34 during the last month, the figure now standing at 6094, stated the report of the engineer-manager, Mr. J.' R. Ellis, at a meeting of the Central Electric-Power Board yesterday. Water heaters totalled 2169, compared with 2139 when the last report was made, and electric ranges totalled 821, showing an increase of 27, the report added. Pump motors had increased by 12, the present figure being 1336, while an increase of 34 in the number of industrial motors brought thq total to 663. A further increase in the number of domestic motors brought the total from 97 to 107. ' j

For a.OOO.OOP .Timts, show-' "ingr a. net increased revenue of ; £6.000 For ptfwWj 8,000,000 units, showing a net increased revenue of 25,500 For domestic, 13,000,000 units, showing a net increased revenue of; .. .. ,\. .. SB,000 For traction. 750.000 nnits, showing & net redaction of .. 8,000 For pabuo ugbting, a redaction of . 500,000 nnits, with a consequent redaction in revenue of . . . 8,700 Orowth of Business "It is of considerable interest to note the remarkable development that has taken s place in the board's business since its inception in 1922. Comparing the first annual accounts with the 16th:— nv. , i , 1023 1938 Total capital m expenditure .. £915,237 £3,524,579 Total net revenue from supply .. £166,249 £703,047 Total working; expenses . - .. £76,654 £474,624 Units sold . . 18,599,195 187,618,909 Average revenue from supply ... 2.83d .8993d Average net price per unit sold:— ■-I • . Units ■■ For lighting . 4,042,063 For nower .. 6,844,136 For aom. supply 910,915 For tramway „ traction .. 1,556,209 For street light. 245,872 1923 £ 84,173 44,772 16,483 8,393 2,428 d 4.99 . 1.57 4.34 1.29 2.37 13,599,195 : _ Units For lighting . 13,790,361 For power .. 59,375,562 For dom. supply 91,935.439 For tramway • traction .. 20,007,255 For sweet light. 2,510,292 156,249 1938 £ 116,569 198,297 303,773 51,794 32,614 d 2.0287 .8015 .7930 .6213 8.1180 • 187,618,909 703.041 « : . 1928 Ntunber of consumers .. 11,009 Number of ranges in* stalled ..' .. .. Nil finmber of water heating systems installed .. Nil 1938 68,325 11,460 15.405 Domestic Supply