MANAGER'S REPORT
UNIT COST HIGHEB | SAVING IN DEPRECIATION POLICY FOR FUTURE Aspects of the year's work were reviewed in detail by Mr. R. H. Bartley, general manager of the Auckland Elec-tric-Power 13oard, at the annual meeting of the board yesterday. Ho said the surplus of £20,353, added to the balance carried forward from last year, &nade the total £74,732, but against this had been charged the claim of £20,000 for the adjustment of accounts with the Auckland Transport Board, leaving a balance to be carried forward of £54,732. Power purchased had increased by £35,014 over last year, and the unit cost had increased from .3346 dto h .3391d per unit, Mr. Bartley said. Repairs and maintenance to buildings had increased by £4456, mainly duo to work carried out in the Queen Street building. Wages for distribution showed an increase of £7OOO, included in which was provision for meeting the Remuera claim. The cost of the trading scheme for the year was £15,695, which was an increase of £4614 over last year. These were the major items accounting for the increase in cost in the items shown in the revenue account, as compared with last year, the total of which was £65,290 more than in the previous year. Lower Depreciation "In the net revenue account the main item for comment is the reduction of £9OOO in the depreciation charge, which amounts this year to £39,954," he continued. "This has been effected mainly by the paying off of our recent loan of £225,000, which has obviated the necessity for providing any further depreciation in respect of the assets created out of this loan. This factor in our accounts is a very material one and is mainly responsible for our surplus reaching the figure shown for the year. "Our total revenue received is now approximately three-quarters of a million, and for this year large increases in returns are noticeable under the domestic supply, commercial lighting and industrial power. Reductions are shown under the headings of traction and public lighting, duo entirely to the reductions in the charge made last year covering these classes of supply.
Capital Account
"Referring now to the capital account, it will be seen that the total additions during the year have amounted to £136,647, compared with additions for the previous year of £86,055," he said. "This account must occupy the board's attention almost immediately, as it is very clear that we cannot continue to deal with capital works as at present, under our existing policy. It is true that we have undertaken much more _ capital work year than was anticipated, especially in connection with current change-over. Our hands were forced, however, by load developments and with a view ultimately to saving the board money, much more work than the anticipated annual programme was completed. „ . "The total capital expenditure of the board to March 31, 1938, was £3,524,579. If we add to this the value of our stock and stores on hand, amounting to £96,412, also our investments of £165,611, these three items represent a total of £3,786.602. Our total loan indebtedness is £2,411,700, against which we have a sinking fimd reserve invested outside the hoard s business of £1,054,859. making a net loan liability of £1,356,841.
Street Lighting Demand
"The demand for additional street lighting during the year has not been as great as X anticipated, bearing in mind the concessions and adjustments that were made to the local authorities at the commencement of the year, Mr. Bartley said. "There can be no doubt that additional lighting is required, but the added cost or work and administration with which all local authorities are now faced is, no doubt, delaying the fulfilment of these requirements. The total number of new lamps installed is 214, and this is very much less than the usual annual requirements. "This position is to some extent compensated for by the increased demand for community lighting, which shows 1882 lamps installed during the year. The total number of street lamps now in operation is 7140 and community lights 2775. I am sure that this service will continue to expand, especially if we can work in conjunction with the various local authorities, so that we can finance the schemes over a reasonable period. Building Programme "Our building programme during the year has consisted or a number of various items, none of which was very large in itself, with the exception , of the showroom and cash receiving office in our main building. Queen Street. They have comprised mainly extensions to the Otahuhu and Point Chevalier substations, and structural alterations to the Remuera and Newmarket substations, in'connection with the installation of new transformers and switchgear. "We have also built and erected nine steel switch and transformer kiosks, and six concrete kiosks in various parts of the board's central area, mostly in connection with the changeover to alternating current. "I am again pleased to report that there have been no major interruptions in the supply from Arapuni, and very few minor troubles during the year. I feel that the board would wish to express its appreciation to the district electrical engineer and his staff for the very excellent service that they have given to us. "The King's Wharf plant was called upon to supplement tne supply from
Arapuni from May 11 to August 19. This was during the period of the heavy winter loading, and just prior to the bringing into commission of thp new plant installed. "It is again revealed that we have still a very small margin between total costs and total receipts per unit sold, and our surplus is not large enough to safely undertake any rate reductions at tlie present time. Our working costs are climbing up, and our surplus has been made entirely by the reductions on the capital side of our accounts. "I have pointed out that the boards policy with regard to capital requirements calls for review almost immediately and the effect that this is likely to have on the future must be visualised now." The general manager's report and that of the chairman were adopted. Mr. H. T. Goldie, in discussing the reports, referred to the substantial reduction since 1923 in the average net price a unit charged. He said that the commercial lighting charges had been reduced by more than half, commercial power charges by half, domestic supplv charges by just over four-fifths, and traction supplv charges by more than half. The totals for the four services, on the 1938 unit charge and on the 1923 unit charge, would be £bOe,UUU and £2,443,000 respectively.
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Bibliographic details
New Zealand Herald, Volume LXXV, Issue 23042, 20 May 1938, Page 15
Word Count
1,093MANAGER'S REPORT New Zealand Herald, Volume LXXV, Issue 23042, 20 May 1938, Page 15
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