TARIFF REVIEW

New Zealand Herald, Volume 82, Issue 25214, 29 May 1945, Page 6

TARIFF REVIEW

CHEAPER ELECTRICITY PROPOSED RATE REDUCTIONS I?eductions in charges for electricity totalling about £95,100 were proposed in a tariff review presented at the annual meeting of the Auckland Klee-tric-Power Board yesterday. In a report on the suggested reductions, which cover all classes of consumption, the chairman, Mr S. J. Harbutt, said he had pleasure in endorsing them. If the reductions were agreed to they could not be brought into operation before July ], the beginning of the next quarter. The estimates for 1946 showed a surplus of £128,745, but in the event of the charges being lowered this would be reduced. The Domestic Supply The tariff review, prepared by the general manager, Mr H. H. Hartley, suggested a reduction from 2.UJ to 2d a unit for high rate units in domestic supply, equalling 11.4 'per cent or £.39,500 of the total revenue received from that class of supply. Commercial high rate units also were reduced from 2.Jd to 2d, and the secondary commercial rate from l{d l to Id, representing 2.3 per cent, or £29,000 of the revenue.

Reductions in the power rate represented £l-1,100, or (5.25 per cent. In tin.' radiator rate the suggestion was tligt. the 2sd a unit rate bo reduced to 2d, at a cost of £.'{soo, or 20 per cent of the revenue from that source. Those reductions would total £86.100, the report stated. To that sum must be added at least £9OOO resulting from variation in contract rates, a total of approxiniatelv £95,100. Opinions on Proposals Commenting on' the proposed reductions, Mrs M. M. Dreaver said she did not consider they were big enough in view of the surplus. The chairman said the point to remember was that the reductions suggested would mean that the board was receiving a return of only ] per cent on its capital. In view of the board's future commitments it was only wisdom to leave some margin.

Mr C. J. Lovegrove and other board members agreed with 'the chairman, v Ihe new scales would make for simplification of tariffs, Mr Bartlev said. The commercial cooking tariff rate would disappear, and the maximum demand power rate could be eliminated, as could the night sports rate and the sign rate. Brooder and incubator supply rates would also disappear and come on the power rates.

Discussion of the general manager's report wa s deferred ( 0 the next meeting of tlio hoard.