ELECTRIC HEATING

New Zealand Times, Volume XLVII, Issue 10853, 19 March 1921, Page 3

ELECTRIC HEATING

INCREASED CHARCES DISCUSSION AT CITY COUNCIL MEETING. IS INCREASE -WARRANTED? A proposal to increase the charge for electric power for heat.ins? purposes provoked some discussion at last ntolit Q meeting of the City Council. The .power stations and. tramways committee recommended that the followinjr alteration to the tariff for alternating current supply Ire approved, to come into force from April Ist: —■' Supply for heating—2d per unit_ net (present rate 2d per unit with 2o per cent, discount). Power supply—id per unit, with existing discount scale. The alteration in regard to heating, the committee pointed out, would have the effect of slightly reducing the current used for heating, and ease the loacu on the station during the peak loading hours. The adoption of the recommendation in regard to power supply would bring the price of the alternating current supply equal to the direct current, and thereby remove the existing anomaly. Councillor J. O. Shorland moved that the matter be referred back to the committee for further consideration. _ The electric lighting committee, he said, appeared to have the "wind, up." The returns for Pebruairy showed a debit of .£1449, but for the eleven months of the current finanicial year there was a credit of J 62889. Expenses had reached their 'highest point, and everything was now on the down grade. He complimented the officers of the department upon having carried on so far without finding it necessary to increase the charges. He did not think; it necessary to increase the tariff when the costs were on the down grade. Before very long the profile accruing from the concern would reappear. The oredlit balance already shown for the eleven months to date would be further added' to before the year ended. The time was not ripe to raise the cost of living to the people when decreases were taking place, which would mean an extra revenue of 1210,000 per year. ■Councillor C. H. Chapman wanted to know how the domestic consumer would be effected. The Mayor (Mr J. P. Luke) said they would not feel the change at all. The department would welcome the abolition of radiators, if it were possible to do away with them, because they made a big drain on power. The council was not anxious to increase the rates unless it was absolutely necessary to do so. buy they -had to wipe off a part of the accumulated debit shown on the returns. It was t'heir wish to see power availalo for lighting in preference to heating and therefore to see the finances readjusted. Councillor M. P. Luckie pointed out that there were many applications for lighting connections awaiting fulfilment, and if the reeommendaflions would enable them to be put through, more expeditiously he would support it Councillor Len McKenzie supported the amendment. He considered that if some people were making a convenience of the service thev should be made to pay for it. He pointed out that the deficiency in the accounts occurred at this period every year. He thought they should have more data before approving the recommendations. They would show a handsome profit at the end of the year, and so long as they made anything on the working of the department they should be satisfied. Councillor C. H. Chapman opposed any reduction in the charges. Large net profits had been made in past years, be said, and he saw no occasion why they should raise the charges just because a deficit was shown this year. He favoured the averaging of profits year by year. Councillor C. J. B. Norwood said the council could not be regarded as a charitable institution.. The proposal was intended as a means of adjusting accounts. It would affect no one seriously. If they could terminate the use of radiators it would enable many houses that were not now supplied with electric light to receive the benefit of that service. He maintained that every department should be self-supporting. Councillor J. M. Dale pointed out that the finances of the electric lighting _ department were quite satisfactory, since A 120.000 had recently been borrowed from its accounts for another important municipal work.

The Mayor said it would not be fair to present the incoming council with a known loss in any one account. Councillor T. Forsyth said that the amended Tate would affect the consumers to the extent of an average of about 9d per month—the amount of the discount on the heating unit. To-day they were supplying current at a loss, and he could not understand those who wished to have the matter referred back and not see the debit adjusted. Councillor Forsyth quoted figures from the latest returns to show that the department was showing a loss for the year. In reply, Councillor Shorland declared that when the accounts were squared up on March 31st a profit and not a loss would be shown. Certain credits had to he taken into consideration that would show more satisfactory results at. the end of the year than were disclosed in the returns. The increased charge, he said, would be felt bv every householder, and to a greater extent than Councillor Forsvth had stated. After further discussion . the matter was referred back to the committee fcy 10 votes to 9.