REDUCED PROFITS

Otago Daily Times, Issue 26780, 25 May 1948, Page 3

REDUCED PROFITS

Power Board Finances Small Increase in Turnover In his annual report to the Waitaki Electric Power Board the secretary, Mr C. F. Jones, stated that the turnover in the trading department for the year was £27,698, compared with £27,538 in the previous year, an increase of only £l7O. A profit of £2048 was shown, compared with £2869 in the previous year, which was just over £SOO better than was estimated. Sales of electricity increased by £1464 from £73.804 to £80.268. The greatest increases were in general domestic and water-heating, and in motors, these three with commercial demands showing very substantial increases over the 10-year period. Bulk power costs totalled £38,309 (estimate £40,700), and general distribution costs varied only slightly from £5595, compared with £5665, a reduction of £7O. Repairs and maintenance increased by £365 from £6338, compared with £6703. and other main items of expenditure were management and general, £2726; superannuation, £866; and power restriction administration, £662. In the net revenue account the main figures were: Interest on loans £7570, sinking fund and loan redemption £8739, renewals and replacements £8406. interests and rents £4OO, and capital expenditure out of revenue £583. The depreciation fund stood at £50,852, or 18.5 per cent, of the depreciable assets. The loan balance at £195,316, sinking fund investment £23,303, and reserve funds £67,473. The number of consumers had increased from 5426 to 5583. The estimates for the current financial year, with the figures for last year in parentheses, were: Electricity sales £83.250 (£BO. 268); cost of power £41.300 (£39,413); working costs £20,950 (£18,502); capital costs £23,064 (£22,068); total expenditure £85,314 (£79,983), which, with £5756 set down for depreciation reserve leaves an estimated deficit of £ll4 (surplus £2734). Total capital requirements were set down at £15,000 and it might therefore be necessary to consider the raising of a new loan later in the year. In his annua] report Mr Davidson stated that 751 (660) poles were erected and 342 (339) consumers’ services were renewed. The turnover of the trading department was .£27,697 (a record), and the profit £2047. The Rural Electrical Reticulation Council had granted subsidies on all nine initial applications by the board, enabling the board to give supply to isolated individual settlers living away from the existing lines. After a full discussion on the reports and estimates the board put on record its appreciation of the comprehensive statements .submitted by the secretary and the engineer.