HYDRO POWER SCHEMES

Poverty Bay Herald, Volume LX, Issue 18254, 24 November 1933, Page 9

HYDRO POWER SCHEMES

FAIR SUCCESS LAST YEAR £820,000 TO RESERVE GOOD EARNINGS ON CAPITAL (Parliamentary Reporter.) WELLINGTON, this day. Bower distribution aulnonties throughout the country which have been pressing lor a reduction 111 tne costs ot uula supp.ies oi power from the national sources will welcome tne information, contained in tile public Works Statement, ttiat tne various electrical developments controlled by tlve Government have had a fairly successful year.

'•'! lie prevailing economic ctmuiuons nave resulted m a comparatively small increase m demand, ' the statement mentions in this connection, “but there are some indications in me lirst quarter of the current year that tne rate oi increase is improving.” Outlining the positions of the respective systems, the statement shows that the Horahora-Arapuni scheme lias an average operating capital of £4,370,722, and that gross revenue for the year was £337,641. Working expenses consumed £47,740, leaving a net balance of £289,901, or O.t>2- per cent, of the operating capital. In the case of the Waikato-mpana-Maugaliao scheme, the capital represented is £3,651,073, the gross earnings for the year were £313,342, and the working expenses £53,£07, leaving a net balance of £259,435, or 7.11 per cent, of the operating capital. Tile Lake Coleridge scheme represents £2,023,636 in capital, and last year grossed in returns, with working costs consuming £57,780, the net balance being £155,563, or 7.67 of the operating capital. Up to the present, the statement indi cates, the electrical systems under the Government’s control have paid their way in regard to operating, and interest costs, have provided £339,983 towards depreciation, and £195,475 to general re serve from the profits made fyom time to time on Lake Coleridge and Horahora power stations, the total reserves having boon £819.991, of which a small proportion has been used in paying off loans which formed part of the original capital. In the ease of the Mangahao-Waikare-moana scheme, practically no construction work was undertaken during the year, and operation was of a routine nature. The revenue showed a slight increase . over the previous year, the payment of .£52.645 to depreciation, alter the meeting of working expenses and interest; being £2986 short of the statutory requirement for the 'year. The statutory requirement includes 2 per cent, on the capital invested, to meet depreciation. Most of the construction work during the year was concentrated on the Wsitaki Iliyer project, and owing to the prevailing conditions a reduction had to be made in the number oi men employed, and the bridging ,of the gap in the Otago half of the river at the dam site was not attempted, The provision of a slightly increased vote had made an increase in the number of men possible during the winter, and the work was then speeded up. It is hoped to bring the concrete up to a point above summer flood-level by the end of the current year.

The statement points out that the Government’s action in lowering the rates of interest payable on loans has materially assisted power authorities throughout the Dominion, the total reduction on power loans last year being £61,000, and the antiepated saving for the current year being* £74,090. The reduction, it is pointed out, though it does not come from the revenues of the Government electric supply account, lias enabled supply authorities to reduce prices or improve their general position.