ELECTBIG POWER FOR RODNEY COUNTY.

Rodney and Otamatea Times, Waitemata and Kaipara Gazette, 26 February 1936, Page 4

ELECTBIG POWE R FOR RODNEY COUNTY.

GUARANTEES AND FINAN-

CIAL ASSISTANCE

In connection with this proposed electrical extensions in Rodney County, particularly in the country districts, there are one or two matters which it is desired to place very clearly before prospective consumers.

The question of guarantees is one which is frequently by consumers, and sinoe it is the basis of all extension' work it is essential that prospective consumers should have a clear conception of what guarantees involve. "

In giving permission for loan moneys to be expended on line extensions, the Local Bodies' Loans Board has made it mandatory that the expenditure shall show a return of not less than 15% of the capital outlay. This makes it necessary from residents desiring an extension of the Board's lines to guarantee that the revenue from the extension will be not less than 15% of the capital outlay. It should be clearly understood that all consumers must undertake a guarantee, and that, residents who do not sigh a guarantee when the line first goes through a district will still be required to guarantee if they require supply at a later date. The period of the guarantee is 5 years, after which the Board's standard scale of charges applies.

If the consumers' revenue, based on the standard charges exceeds the amount of -the guarantee, then the guarantee is purely nominal. If, on the other hand,,the consumers' revenue, leased on standard charges, falls short of this guarantee, he is required to make up the deficiency.

The amount of guarantee for which any individual consumer may sign, may vary from the ordinary minimum charge of £2/8 per annum to £40 or £50 per annum, depending upon the extent to \vhicli he makes use of the supply.

The Board is only concerned with the total amount of guarantee for any particular extension, and cannot assess the amount which any individual consumer sKoiild give. It will, however, advise a prospective consumer of his probable consumption, and is averse t& consumers signing guarantees considerably in excess of the amount based on standard rates, that they are likely to use.

In connection with financial assistance,vthe fpllowing information may be of interest i—^- ;

The Board will finance consumers for the installation of wiring, motors, service lines, etc., over a period of one, two or three years. A deposit of It of the total amount is required in advance, ibhe balance being spread over 4, 8, or 12 quarterly pay merits with interest at 6%. ;For the"install lation of "electric- ranges^ the Board install; wiring (except sjßryice.linesX free. The range may be purchased" with a deposit of £1, the balance being paid off on the monthly account over a period up to 7 years. No interest is charged on the outstanding balance. V -