CHEAPER POWER

Southland Times, Issue 21089, 22 May 1930, Page 13

CHEAPER POWER

RATES TQ BE REDUCED. AUCKLAND BOARD’S* DECISION. SURPLUS OF £74,693. A year of successful work by the Auckland Electric Power Board came under review at the annual meeting recently when reductions in power supply rates involving a sum of £30,700 were approved says the Auckland Star. The concessions, affecting all - classes of electricity users, amount to £73,500 a year. The chairman, Mr W. J. Holdsworth, who presided, said the year just ended had been the most successful since the inception of the board. Apart from the financial success, the year had been of outstanding interest, as some very important events have taken place which would have a marked effect upon the future of the undertaking. ' The long-looked for water power was an accomplished fact and the whole area is working on water power generated at the hydro-electric station at Arapuni, and transmitted at a pressure of 110,000 volts to the Penrose sub-station, whence it. was distributed over the board’s cables to the various parts of tl)c board's district. This was the first time in the history of the undertaking that the board had been in the happy position of having an ample supply of power for all purposes, and it woidd be the board’s' aim in the future to encourage the use of electricity for every purpose. Reductions in Past Years. “In view of the recent comments which clearly point to a misunderstanding existing relative to the rate reduction already made during this board’s term of office,” said Mr Holdsworth, “I feel it is necessary for me to repeat portion of my report of last year, which reads as follows:- ‘Since the board started operations the rates charged have been reviewed from time to time and substantial reductions made. Meter rents, which amounted to £4200 annually, were the first concession; then followed the reduction in the domestic rate, five per cent; discount on the whole accounts instead of portion; elimination of the 10 per cent, surcharge prevailing in outer areas;and the reduction of the commercial lighting rate from 61d to 5d per unit, which has proved a saving to the consumers of £23,0001’ In addition, the 6d standing charge which was- abolished amounts to £12,000 per annum. “The above concessions, together with previous reductions made, represent a total sum of £42,500 per annum. Further to the above reductions, one must not lose sight of the amount of free service placed at the disposal of our consumers by the board; this item in itself adds a further £7OOO per annum to the above amount. Details of Reductions'. “Notwithstanding that it will be some six months before the board is in a position to ascertain with any certainty the effect of water power on its financial position, I feel justified, and have pleasure in recommending the following reductions in our electricity supply rates:— (1) Elimination of the 10 p.c. surcharge now imposed on the con- < sumers in the Alfriston, Whitford, Clevedon, and Ardmore districts. (2) Reduction of 'the present minimum charge operating on small accounts and affecting small consumers, from 2/6 per month to 2/- per month. (3) Reduction in the third scale of our domestic supply rate from I'd to Id per unit, representing £lO,OOO (4) Additional 5 p.c. discount for prompt payment on all commercial power accounts, making a total discount of 10 p.c., representing £8,200 (5) Additional 5 p.c. discount for prompt payment on all commercial lighting accounts, making a total discount of 10 p.c., representing .. .. £7,500 (6) A 10 p.c. discount on all street lighting accounts, representing .. £5,000 Grand total ( £30,700 Meeting Transport Requirements.

The accounts revealed an increase in all classes of supply with the exception of traction. The substantial drop in traction had caused some concern, as the board had incurred a further capital expenditure amounting to £43,860 in order to meet the special requirements of the Transport Board during the past year. The tramway traction returns showed a steady increase, from £8393 in 1923 to approximately £70,960 during the past year. In accordance with the board’s adopted policy a further loan of £7700, which matured on January 1 last, had been paid off. In the previous year loans totalling £25,000 were redeemed in the same manner, and provision had been made to redeem during the coming year a further loan of £42,300. The estimates for the year, together with the actual results, were as follows:—

..Chairman Congratulated. •Moving a vote of thanks to the chairman for his report, Mr E. 11. Potter said the elimination of the 10 per cent, surcharge would be of the greatest benefit to the country consumers, and the reduction in domestic supply charges would, meet wit h general approval. The reduction in the charge for street lighting would bo a great help to local bodies generally. Other members of the board expressed their gratification at the success of the year’s working, and a tribute was paid to the work of the general manager (Mr R. 11. Bartley), and his staff. Relaying City Mains.

In his annual report Mr Bartley said the year had been one of outstanding importance in the history of the board, for it had seen the complete change-over to hydro-electric power. The magnitude of this policy was not fully appreciated. It Involved the board in an expenditure of over £250,000 to make the change and to provide reasonably f6r the future. The laying-up of a plant at King’s Wharf costing over £500,000, together with its maintenance, must necessarily become a charge on the undertaking. The chief work carried out during the year was the Brookby-Whit ford reticulation, the first portion of which had been completed and electrified. A great deal of work .had been carried out in the relaying of vulcanized bitumen mains in the city. The board had laid 34,000 yards of steel tape armoured cable during the last nine months. The old underground network boxes were being eliminated and replaced with feeder and distribution pillars. The board had not been receiving its supply from Arapuni long enough for him to make any reliable comments. There was however, one thing certain, and that was that the utmost must be done to model the load curve of the system to produce units in proportion to the maximum demand. The reports and accounts were adopted.

Estimate. £ Result. £ Revenue • 625,000 645,079 Working Expenses 238,906 291,256 Capital Charges .. 263.125 279,130 Surplus 32,969 74,693