HYDRO-ELECTRICITY

Te Awamutu Courier, Volume 59, Issue 4186, 15 September 1939, Page 5

HYDRO-ELECTRICITY

BUOYANT REVENUE. COST PER UNIT FALLS BELOW ONE PENNY.

“ The average revenue received by the Government for each unit sold was 0.358 d, compared with 0.366 d for last year. The average revenue per unit sold by all retail authorities to consumers throughout New 7 Zealand was 0.982 d,” states Hon. R. Semple in the Public Works Statement presented in Parliament. “ This is the first occasion on which the average revenue received has come below’ a penny, and is, I think, w’orthy of special mention. In 1925 the figure was as high as 2.12 d, and even in 1935 it was 1.17 d. When we realise that even in Great Britain, where the density of population is very much greater, and where even yet many sparsely populated sections of the country have not been supplied, the average return per unit sold was in 1938 over 1.3 d in New Zealand currency, there is no question but that we can justly claim success for our various electrical undertakings. “ The capital invested in the electric supply systems on operation throughout New Zealand totals a sum of £37,367,664, which includes £16,364 603 of Government expenditure. The gross revenue received for the year was £6,296,326. After paying working costs, interest, sinking fund (except in the case of Government expenditure on which sinking fund is payable out of profits) and depreciation charges, the net profit for the year under review w 7 as £1,126,936. as compared with £878,594 for 1938, w’hich indicates that the electric supply business as a w’hole is in a healthy condition.”

The whole electric supply account had been able to earn 8.41 per cent on the operating capital after paying net operating expenses. To meet the increasing demand for additional power in all directions the Department had been actively engaged on new work and additions to power stations and transmission lines and on surveys and investigations for additional works and lines. The plants at Arapuni, Mangahao, and Waikaremoana had operated satisfactorily throughout the past year, and the revenue showed an increase of £148,640 over that of the previous year.