Thames Star TUESDAY, SEPTEMBER 18, 1934. SUPPLIES OF ELECTRICITY.

Thames Star, Volume LXV, Issue 19211, 18 September 1934, Page 2

Thames Star

TUESDAY, SEPTEMBER 18, 1934. SUPPLIES OF ELECTRICITY.

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The practical completion of the Waitaki power scheme brings to an end the plans of the Government for providing a supply of electricity for lighting, heating and power for .the Dominion. It is therefore a suitable time to review the whole system of electrical supply in order, to discover whether it is the most efficient that can be devised. We are not concerned with the sources of power that have been adopted, or whether better ones could have been found. Our power stations have been built and cannot be removed. The first question is that of cost. About £11,000,000 has been borrowed for hydro-electricity and more than £8,000,000 of this amount bears interest at the rate of 5 per cent, or more. One million pays 5£ percent., and If millions 6 per cent. This money could now be "borrowed in Britain at 3| per cent., but until the terms of the loans expire we cannot hope to convert them. Exchange adds further -to the . interest charges. Sinking funds have to be provided for, as well as depreciation, but they can be spread over a considerable period., The charges for electricity have to cover interest, depreciation ahd sinking funds as well as working expenses. The Government sells bulk supply to power boards and municipalities, and the price of this determines the charges made to consumers. These must not exceed the cost of power obtained from other sources, otherwise private persons may use steam, coal gas, or petrol to obtain their power, though the Government would not permit the sale of powerfrom these sources in competition with the State supply. One problem is whether the State should supply bulk power at the same price all over the Dominion. Canterbury, and notably Christchurch, has been obtaining cheap supplies because the Lake Coleridge power'scheme was the first put into action and was constructed cheaply. Subsequent power plants, owing to higher, costs, have to bear higher charges due to the rise in wages and material sihee the Coleridge scheme was established. Now the Waitaki scheme is coming into use and annual charges of from £150,000 to £200,000 will have to be met. The installation must be run at a loss for some years, until a paying load is built up, and it seems unfair that this loss should be borne by the general taxpayer, while suppliers who obtain power from Lake Coleridge are in a favourable position owing to their luck in being supplied by a cheap power scheme. The proper course seems to be that the State power scheme should be regarded as a whole and a uniform charge be made for bulk supplies. The people of the country have paid for them all; in the North Island the three sources of supply are all joined up, and a similar course will be followed in the South Island. To make different charges according to where board or municipalities obtain their power would be as reasonable as to charge different railway fares to passengers according to the cost of the particular line over which they travel. The charges made must be sufficient to defray all costs, including exchange. One point which needs consideration, is whether the number of power boards at present existing is not too large and whether, now the business of securing customers and most of the reticulation has been carried out, 27 power boards ir addition to many municipal electrical departments are required. The question of the charges for rural consumers is also of importance to fanners. Big power users should pay less than small ones, but there have been complaints that some power boards are penalising town consumers in order to benefit consumers on farms. The industry has grown up by degrees and legislation has been passed to meet new problems as they # have arisen, but now the time has arrived when the whole position should be reviewed and placed on a basis which will secure both economy and efficiency.