Big Cuts Coming In City Electricity Rates.

Star (Christchurch), Issue 18830, 6 August 1929, Page 10

Big Cuts Coming In City Electricity Rates.

CHARGES MAY BE MADE LOWEST IN AUSTRALIA AND NEW ZEALAND. AT A TIME when most of the ratepayers of the city are doubtless experiencing a feeling of dread at the approach of the rate demands, it will be comforting for them to reflect that very substantial reductions in the' charges for the supply of electric current are under consideration by the Electricity Committee of the City Council. The exact extent of the reductions has not yet been decided upon, but it is understood that it is intended to reduce the charges to such an extent that they will be the lowest in the whole of Australia and New Zealand. This has been made possible by tlie remarkable progress which the Municipal Electricity Department has made in the last few years and the large reserve funds which it has accumulated.

Both the parties on the City Council are in favour of reducing the electricity charges to the lowest possible basis, and the matter has been under con sideration by the Electricity Committee at several meetings since the last elections. The chief difficulty to be faced is how to fix the charges so that the reductions will prove of the greatest possible benefit. It is recognised that to make a substantial reduction in the lighting rate may seriously affect the finances of the department, without relieving the burden on the individual consumers to any considerable extent At present a large proportion of the consumers pay only comparatively small amounts monthly for lighting. What is considered probable is that the maximum demand rate will be retained at 6d a unit as at present, but that the charge for electricity used in excess of the maximum maud rating should be reduced from one penny to three-farthings a unit. This would have the effect of making the cost bf electricity for heating and cooking very much lower than at present, and could be expected to result in a very Ihrge increase in the sales of electric cookers and radiators Another matter which may receive attention is the charge made for the installation of electric cookers. At

present when a person buys a range an additional expense has to be faced in having it installed, and the view has been expressed that the department could very well afford to do this work free. Some of the councillors are of the opinion that it would be good business to reduce the rates to such an extent as to incur the risk of losses for a few years. They contend that the funds of the department are sufficiently strong to bear losses for a few years and that eventually all these losses would be made good by the increased sales of electricity. It is also argued that so long as the department is in possession of large reserve funds there will be a temptation for the council as a whole to raid i these funds for general municipal pur , poses, and that the opportunity should b seized at once to give the maxi- , mum possible concessions to the consumers who have helped to build up the funds. A few years ago a suggestion was made that the city should cut the rates for power purposes to such an extent that manufacturing industries would be attracted to Christchurch on account of the cheap power available. Nothing was done at that time in this direc- ■ tion, but it is considered quite possible that the matter will now be given seri- ■ ous consideration.