THE Wairarapa Age MORNING DAILY. WEDNESDAY, AUGUST 15, 1928. THE SALE OF POWER

Wairarapa Age, 15 August 1928, Page 4

THE Wairarapa Age MORNING DAILY. WEDNESDAY, AUGUST 15, 1928. THE SALE OF POWER

A very interesting stage has been reached in the development of hydroelectric power in- this country. In the tentative decision it reached yesterday to boost the sale of power for domestic purposes—-a decision made tentative only by the necessity of obtaining a guarantee that adequate supplies will be available from Mangahao between now and the end of the year, when Waikaremoana is exipeetecl to come into operation—the Wairarapa Power Board is merely, following or keeping pace with kindred authorities in the Ifominion. Power boards have, of course, a strong incentive to- push the sale of current in the fact that it is possible for them to increase their turnover enormously with a relatively" small increase in their overhead costs. Much the same is to bo said of the national hydro-electric undertaking as a whole.

This line of development should mean also a progressive cheapening of current. If it does, a very rapid expansion of power production and use presumably may be taken for granted* An aspect of this development that does not as readily induce comfortable optimism. is its probable effect on municipal gas undertakings. If all the hopes of the power boards are realised, boroughs may find their gas undertakings tending more and more to assume the character of white elephants. In view of the wide ramifications of their reticulation and trading in town and country, power boards are in a position to impose very formidable conditions of competition on undertakings concentrated in a limited area. It is perhaps a question whether this competition should be allowed to develop as an unregulated struggle for supremacy. Cutthroat competition between public utilities, operating with public money, is a rather costly luxury for the public. A very good case might, bo made out for setting some limits to this competition save where it is definitely clear that its ultimate outcome will be to give the public the cheapest and most effective service that is possible.