A YEAR OF PROGRESS

Waipa Post, Volume 48, Issue 3471, 26 May 1934, Page 7

A YEAR OF PROGRESS

REVENUE DECREASES; CONSUMPTION INCREASES.

POWER BOARD CHAIRMAN’S REVIEW. A very interesting summary of the progress of the Te Awamutu Electric Power Beard was given by the chairman, Mr J. T. Johnson, at the annual meeting on Friday. We quote: The year just closed has again shown a considerable increase .in new connections to the Board’s system, but notwithstanding such increase the year’s revenue from sales of electricity shows a decrease cf £466 13s 2d. However, when it is remembered that the Board gave reductions of approximately £2200 at the beginning of the last year, the small decrease in the year’s revenue must be taken as very satisfactory as in reality, after allowing for the reductions given, the natural increase is actual y £1733 6s lOd.

The number of new connections to our lines exclusive of small heatingappliances and electric irons, grillers and radiators, totalled 163, thus increasing our connections as shown in the following statement, the figures for the previous year being in parenthesis: —Bulk supply, 1934 3, 1933 (3); dwe’lings, 1497 (1455); businesses, 218 (203); public halls, 26 (26); churches, 17 (17); hotels, 6 (6); schools, 15 (14); street lighting, 5 (5); cowplants and separators, 785 (709); other power plants, 441 (419); electric stoves, 237 (232); electric water heaters, 580 (578); totals, 3830 (3667). The figures quoted above, and also the large numbers cf small e’ectric appliances now being used including a number of electric radio sets, all point to the steady progress being made by the Board, notwithstanding the acute economic conditions which still persist. In addition to the above there were 180 extensions to existing installations. These additional extensions and new connections raised the Board’s connected load from 6192.248 k.w. to 6473.331 k.w., an increase of 281.083 k.w. The Board’s maximum demand for the year was 1229 k.w., as against 1162' for the previous year, an increase of 67 k.w*

The Diversity Factor, which is the relation of the maximum demand of 1229 k.w. to the connected load of 6473.331 k.w., is again a very satisfactory figure, being 5.27, as compared with 5.33 for the previous year. The units sold totalled 5,931,203, as against 5,515,620 for the previous year. As regards the financial side of our operations, our revenue, from sales of current alone, amounts to £28,852 5s 4d, as against £29,318 18s 6d for the pi’evious year, a drop of £466 13s 2d, being a decrease of 1.6 per cent. The revenue from all sources for the year just closed amounts to £28.990 9s lOd. On the year’s transactions as disclosed by the annual accounts to be presented at tc-day’s meeting, the nett revenue account shows the position as follows: —Credit ba’ance from this year’s income and expenditure account £13,619 8s 3d, plus rent of house £62 9s lid, sale of sundries 15s, interest on advances to consumers £sl 19s lOd; total £13,734 13s. A s against the last mentioned figure there are the following charges:— Interest on loans £7,917 9s sd, sinking fund £1960 3s 9d, superannuation £129 10s sd, bad debts written .off £202 11s 7d, bad debts reserve £IOO, depreciation reserve £IOOO, totalling £ll 309 15s 2d. This leaves a credit balance on the year’s operations cf £2424 17s lOd, and this added to the credit balance of £10,971 Is Id standing in this account, makes the balance now carried forward £13,395 18s lid. During the year under review the Board advanced a further sum of £3209 16s 2d from power fund account to loan account for construction work, making the total advanced up to date for that purpose £lo,7£tt 2s 6d. In addition to the credit showing in net revenue account the Board’s accounts show reserves as fellows:— Sinking fund reserve £20,084. depreciation reserve £5679, bad debts reserve 280. foreman’s house and office furniture £906; total £26,949. . > It is interesting to note the margin of difference between the revenue per unit sold and the total cost per unit sold, which is .11 pence per unit. Both the revenue per unit, and the operating costs show a drop compared with the previous year, the figures being as under, the previous year being shown in parenthesis: —Revenue from sales of electricity equals 1.17 pence per unit (1.28); working costs, including purchase of supply .62, interest and sinking fund and depreciation .44, equals 1-06 pence per unit Board further benefited by the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. the operation of which came fhtc force on Ist April, 1933. The amount of relief to this Board was £977 8s 9d, by which the Boai-d’s interest charges benefited by .04 pence per unit. The following gives an interesting comparison cf the revenue from sales of current and the number of consumers for each year since the Board’s first year of supply:—Year, 1922 amount £1.292 17s sd, consumers 348; 1923. £7,031 13s lid, 666; 1924. £10,912 13s 4d, 856; 1925, £14,579 5s 9d, 1018; 1926, £1.7,772 ss, 1180; 1927 £21313 3s Id, 1275; 1928, £23.403 8s lid, 1353; 1929, £26 006 16s Bd, 1434; 1930, £28,044 10s' 4d 1550; 1931, £30,152 9s Bd, 1650; 1932, £29,518 11s 9d, 1696; 1933, £29 318 18s 6d, 1776; 1934, £28,852 5s 4d, 1808. In my annual report last year J. referred to the tariff reductions made by the Board for the years 1929-1932 inclusive, which totalled £5850, so, with the further reductions given last year in dispensing with the £2 per h.p. per annum fixed charge on milking motors and also reducing the domestic and commercial lighting minimum, the above figure of reductions has now been increased, m rcund figures, to £BOOO. Also, I would again refer to directions in which I think power boards can legitimately look to the Public Wc. ks Department for some further assistance and relief. First: The time is long past when the old surchaige of £2 per k.v.a. on the first 200 k.v.a, should be abolished. Second: That there should be a uniform k.v.a. charge on a national basis to all supply authorities.. Third: By bas-

ing its k.v.a. charge on a system of average monthly peaks, instead of quarterly peaks as at present. In conclusion I would express to the members cf the Board my appreciation of the courtesy I have, without exception, received from them in my office as chairman of this Board. To the manager and the staff as a whole I. feel I but voice the sentiments of all members, when I say we very much appreciate their co-operation and loyalty and would recognise the fact that their co-operation and efficient service has made possib’e the satisfactory financial results achieved by the Board. To the representatives of the Press I would also desire to express my thanks for their unfailing courtesy and consideration.