OBJECTIVE ACHIEVED

Wanganui Chronicle, Volume 76, Issue 110, 12 May 1933, Page 8

OBJECTIVE ACHIEVED

CHEAP, EFFICIENT SERVICE SUPPLY OF ELECTRIC POWER. WANGANUI-RANGITIKEI BOARD. “I have on several occasions emphasised that the object of the board is to make available throughout its district a cheap and efficient service for all, and we may justly claim to have achieved that object to the mutual a<b vantage of both town and country user.” said Mr. F. Purnell, chairman of the Wanganui-Rangitikei Electricpower Board, when presenting his annual report at the meeting held yesterday. “The country area served by this board is geographically one of the most difficult in the (Dominion, yet, despite this, tho board’s lines have been extended to the uttermost boundaries of its district in almost every direction and the country users are obtaining their service on more favourable terms than are offered in any other country area in New Zealand. At rhe same time, the city user has not been overlooked, and electricity for all purposes is available at rates that are more than competitive with other agencies, and that compare quite favourably with rates charged in other cities. Popular Approval. “Illustrating tho popular approval of electricity for all purposes, it is interesting to note briefly the new business obtained during the year under review, the most difficult period in the board’s history. A total of 280 new consumers were connected to the mains, 900 extensions were made to existing services, 82 farmers installed power ror milking other purposes, 48 new cooking services were connected, and 660 other household appliances were sold to consumers from tho board’s showrooms in addition to the sales of similar apparatus by electrical contractors. “Although the estimated revenue for tho year was £97,700, the actual, or realised, revenue totalled £95,663, so there is, therefore, a deficiency of £2039 in the actual returns compared with the estimates. This is due mainly to the lesser use of power for industrial purposes, though particularly fine bright weather throughout last winter, curtailment of street lighting services, and smaller returns in interest on investments. These have all helped to some extent in creating the deficiency. “The decreased use of industrial power is due entirely to the depressed state of industry generally, and must not be regarded as a permanent loss of business to the board. With a return to more stable conditions a very definite increase in income from this source may confidently be expected. Reduction to User. “With the steady increase in the board’s business, there has been a consistent reduction in the cost of power to the individual user. This is made clear when it is noted that the revenue of £94,527 in 1928 was the result of the distribution of 13,736,555 units, while in 1933 an increase to 21,553,817 units, or just over 57 per cent, in the electricity distributed, produced less revenue. Here is seen the rapid development in the application of electricity and with it the benefit accruing to consumers who have received, back the. whole of the 57 per cent, increase in business in reduction in charges. “Although the revenue was lower, i tho amount available for depreciation exceeds what was anticipated by £BO5. General maintenance during the year has been, very low, the unusually favourable weather during the winter, which, reduced the revenue considerably, being directly responsible for tho absence of much of the trouble with which a supply authority is usually faced during that season. “The capital charges are in excess of the estimates. When the estimates were drawn up it was anticipated that should the board not obtain per cent, reduction in interest payable in 1 Sydney, it would at least obtain a 10 per cent, saving under the statutory reduction that had been ana mneed in New Zealand. It is now known that no adjustment under our own Act is available should the ultimate decision in New South Wales be unfavourable, and in the accounts, interest has been debited at the maximum payable. “The surplus to meet charges for depreciation is £7505 15s 7d which with the balance in hand at the commencement of the year, £949 14s 4d, makes a total of £1695 9g lid available for this purpose. The amount which the board is required to find under the Electric-power Boards Act is £7734 Is 9d, which will leave a balance of £9241 8s 2d with which to commence the new year.”