POWER BOARD

Wairarapa Daily Times, 20 April 1935, Page 3

POWER BOARD

CHAIRMAN'S REPORT. The following are items of interest from the report of the chairman to last Thursday's meeting of the Board:— ‘ ‘ For the information of consumers, I have had summarised reductions, which are as follows: In 1931-32 charges were reduced £1445 In 1932-33 charges -were reduced 4076 In 1933-34 charges were reduced 4790 In 1934-35 charges were reduced 1828 £12,139 'Rebates on guarantee deficiencies granted 845 0 0 £12,934 With the £3OOO available this year for further reductions, we will have reduced costs to the consumers in the Wairarapa to the extent of £15,984 per annum. During the same period, on account of the whole of the construction loan money having been expended, wo have had to provide from revenue the sum of £3121 17s 8d for extensions and service connections.

It has been suggested to me at times that we are making a somewhat generous allowance for depreciation, renewals and other contingencies, and . that the amounts transferred for these purposes should have been used to reduce charges. We know, of course, that the safety mark in this Tespect is still a long way off. Our depreciable assets amounts to £315,000, and include . the poles, lines, transformers, buildings, generating stations and pipe lines, meters, and all the other equipment necescary with a supply authority. . These are gradually wearing out. and will have to bo replaced. As an example, I will refer specially to the poles. These have a life varying from 15 to 25 years. We have approximately 12,500 of these poles erected. Very many of them have already been in use 12 years. The time is not very far distant when an appreciable number will have to be replaced each year. In five years’ time the number will be substantial, and within ten years a majority of them will have had to be replaced. The replacement of poles alone will cost not less than £65,000. The' depreciation and general reserve's now amount to £35,157 18s 7d. If we continue our present policy we shall have sufficient funds to meet the expenditure on replacement of poles and other assets when it becomes necessary. If the policy is not continued it will be necessary to either increase charges-or levy a rate over the whole district—and a rate would be paid by all ratepayers, whether consumers or not —to provide the funds. It is obvious that the building .up of satisfactory reserves is essential to safeguard the undertaking, and is m the very best interests of the consumers and the ratepayers.”