POWER AFFAIRS

Waipukurau Press, Volume XXVIII, Issue 130, 27 May 1932, Page 7

POWER AFFAIRS

ANNUAL REVIEW BY SECRETARY-MANAGER To the annual meeting of the Central Hawke’s Bay Power Board the Secretary-Manager (Mr. G. E. Fowler( reported to-day: — “The end of the sixth complete financial year since the Board commenced the sale of electricity was reached on March 31st, and I have pleasure in placing before the Board, a report on the activities of the Board’s operations for the last financial year. For the purpose or easy comparison, I have shown, (a) the expenditure for the previous year, 1930-1931; (b) the estimated expenditure for the year, 1931-1932; (c) the actual expenditure for <he year, - 1931-1932; also (a) the revenue for the previous year, 19301931; (b) the estimated revenue for the year 1931-1932; (c) the actual revenue for the year 1931-1932. From these figures it will be seen that the total revenue earned during the year for the sale of energy was £22,120 14s 3d, as against £22,645 4s 6d for the previous financial year. This is a decrease of £524 10s 3d, comprised as follows: —Decrease — Waipukurau Borough £319 13s sd; Waipawa Borough and Country Area. £204 16s lOd. Total, £524 10s 3d. The concessions given to consumers during the year were approximately as follows: —Waipukurau Borough business lighting reduction, £lOl 12s 7d; and range energy reduction, £4O 10s lOd. Total, £142 3s sd. Waipawa Borough and country area business lighting reduction, £105; range energy reduction, £149 15s 9d; and minimum charge reduction, £150; total, £404 15s 9d. Grand total of the reductions made in the year—£s46 19s 2d. “The total income for the year, including guarantees, miscellaneous revenue, interest on fixed deposit, profit on exchange, etc., was £22,904 12s 6d, as against £23,305 Ils 2d in the previous year. This is a drop in revenue of £4OO 19s 6d. On the expenditure side, the expenditure was £23,358 2s lid, which shows a loss on the year’s working of £153 10s 3d. “In budgeting last May for the year, the board anticipated being £434 5s 8d on the debit side, but our reduced receipts have fortunately been accompanied by less expenditure under many headings. It must be remembered that the board earned £173 17s Id last year, from temporary deposits and £5 6 19s 6d on exchanges, which helped finances considerably.

“Loss per Consumer. —The loss made per consumer on the year’s business was 1/11 42-100 d. In passing it may be mentioned that . the charge per each consumer for the year under the various headings was as follows:—1930-1931—£14 19s 6.76 d; 1931-1932 —£14 13s 2.17 d. “Average Value of Electricity Purchased per Each Consumer. —The average value of energy purchased per each consumer under all heads was £l4 Is 3d, as compared with £l4 14s Id for the previous year.

“Energy Costs in Proportion to Revenue. —The cost of the energy purchased from the Public Works Department was practically unchanged as compared with the previous year, being a decrease of only .45 per cent.

“Comparison of Receipts. —The receipts for the sale of electricity as compared with the previous year decreased 2.3 per cent. It is interesting to note that in the previous year, energy costs increased 15.9 per cent, and revenue 11.8 per cent.

“Analysis of Additions to load for 12 Months ending 31/3/32. —Consumers: Load as at 31/3/31, 1538; load as at 31/3/32, 1573; increase or decrease, 1931-32, 2.27 per cent.; increase for 1930-1931, 4.55 per cent. Hot Water Services: 252, 248, 1.58 per cent., 42.46 per cent.; Shearing Motors: 97, 99, 2.06 per cent., 15.46 per cent.; Milking Motors: 80, 82, 2.50 per cent., 9.59 per cent.; Ranges, 173, 176, 1.70 per cent., 33.07 per cent.; Other Motors: 201, 223, 10.9 per cent., 28.00 per cent. “Percentages of Consumers Using Electricity for Other Purposes Than Lighting.—Hot water services: 31/3/31, 16.38 per cent; 31/3/32, 15.76 per cent.; shearing motors, 6.30 per cent., 6.20 per cent.; milking motors, 5.80 per cent.; 5.20 per cent.; ranges, 11.25 per cent., 11.18 per cent.; other motors, 13.09 per cent., 14.10 per cent. “Interest Earned. —Through the temporary investment of surplus money in between the due interest dates, the sum of £173 17s Id, was

earned during the year, making a total of £1695 0s 7d, earned in this manner since the Board commenced the sale of energy.

“No Overdraft. —The Board again finished the year without recourse to overdraft, having as a matter of fact, paid no interest since the actual sale

of electricity was commenced in 1925.

“No Rate. —For the financial year ending 31/3/31, various Electric Power Boards in the Dominion had recourse to collecting rates as follows: —General Rate: £60,920; availability rate: £9946; special rate: £25691; total, £96557. Of the 45 Power Boards in the Dominion, only eight collected a rate. This Board has of- course never found it neces-

sary to rate. ■ > “Bad Debts. —The amount of electricity bod debts written off during the year, was £27 0s 6d, as against £39 9s 5d in the proceeding year. The ratio of bad debts for the year under this heading was .122 per cenL as against .175 per cent., for the previous two years. The bad debts have shown a decrease, of .053 per cent, which is a tribute to our conjsumers in these days of economic stress.

“Position of Sinking Funds. —The following was the position of the various funds at the end of the financial year:^—T. and G. Loan £lO,OOO: —Sinking Fund £570 18s 4d. Public Trust Loan (taken over from the Waipukffrau Borough), £1597 12s Bd. h';

; “Payment of Principal.—The repayments made off table mortgage loans up to the end of the financial year were as follows:—Government Life Insurance:—£9o,ooo loan; repaid £6095 Is lid. A.M.P. Society Combined Loans:—£26,soo; repaid. £950 18s lOd.

“Depreciation Account. —The investment Account for Depreciation at the end of the year was £9815 16s 4d. The sum of £lBl2 4s Id has been allowed in Revenue Account for 1931-1932 for depreciation, so that the Depreciation Account totals £11,628 0s sd. The board has met all requirements of the Act in regard to depreciation.

“Reserve Fund.—This amounts to £llO5 Is 7d.

“Loan Account. —The position of the Loan Account as at 31/3/32 was as follows:—Loan authorised, £150,000; monies raised, £140,000; balance of unexpired authority, £lO,OOO. The actual position of the account was as under: —Monies raised, £140,000; temporarily transferred from Fund Account to save raising a further loan meantime, £1000; total, £141,000. Amount expended, £140,358 2s 9d; cash balance in hand, £641 17s 3d. In the amount of £140,358 2s 9d expended, there was in hand material to the value of £2232 12s 3d, whilst the sum of ; ' •_ • . . £424 4s 4d is repayable by consumers for advances for installation.

“Average Capital Cost.—The average capital cost per concumer is £B7 10s 2d, as against £B7 17s in the pre-

vious year. “Board’s Agents.—The Board’s r agents have again carried out their duties in an excellent manner, and the system of agencies is working with great smoothness.