HYDRO-ELECTRIC POWER

Waikato Times, Volume 100, Issue 16780, 24 April 1926, Page 8

HYDRO-ELECTRIC POWER

THAMES VALLEY BOARD. QUESTION OF CHARGES. A special meeting of the Thames Valley Electric Power Board was held at, Te Aroha on Friday, there being present: Messrs F. 11. Glaxlon (chairman), .1. B. Thomas, F. Strange, J. Price, G. Howie, W. E. Willcy, F. E. Flail, .1. Pohlen and .1. A. Anderson. The meeting was convened lo discuss the questions of future charges for power and lighting. Mr Claxton slated that it is a common practice once a year lo review the charges. The matter was somewhat hurried this year on account of the loan proposal. He read a statement, of revenue and finance generally. The figures showed that there was a gross profit of £5311 on the year's operations and a balance of £1222. 11, was a matter for consideration by the Board as lo whether a re-adjust-ment of charges could be made. The sale of current for the year was £70,301. The balance could bo used for building up a reserve, fund of some sort. It is a difficult mailer lo exactly eslimale the future revenue of the Board; it, probably would not be so large, as previously. The matter had been discussed by the executive and a. suggestion was made that a reduction should be made on a sliding scale for milking motors. The executive was unanimous that there should be, no reduction in the charge of £.15 per annum, but, a charge made on Ihe butter-rat production. 11, would be perfectly safe lo make a reduction of £I7OO and it, was for the. Board to decide how the reduction should be brought about, and, further. Hint any reduction decided upon should be made Tor the year 1920-27. Mr Howie: Would if be advisable to establish a reserve fund? Mr Flatt said that a minute, on the books pointed lo increased charges for bulk supply, for Te Aroha ond Thames. If Ihe'Board agreed to a reduction .to farmers it could not, increase flic charges lo the boroughs of Thames and Te Aroha.

Mr Claxton replied thai, the question of charges depended upon the Government's attitude, whether it, reduced the present charges. Mr Price contended that if the price lo farmers .was reduced and an increase made to the borough and Thames, which bought a bulk supply, a good deal of litigation would ensue.

Mr Grace contended that as the Board had not made a profit out of the power, but from sales, it would not be wise to make a reduction. Mr Flatt: It is no concern how the profit is made. In the face of arguments he could not support any reduction lo farmers.

Mr Price: What is the actual loss on the power account? Mr Spraguc: This year £3OOO, last year £10,400.

Mr Strange: I am personally in favour of holding over • decision for the next board. Mr Thomas: I take it there must bo no increase to boroughs. Better carry on till next year.

Mr Flail: I can't get' away from the fact that we arc losing £7OO per year from the sale of current to Te Aroha and Thames. Mr (Jlaxton /iid there was a chance of re-opening the discussion with the Boroughs of Te Aroha and Thames. They were asked to dispose of l.'ieir plants and stand en common ground with Ihe Board, but they declined, a-od so the Board agreed to write intimating Lr.at the present charges would be reconsidered aflcr the end of March.

Mr Anderson moved, Hist there be no reduction. Seconded by Mr Howie. Mr Price supported the motion. Mr Pohlen said that while he supported the motion, it was the duly of the Board lo carry on on sound lines. Seeing that, no profit was made on electric current, any reduction would be unwise- Should the lean be turned down their operations would be curtailed.

Mr Claxton remarked that a hope had been expressed for a reduction in charges. It v\as first thought it could he done on a. sliding scale to farmers. 11 was remarked "why should farmers be considered first?" Mr Claxton replied, because it was from the farmers that the bulk of revenue was received. It would, perhaps, be worked on a graduated scale. The finances did not show any reasonable cause for reduction. In 1923 three millions of units were bought from the Government, in 192 i seven millions; 1920, 10 millions; 192 G, . 13,020,000 units. A great deal would depend upon Ihe Government as to what charges would be made for Ihe current year. Mr Claxton was assured Hint ihnsc people who were benefitting by ,Ihe present reticulation would vote for Ihe loan. The greater ihe rating areas Ihe cheaper would be Ihe individual rale, it was essential, said Mr Claxton, lliat a reserve fund should be established. 11, was apparent that such a fund would become a. Government enactment, for it was difficult to predict Ihe Board's position from year lo yearThe balance-sheet 'lo-ckTy did not warrant, a reduction. Speaking in regard to tiie future of the proposed measure to increase the balk supply charge for To Aroha and Thames, Mr Claxton remarked that lie would not boon the Board when the matter was discussed, but he was assured that Hie members would give the proposal a square deal.

The motion was carried. A further resolution was carried, that the question of charges be left over till Ihe new Board was appointed.