I).—1

Several expedients have been adopted by Supply Authorities in general to tide over the present difficulties, which, however, cannot be disposed of until delivery of additional generating-plant is obtained from overseas ; but it is satisfactory to record that up to the present Electric Supply Authorities have not found it necessary to introduce any measures of a drastic nature. The legislation extending daylight saving throughout the year has proved most beneficial in alleviating the position in the generating-stations. Operating Results. North Island System.—The plants at Arapuni, Waikaremoana, Mangahao, and Horahora have been fully operated throughout the year. Assistance from various local plants —principally the .King's Wharf Station, Auckland, and the Evans Bay Station, Wellington—was necessary during the autumn and winter months to meet the ever-increasing demand for power. The result of the year's operation was as follows £ Capital investment at end of year . . ' . . 11,561,705 Revenue .. .. .. .. .. 1,533,136 Operating-expenses .. «. ~ . . 640,884 Balance .. , . .. .. £892,252 The balance has been used in paying £336,073 for interest, £284,532 for social security charge, national security and income-taxes, and £148,937 to bring the Sinking Fund up to statutory requirements. The balance of £122,710 has been transferred to Reserve Fund. It was not necessary to make any payment to the Depreciation Reserve as this account has reached the statutory limit of !2.l per cent, of capital. The Reserve Accounts established in connection with this scheme show that £1,112,633 has been credited to Depreciation Reserve, £1,308,951 to Sinking Fund, and £303,948 to the Reserve Fund. South Island System. —The plants at Lake Coleridge, Waitaki, Monowai, and Arnold River have also been operated successfully. The year's operations resulted as under:— £ Capital investment at end of year . . • • 7,289,053 Revenue .. .. .. .. .. 678,813 Operating-expenses .. .. .. .. 173,289 Balance .. .. .. .. £505,524 The balance has been used in payment of £254,069 for interest, £51,517 for social security charge, national security and income-taxes, £73,711 to the Depreciation Reserve, and £126,227 to the Sinking Fund. The various Reserve Accounts established in connection with this scheme show that £813,288 has been paid to the Depreciation Reserve, £543,856 to Sinking Fund, and £86,766 to Reserve Fund. There is still a deficiency of £214,654, as against the statutory requirements of Sinking Fund.

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