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The direct savings in steam-running costs and other purchases of power and theincreased revenue that would be derived from the date of operation of Maraetai, let alone the national economic benefits to be gained, are good and sufficient reasons for my emphasizing the desirability of pressing Maraetai and all our subsequently planned" expansions to the stage of supplying power with every possible haste. During the year machine accounting was established throughout the DepartmentMachines are now utilized for recording the value and movement of stock, the pay procedure has been stream-lined and mechanized, and machine accounting for the financial ledgers is being implemented. The results already demonstrate that a higher standard of efficiency, economy, and expedition is being achieved in accounting work. ELECTRICITY CONTROL The Electricity Emergency Regulations 1939 were revoked as at the 31st December,. 1949, and were replaced by the Electricity Control Regulations 1949 which came intoforce on the same date. By legislation passed last year the functions of the State Hydro-electric Department now include controlling and regulating the supply and use of electrical energy. The Electricity Control Regulations 1949 confer on the General Manager of the Department the powers necessary to carry out these added functions, and also continue in force theElectricity Control Order 1948. However, as the office and title of Electricity Controller no longer exist, all references in the Order to the Electricity Controller are to be read asreferences to the General Manager. Before giving details of the restrictions which have applied during the year, it isdesired to point out that constant endeavours have been made to ensure that the restrictions on the use of power are as little irksome to consumers as possible. Whatever meansare employed to restrict load, it is the consumer who must make the necessary savings. Only for as long as the consumer himself controls his use of power is it possible to provide an uninterrupted service which gives him power when it is really needed. As this meansof limiting consumption imposes the least inconvenience and avoids arbitrary measures,, the importance of securing and thereafter holding the good will of every consumer hasbeen repeatedly stressed. Loss of consumer good will, or failure to obtain consumer co-operation, results in power cuts in blocks over wide areas, which seriously interfere with not only domesticconsumers but also with specialized industries and organizations which rely upon powerbeing available all the time. Furthermore, this arbitrary means of rationing power does not distinguish between consumers, whether industrial or domestic, who have voluntarily reduced consumption, and those who have made little or no effort to do so. Each Supply Authority decides how to restrict its load, and this decentralizationhas made it possible for the savings in power consumption to be made in an orderly manner. For, as power is allocated in bulk among the Electric Supply Authorities according to their essential needs, it follows logically that each consumer should receive a quota from the allocation. Consequently, many of the Supply Authorities are employing; quota rationing schemes, whereby the consumer himself effects the necessary savings, and wherever consumer good will and understanding have been obtained the schemes are operating well and power cuts no longer apply. This also provides the answer to the question often raised regarding what action should be taken against those whose consumption exceeds their allocation or quota. Cutting off power in bulk over wide areas is unjust to the people in the area who have been co-operating. But with the decentralization of load control and the application of quota rationing, any cutting off is confined to the individuals using power to excess. This avoids widespread disruption of the electric supply service. North Island During the autumn and winter months of 1949 the combined inflows to lakes Taupoand Waikaremoana were above average. By August both lakes were at the maximum retention level, Taupo being 1| ft. higher and Waikaremoana 6J ft. higher than at the corresponding period the previous year. Consequently it was possible to meet the heavy winter demand without depleting storage. The winter peak was 404,900 kW. compared.

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