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with 396,200 kW. for the previous year, and in the twelve months until the end of December the consumption of power was 1,706,000,000 units compared with 1,621,000,000 for the previous year —an increase of per cent. This consumption was some 36,000,000 units in excess of the amount allocated. The prolonged dry period which commenced in September, 1949, resulted in the flows into the Waikato River and Lake Waikaremoana falling considerably below the long-term average. By December it became necessary to draw attention to the fact that for the previous three months the inflows were 20 per cent, below average. The Tunning of the steam stations was increased in October, but even so the level of Taupo fell from 1,177 to 1,175-2 ft. and Waikaremoana from 2,010 to 2,004-1 ft. by the end of December. The excess consumption for the twelve months up to that time was •equivalent to a foot of storage at Taupo. It was too early to make an appraisal of the potential generating position for the winter ahead, but it was apparent that a continuation of the dry period and of the excessive rate of consumption would result in storage being ■drawn down too far by the autumn, and that extra efforts to curtail consumption might : be required. In December, the Power Shortage Advisory Committee decided to extend the twelve-month allocation period which terminated that month until the 31st March, 1950, and this gave those Supply Authorities who were exceeding their allocations a further .three months in .which to reduce their excessive rate of consumption. During January and in subsequent weeks attention was called to the deteriorating hydraulic conditions. Requests were repeated for the consumption to be restricted to the allocations. Some 'Supply Authorities were adhering to their allocations, but the savings were being offset by the excess consumption in the areas of the other Supply Authorities, the excess for the fifteen months until the end of March amounting to some 51,000,000 units. The Advisory Committee again met in March and decided that the Supply Authorities who were rationing their consumers should be allowed to add their savings to the allocations for the ensuing year. On the other hand, a careful study of the reasons given by the Supply . Authorities who had exceeded their allocations led to the Committee deciding not to deduct the excess units consumed from those particular Authorities' allocations. The total units finally allocated for the year ending the 31st March, 1951, amount to 1,773,000,000 units, the required generation being based upon average hydraulic conditions .and heavy running of the thermal standby plants. When the Supply Authorities were notified of their allocations for the year ending the 31st March, 1951, they were also informed that the continuation of the dry conditions .and of the high rate of excess consumption would lead to a reduction below the allocations becoming unavoidable. The actual rate of consumption, however, remained high. For the year ended the 51st March, 1950, the units consumed amounted to 1,738,000,000 compared with 1,648,000,000 in the previous year, or an increase of almost 5£ per cent. By the 29th March only 16 in. of controlled storage remained in Taupo, and Waikaremoana was down to level 1,997-6, a reduction of 6£ ft. since the end of December. The Supply Authorities were therefore informed that commencing Monday, 3rd April, consumption should be reduced by 10 per cent, below the allocations. The effect of this reduction will be felt to differing extents in the various supply areas. Some Supply Authorities have quota rationing schemes operating successfully, and a 10-per-cent. reduction will in many cases cause no serious disturbance to their •consumers. In other areas, where the consumption of power has been consistently above the allocations, the reduction which consumers will be called upon to make may be felt •severely. South Island No special restrictions were imposed throughout the year ended the 31st March, 1950. It had been anticipated that no more power could be made available than in the previous year, but in view of the favourable hydraulic position in the early part of 1949 -the Supply Authorities were advised in April that an average increase of about 5 per -cent, should be possible. The actual increase was, however, 11| per cent., the ■consumption being 769,000,0C0 units compared with 689,000,000 in the previous 'year.

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