Power price rise to be challenged

Press, 13 February 1986, Page 9

Power price rise to be challenged

The proposal to increase electricity prices 4 per cent will be challenged at the Central Canterbury Electric Power Board’s meeting on February 18. The board’s Hornby representative, Mr Peter Lawson, says that the resolution at last month’s board meeting to increase the tariffs 4 per cent was out of order. The chairman had contravened standing orders by allowing an amendment to increase the tariffs when it was in opposition to the original motion, which called for no increase.

The original motion was moved by Mr L. Manion and seconded by Mr Lawson.

Mr Lawson said that by allowing the amendment, the chairman had effec-

tively prevented the three who had spoken in favour of the motion to then debate what level of increase should be allowed.

“The ground was cut from under us,” he said.

No increase was necessary, Mr Lawson said. The nine-member board could maintain its present retail tariffs by borrowing as little as 15 per cent of the planned capital expenditure (of $6.11 million) instead of financing it all out of present revenue.

The board should not expect existing consumers to fund all the development and expansion of the supply system to benefit consumers of the future. A conservative borrowing programme should be adopted so that the cost would be met by those future consumers

who stood to benefit, said Mr Lawson.

He has given the board notice of his intention to move that the 4 per cent increase be rescinded and a lesser increase set. He “does not hold high hopes of being able to convince his fellow board members of the commercial prudence of such a programme.”

He has outlined alternative proposals which would necessitate a tariff increase of about 3 per cent.

The Government had established a differential in the bulk supply tariffs to favour the South Island, and if supply authorities were not seen to be using it for the maximum benefit of their consumers it was likely to be removed, he said.