PRICE OF ELECTRICITY

Chronicle (Levin), 28 September 1946, Page 5

PRICE OF ELECTRICITY

— Press As&DciaUon

No Hope of Reduclions MESSAGE TO POWER BOARDS

By: Teleg.vaph

CHRISTCHURCH, Sept., 2?. £ ' You have to look at the price ovei ' a reasonable period of years and there is no question that over the next xU :or 20 years we are going to have the utmost difiiculty in maintaining the ■prices we have at present,'-' said Mr. F.j T. Al. Kissel, general manager of the State Hydro Department, • at the% ; Electrie .Power Boards and Supply Authorities Associatiop, conference today. The conference passed' a Timaru Borough Co,uncil remit urgiug the GQvenuuent to reduce hulk charges to. smaller authorities, to bring the average price per k.v.a. more in line with that paid by larger authorities. Air. Kissel said the Department agreed that the charge for power should be reduced wherever possible aiid thai rural boards should receive as favour able consideration as was possible. That was oue of the reasons for the adop tion in early years of the basis of selling on the ipaxinium demand as small rural boards had nothing like the diflicultics as cities in controlling peaks. "If you are going to make reductions to smaller boards we must mahe some additions to large boards beeause out linances are such that we cannot alford to have a reduction in our total revenue, ' ' said Mr. Kissel. ' ' The wora being carried out at the generating stations is costing 60 per cent. more than prewar, transmission 100 per cent. more, and at substations the cost is a. least 150 per cent. more. You will bs very lucky if we are not forced to Lncrease prices rather than decrease them, so if rural boards are to receive reductions they can only receive them at the expense of the larger boards agreeing to an increase in their charges, to make a return to us of a total retiuu at least no less than we are getting at present. I must tell you that a generai ceduction in revenue cannot be con sidered for a number of years." Air. AT. E. Lyons (Christchurch) gave figures showing that the Tararua boanl paid Id more for every 100 unLts tlian the Christchurch City Council. When the charges were converted into units the country boards were often very much better off than they thouglit. The cities paid special rates several time> over. Mr. R. D. Veitch, moving the Timaru remit, said the charges were made when the Public Works Department was selling to small power boards which 110 longer existed. The conference adopted a Central Hawke's Bay remit that, in view of the losses of revenue incurred by the North Tsland power boards during the winter months through being ealled upon substantially to reduce unit consuniption., the Government be asked to make an equitable adjustment in its lnilk supply eharges for the period during which such reduction was made mandatory. A Timaru remit that a small.technical eommittee lie set up and rlie Government be asked to set up a technical eommittee to meet the association's eommittee, to analvse the State Hydro-electric Department 's costs for hulk supplv, particularly costs dealing with the size of load„ was carried. A North Canterburv remit asking ihe Government to standardise as far as was practicable, the terms of contracts for bulk supplv was carried.