NET SURPLUS OF £4718

Chronicle (Levin), 21 April 1949, Page 4

NET SURPLUS OF £4718

Horowhenua Power Eoard's Satisfactory Year A net surplus of £4718 was realised by the Horowhenua E ectrie Power Board. on its operations for the year ended March 31. Th& total gross revenue was £130,065 and the gross expenditure £125,347. A comprehensive and detailed report of the finance s, and balance sheet for the year, was presented " to the board's monthly meeting yesterday by ihe managing-secre-tary, Mr. R. A. Frederikson. He gave a comparison of incmie and expenditure for the year, the main items of which were as under. the figures for 1948 being in parentheses. Income: Domestic supply' £73,788 (£65,962), comn\ercial supply £18,326 (£15,543), rural £13,793 £13,042), industrial power £13,613 (£12,091), street ligh ing £1,310 £1,810). Tnta' £120,830 (£107,948). Expenditure: Power purchased. £51,398 (£46,599) , maintenance and 'di.stribution £20,224 (£17,795), management and general £10,065 (£9,446), sinking funds and replacements £13,363 (£11,582). Retarded By Restrictions. "Wi'.h restrictions in force net saies haye increased from £100,602 to £112,750," said Mr. Frederikson. "Haw much wou'd the increase have been without restrictions? Unfortunately the answer will not be available for some eonsiderable time. Once again there have been substantial increases under the headings of domestic, commercial and industrial supp'y, with a sm?Ter increase under rurai suppiy, which incidentally is not restricted. With a total increase -of £12,148 in net electricity saies, it will be noted that the increase in the cor-t of power is £4,799. That tlrs figure has been kent down by means of pilot wire control is shown by he load charts since the iu production of the control. The ratio of power costs to saies is 45.6 to 54 4 compared wi!h 46 to 54 'ast year. # "Under exoenditure the increases uhder maintenance and distribution, and management and general, reflect the increased cost of labour and materials. Increased capital charges are made up by increasrd loan indebtedness and ' repayhient of a loan. "Once again the financial position disclosed by the annua1 accounts is very satisfactory. When preparing the estimates, it was felt that a five per cent. increase was the most that could be expected and a.'though restrictions have been in force throughout the year, unit saies have increased by 12 per cenu. Domestic accounts have increased by approximately 410 and to a 'certain extent have aceounted for the increased unit saies. "Capital expenditure during the year has been exceptionally heavy," continued Mr. Frederikson, "including £16,000 on line consuuction with a further £6,239 for transformers. Difficu'lt Year. "The year has been a most difficult one and has presented two major pfoblems, one to keep unit saies down and the other to connect new consumers without undue delay. With the introduction of comp^sory rationing it is hoped that it will be possib'e to keep within our quota and at the same time make an equitable distribution of the units available. "The other problem of manpower is no less difficult and until additional staff are available it will not be possible' to give prompt service to a]l who are seeking connection, and quite long delays _ must be expected when conne'ctions are required in unreticulated areas. Decentralisation by locating a line gang at Paraparaumu will help by reducing travelling time and this project should be pushed on at the earliest possible moment. A residence is urgently required at Shannon. Progress has been made on the plans for the Foxton residence and during the year we should see a 1 full time serviceman stationed there," concluded Mr. Frederikson. Chairman's Comment. In connection with Mr. Frederikson's remarks in regard to the residences at Shannon and Paraparaumu, he would like to suggest that earnest consideration be given to the plan of the Foxton house being adopted for ihe two homes at Paraparaumu, and the plan of the Levin house for the residence at Shannon, commented the chairman, Mr. T. G. Vincent. This would overcome the "enormous" delay experienced in getting the board to agree on the plans.Members agreed to this proposal in general, it being thought that this would expedite the erection of the buildings. Condnuing, Mr. Vincent remarked on two items of expenditure during- the year. The first was the sum of £6,340 for meters. At one time, these had been 23s 9d each, but now they cost £3 11s 3d. The ; other item was that of £36,659 expended out of loan monies for new lines! During the board's first 26 years- just on £200,000 had been spent on putcing in the original ines. Now it was still spending about £40,000 a year on new lines. Mr. Vincent- extended to the managing-secretary and the staff his commendation for the" excellSnt manner and quick time in wKieh the report was prepared. Other member s joined with him in paying tribute to the work of Mr. Frederikson and the staff. ,