CHEAP ELECTRICITY

Dominion, Volume 7, Issue 2246, 4 September 1914, Page 8

CHEAP ELECTRICITY

CORPORATION AS SUPPLIER. Recent reduction, of the rate of charges.'for electricity to the general public bytho City Council has led to a i'ress controversy and suggestions wero made that ttio reductions- to the public ■wore entrenching on the tramways revenue. The Mayor (Mr. J. P. Luke) mado a statement to the council last night, showing that this was not so; separate trading accounts wero kept tor both branches.

A report on the same matter was received from t'ho Tramways and Electrical Engineer (-Mr. S. liichardson), in which it was set ont that Corporation was engaged'in two distinct trading businesses, so far 'as the generation and supply of electricity was concerned,. one being, the supply of direct current for industrial purposes, supplied from the .tramways power station, and the 'other tlie supply of alternating current from the lighting station, providing citizens \Htli lighting, heating, and power. The financial affairs of the two undertakings were entirely separate. During the past five years the net profits from the sale of direct current from the tramway power station have been as follows:—1909-10, £262 10s.; 1910-11, £378 17s. 7d.: 1911-12, £978 17s. Bd.j 1912-18, £1097 .10s. 2d.; 1913-14, £993 4s. 6d. These profits have been pooled with tlie profits from tramway operation, and expended in the development of the tramways undertaking, showing that in the past the power supply undertaking has been holpful to ;the tramways. The rather high price hitherto charged, by the city for current retarded tlie . development of the power supply business, and it was considered that the lowering of the charge per unit to the public would stimulate the demand, and give substantial benefit to the business people of the city. 1 At the initiation of such a scheme it was to be expected that the revenue would to some extent suffer, but it was confidently anticipated that the enhanced business to bo. expected in the future would more than make good the temporary loss. In the discussion that followed Councillor J. Fuller thought that the Elcctric Department should bo stimulated, so that .the undertaking should become of mere importance.

Councillor L. M'Kenzie. suggested a separate business manager to encourage and increase the use of electricity m every direction. The Mayor (Mr. J. P. Ltiko) said that the City Council was in the same position as- any other business firiri—they wore limited to a certain amount of capital, and had to progress on sound lines. The discussion then dropped.