ELECTRIC POWER

Evening Post, Volume CVIII, Issue 137, 6 December 1929, Page 6

ELECTRIC POWER

REDUCED CHARGES

ADOPTED BY COUNCIL

WATER HEATING PROBLEM

Seductions in the present scale: of charges for supply of electricity were adopted by the City Council ' last night on' tho recommendation of the General Manager of tho Department (Mr. M. Cable). As a ; result of the revision of tho tariff the consumers will benefit to the extent of about £25,000 per annum; After considerable discussion' the council reffirmed its decision not to permit the installation of clectriu water heaters of greater than three kilowatt capacity, but it was agreed that an officer of .the council should visit ' Australia to make first-hand investigations into the working of the instantaneous heating system there, . when the question. may be- reopened. ••■■-• ■-..-•. Mr. Cable's report was as follows:— "I have to report that after a very, ■thorough investigation' of tho department's present scale of charges for electricity supply to tho various classes of consumers, I am now in a position to recommend a reduction in tho domestic, commercial lighting, and power tariffs as set out below:— "Domestic Tariif.-^th.c present scale provides for a fixed number of units at 5c net accordings to the size of tlie houso and the balance of units at Ud in the case of consumers not possess- ; ing an . electric cooking installation,

and a.further reduction to Id per unit ' to users of ranges. It is now proposed .'," to introduce one scale of charges which ■•' will apply, equally' to all classes of domestic supply. This will be 5d per

unit for the:lighting section as at pre-

sent, then 1$& for double tho number r~af "the lighting units, ana all additional units used at a flat rate of one

-peony. "■"■■ : -"■■.--..■.---.. « " Commercial Lighting.—ln regard to this class of supply, which varies according to consumption from 6d downwards, it is not proposed to alter the unit rates, but to give a special discount of 5 per cent, on the present net amount of the accounts payable by the consumer. "Powe* Supply.—For current supplied to power consumers who are charged a rate per unit consumed, it is proposed to increase tho discount from a farthing to a halfpenny per unit. To consumers' who receive their supply under the 'maximum demand rate' it is proposed to reduce the charge now made per k.y.a. by half-a-crown for each k.v.a. of demand on the quarterly accounts. I'Water Heating.—ln addition to the existing water heating system under time switch control, it is proposed to make provision, for water heaters of approved types and sizes fitted with thermostats. Installation of this type will be supplied under the ordinary aomestic tariff or alternatively charged as follows: 500 watts capacity, £5 per annum (8s 4d per month); 1000 watts capacity, £10 per annum (l(3s Sd per month). WHAT REVISION MEANS.

"The adoption of these revisions in the department's tariff will mean that consumers of the city supply will benefit to the extent of about £25,000 per annum. I have to recommend that the reduction. 11 the cases of the supply for domestic purposes, commercial lighting, and power supply under the unit rate, apply to meter readings taken after the Ist January next and in the case of the power supply demand rate, the reduction to operate only on load taken after the above date.

"This revision of tho tariff is submitted on the assumption that the existing conditions concerning the conaection of instantaneous water heaters continue in force. In the event of any departure from the position I desire to retain the right to review the above recommendations.''

Councillor M'Keen said that tho new tariff could have bceu more simple by increasing- the number of units at ?i, aill.- chargißg the rest'at Id, while stin, bringing m the same amount of money as at the sd, l-sd, and Id rates. J-ho May replied that under the scale proposed by Councillor M'Keen small consumers would have to pay more than under the graduated scale recommended by tho General Manager.

INSTANTANEOUS HEATEES. The next clause of tho Electricity Committee's report recommended that the council should maintain its decision not to allow the installation of large capacity electric water heaters. Councillor M'Keen said that he thought the Council was doing a gross injustice to the firm producing the banned heaters. He considered that the new heaters were far ahead of other systems and were much less expensive: . Both the bath heater and the small heater were very compact, and ho had no doubt which system of water heating the general public would choose had they +£ 8 uPti 0?- " Flo maintained that there had been no proper investigation of the system by the council's officers whose report contained many generalities but no detailed figures. The Victorian prohibition of the instantaneous water heater was dictated by the fact that the electrical system there was one-phase, not three phase as in New Zealand. Councillor WKacu expressed doubts whether the Eoyal Commission which had inquired into tho question of installation of instantaneous water heaters in Australia was in real fact a Eoyal Commission at all. He doubted also whether the" council had any power to prohibit the use of the heaters. IN THE i'OUE CENTRES. Councillor M'Keen went on to say that the Wellington City Council obtained a greater return per unit of power Sold than any other supply I authority in tho Dominion, but he had been unable to obtain certain Wellington figures from the council's officers. That information had been refused him, but he insisted that it should be made available to him. In Wellington tho average return per unit was 2.33 d, in Chriatchurch it was 1.28 d, in Auckland 1.55 d, and in Dunedin 1 089 d The people of Wellington had been absolutely exploited, and he moved that the report should be referred back to tho committee. Councillor C. H. Chapman seconded the amendment. CONDITIONS VERY DIFFERENT. The Mayor, replying to tho last point madeby Councillor M'Keen, said that the circumstances in each centre were entirely different. Dunedin, in its Waipon scheme, had easily the cheapest supply in New Zealand. That scheme and also Coleridge, was undertaken beforo tho war, whereas elsewhere the schemes were post-war. Could Councillor M'Keen tell him what the Government charged" tho- Christ--church City Council? Councillor M'Keen replied that he could not. The Mayor said that ho did not know either, but he knew that both in the case of Christchurch and Dun-, gdin the Government rates were lower

than those for "Wellington. The differenco in tho average return per unit, _aa between Duuedin and Wellington, was plainly accounted for by the fact, that the power was consumed in a quite different manner. Wellington hadjio'.big industries, .'requiring power ill., bulk, for they had become centred in tho Hutt Valley, whereas Dunedin Mi'a number of industries requiring a heavy power supply. Obviously power to -largo -industries,-one factory possibly requiring as much power as two hundred houses, could be supplied at a 1 rate much lower than the rates for domestic-'o*. .lighting supply, and accordingly the average- return per unit was, in' a "centre with a.number of bi" industrial 'concerns, lower than in a ceniroXwh^re.suclf industrial demand did'riot eilst. ;' ' - ■ ' ;";-Afti>^THE CHANGE-OVER. Wellington had been handicapped by the- change-over. Whether that had been wise or not he was not going to say, but the fact was that the council had had to discourage people from using house appliances. They were getting over that difficulty, however, and ■it . was , only a matter of time when Wellington would bo' able to. supply power as efcaenly, if not more cheaply, than any-other supply authority. The engineers were in no way to blame for the . present ;.position.;" . ' In respect of- the beaters, the Mayor detailed tha steps lie had taken to secure the opinion of leading authorities in : other parts, of tho, world. He had -received- ti- communication from tho chairman of the Standing Electricity Commission of Victoria (Sir John Mouask), which stated:— RULED OUT IN VICTORIA. "1. Limitation of capacity cf water heaters is absolutely necessary from the technical point of view, because it is obvious there must be some size beyond which:it would be unreasonable to ask the"supply "authority to provide sufficient copper, transformer capacity, etc., to avert an undue drop in the pressure of the.supply. •. "2. Such -a;,largo demand as, say, 12 k;w. coming^ suddenly: on to the local street reticulation would-result-in supply to neighbouring residences being seriously disturbed during the period in which the'heater, is in operation. This .would be especially so if a large number .of such heaters were installed. The drop'in pressure could only: be obviated by "the provision of v.cry large amounts of additional copper "cable, not only in the street, but right back to . the main., substations, while the transformer capacity wo"uldalso require to be" increased. "3. Arising cut of (2), and from tho fact that instantaneous heaters provide the very lowest power factor of any consuming device, it would be necessary to fix a tariff for their use which would be prohibitive. It is estimated that in the metropolitan area of Mcl- : bourne the charge, would have to be not 'less" than 5d per unit. Summarised,' the objections to the installation of instantaneous heaters are as follows:— (a)" Certainty of serious 'dislocation to the present service to consumers, and to counteract this— (b) The investment of now capital running into millions of pounds sterling. (c) To make this new investment reproductive-, prohibitive rates for ■■..tJie- v TiSe of instantaneous heaters would have to" be charged. (d) If ordinary rates were charged, the financial stability of every undertalcing in the State, including the State scheme itself, would be- impaired.

"4. Tho water heating requirements are more efficiently and more cheaply served by appliances of the continuous type, which are manufactured in Australia, and which are of low voltage and impose no strain upon the supply system. It is possible to charge a specially low tariff for their use, and consumers are being amply and satisfactorily catered for." After stating the capacity in which the Commission had enacted the regulation, the letter continued: — "Tho embargo against the use of large capacity instantaneous heaters was not arrived at hastily. It was the subject of the most exhaustive' investigation by a Committee appointed for the purpose-,., and which included a representative; of the Fire Underwriters' Association. The investigations of the committee were supplemented by those of the. .'Conimissioii itself, and the recomniendation^ of tho committee, that tho connection,of such heaters'to. the supply systems should not be ;allowed,' on. the grounds that the supply authorities should' bo protected ' against large unreinunerative and quite unnecessary capital expenditure,. and the general body of consumers against, troublesome interference with • the' steadiness and'reliability of their electric services, coincided exactly with the.-cpnelusions forced upon the Commission by its own inquiries, especially as the prohibition in- no sense acts as a discouragement of eleetrie water heating for domestic purposes. "It. only needs to be assumed that the manufacturers of instantaneous water, :.heaters would be fortunate enough .to place one in every home in the metropolitan area of Melbourne to ■be: able; to fully appreciate what the installation of such appliances would mean "to the supply :iuthorities. The increased annual cost for interest and depreciation on the provision which would- have to bo made to meet the position would reach an alarming figure, which could not possibly be met by any reasonable tariff. It would, as a matter of;..(act,, run into millions .. of pounds. It is evident that the same disability would obtain pro rata oven with any lesser use of tho heaters than above assumed.

.'^lnquiries niado by tho Commission show that the supply authorities in Perth, Adelaide, Hobart, and Ipswich (Queensland) have enforced the same limitation regarding the capacity of water-heaters as that contained in the Commission 's regulation. The Brisbane City. """Council accepts instantaneous water systems of the three-phase type, limited to 13 lew. From the point of view of largo Australian supply authorities, ■ the City of Sydney pioneered the installation of instantaneous water heaters of 12 k.w. capacity, and continued to encourage their connection to tho council's system to the embarrassmont of and in the face of tho strongest opposition from supply authorities in the other cities. ' COUNCIL OFFICERS DISINTERESTED. „ Tho Mayor said if there were any possibility of making provision for the convenience of the people in regard to electrical appliances he was out to make that provision, but he was not going to turn down the advice of his officers and the advice of disinterested parties in other parts of tho world. The owners of the heaters and the Public Works Department were not disinterested,'as they were both out to sell as much of their products as they possibly could. He . had had a request from tho company that a representative should have permission to address'the council, but ho (the Mayor) had declincd'"tliat request. The company then suggested that a Commission should be set up, but he felt that if the council-agreed to do that it would be' easting a doubt upon the officers of the council. -' -

STILL A DOUBT.

-Councillor .Mitchell maintained that the-evidence for and against the instantaneous heater was very conflicting." "" The" evidence of those who had had the heaters installed was that tho several difficulties which had been stressed had not materialised. He thought that it would be wise to defer a decision until,.such time as council-

lors were fully convinced, one way or the other. He doubted whether the council had power to prohibit their installation. The Mayor: "The City Solicitor says that we have." Councillor Mitchell replied that" other authorities were of the opinion that the council did not possess such power. Councillor Chapman said they were merely pretending to give the consum ers something by the reductions i the charges. When it was worked out it would be found that the consumers had received practically nothing. The Mayor replied that the majority of consumers would gain from the now tariff. The aim of the new scale was to induce consumers to install more electrical apparatus, rather than to give a reduction of rates on tho first units used. VESTED INTERESTS. Councillor R. Semplo said he was not prepared to reach a decision in regard to the heaters on the evidence which had been adduced by the Mayor. New inventions had previously been kept off the market on account of prejudice. He had in his possession the opinions of distinguished engineers in Australia who were in favour of the heaters, and he was wondering whether there was not some unknown power behind the antagonism to the heaters. He was satisfied the appliance was a wonderful improvement on the old appli anee, and he was inclined to think the council's officers did not understand the merits of the new invention. It would be. a mistake to strangle something which might "prove a blessing to the community. ■ Councillor- E. A. Wright agreed that the invention was a good one, but that was not the issue; The issue was whether it was going to injure their present system, and he was satisfied it would. The installation of a large number of the heaters would involve a big expenditure, and would affect the lighting of the people generally. In his opinion it would be a mistake to defer consideration of the matter, as it would only lead to a lot more canvassing. '■■"■'-:;" ": -■ " Councillor Semple: "No one has canvassed me, and they dare not. They would get short shrift if they did." Councillor T. C. A. Hislop said it was the duty of the council to see that the city's undertakings were safeguarded^ At the same time the evidence which the~Mayor hadplaced before the meeting had been purely negative, and he would like to have the evidence of those..:. bodies -which had .used the heaters. The heaters were used in Sydney, and the council should secure the opinion of the authority there. The Mayor said the Melbourne Corporation had had experience of the heaters before the State Commission stepped in. He would be-willing to send an officer to Sydney to study the position. Councillor C. D. Morpeth said that councillors, as laymen, had to be guided by their officers, but it seemed that in this ■ instance they had had too many generalities, and "not enough facts. The idea of sending an officer to Sydney appealed to him. When Councillor M'Keen's amendment was put to the meeting the voting -was equal—eight all—and the Mayor gave his casting vote against tho amendment. ' The report was adopted. The Mayor then proposed that an officer of the council should be sent to Australia to investigate tho position. Councillor M'Keen hoped tho council wduld not be asked to send an officer who was hostile to the heater?. Councillor T. Forsyth resented any suggestion that an officer of the council would be biased. Councillor W. J. Gaudin opposed tho idea of sending an officer to Australia to investigate any proprietary concern. Councillor Hislop generally agreed with that view, but the Mayor said that already every endeavour had been made to secure full information by letter. The motion that an officer should visit. Sydney to make full investigations was carried by 11 votes to 5. ' '