HYDRO POWER

Evening Post, Volume CXIV, Issue 125, 23 November 1932, Page 5

HYDRO POWER

OPERATING ; ACCOUNTS

A SMALL IMPROVEMENT

The general financial position of ths operating accounts of the various Government hydro-electric works in th 9 Dominion shows a small improvement on that of last year, according to. the Public "Works statement, presented in the House of Representatives this afternoon, the percentage over net operating expenses being 7.28 as against 7. per cent.' last year.

The result of the. operation of the Department's electric-supply system to date has been that the schemes have paid all operating expenses and interest, and, in addition, have been able to provide- £642,267 toward reserves for depreciation and sinking-fund purposes. Eeferring to requests for reductions in the price of power supplied in bulk, particularly to the smaller power boards/so that they should obtain tha same rates cs are- applicable to tha main centres, the statement says that, although the Government is anxious to do everything possible to bring down the cost of living, it is regretted that it has not been, possible to comply with this request. .Government action in other, direction's "had, however, enabled power boards to effect economies in many cases by^reductions, in interest rates and.^ in.;.wages, wWch had been passed on tothe.aetuaLconsumers. "It has to be- remembered,'? -the report continues, "that ;by far. the greatest part of the cost to' the "Government of I supplying electricity in bulk is made up of capital/charges on its investment, and, as the money has: practically all been raised" abroad,," it : has not itself obtained any benefit from reduction oa interest rates.; Power has, moreover f been supplied in the past at such reasonable rates that the actual retailers of electricity have, on the average., been able to bring their own financial positions into a better condition than is that represented by the Government's own. electric supply account. In the general cry. for reduction the fact" is often overlooked that since Government Bchemes come into operation very considerable reductions have already been j made in the "average price per unit paid by the consumers."