NEW SYSTEM IN HUTT BOARD'S DISTRICT

Hutt News, Volume 2, Issue 42, 27 March 1930, Page 3

NEW SYSTEM IN HUTT BOARD'S DISTRICT

ALTERATION ON MAY .1

The Hutt Valley Electric Power Board on Thursday afternoon sanctioned a new system of charging for electricity, drawa up by Mr E. F. Hollands, engineer and general manager to the board. Th« new tariff will come into operation on May 1, and includes several more or less radical changes from the system at [ present in operation. A new set of i lower minimum charges as well as the introduction of a discount rate of one -penny in each shilling for prompt payment are amongst the outstanding features of the new system.

The chairman (Mr A. W. Press) moved that the board compliment the manager on the new tariff system and that the latter be brought into effect from May 1 next, the necessary steps being taken beforehand to notify consumers of the changed scale of charges. . The motion was seconded by Mr A. J. McMurdy and led to considerable discussion. EFFECT OF ALTERATIONS In introducing the new schedule for consideration, Mr Press stated that the new scheme hS3 met with the approval of a special committee set up to review it. "The general manager was instruct-, ed by resolution to look into the possibility of reducing the minimum charge./' Mr Press continued, 1/and on reviewing the tariir generally, he came to the conclusion there was need for radical changes. He therefore revised the whole tariff, and I am confident that it "will give satisfaction not only to con- ■ sumera generally but also to the board. Reviewing tlie proposed rates and alterations, v it will be noticeoi that a flat deposit of 10/- per consumer is called for on connection instead of the existing meter rate of 10/- for the first meter and 2/6 for subsequent ones. The minimum charge has been drastically dealt with by a reduction of 40 per cent.,, which I am confident should give allround satisfaction. The lighting rates should also give cause to make our consumers feel gratified, as whereas the previous minimum rate was 5/- it will now be 3/- and the anomaly of a combined lighting and heating rate is removed. Should a consumer have at the present a single meter and be using both light and heat or ironing points by connection under rates A and H, the1 old minimum will not" be exceeded in cost but the benefit expressed in units will be just over 4 units in favour of the consumer. The new cooking rate is one that I am also confident will permit of the general use of electricity for cooking at small expense, andi while the water-heat-ing rates at first glance may not appeal as being so attractive to consumers, I am assured by the general manager that if consumers will comply with the regulations imposed, here again an ultimategeneral advantage will occur. The old rates and conditions existing in the, past have been found unprofitable to the board, and adjustments were absolutely necessary. "Finally " said Mr Press, "there is one outstanding feature which will probably give more satisfaction to those who pay their accounts promptly than the reduction of rates. This is the introduction of discount rate of a penny in each shilling other than on special or existing contracts.*' EFFECT ON THE MAJORITY The position of the majority of householders and how they might be affected by the rate, was the main issue on which Mr W. H. P. Barber wished for enlight-enment.-It seemed to him that where the new rates might be of advantage to the very small consumers and to the large ones' it placed the average consumer at a disadvantage. He could not understand how those who used ordinary amounts of current could escape paying v little, more under the new schedule. This, he was afraid, would cause dissatisfaction amongst the board's customers.

The chairman pointed out how that might be the case under the one meter system, but when light was being charged for as light and heat as power on separate meters the consumer would find that the new schedule was beneficial to him.

Mr A. «F. Hobbs said lie thought that it ■would mean a slight increase in the charges made to 5000 consumers. If it were a question, of their benefiting;

through having an additional meter installed, this large number of metera would have to bo provided by the board.

The engineer, Mr Hollands, pointed out, the difficulties he had met with iv assessing the new tariff in such a way

as to prevent an anomaly from acting to the detriment of the board. After 'much consideration he haa proposed the new scheme as a means of making a reduction in the minimum and, at the same time, as an equitable method of selling the board's electricity to its consumers. It would encourage the use of electricity and be of great advantage to both parties.

• Mr A. Anderson said that he> would like to be clear as to whether the minority or the majority of household con- ! sumers would suffer as a result of the schedule. He approved of the wise and measured action taken by the manager, but at the same time it appeared to him that it had the effect of making householders get more electrical appliances before they could reap the benefits of the. new scale. He was ,afraid one of the new -rates would cause a" certain amount of cLissatisf action.