BULK SUPPLY.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5200, 7 November 1927, Page 3

BULK SUPPLY.

CONCESSION ASKED BY TE ABOHA. POWER BOARD NOT AGREEABLE. A letter from the solicitor to the Te Aroha Borough Council came before the Thames Valley Power Board on Tuesday last refluesting the board to have a clause inserted in the new agreement with regard to the bulk supply of electricity providing that the board would not supply individual consumers within the borough without the consent of the Borough CounThe chairman said the board was only claiming the; same privilege from the borough as it had to allow the Public Works Department, which had the right to supply individual consumers in the board’s area. Personally he did not think they should grant the request of the borough. The Finance Committee had considered the matter, and their recommendation was against it, there being only one dissentient, Mr Arthur. Mr Willy: They want us to get thei permission before we can supply our own offices. The chairman remarked that the board was not likely to exercise the privilege they were retaining except in unusual cases. At present they were only supplying the Technical School and their own offices within the Borough of Te Aroha. Mr Arthur said it was quite right that the Act gave the Board the power to supply any consumer, but before the Act came into force the boroughs of Thames and Te Aroha held licenses authorising them to siell electricity on certain conditions. These licenses were still held under the old conditions but a new Act had been passed affecting the position. The request made was a most reasonable one. The council was not asking for any benefits; derived fiom the supply to Clarkin’s quarry, the Technical School or. the Board’s offices, and merely wished to protect its rights. It was never anticipated When the Act was passed that the Power Board would go into the territory of another licensee and compete against it. The Act was not perfect, and many amendments had been found necessiary, and it seemed that yet another amendment would have to be made. The borough purchased electricity in bulk on certain terms, and it said to the Board: “We will deal with you and purchase in bulk for sale to others in a certain area.” Someone-may wish to create an industry and may not be able to make suitable terms with the borough, but in such a case he could go outside the borough and take his supply from the Board. When electricity was sold in bulk the purchaser should be allowed to do the distributing. The' case was on all fours with Ford cars. Would it be fair for Mr Ford, after having passed on certain rights with regard to the sale of his cars to come in with his large; capital and. undersell the agent in the territory for which the latter’s rights existed. It was not fair for the Board to pick the eyes out of the business done with the consumers. The request made was reasonable, and he would move »that it be granted. Mr Bush seconded. Mr Pohlen said that the Minister had certain powers, and if the Board entered into unfair competition the Borough Council could appeal to him and he would soon put matters right. He did not think one public body would be allowed to unfairly interfere with the business of another. Mr Corbett: Our license gives us power to enter boroughs. The chairman : Yes.-

Mr Corbett wanted to know how they could alter it. If it, was altered the Board would have to rescind the resolution passed if .at any time it did not want to enter into business within a borough. He thought ths agreement should remain as it stood.

Mr Willy: If we give, the privilege the borough is asking for we should have the same privileger from the Public Works Department. The chairman: The Board has the power to sell within the borough, but the possibility that we will do anything detrimental to the borough is very remote. At . the same, time they did not know What the future held, and they should not contract themselves out of their rights'. The motion was lost.