HOROWHENUA ELECTRIC POWER BOARD.

Manawatu Herald, Volume XLVIII, Issue 3029, 29 April 1926, Page 4

HOROWHENUA ELECTRIC POWER BOARD.

THE TREASURER’S REPORT. The Treasurer (Mr. P. W. Goldsmith) submitted the following report on the year’s working at last week’s meeting of the Horowkenua Electric Power Board: — “I have pleasure in submitting the balance-sheet and statement of accounts for the year just ended. It is a preliminary balance-sheet only, but although the actual figures may vary a little when finally submitted, yet the true position of the financial affairs of the Board are correctly disclosed for all practical purposes. NO RATE. “The first thing disclosed shows that the receipts for the year are sufficient to give the assurance which the Board has always .hoped for and worked for, viz.,, that it will not be necessary to call upon the ratepayers to assist the Board’s finances by the way of rate, for this year, at any rate, and, indeed, for future years there will be no need to collect rates unless, some unforseen calamity schould arise, or a heavy slump occur in the primary products of the district.

INTEREST AND SINKING FUND. “The position shown reveals also that a sufficient reserve fund can be created towards the payment of the interest and sinking fund for the new year upon which we have entered. It was anticipated that our revenue would be sufficiently buoyant during the past twelve months, to enable a reserve to be created, for meeting at least a portion of the interest payable from revenue which had hitherto been paid out of loan. Fortunately this anticipation has been realised, and any anxiety existing as to meeting interest obligations has now been removed. TRADING ACCOUNT.

“Coming to the balance sheet, it will be. seen that from sales the sum 0f£62000 has been received. Stocks-in-hand are set down at £B4S, motors accounting for the larger portion of this sum. The stocks are much reduced as compared with the beginning of the year, when the goods in stock amounted in value to £2023. Tire gross profit for the year on the trading transactions amounts to £1477. This is a very satisfactory result for the year’s work uudci this head, it must, however, be remembered that it is the gross profit which is shown and not the nett return. The demand for waterheaters, motors, etc., has been very good, but, naturally, this demand will now ease off very considerably. REVENUE ACCOUNT. “The total receipt s amount to £20,811, the sales of current and meter rent accounting for over £25,000 of this total. “The expenditure shows: — Power .. £9300 Wlorking .. £4546 Interest and Sink. Fund £3320 £17,166 “The nett profit for the year is £10,383 which with the balance from last year of £2398, brings the credit balance in the nett revenue account at 31st March, 1926, to £12,781. LIABILITIES AND ASSETS. “On the liabilities side it may bo explained that under' the heading sundry creditors, the capital acount item includes wire and all other goods unpaid on the 31st March, In the power fund or revenue account the sum of £3398 includes the last quarter’s electricity account due to the Public Wlorks Department, the amount of which is £3176.

“On the asset side sundry debtors, loan account amount to £12,553 is practically the amount due to the Board from conumers for installation accounts. The power fund sum under this heading, £9715, is made up in the following way: —Fittings, ledger, £2354; advances, ledger, £2370; consumers’ accounts, £4985. “The consumers accounts include the large quarterly accounts for last quarter, ordinary consumers’ accounts due and in arrears, also estimate for meters unread. “The cash in hand at the end of the year was £11 ; 754. Ot* this sum £481.0 belongs to loan, and the balnce of £6938 to the power fund account. This is the position after the various adjustments for the year have been made. LOANS. “As the Board is aware £IBO,OOO is the amount of the loan money raised by the Board to date. The bulk of the Board’s construction policy has of course been carried out, but oir the other hand the loan money is pretty well exhausted. As, however, loan monies have been used for making advances to consumers for their installations to the extent of between £12,000 and £13,000, this sum will eventually be available for extensions and new lines. To save further borrowing (except perhaps a certain amount of Bank overdraft) it seems well worth considering whether it is advisable for the power fund to take ov.er the indebtedness of]consumers Toil advances and repay the loan , account the amount due. The loan fund would then be sufficiently replenished to carry out the small extensions contemplated. MILKING-PLANT RATE. “It will be remembered that the Board lias more than once made it known that as soon as it was at all safe to ease the present rates that the dairy farmers should be the first to benefit by the concession which could be made. There has

also been a feeling of dissatisfaction with the horse-power rates now in force.as against a simple unit rate. In view of these facts enquiries have been made as to the methods of charging for milking plant power by other Power Boards. It has been found that there are different methods, and a Board has to find out what best suits its own district, and its own particular load. There is certainly no uniformity —either in the price charged or in the method of charging. “The present charges of this Board compare very favourably with other Boards, a careful comparison with the prices charged by one of the nearest neighbouring Boards has shown the fact that although the methods of charging are different, the amount paid by farmers fo„r the work done, are practically the same. If it is now deemed advisable to change the system of charging for milkingplant power to a .purely unit rate and not a horse-power basis as hitherto the same can be convenient ly done either as from the Ist of July or at the beginning of any coming quarter. “To give concessions of between £7OO and £BOO to these consumers engaged in the industry the following rates would be effective: — First 100 units per month, 4d per unit nett. Second 100 units per month, 3d per unit nett. All over 200 units per month, 2d. per unit nett. Minimum of 5s per month. DAIRY FACTORY RATES. ~.

“In sympathy with the Board’s idea to make the first concession in rates to the dairying industry, the factories in the district have a claim on such concession. The best way would be to reduce the kilowatt rate from the present rate of £5 10s to' £4, to commence at the beginning of the next quarter. This would mean a -substantial concession to the factories. METER RENT. “In view of the foregoing reductions it would be inadvisable to make further concessions for the present year. The Board can hardly expect a credit balance for the year at the end of March, 1927. At anyratc there seems every prospect of an expenditure of over £30,000 and it is doubtful if the revenue will rise to that amount. However, if the year is fairly prosperous, and the debit balance on its working is not too large, the Board might then consider whether this charge could either be reduced or better still cut out altogether.