CHARGES FOR POWER.

Putaruru Press, Volume VII, Issue 275, 14 February 1929, Page 2

CHARGES FOR POWER.

METERS MOOTED. Revenue 100 Low. Ratio With Power Supplied. The decreasing ratio of revenue to power purchases formed the subject of a brief discussion at Tuesday’s meeting of the Thames Valley Power Board. The conclusion arrived at was that consumers paying on the flat rate were using considerably more power then they are expected to. An involved tabulation of figures submitted by the engineer (Mr. N. G. McLeod) set out that whereas the amount of power purchased in bulk from the Public Works Department had shown a gradual increase over a period of years, the revenue had not increased correspondingly. In the course of his monthly report the manager (Mr. R. Sprague) sub-

mitted a financial statement of the I income and expenditure for the nine | months ended December 31. A com- ; parison of the chief items with the j corresponding period in 1927 was ap- j pended, as follows (1927 figures j given in parentheses):—Plat rate (L.E.P.), £53,793 (£45,203); water- ! heaters, £4082 (£2864); ovens, £2636 ; (£1766); towns (L.H.P.), £20,902 (£18,896); street lighting, £834 (£825); towns, maximum demand, £3936 (£2502); factories and indus- j trial, £5140 (£4589); trading, £ISOO (£2500); sundries, £1843 (£2015); power purchases, £29,229 (£24,864) ; interest and sinking fund, £39,087 (£36,781); administration, £7476 (£6778); maintenance, etc., £7994 (£6162); tree planting, £lO5 (£226); motor upkeep, £2664 (£2214); depreciation, £3335 (—); discounts, £5873

(£5017). “ The power purchases have shown a greater increase in the nine months than any year since the board’s inception,” said Mr. Sprague, “ and if the ratio of purchases against revenue had been maintained, as in previous years, a very substantial profit would he shown. The question of the great increase in power purchases, due to the load, w T ill have to be carefully considered, as this is now assuming big dimensions in proportion to the revenue being received. The hoard should, however, not show a loss on the year’s operations.” The manager observed that the present was the best quarter from a revenue viewpoint.

The chairman said the hoard lost £ISOO a year through the dairy companies not receiving supply. Mr. Arthur: Is not our agreement with the companies a bad one?

Mr. Strange: No. We will profit when Arapuni is supplying power. Mr. McLeod said the agreement was quite a good one. The power cost the board nothing, but for the use of the board’s lines the board secure half the revenue. “We would have been in a better position had Arapuni been working now,” he added. “In other words we are receivI ing a third less revenue than formerly, due to our not being able to supply power.” The chairman: The point that arises is whether we should meter. I move the matter be referred to the finance committee to report at the next meeting. Mr. Pohlen considered the metering system was the fairer method of charging. The question of capital cost would arise, but this would be justified by the increased revenue that would be received. Mr. Arthur seconded, and the motion was carried. It was stated that the whole position regarding power charges would l be discussed at next meeting. I Mr. Flatt asked why administration ' costs had increased by £7OO.

Mr. Sprague explained that it had been the practice in the past to debit portion of the administration costs against the loans. These were now being exhausted and the full administration cost was becoming a charge on the general fund. Mr. Flatt: Would it not he possible to reduce the staff now that the prini cipal construction work is nearly ‘ completed and the work is maintenfance only ? The chairman: The present is not

the time to bring that matter up. It was gone into very fully several months ago. We cannot be reviewing it at short intervals.