POWER CHARGES

Rotorua Morning Post, Volume 2, Issue 542, 27 May 1933, Page 6

POWER CHARGES

Our Own Correspondent) .

BAY 'OF PLENTY BOARD'S ESTIMATES FOR 'YEAR POSSIBLE REDUCTION'

(From

Opotiki1, Friday. The following estim(ates for the coming year were submitted to the Bay of Plenty Power Board yesterday by its engineer-manager (Mr. J.. D. Dicker) : — Expenditure Interest and sinking fund, £12328; power purch'ased, £12,200; administration and management, £2201 -10s; office expenses, printing and advertising, £978; meter reading and inspection, £1291; servicing faults, etc., £1367; maintenance lines and subs. £2138; rents, rates, insurance, board members expenses, legal expenses and sundries, £867; building maintenance, £100; bad debts, £100; balance, £5150 10s. Total £38,721. Receipts Receipts were estimated as follows: Sale of electricity £38,021. Sundry saies, £700. Total £38,721. In commenting upon the estimates, the engineer-manager said: — "The above does not allow for depreciation or capital expenditure out of revenue. Allowing £2,000 for each of these items the balance left is £1150 10s.

"I have carefully considered the possibility of making a reduction in the board's tariff, and on -the above estimates, I recommend for the board's consideration a reduction of ld per unit on all lighting units now charged at lOd. Such a reduction would benefit all classes of consumers, and amount to an annual sum of approximately £655. "This recommendation is made on the assumption that permission will be obtained to extend the maturity dates on loans as set out in the secretary's report. "If such extension is not granted the estimated nett profit of £1150 10s will be reduced to £1231 and it will not be possible to give the above reduction without incurring a loss in the year's working. "The estimated expenditure (for further construction for 10 miles 11,000 volt lines and the necessary L.T. lines, services and meters, etc., is £4093. To this must be added the sum of £877 for condensers as indicated in a separate report herewith. "The total figure will be reduced to some extent by the .cost of materials available from existing stocks." Chairman's Report The chairman's report stated. — "Ifi presenting a general report for the year ending March, 1933, I would first refer to the loss our board sustained by the death of our late chairman, Mr. H. R. Hogg, who ha.d devoted his energies to the service of the board from ,its inception. Th'e sympathy of the board has already by resolution been conveyed to his sorrowing relatives. "The year just concluded has proved even more difiicult than the previous one. Conditions still cause anxiety, and emphasise the necessity for care !in th'e administration of the board. The accounts presented to you must be considered satisfactory when everything is considered. There has been a steady growth of the board's business, and we have been able to meet the increased demand for power without further borrowing. "This is strengthening the p'osition of the board, and with the advent of better economic conditions in the Domlnion we may look forward to the day when we may materially reduce the cost of power to our consumers. "We have during the year had considerable relief in our finance from the action of th'e Government in reducing interest charges. We shall feel the benefit of this more fully in the coming year, and you will note that it is suggested in the estimates prepared by our engineer-manager, that it is considered possible to give a certain reduction of charges for the coming year. "We have during the year, in conjunction with other boards, approached the Government seeking reduction in the cost of power supplied; but failed to secure any relief in this respect, the Government evidently thinking that what they had done in reducing) interest charges "yjas all they were able to do at present.