Discounts likely to be decreased

Ruapehu Bulletin, Volume 9, Issue 401, 27 August 1991, Page 19

Discounts likely to be decreased

Discounts offered by King Country Energy for prompt payment are likely to be reduced in line with those given elsewhere. Currently customers paying by due date receive a 10 percent diseount, which is well above the industry average, said to be between two and a half and five percent. Customers paying their accounts a year in advance currently get a further eight and a half percent on top of the 10 percent prompt payment discount. The new tariff structure just approved by the board for 1991-92 continues the present discount structure but cuts the additional annual discount to five percent. Board members questioned whether the levels were appropriate while considering the monthly accounts at the August board meeting, which showed a much higher

opcrating loss for June than budgetcd. Figures tabled showed a monthly loss of $241,896 compared with a budgeted $16,120 in June but secretary treasurer Norm Annand said this reflected, in part, hiccups in the new reporting system being dcvcloped, plus higher that usual electricity purchase costs that would not be compcnsated for by revcnue until the July figures. Board member Bill Peach said the figures would be disturbing if they reflected a trend, but general manager Peter Till said this wasn't the case, although some spending needed a closer scrutiny. Major variances between budget and actual figures could be expected in the first year of a new reporting system but the knowledge gained this year should ensure more accurate forecasting in the future.