Christmas market Power sales earn little day winners

Ruapehu Bulletin, Volume 10, Issue 468, 12 January 1993, Page 5

Christmas market Power sales earn little

day winners

King Country Energy expects to make just $41,099 profit from electricity saies of more than $10.5 million in the current financial year. That's one of the surprising figures to be identified by the separation of line and energy charges, as required by energy reforms. General manager Peter Till told the December board meeting that while the overall profit was expected to be around $823,000, it showed graphically that the lines business is a better in-

vestment than energy trading. "There is scope for moving other costs into lines, eg meter-reading and marketing, if one takes the attitude that we are marketing the efficient use of our lines asset. "From conversations with people who should know, I believe our lines charges are on the low side," Mr Till said. Accompanying tables presented at the board meeting showed that at present all of the marketing and meter-reading

costs are divided against the energy trading account. They are expected to amount to $263,000 in the current year. "Energy mark-up figures from one percent to 10 per cent are being bandied about," Mr Till said. "The tables show we would require about 10

per cent of the electricity bill to provide an office, power bills, marketing, overheads and profit." He recommended inviting back accountant David Fleming to revise his 1993/94 budget figures by more aggressively loading costs onto the lines business.