Less power, more profit for KCE

Ruapehu Bulletin, Volume 10, Issue 478, 23 March 1993, Page 10

Less power, more profit for KCE

Selling less electricity in January has resulted in larger than expected profits for King Country Energy. While this appears contradictory, it shows the value of King Country Energy 's own generation and keeping

purchases down during the most expensive peak demand periods. Secretary-treasurer Mr Norm Annand told the March board meeting that electricity saies for January were down about half a percent on budget, which meant the board

had to buy less electricity from ECNZ. The board has expected to buy $665,357 worth of electricity from ECNZ, but spent only $585,814, largely because of reduced demand from the AFFCO freezing works in Taumarunui. It

budgeted for a monthly profit of $31,282 on electricity saies, but made $108,849. Unit saies have been continuously below budget since about October and as a result the board has made $157,000 in additional profit, includ-

ing January's larger than usual figure. The board expects to make an overall profit of around $940,000 in the current financial year. King Country Energy generates about a third of its own normal electric-

ity needs at its two power stations. While Piriaka is a run of river station and must continually generate when the water is available, the Kuratau station has a storage dam and can be operated only at peak demand periods when water is short, thus

boosting its value. Recognising that energy efficiencies can produce a good return, King Country Energy has set itself a goal of reducing domestic consumption by two percent over the next 12 months.