Cheap power, and profits for KC Energy

Ruapehu Bulletin, Volume 12, Issue 546, 26 July 1994, Page 1

Cheap power, and profits for KC Energy

King Country Energy last week reported a half-million dollar after-tax profit, while boasting that their electricity was still among the cheapest in the country. The tariffs are in line with a directive that the power company's tariffs be maintained in the lower quartile of tariffs in the country, said King Country Electric Power Trust chairperson, Ian Strachan last week. In his annual report on behalf of the trust, Mr Strachan said the direction to keep tariffs within the lower quarter was one of a number of requests made to the directors when the trustees commented on King Country Energy Ltd's initial statement of corporate intent. The trust also requested that the state-

ment retlected that the company is an "energy company" and that their mar-^^

keting objectives be clearly stated^ The trustees noted the ef-^^r

fect of adverse climatic conditions for genera-^^

tion and electricity saies on

the after t a x

profit of $563,078. The trust also noted that an average five percent overall tariff increase and astute bulk electricity purchases had a bearing on the company result. Directors have recommended that the dividend sum of $140,000 be paid to the

shareholders, King Country Electric^

Power Trust, with $423,078 of the after-tax profit being re-^

tained for improvement^ to the Piriaka Powe^^F

Station and othei c a p i t a projects.^^^ v