Reduction of Power Charges

Sun (Auckland), Volume 1, Issue 99, 18 July 1927, Page 1

Reduction of Power Charges

WAITEMATA SUPPLY BOARD’S SPECIAL MEETING A REDUCED alternative rate of tariffs was decided on by a special meeting of the Waitemata Power Board this morning. The new domestic rate will operate from October 1. The chairman, Mr. J. W. Hayden, suspended the usual rules of debate and asked for a free discussion on all sides. A report was submitted to the board last meeting in which the engineer proposed the introduction of the Hopkinson Demand Rate, consisting of a fixed charge payment pljis a low rate per cnit modified to suit the board s requirements. The domestic-supply contract terms proposed were a fixed charge of £8 per annum payable monthly, plus one penny a unit used for lighting, ironing, heating and cooking.

The average loss of revenue, agreed the chairman and Mr. G. Trevithick, would be about £7OO a year under the new charges.

AUCKLAND BOARD’S CHARGES Addressing the board the engineer stated that the 219 stoves which were served would cost the board £I,OOO against which would have to be offset other economies. The charges compared directly with the Auckland Board’s charges. It was a question whether the board could afford to sell current at the rates proposed. If it could do so, the charges were sound. The report of the secretary on the suggestions of the engineer dealt mainly with the domestic supply. Meter accounting should be as simple as possible hut the new system suggested by the engineer would introduce complexity into accounting. The secretary agreed that the proposals were attractive in view of the competition for business, but care must be taken to see that the consumer did not secure all the benefit and the board all the loss, Assumgin that the annual loss of £I,OOO was correct and as estimated by the engineer present connections could be doubled in six months, the question was whether the additional revenue of £2,900 suggested by the engineer would compensate for the loss. CHARGES FOR SIDE-LINES Reduction of charges, said Mr. Trevithick, should be on the smaller things that would popularise the electrical service. The engineer made it clear that the. proposal aimed to make side-lines more attractive. Mr. Hayden said that stoves were going to be a big factor in the board’s business. It was a question whether the board would amend its charges or lose business against competition. No consumer would take on the new charge unless he had a stove and in such a case the new terms would be more favourable. Mr. M. E. Thompson and Mr. J. Mackie said that the rate would be valuable in getting the board new business.

Mr. A. G. Greenslade moved the alternative domestic rate as suggested by the engineer. Mr. S. E. Kennings seconded the motion on the grounds that the rate would increase the output and lower the costs of production. The county members of the board with the exception of Mr. H. Day all supported the motion. The chairman opened up the question as to what the members understood by domestic lighting and the qualification “for private residences only” was incorporated in the motion which was carried. For industrial motors the board decided that the minimum charge should be fixed at 5s a horse-power of connected load a month less 12J per cent, discount.

For milking motors the new- rate should be a fixed service charge of £6 16s a horse-power less 12h per cent, plus a unit charge of 21d unit, less 121 per cent, for all units consumed.