DEVELOPMENT CHECKED

Sun (Auckland), Volume IV, Issue 1002, 19 June 1930, Page 11

DEVELOPMENT CHECKED

EFFECT OF ARAPUNI FAILURE REVISION OF ESTIMATES •‘This is the first time in the history of the undertaking that we have been in the happy position of having an ample supply of power for all purposes/’ said Mr. W. J. Holdsworth. chairman of the Auckland Electric Power Board. . . It will be the board's aim in the future to encourage the use of electricity for every purpose, and with this end in view the board’s policy wiil be to assist both present and prospective industries to the utmost of its power and ability.”

When these words were spoken by Air. Holdsworth at the annual meeting of the Power Hoard some six or seven weeks ago. the board had reason to look forward to a period when, relieved of the constant nursing of :i limited supply, it could embark upon a progressive programnu elect velopment. Alarch 31. 1930. had marked not only the twenty -first bii thda\ o trical undertaking and tl eig th vear of its control by the board, and incidentally the most successful in its history. but also o very important dev« lopment which, it was considered, would the undertaking—the change over to hydro-electric power. On March 31, i 922, when tin n< wlj - formed Auckland Electric - Power Board took over the electrical undertaking of the city of Auckland, the revenue amounted to £ 139,563. and to 5,533 consumers 12,012,826 units were sold. The total capital expenditure was £ C 37.973. In the year ended Alarch 31 1930 revenue from the sale of current increased to £ 638,191 ( £ 603,633 the previous year), consumers totalled 44.903, as against 40,595, and the total number of units sold was 103,719,331 (93,634,531). The revenue amounted to 3- (>4->,079. as against £605,788, and a surplus of £74,693 mad< a verj | ,\- ourable comparison with the £49,457 which appeared in the returns ’for 1929. LOAD LARGELY INCREASED In tl le previous year 103,047,035 units had been generated by the board and 10,108,461 purchased. In 1930. the advent of the Arapuni supply resulted in onlj 01,192,030 units being generated at King’s Wharf station, the board purchasing from the (Jovernment s hydro-electric plant 72 70° 806 units—a total of 123,894,846. Of this total the board sold 103,719,531, representing an efficiency of 53.91 per cent. The unit consumption a head of population served amounted approximately to 300 units.

During the year just ended the connected load was increased as follows* Domestic lighting, 1.090 kilowatts* commercial lighting. 976 motors 4.613 : cJectric stoves, 5.161; water heaters, 1,594; heating points. 3.860. Permits Miore also issued for the installation ol 783 stoves, 1,914 water heaters and I,OOS motors.

YYitli the growth of the board’s business its records show that its income has steadily expanded, last year’s total of £ 645.000 being almost double that of live years ago. From £63.556 in 1927, the surplus fell to £61,000 m 1928, and to £49,457 in 1929. East year, in spite of the Joss for nine months of the standing charge, the surplus was increased to £74,693. Following this remarkable success of the year’s results the Board decided to make concessions to its customers in the form of, rebates estimated at £30,700, approximately 40 percent, of tlie realised surplus. NEW ERA COMMENCES The history of the board since it took over the undertaking in 3 922 shows that despite the natural difficulties in building up big loads with a steam-generating plant, the board has succeeded in building up an immense undertaking. The task during these years was not an * mand grew with astonishing rapidity but not so the supply. The failure of tlie Government supply to materialise m April 1925, added to the board's e mbarrassmen t. With the advent of Arapuni it was expected that the days of restriction and rationing had gone and that the time had arrived when tlie possibilities of electrification in urban, rural and industrial lif£ could be fully exploited. During the early negotiations the board entered into a guarantee with the Government, in order to allow the Arapuni scheme to proceed, to make a minimum payment of £105.000 annually. tor a. 15,000 k.w. demand. Although at the time this was thought to be a big responsibinty, the rapid expansion of the undertaking very quickly justified it. At the end of last year it was anticipated that during the present the demand would exceed -8,000 k.w., almost double the original guarantee. WILL. AFFECT ESTIMATE ‘Although we do not anticipate that much restriction will be necessary the situation will require careful watching. states Hr. Holdsworth. It was estimated that the revenue for 5 931 at the reduced power rates would amount to £632.500, and that a net profit of £42,750 would be realised. All these figures, however, were based a "ater supply, and the estimates no ' v _ need to be completely revised. rne s . ~' v '' harf plant was being V U h , lgh Pitch and this entailed big staffs almost continuously and heavy coal bills, added the chairman. A continuation of the present situation would undoubtedly curtail further development and even if the hoard could maintain the present supply, of which there was every prospect, the changed outwoul<3 entail a complete revision of the estimates.

It is claimed by the board that there will bo no suggestion of restriction. At the present time consumers are being asked to co-operate with the board in regulating the load. Speaking in regard to the board’s finances, Mr. Holdsworth said the present situation justified the policy of the board in not giving too much awav. A concern such as the Power Board could never afford to sail too close to the wind. If the board had not insisted upon providing good reserves the present situation would have been extremely difficult.