SPLENDID PROGRESS

Wairarapa Times-Age, 22 April 1938, Page 8

SPLENDID PROGRESS

WAIRARAPA ELECTRIC POWER BOARD CHAIRMAN REVIEWS PAST YEAR. PROFIT OF NEARLY £lO,OOO. Complete satisfaction with the progress made during the year and with the buoyant state of the finances was expressed by the chairman, Mr A. Campbell Pearce, in his annual report presented at yesterday’s meeting of the Wairarapa Electric Power Board. “The net revenue reached the record figure of £64,295 2s 3d,” stated Mr Pearce, “and showed a gain on the previous year of £7502 16s 7d. The expenditure increased from £51,316 18s 7d to £54, 699 6s 9d, an increase of £3,382 8s 2d only, with the result that the profit increased from £5,475 7s Id to £9,595 15s 6d. PROGRESSIVE POLICY. “The results obtained over the past few years clearly indicate that the general policy matters which have been introduced from time to time by the Board have been on sound and progressive lines. During the slump period we were able to make reductions in charges which on the consumption at that time represented a saving to the consumers of £16,451 per annum, and we were still able to show a profit after making proper -provision for depreciation and loan repayment. The undertaking has responded immediately to the better conditions existing today, with the result that there has been increased turnover in all Departments, and increased profit. “According to the estimates made out at the beginning of the year, it was anticipated that the profit for the year would amount to £2,713, and of this, an amount of £9OO was appropriated for Capital Expenditure. The revenue exceeded the estimate by an amount of £6968 4s Id. The expenditure exceed the estimate by £B5 8s 7d. TRADING ACCOUNT. “The profit of £9,595 15s 6d includes an amount of £1,734 3s lOd net profit from trading account. As the profit from the trading account is very likely to vary considerably from year to year, this amount cannot be taken into account when considering reductions in charges for electricity. The amount available for this purpose is, according, £7,861 Ils Bd. “The Board realised, of course, during the year, from the monthly returns submitted, the satisfactory improvement which was taking place, and in October last, decided to introduce the new Domestic Tariff, which embodies a substantial reduction in charges. The new tariff did not come fully into operation until well on towards the end of the financial year, and its effect on the Board’s finances has not yet been felt. For the same reason, the consumers may not yet have realised to the full extent the benefits they will receive under the new rate. The rate was designed primarily to make a reduction in charges, and at the same time to encourage and make possible a greatly extended use of electricity by all classes of consumers. To accomplish this, the basic rate was reduced from 53d to 5d and low follow-on rates of 13d, Id and 3d introduced. As the consumption is greater in winter than in summer, it necessarily follows that the saving to the consumers and the cost to the Board, will also be very much greater in winter than in the summer. “The effect of all the reduction recently made and proposed will mean a saving to the consumer of £7BBO. It is satisfactory that, during a period when costs are rising and when the consumers are paying more for most other services, we have been able to make such substantial reductions in our charges. If the progress experienced last year continues, we shall without doubt, be able to further reduce charges to the benefit of both the Board and the consumers.”