RECORD YEAR

Wairarapa Times-Age, 26 May 1938, Page 8

RECORD YEAR

WAIRARAPA ELECTRIC POWER BOARD ALL DEPARTMENTS SHOW INCREASES. SECRETARY-MANAGER’S REPORT. “The year ending March 31, 1938, was one of the most successful ever experienced by the board,” stated the Secretary-Manager, Mr G. Brown, in his annual report at today’s meeting of the Wairarapa Electric Power Board. “There was a substantial increase in the number of units sold,” Mr Brown added; “the turnover in the trading department has been exceeded on one occasion only, the length of new lines erected was greater than for many years. As a result, the revenue increased by a substantial amount. The expenditure also increased in many ways, but as our fixed charges constitute such a large proportion of our total expenditure, the ratio of increase was less, and as a result, there was a satisfactory increase in the profit. “During the period of fourteen years economic conditions have varied from one extreme to the other, major calamities in the way of floods and storms have been experienced, and other difficulties of a minor nature have had to be dealt with. The board has, however, steadily progressed from year to year, with the result that for many years the board’s consumers have enjoyed progressive reductions in charges for electricity, and today the average return to the board per unit sold is approximately onethird only of what it was in 1927. INCREASE IN UNITS SOLD. “The increase in the number of units sold was phenomenal and greater than ever before experienced. The number of new consumers connected up accounted, of course, for a certain amount of the increase, but the main part of the increase was due to the increased use of electricity by the consumers already connected. It is always difficult to forecast what the cost of power is likely to be. Our peak is controlled to a very large extent by certain classes of load, which are regulated by the board. Abnormal weather conditions and freak peaks are, however, always likely to upset calculations. Last year a fairly substantial increase was allowed for and was required, and the estimate was exceeded by a small amount only. This was more than compensated for by the increase in revenue from bulk supply which has a very definite effect on the peak. “The increase in the connected load was greater than that of any previous year. It was well spread over the different types of load and must result in increased revenue. It is again noticeable that two-thirds of the new connected load was the result of additions to existing installations. REDUCTION IN CHARGES.

“The alteration in the domestic rate last year was a very important advance in the general progress which has been made in reducing charges to the consumers. An examination of the more recent accounts clearly indicates that during the winter months, especially, a majority of the consumers will show a very substantial saving in costs, and to all consumers it will make possible an extended use of electricity for both lighting and heating at very little increased cost.

“The new rate has created certain anomalies, all of which can, I think, be dealt with. I confidently anticipate that the rate will result in an increased use of electricity and that as a result, it will be possible to further amend and reduce the rate during the current year. I am definitely of the opinion that nothing should be done in the meantime, until we have been able to see the effect of the rate during the winter months.”