GOOD PROGRESS

Wairarapa Times-Age, 30 May 1939, Page 7

GOOD PROGRESS

WAIRARAPA POWER BOARD’S OPERATIONS NET PROFIT FOR YEAR OF £6648. REVIEW BY THE CHAIRMAN. (“Times-Age” Special.) “It is with a feeling of real satisfaction that I am again able to congratulate the board and the consumers on a year of outstanding progress, and one in which the financial result was entirely satisfactory," stated Mr A. Campbelly Pearce, chairman of the Wairarapa Electric Power Board at the annual meting of the board in Carterton today. "Compared with the previous year, and ’in spite of the very substantial reductions in charges amounting to £7BBO. which were .made in January and May, 1938. the total net revenue increased from £64,295 to £67,109,’ he said. “After allowing for repayment of loans and for depreciation, the net profit for the year was £6648. and briefly, is arrived at as follows:—Sales of electricity, £63,848; sundry. £461; profit on trading. £2041; interest, £757; total. £67,109. Expenditure was: Cost of power. £18.568; generation and distribution, £7533; interest, £14,821: loan repayments, £6655; depreciation and replacements. £3944; general. £8936; total £60.460. Of 'the profit. £3OOO has already been appropriated tor and expended on construction and other capital works. This satisfactory result is due to the extended use which is being made of electricity for all purposes. and as far as domestic load is concerned, which was made possible by the new method of metering and charging which was introduced in January, 1938, the number of units sold in 1938-39 increased to 15.014,288 compared with 12,'822,949 in 1937-38, an increase of 2,191,339 units.

NEW METERING SYSTEM. “One of the most significant and important features of last year's operations was the application and the effect of this new method of metering and charging for domestic supply. When the rate was designed, it was realised that in some respects the anticipated effect was based upon factors, some of which could not be accurately determined, and that, accordingly, the estimate was more or less indefinite. The results last year have proved that these estimates were reasonably accurate and that, as anticipated, the new rate has proved advantageous to both the board and the consumers. It cannot be taken for granted, however, that the profit shown last year will be maintained on the same basis this year, and action taken accordingly. In the first place, nearly one-third of such profit was earned by the trading department, in which the turnover amounted to £31,234. Owing to import restrictions and shortage of labour, it will be difficult to maintain this turnover during the current year. Secondly, when the new domestic rate was introduced, it was pointed out that a larger proportion of any increase in revenue would be absorbed by the additional amount which would have to be paid for power purchased to . obtain such increase. Thirdly, an increasing proportion of the new load connected up necessitates additional capital expenditure to provide for greater carrying capacity in the lines, or additional or larger transformers to supply such new load, with a consequent increase in the annual capital charges.

ALL ELECTRIC “In these respects, the full effect of the new rate was not felt last year, although there were definite indications of the development of the features mentioned. However, the margin is sufficient to warrant a further step forward in the simplification of the rates, and proposals have been submitted for further amendments of the ‘domestic’ and ‘all electric home’ rates and the rate for small industrial motors under 5 h.p. These amendments will result in reductions in charges amount ■ ing to £lO6O per annum. The amendments will also improve the inducement effect of the rates and should lead to a further extended use of electricity. In its new form, the ‘all electric home' rate is particularly attractive and compares more than favourably with that of any other country power board in Nev/ Zealand, and is more than competitive with any other method of obtaining the same service. It is as follows: —First (No. of rooms x 2) units per month, 5d net; next 60 units per month, L|d net; balance, i‘d net. During the past two or three years, efforts have been made by the Power Boards’ Association to get the Government to make some reductions in the price charged for power supplied to supply authorities. The Government has refused to do this, and the charges still remain the same as when we first commenced to get supply from the Government in 1925. Some small measure of relief may be obtained if the Public Works Department takes over,the switchgear in the main sub-stations, which action has been suggested as an alternative. RURAL RETICULATION.

“It is satisfactory to note that during the past year,, the reticulation of the rural districts was further added to by the erection of over 25 miles of ILOOO volt lines, together with the necessary low tension distribution lines. The new districts served include Taueru, Upper Wangaehu, Upper Rangitumau, Miki Miki, Haringa Road, West Taratahi, Somerset Road. Dry River Road, and the Kumenga District. It is anticipated that further substantial progress will be made this year. Arrangements have already been completed for the reticulation of the Taueru-Tinui and Matahiwi districts. For jome years past, I have referred in my annual report to the advantages which will result from the erection by the Public Works Department of a line from the Waingawa Sub-station to the Melling Sub-sta-tion at Wellington. I am pleased .to be able to state this year that the actual erection of the line has been commenced, and it is the intention of the Department to complete it at as early .1 date as possible. This should reduce interruptions to a minimum and make it possible for the Department to carry out necessary repairs on different sections as required, without having to discontinue our supply in the meantime, and will also make it possible for the board to get the second point of supply at Moroa, when the growth of load in the Southern Area makes this necessary. LOANS AND RESERVES. "The capital expenditure last year was much heavier than usual, and as a result, the whole di' the first construction loan of £25,000 will be expended by the end of this month, AS-

rangements are, of course, being made to raise a further loan. In the case of the new loan, it appears as if 41 per cent interest will have to be paid, compared with 3J per cent on the old loan. Taking everything into consideration, we can hardly complain about the increase, but rather, be thankful that we have been able to raise a total sum of £30,350 at the low rate of 3| per cent. During the year, new loans amounting to £15,350 were raised, and our old loan liability was reduced by £9430, a portion of which was provided from the Consolidated Sinking Fund which, as a result, was reduced from £23,614 to £21,584, and the balance by a direct payment of £6655 from revenue. The depreciation reserve was increased from £42,070 to £45373. The increase of £3302 was made up by a direct contribution from revenue of £lB4O, ahd interest earned was £1462. The whole of the. depreciation reserve is invested with the Public Trustee. The General Reserve increased from £6968 to £7313, the increase being due to interest earned. The main purpose of these reserves is, of course, to deal with depreciation and obsolescence, and they are very necessary. We are now getting to the stage when the number of pole replacements each year will rapidly increase, and there is always present the danger of certain of our equipment becoming out of date, and having to be replaced with new equipment for the control of water-heaters, the installation of which may be to the advantage of both the board and the consumers, but which would necessitate the gradual scrapping of the existing time switches.

SURER ANNUATION. “In March, 1937, it was decided by the board that the matter of coming to a decision regarding the establishment of a superannuation scheme for the staff be held over until the actual details of the Government Scheme were known. Now such details are •known, the matter should, at an earl' date, again receive the consideration of .he board. “I wish to congratulate the secret-ary-manager on the result of the year’s work, which has been a heavy one, and most satisfactory from every point of view, and to place on record his untiring efforts to forward the board's interests. I also wish to thank the staff who have worked so loyally for the benefit of the consumers. A large measure of our success is due to their co-operation and united effort. I wish also, to thank the board i members for the assistance and cooperation which I, as chairman, have received during the year. It is to be expected that on some questions differences of opinion will exist. This is quite a healthy sign, and as long as such questions are brought forward and discussed freely and fran'kly at the board table, and considered from the point of view of the district as a whole, nothing but good is likely to result." LIFE'S MINOR ILLS CAN BECOME SERIOUS IF NEGLECTED. Itl-health in many cases is traceable to some little irregularity of the digestive organs. Maybe the Liver is sluggish, the Stomach disordered, the Bowels constipated. In addition to the suffering and discomfort experienced, any one of these troubles might develop into something more serious if neglected. Hence the necessity for taking prompt steps to restore the system to proper working order. As a remedy for this purpose, Di Morse’s Indian Root Pills are specially suited, and bear a world-wide reputation. They stir the Liver, cleanse the Stomach and stimulate the Bowels, thus opening and toning the clogged-up system and making it better able to combat Life’s Little Daily Ills. 12