ELECTRICITY V. GAS

Wairarapa Times-Age, 18 December 1941, Page 6

ELECTRICITY V. GAS

* ALLEGATIONS OF UNFAIR COMPETITION DENIED BY THE WAIRARAPA POWER BOARD. STREET LIGHTING CHANGES DISCUSSED. Allegations of unfair competition between the AVairarapa Electric Power Board and the local gas undertaking, made at a meeting of the Mastertoil Borough Council were challenged strenuously at today’s meeting of the AVairarapa Electric Power Board.

The chairman, Mr A. C. Pearce, in referring to a report in the TimesAge”. said he took strong exception to Mr Jordan’s remarks about street lighting charges. Mr Jordan had always been, on to the board about street lighting and it was most unfortunate that he failed to see the position. For the year ending March, 1940, the revenue 'for Masterton street lighting was £1,462 15s. Actual costs totalled £1462 8s 2d, leaving a margin of 6s lOd. The margin was not profit as no allowance had been made in the costs for any contribution toward overhead expenses and supervision or toward the general reticulation outside and inside Masterton which made street lighting possible. The average price per unit charged for street lighting in Masterton was •6d per unit. Mr Pearce said he could not see how Mr Jordan could substantiate his remarks. Commenting on Councillor C. E. Grey’s statement that the cost of producing a unit of electricity was :;d, which was sold at jd, Mr Pearce said that the figures were wrong. The total cost per unit was ,908 d. Excluding water heating the total cost per unit sold would increase from ,908 d to 1.41 d. By selling water beating under control at id per unit the total costs per unit were reduced by Id per unit. The price paid to the Government per unit was ,305 d.

Mr W. Howard Booth: “Mr Jordan was wrong in believing Councillor’s Grey’s figures to be correct.”

Mr Pearce: “Mr Jordan has thrown off at us before.” The discussion lapsed after Mr G. Brown, Secretary-Manager, had answered many questions relating to the matter.