ELECTRIC POWER

Wairarapa Times-Age, 27 May 1943, Page 5

ELECTRIC POWER

VVAIRARAPA BOARD ANNUAL MEETING PAST YEAR’S ACTIVITIES. INCREASE IN REVENUE. (“Times-Age” Special.) In a comprehensive summary, of the past year’s activities of the Wairarapa Electric Power Board the SecretaryManager, Mr G. Brown, stated at the annual meeting of the board held at Carterton today that the net profit for the year ending March 31 was £5,439 after allowing for loan repayments and depreciation. A total of 23,204,871 units were sold, an increase of 9.47 per cent on the previous year.

As a result of the earthquakes the revenue exceeded both last year s revenue and the estimate by a substantial amount. The growth of the water heating load was of such importance that it was absorbing a large proportion of the electricity generated in the North Island. Even in normal times the position regarding the water heating load would have to be carefully watched and probably controlled. The trading account showed a satisfactory increase, both in turnover' and profit. The cost of power was causing concern.

The engineering staff, said MiBrown. had boon very fully employed during the past year, and due to the heavy demands made, it had not been possible to keep up to date the routine maintenance work. Credit was due to Mr Keenan for the manner in • which he organised the work and the staff to the best advantage and to the staff for the manner in which they responded. The board shpuld, as a matter of general policy aim to keep any increase in interest and sinking fund payments as low as possible, and no loan money should bo spent unless the revenue received as a direct result of carrying out the particular work was sufficient to cover all additional annual charges incurred as a result of such work. If this policy was carried out, the branch would be able to meet rising costs, and at the same time improve its position. Profits would in crease, thus providing each year a [greater amount to meet the cost of (new reticulation and reconstruction work. The board had been able to reduce its charges to a low level, and to such an extent that they were comparable with those of most other boards including those which were 'better situated regarding load and population. The margin between profit and loss, especially on the ordinary retail sales of electricity, was. however, a small one, and although the board had been able to show a satisfactory total profit.for some years, the position would have to be carefully watched if this satisfactory position was to be maintained.

The Chief Engineer, Mr H. B. Keenan, submitted a detailed report on the engineering activities of the board for the past twelve months.