USE OF PROFITS

Waikato Times, Volume 119, Issue 19884, 13 May 1936, Page 6

USE OF PROFITS

POWER BOARD VIEWS.

CAPITAL WORK OUOGESTID. CHARGES AT LOW LEVEL. _ The opinion that further reduction! in charges should be held in abeyance and that the prom over the 193543.? financial year of £2i‘2B or portion of it. should be used as capital expend" ture for special work was expressed by the chairman, Mr T. Hinton. in the annual report presented to the Gen—tral Waikato Electric Power Board to—day. lie considered that this step. while not producing more revenue. would benefit the system generally. Mr Hinton presided. while also present were .\[essrs R. G. Young. J. A. Sampson. W. C. E. George, W. Henry. E. F. Peacocke. J. J. Byburn. S. S. Saulbrey, G. Smith, J. It. Ellis (en-gineer-manager) and H. J. Beeche (secretary) ” Reductions are usually made to approximately the extent of the profit for the previous year," Mr Hinton stated. “ There comes a time. however. when prices are reduced to such an extent that a halt might be called for the time being and the consumers given the benefit in other directions than in reductions of charges, such as in improved service. The present charges {or electricity compare more than favourably with those of practirally any other power board. with the exception of several with cities or large towns in their areas, and the consum—ers generally are receiving good value. both as regards supply and service. i would. however. be pleased to have the board consider the matter of giving some relief to the. large user of commercial lighting which could be done by way of a graduated scale of charges for large consumption. A number of supply authorities have such a. scale and it is practically certain that its introduction would in—duce more extensive use by business people for shopping displays, and the like. construction of Feeder. “ Apart from this. X am of the opinion that further reductions could be held in abeyance. and that the board should consider the matter of usins the profit of last year or portion of it for capital expenditure for special work. There are several such works under consideration. One is the provision of an additional line from the Roakura sub-station to Frankton Junction to supplement the present feeder line. which. in the near future, will become overloaded through the widespread increase of reticulation. Such an additional line would not only give better service but also extra security of service. There are several looplines under consideration." Mr 'Hinton added that. the expenditure of revenue money instead of ratsing further loan money for these works would be to the adVantage or the board. The suggestions were tavourably received and the finance committee was instructed to investigate the possibilities of performing capital work from the profits. The board authorised the construction of an additional line from the Runkura. sub-station to Frankton Junction via ‘Clarkin's Road at an estimated cost. of £703. Mr Ellis stated that the ex—isting feeder was carrying a load up to 800 kilowatts and some relief was an urgent necessity.