Shanghai, Apr, 6, addition to the existing ssu weharge of 114.68 per cent, now being imposed on power bills by the Shanghai Power Company, the Public Utilities Committee of the Shanghai Municipal Council have approved a request by the company to impose a further surcharge to cover the increased cost of coal, it was announced yesterday.
It was pointed out by the company that the surcharge now in effect was designed to afford the company relief in respect of increased operation costs caused by the decline in the local dollar and did not compensate for increased fuel costs, The new fuel surcharge will be effective on accounts ending on and after May 7.
Part of the statement released the SMC. follows:—"The Public Utilities Committee, at its meeting on March 29, gave consideration to an application by the Shanghai Power Company for per~ mission to impose 'a. surcharge in Fespeet of the abnormally high cost fof coal, in addition to the existing exchange suteharge, on four classes fof service in respect of which the price of fuel Is a predominant cost factor," These four classes of service are, General power (which is a ser-Vice supplied for motors, industrial heating apparatus, are welding and similar equipment' not supplied under Dulle supply agreements), heating, cooking and water heating.
In supporting its application, the 'Company' pointed out that the average cost of coal consumed: during the period 1929" to 1996, inclusive, was $11.04 a ton, while the average cost per ton increased from $4130 in November 1939, to $87.62 in February. 1940,. The estimated average cost for March is $110 a ton, with estimated steady and almost "continuous increases in average cost each month, to $133. a ton for December 1940.
The company has been most, for~ tunate in. obtaining the continued supply of 180,000. tons per half-year from the Kailan Mining Administration and while the coal is paid for pounds Sterling, it is landed in Shanghai at a net Chinese dollar cost to the Company far below the landed cost of coal from Indic. The toad upon the Company's system is, how. ever, now such that more than halt of iis cool requirements must purchased from abroad and imported freight costs which reflect, and are likely to continue to reflect, the ual effects "of war conditions upon tonnage.
Text read from the printed page and cleaned; old type leaves the occasional error.