The communique issued by the Couneit regarding the increase in the surcharge levied by. the Shanghai Fower Company stated inter alia follows:
"The Municipal Council has ay proved an application submitted by the Shanghai Pawer Company for Increasing its charges by the Imposi= of a temporary surcharge on the basic rates for the supply of electrical energy 10 all classes of servia, in addition to the existing exchange and fuel surcharges; such surcharge {in addition to the existing exchange to be 60 per cent, based on an ex change rate of US§525 equals Chinese $100 and adjusted upwards or downwards "monthly by agreement between the company and the Council in accordance with the procedure adopted in respect of the exchange surcharge, This new surcharge will be applied to accounts in respect of consumption periods ending on and after July 1, 1941, and is subject Various conditions which the com pany has accepted, The new temporary fur change appllas 10 basic ates "only.
The company in its application stated that additional revenue was required, 10 meet the cot me creasing costs of operation due to increases In, the cost of commodities, freight rates, ote, which were not fully compensated or by'ths existing exchange and fuel surcharges, and to provide some relict in respect of the feompany's cash position which had deteriorated since 1937 to such an extent as to cause serious concern, Comparative Data Whilst admitting that rates prevail-{ing in other cities are not a criterion to proper rates for Shanghai, and, Because of war conditions, it has been impossible (0 obtain comparative data from undertakings abroad for periods loter than 1999, the company com piled and submitted such comparative data, based upon the latest available warmest thanks for message, which he deeply appreciates.' economies and to-avoid dlseriminution minimum charges are necessary to compensate equitably for the capi. fal invested and expenses. incurred in maintaining a service which is of adequately used, agreed that was Not easy {0 defend such charges ata time when the public is being Urged {0 reduce consumption of elec tricity. "The company' accordingly Suggested that. minimum charges other than for bulk supply be tem~ porarily suspended during the present fuel emergency despite the' loss In revenue which would result, 'The Gas Company favoured rotenfon' of the minimum charges since their abolition would result ina substantial reduction In revenue which would require to be made up by an Increase in the surcharge, The company stated that the hight surcharge paid by gas consumers Is due to the Increased use of expensive imported: coal and elf necessitated largely as, result of a 97 per cent. increase the - number' of consumers ers.sinee 1937, These new consumers were stated io have largely chang-from the use of coal. charcoal and oil fo sas, and a considerable proportion of them use less than 150 units of gas per month. The! company's old. established consumers are thus being penalized in order to meet the temporary requirements of large number of new consumers who in all probability: will continue use gas in place of other fuel only as long as it is cheaper to de so. The average domestic consumer uses 422: nits a month and on this basis the minimum of 150 units does not appear excessive.
{In considering this matter the Pub-Uilities Committee noted that the {wo companies were in entirely ditferent positions. Owing to the inadequacy of its supplies: the Power Company was appealing to consumfers not subject. to the restriction
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