With regard to the method of obtaining the required revenue the Committee advocated that with one exception no alteration be made in the existing basic rate structure. This view was taken because it was considered that, if for no other reason, considerable caution should be exercised before making adjustments in basic tariffs in the wholly abnormal circumstances now prevailing. Owing to the close relátion of fuel consumption with kilowatt hour sales it was considered that the extra cost over that provided for in the basic: rates could best be recovered by the application of a fuel adjustment charge to all rates for the supply of electricity, and that the remaining revenue should be obtained by a uniform surcharge on basic rates to be added to the whole of the company's tariffs, including the schedule of mistellantoug charges for services other than electricity.
The fuel adjustment charge conforms as closely as possible to that which has always been applicable to bulk supply consumers. It is pertinent here®to note that while a fuel surcharge has been applied to the basic rates for general power, heating, cooking and water heating. since May, 1940, only a small proportion of the cost of the fuel consumed has been recovered in the charges for lighting.
The revised exchange surcharge recommended. is based on a surcharge of 200 per cent. on the basic rates and charges et exchange of 'US$5=Shanghai $100. and is to vary monthly in accordance with the fluctuations of the average effective rate of exchange for the monthly period previous to that in which recovery is being made. The base rate of 200 per cent. at exchange of US$5—Shanghai $100 will he adjusted should it result in providing more or less than the permitted earnings.
Text read from the printed page and cleaned; old type leaves the occasional error.