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178
OVERDRAFT.
Interest on overdraft £304 7s. 3d. is a very heavy
item, caused by delay in obtaining the last loan of £18,985
during the time the Bank Rate was abnormally high. This
abnormal rate increased the payment by about £100.
Repayment of Capital absorbed a further £7,829
equivalent to 3.2 per cent. upon the outstanding Capital liability.
HEAVY RECENT LOANS.
From the attached diagram No. 1, it will be noticed
that very heavy Capital commitments have been made during
the last three years. This is on account of recent extensions to
the Plant, and entails a very heavy charge the first year or so
without any corresponding increase in the revenue due to the
time lagg before the extra demand for electric energy profitably
occupies this Plant.
WORKING AND PRODUCING COSTS.
Turning now to the general manufacturing expenses,
being the actual cost of producing the current. This includes
the cost in the Generating Station such as coal, water, oil, and
wages for working the machinery, and repair and maintenance
of the Plant in first class condition, distribution of the current
to the consumers, and the attendance on the Public Lamps, all
of which are more or less directly under the control of the staff.
The cost of administration, rates and taxes, law and parliamentary,
and insurance are also unfortunately necessary, but all
these items are more or less beyond the control of the department.
The total of these expenses is £21,753, or 58.3 per cent.
of the receipts.
COST PER UNIT SOLD.
In order to compare these costs with other undertakings,
it is necessary to take into consideration the amount of
work done in each case, i.e. the number of units delivered to
consumers for this expenditure. If the cost of each item is
divided by the number of units sold, an approximate comparison
will be obtained.
This is set out in diagram No. 2 for all the London
Municipal undertakings, the year ending March, 1906, being
taken as a basis, these being the latest complete returns available,
but this last years costs of the Hammersmith Undertaking
are also given for comparison.