Page 395 - Bahrain Gov Annual Reports (II)_Neat

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future and users arc now purchasing them. This relieves the department from maintenance except
when carried out at the expense of the owners and revenue will be obtained only from the current
consumed. A maintenance staff will be carried as usual.
Continuity of Supply. The electricity undertaking has been continuous in operation since
May 1930, failure of supply due to power house faults has been practically nil and there has been no
failure of main underground distribution feeders or of substation equipment.
Financial Position. A new method of allocating working charges and new depreciation
rates were adopted in 1360 as a trial according to the recommendations of an independent committee
of accountants and engineers who made a ten years’ survey of the undertaking. After meeting all
charges a surplus of Rs. 41,234-10-6 was shown for the year 1360. According to the original method
of allocations and depreciation rates this surplus would have been approximately Rs. 21,000. As
the old rates may possibly have to be partly reverted to, it would be desirable to assume little if any
real profit, but to put all the surplus to reserve.
If the higher rates of depreciation had not been used during the first ten years of the life of
the plant, the present surplus could not have been recovered.
Funds accumulated under the old system of depreciation, i.e., on diminishing values, can now
be put into operating reserve. This reserve will be needed to meet future repairs and replacements.
In brief, the change in the method of accounting makes no difference to the financial situation of the
undertaking which is in any case sound. The committee reported that the whole plant, including
distribution mains, etc., was in excellent condition after twelve years’ working and that the
staff employed was the minimum consistent with the efficient running of the undertaking.
From an engineering point of view the plant as a whole is at present underdepreciated in view
of the peculiar climatic conditions of Bahrain which deteriorate overhead lines, steel poles, underground
cables, etc., more rapidly than elsewhere.
Electricity Charges. No further reduction in the electricity charges would be made at
present. Few extra consumers can be expected during 1361 owing to the world situation.
Prospects for 1361. It is impossible to forecast what will happen in 1361 but if conditions in
Bahrain continue as they are now and the state is not more closely affected by the war the under­
taking should not make a loss although very little profit can be expected. Fuel oil and wages are at
present at pre-war level but all imported material has increased very greatly in price and will continue
to increase. These rising prices add considerably to the general expenditure of the department.
Telephones.
The number of subscribers connected to date is 86.
The proposed laying of underground mains to assist communication was not carried out due
to difficulty in obtaining material. The present overhead system is working as satisfactorily as can
be expected in the very humid atmosphere of Bahrain. This department is self-supporting. (See
Profit and I.oss account.)
During the year a new 50 line switchboard was erected in order to meet demands.
Transport Department
The Government maintenance garage carried out as usual the repairing and servicing of all
Government vehicles (32) including those of the Defence Force. As no new motor vehicles have been
purchased for some years the work of servicing them becomes increasingly difficult. An additional
bay to the garage is necessary as the number of vehicles which arc dealt with has increased. This
item has been included in the budget.

Fire Section.
The Government fire engine extinguished 17 fires during the year, no major outbreaks occurred.
Now that the swing bridge is open the Government and Municipal fire engines can reach Muharraq
town and the villages in the island in case of an outbreak of fire.