amalgamation of undertakings was prohibited. After less than a decade of development several of the companies in London found themselves obliged to make considerable additions to their generating plants. But their existing buildings were full to their utmost capacity, and the difficulties of generating cheaply on crowded sites had increased instead of diminished during the interval. Several of the companies had to promote special acts of parliament to obtain relief, but the idea of a general combination was not considered to be within the range of practical politics until 1905, when the Administrative County of London Electric Power Bill was introduced. Compared with other large cities, the consumption of electricity in London is small. The output of electricity in New York for all purposes is 971 million units per annum or 282 units per head of population. The output of electricity in London is only 42 units per head per annum. There are in London twelve local authorities and fourteen companies carrying on electricity supply undertakings. The capital expenditure is £3,127,000 by the local authorities and £12,530,000 by the companies, and their aggregate capacity of plant is 165,000 k.w. The total output is about 160,000,000 units per annum, the total revenue is over £2,000,000, and the gross profit before providing for interest and sinking fund charges is £1,158,000. The general average cost of production is 1.55d. per unit, and the average price per unit sold is 3.16d., but some of the undertakers have already supplied electricity to large power consumers at below 1d. per unit. By generating on a large scale for a wide variety of demands the promoters of the new scheme calculated to be able to offer electrical energy in bulk to electricity supply companies and local authorities at prices substantially below their costs of production at separate stations, and also to provide them and power users with electricity at rates which would compete with other forms of power. The authorized capital was fixed at £6,666,000, and the initial outlay on the first plant of 90,000 k.w., mains, &c., was estimated at £2,000,000. The costs of generation were estimated at 0.15d. per unit, and the total cost at 0.52d. per unit sold. The output by the year 1911 was estimated at 133,500,000 units at an average selling price of 0.7d. per unit, to be reduced to 0.55d. by 1916 when the output was estimated at 600,000,000 units. The bill underwent a searching examination before the House of Lords committee and was passed in an amended form. At the second reading in the House of Commons a strong effort was made to throw it out, but it was allowed to go to committee on the condition—contrary to the general recommendations of the parliamentary committee of 1898—that a purchase clause would be inserted; but amendments were proposed to such an extent that the bill was not reported for third reading until the eve of the prorogation of parliament. In the following year (1906) the Administrative Company’s bill was again introduced in parliament, but the London County Council, which had previously adopted an attitude both hostile and negative, also brought forward a similar bill. Among other schemes, one known as the Additional Electric Power Supply Bill was to authorize the transmission of current from St Neots in Hunts. This bill was rejected by the House of Commons because the promoters declined to give precedence to the bill of the London County Council. The latter bill was referred to a hybrid committee with instructions to consider the whole question of London power supply, but it was ultimately rejected. The same result attended a second bill which was promoted by the London County Council in 1907. The question was settled by the London Electric Supply Act 1908, which constitutes the London County Council the purchasing authority (in the place of the local authorities) for the electric supply companies in London. This Act also enabled the Companies and other authorized undertakers to enter into agreements for the exchange of current and the linking-up of stations.
The general supply of electricity is governed primarily by the two acts of parliament passed in 1882 and 1888, which apply to the whole of the United Kingdom. Until 1899 the other statutory provisions relating to electricity supply were incorporated in provisional orders granted by the Board of Trade Legislation and regulations.and confirmed by parliament in respect of each undertaking, but in that year an Electric Lighting Clauses Act was passed by which the clauses previously inserted in each order were standardized. Under these acts the Board of Trade made rules with respect to applications for licences and provisional orders, and regulations for the protection of the public, and of the electric lines and works of the post office, and others, and also drew up a model form for provisional orders.
Until the passing of the Electric Lighting Acts, wires could be placed wherever permission for doing so could be obtained, but persons breaking up streets even with the consent of the local authority were liable to indictment for nuisance. With regard to overhead wires crossing the streets, the local authorities had no greater power than any member of the public, but a road authority having power to make a contract for lighting the road could authorize others to erect poles and wires for the purpose. A property owner, however, was able to prevent wires from being taken over his property. The act of 1888 made all electric lines or other works for the supply of electricity, not entirely enclosed within buildings or premises in the same occupation, subject to regulations of the Board of Trade. The postmaster-general may also impose conditions for the protection of the post office. Urban authorities, the London County Council, and some other corporations have now powers to make by-laws for prevention of obstruction from posts and overhead wires for telegraph, telephone, lighting or signalling purposes; and electric lighting stations are now subject to the provisions of the Factory Acts.
Parliamentary powers to supply electricity can now be obtained by (A) Special Act, (B) Licence, or (C) Provisional order.
A. Special Act.—Prior to the report of Lord Cross’s joint committee of 1898 (referred to above), only one special act was passed. The provisions of the Electric Power Acts passed subsequently are not uniform, but the following are some of the usual provisions:—
The company shall not supply electricity for lighting purposes except to authorized undertakers, provided that the energy supplied to any person for power may be used for lighting any premises on which the power is utilized. The company shall not supply energy (except to authorized undertakers) in any area which forms part of the area of supply of any authorized distributors without their consent, such consent not to be unreasonably withheld. The company is bound to supply authorized undertakers upon receiving notice and upon the applicants agreeing to pay for at least seven years an amount sufficient to yield 20% on the outlay (excluding generating plant or wires already installed). Other persons to whom the company is authorized to supply may require it upon terms to be settled, if not agreed, by the Board of Trade. Dividends are usually restricted to 8%, with a provision that the rate may be increased upon the average price charged being reduced. The maximum charges are usually limited to 3d. per unit for any quantity up to 400 hours’ supply, and 2d. per unit beyond. No preference is to be shown between consumers in like circumstances. Many provisions of the general Electric Lighting Acts are excluded from these special acts, in particular the clause giving the local authority the right to purchase the undertaking compulsorily.
B. Licence.—The only advantages of proceeding by licence are that it can be expeditiously obtained and does not require confirmation by parliament; but some of the provisions usually inserted in provisional orders would be ultra vires in a licence, and the Electric Lighting Clauses Act 1899 does not extend to licences. The term of a licence does not exceed seven years, but is renewable. The consent of the local authority is necessary even to an application for a licence. None of the licences that have been granted is now in force.
C. Provisional Order.—An intending applicant for a provisional order must serve notice of his intention on every local authority within the proposed area of supply on or before the 1st of July prior to the session in which application is to be made to the Board of Trade. This provision has given rise to much complaint, as it gives the local authorities a long time for bargaining
