The People’s Electricity

Dominion, Volume 30, Issue 154, 27 March 1937, Page I (Supplement)

The People’s Electricity

THERE was an interesting debate in the British House of Commons recently on the supply of electricity. Mr. Herbert Morrison, putting the case for the Labour Party’s method of nationalisation, said:— “(Jur suggestion is that the GOO-odd electricity supply undertakings should be abolished, 'l’he Central Electricity Board should be abolished. The Electricity Commissioners should be abolished. "We would transfer the generating and distributing undertakings to a national corporation, a business concern, appointed by a Minister on grounds of competence and ability to run the industry. "We agree Unit it cannot all be run from London, or from one common centre. Therefore, we would establish, under the national board, regional boards for appropriate regions, but they ought to be subject to the policy of lite national board itself. “There would be, in charge of each region, a first-class electrical engineer and a first-class sales manager and service manager. One of the problems is that a good electrical engineer might, be a first-class technician but utterly at a loss in the field of salesmanship. These regional bodies would each have, not only tirst-class electrical engineers, possibly one for generation and another for distribution, or the same man would do both jobs, but a first-class sales mamiger to look after commercial policy and service and to see that consumers had plenty of service from the organisation. "We would clothe those regional bodies with consultative committees, in order that they might be kept in touch with public opinion. It is only by such methods that you will iron out the inequalities of charge and the differences of voltage, frequency, and systems of supply. “It is only by that method of a national organisation on a large scale, with regional organisations, that you can command an equality of tirst-class technical and commercial service to get this industry running vigorously ami competently, in a really aggressive business way. We believe that it is essential for that to be done.” Mr. Hore-Belisha, in reply, explained why the .McGowan Committee was not in favour of nationalisation. He said:— “The committee took widespread evidence from all parts of the industry and from consumers.

"They concluded I bat the fact that it: has been found possible to vest the control of generation and main transmission throughout the United Kingdom in the Central Electricity Board is not in their opinion conclusive evidence that Hie distribution of electricity should be organised on a similar basis, "The reason for the distinction is plain. Generation and main transmission are highly technical problems. There is no physical reason why electricity generated in Glasgow should not be made available in Southend. 'l’he type of machinery, the lay-out of plant, like the remedy for a failure in a circuit, are matters for the attention of specialists, and the concern of the board must be to obtain the best technical assistance available on a countrywide scale. “Distribution, on llio other band, is mainly salesmanship, and complete centralisation of distribution will not necessarily produce the best conditions for local buyers. Here you must deal promptly and agreeably witli persons and firms within properly defined territorial limits. Drawing this distinction, tin- committee made recommendations which would have the result of creating quite a different type of organisation tor distribution from that, which had previously been established on Hie generating side, and in which tin- national point of view dominated as contrasted witli the regional. "Here the committee remommended that local interest should be retained and the best business enterprise encouraged by absorbing into the more efficient distribution units in eaeli area those which by reason of their size and characteristics were considered less capable of doing the urgent work of expanding supplies, ami they definitely rejected, tor the same reason, stereotyped national or regional boards, which they said would dislocate an established and expanding industry. “A justitieation fm- proceeding if possible by accelerated evolution rather than by drastic transformation is emphasised by the progress made despite the existing disabilities. 'l'iiere has been an increase in the sales in the last, fen years amounting to. I think, about 200 per cent, in the sale of units. It remains significant, on the other hand. I lint distribution costs per unit sold have remained practically consiant during the last 11 years. The committee s proposals are largely directed to reducing these, ami they definitely prefer the local to the national typo of organisation.”