Indianapolis Times, Volume 38, Number 218, Indianapolis, Marion County, 17 December 1926 — Page 12

PAGE 12

PLAN COMBINE OF BRITISH ELECTRIC GENERATING PLANT Government to Operate— Anticipate Battle in Parliament. Bu HE A Seiyire LONDON, Dec. 17.—A wholesale system of generating electrical power, to be directed and controlled by the government, is the proposal around which will center one of the greatest of British parliamentary battles of the coming winter. Premier Baldwin, head of the Conservative party, is back of the bill, yet the bitterest of the tories in his own ranks denounce It. They see in it a long step toward nationalization. The Laborites, on the other hand, oppose it because the step is too short, It does not provide for actual" national ownership of the electric industry, for which they have been agitating. European trade competitors of England are among the most alert watchers of the bill’s progress. If it is enacted, they believe, it will strengthen England enormously in the fight for world markets. Germany in particular is interested. The prolonged, v grim and disastrous coal strike, which seems gradually flivvering out, was a heavy blow to British industry. It represented a direct cash loss to capital and labor of more than three-quar-ters of a billion dollars. It lost markets, crippled industrial production and lowered the standard of living. A first-class co-ordinated tem would work wonders, it is con : tended, in making up for the damage. What Americans designate as “super-power" is the real object of the proposal. The bill would reduce present high costs of power by linking up the most efficient generating ♦ plants in a network, eliminating wasteful stations and reducing overhead. The bill provides for the appointment by the minister of transport of a central electrical board consisting of a chairman and seven other members, to have charge of the whole enterprise. Working in conjunction with them there is to be a commission of electrical experts. These commissioners are to begin by dividing Great Britain into areas. Within a given area, they are to study electrical situation, having full access to all the books of all the

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plants within that area. The efficient ones will be chosen as the stations at which electricity shall be generated under the direction of the board. These efficient stations are to be interconnected at once by cables. The idea is to get a peak load with as little requirement as possible for more or less expensive reserve stations. This criss-crossing of cables is known as “the grid.” In timg it is expected that all Great Britain will be divided into such areas and thus grid-ironed. Provisions are made whereby the

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board then directs the stations to generate such quantities of electricity at such rates and at such periods as are needed. The plants are to sell all electricity thus produced at a figure which includes a fixed kilowatt charge component and a running charge component. Distribution Solved The problem of distribution is solved by selling the electricity to authorized companies within the designated area, who in turn will supply it to the individual consumers. The board has full power to order the owners of the selected stations to make alterations and extensions in their plants. The capital expenditure involved has to be borne by the owners, but the board will pay the interest and sinking fund charges on all such expenditures. The bill safeguards the interests of the owners of the selcted stations by giving them the right of appeal wherever they feel that they are being asked to do something that will cause a loss. All money needed by the board will be supplied by the national treasury, but there will be careful parliamentary supervision. The essence of the bill itself is that the board is not primarily to own the generating stations for the nation. It is to direct them and sell the power. But if difficulties are encountered in ioing this, th?n the minister of transport may authorize the board itself to buy the stations and' operate them.

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