(1) As from such date or dates as may be specified in the order constituting a district electricity board, all generating stations then existing within the district, other than railway generating stations, dock generating stations, and private generating stations, and such main transmission lines as may be specified in the order, other than main transmission lines belonging or leased to railway companies, shall by virtue of this Act vest in the district electricity board, subject to the payment by the board to the owners thereof of the standard price, but freed and discharged from all mortgages and other charges to which the same may be subject, and the proviso to Section seventy-eight of the Schedule to the Electric Lighting (Clauses) Act, 1809, shall apply as if the generating stations or main transmission lines had been sold under Section two of the Electric Lighting Act, 1888:
Provided that in any case where it is proved to the satisfaction of the Electricity Commissioners that any particular generating station is so small or so situated or equipped that it could not conveniently be used fur the purposes of the undertaking of the district electricity board, or for any other reason it is not desirable that such station should vest as hereinbefore provided, the Electricity Commissioners shall, after giving the owner of the generating station an opportunity of being heard, by order exempt the district electricity board, for such period as may be specified in the order, from the obligation of acquiring the generating station under this Sub-section.
(2) For the purposes of this Section the standard price—
(a) in the case of a generating station or main transmission line belonging to a local authority, shall at the option of the local authority be either—
Provided that if in a case where the first alternative is adopted it is proved to the satisfaction of the Electricity Commissioners that a substantial part of the cost of the generating station, or main transmission line, has been defrayed otherwise than by means of loans, or that for any other exceptional reason the calculation in the manner aforesaid of the annuity to be paid would work injustice, any such annuity may be increased by such amount as the Electricity Commissioners thick just
(b) in the case of a generating station or main transmission line belonging to a company
or person, shall be such sum as may be certified, after hearing the parties interested. by an auditor appointed by the Electricity Commissioners to have been the cost of the lands, buildings, works, materials, and plant suitable to and used by the company or person for the purposes of their undertaking which are vested in the district electricity board, together with the amount- of the expenses incurred as and incidental to the construction of the generating station or main transmission line, and the acquisition of the site thereof, less depreciation, but with the addition of such sum as, in default of agreement, may be awarded by an arbitrator appointed by the Board of Trade as compensation for any damage shown to be sustained by the company or person due to 'the severance of the generating station or main transmission lines, always having regard to the value of the obligation in Subsection (5) of this Section:
Provided that, if in any case it is proved to the satisfaction of the Electricity Commissioners that, owing to exceptional terms of purchase contained in the special Act or Order relating to a company, the standard price, as calculated as aforesaid, would work an injustice, the Electricity commissioners shall, on the application -of the company, refer the matter to an arbitrator to be appointed by the Board of Trade for his determination whether any and, if so, what addition to the standard price, as calculated as aforesaid, should be made.
The expenditure which is to be taker, into account as being such expenses as aforesaid, and the amount of such depreciation as aforesaid, shall be determined in accordance with Regulations made by the Electricity Commissioners, which shall be laid before Parliament:
Provided that if on the application of the company or person or of the district electricity board, it is shown to the satisfaction of the Board of Trade that the expenditure so to be taken into account or the amount of depreciation so determined would work injustice, the expenditure se to be taken into account or the amount of depreciation, as the case may be, shall, in default of agreement, he determined by an arbitrator appointed by the Board of Trade.
(3) Where the owners of any generating station or main transmission line which by virtue of this Section is vested in a district electricity board are entitled to any easement or right or the benefit of any contract, and it appears to the Electricity Commissioners that the transfer of the easement or right or benefit of the contract to the district electricity board is necessary for the proper enjoyment by the board of the generating station or main transmission line, the Electricity Commissioners may by order transfer to the board the easement, right, or benefit on payment by the board of such consideration as failing agreement may he determined by an arbitrator appointed by the Board of Trade.
(4) A district electricity board may, with the consent of the Electricity Commissioners, by agreement with the the owners thereof acquire army railway generating station, dock generating
station or private generating station or any main transmission line from any such station on such terms as may be agreed.
(5) Whenever a generating station is vested in a district electricity board under this Section they shall be under an obligation thenceforth to supply to the authority, company, or person from whom it is transferred, such quantity of electricity as may be required for the purposes of the undertaking and as regards the amount that could have been generated at the generating station by that authority, company, or person, at a price not greater than the cost at which it, could have been so generated, and in the event of any change in the type of current frequency or pressure to pay such expenses as the authority, company, or person may necessarily incur in consequence of such change, and if any question arises as to such amount or cost, or expenses, the question shall be determined by the Electricity Commissioners, and iii determining such cost regard shall be had to capital charges (including interest on capital), cost of fuel and labour, and other costs of generation, and to any reduction of coats which might reasonably have been expected to accrue from any improvement of the generating station and plant therein which is proved to the satisfaction of the Electricity Commissioners to have been on the eighth day of May, nineteen hundred and nineteen, under consideration by such authority, company, or person with a probability of early execution.
(6) Where a generating station or main transmission line has been vested in or acquired by a district electricity board under this Section the board may, subject to the approval of the Electricity Commissioners, agree with the former owner thereof that such owner shall work and maintain the same on behalf of the board for such period and on such terms as may be agreed between them.
(7) Where a generating station, which is vested in a district electricity board under this Section, is in course of construction, extension, or repair the rights and liabilities of the former owners thereof under any contract for such constructon, extension, or repair shall be transferred to the district electricity board.
(8) Where the generating station of any company is vested in a district electricity board under this Section and the company has created and is-sued mortgages, debentures, or debenture stock (whether irredeemable or not) charged upon such generating station, it shall be lawful for the company, with the consent of the holders of the mortgages, debentures, or debenture stock, to give notice to the holders of such mortgages, debentures, or debenture stock to repay the same in whole or in part out of the proceeds of the sale, notwithstanding anything contained in the mortgage or the debentures or debenture stock trust deed, but in the case of debentures and debenture stock at the rate at which the debentures or debenture stock could be paid off in the event of the winding up of the company:
Provided that the cost which an auditor appointed by the Electricity Commissioners certifies to have been necessarily incurred in obtaining the release of any mortgage or other charge shall be borne and paid by the district electricity board.
(9) Interest at, the rate of six per centum per. annum upon the standard price shall be paid by the district electricity board to the former owners of any such generating station or main
transmission line as from the date of vesting thereof in such board until payment, or where the standard price consists of an annuity upon any instalment, of the annuity from the date when the instalment becomes payable until payment.
(10) Where in any generating stallion vested in a district electricity board under this Section there is contained any plant which, in the opinion of the Electricity Commissioners, forms an essential part of the distribution system of the former owners of the generating station, that plant shall, notwithstanding such vesting, remain the property of its former owners, who shall, so long as electricity is supplied for distribution from that station, at ad times have the right of access thereto.
§ Lords Amendments: Leave out Subsections (1), (2) and (3)—Agreed to.
§ In Sub-section (4), leave out the words "district electricity board,"and insert instead thereof the words "joint electricity authority"—Agreed to.
§ Leave out the words "railway generating station, dock generating station or private."—Agreed to.
§ Leave out Sub-section 5–10 (inclusive). —Agreed to.