§ 22. Mr. T. WILLIAMSasked the Minister of Transport in how many cases, where a local authority have made application to the Electricity Commissioners to extend their plant, the period for repayment of loan has been calculated on the basis of 10 years; and whether, in view of Section 14 of the Electricity (Supply) Act, 1926, he will state why this new basis is used?
§ Colonel ASHLEYI understand that there are three cases where the Electricity Commissioners have adopted 10 years as the appropriate period, and that in a number of other cases the calculations 194 are being made on the same basis. As explained in the first Annual Report of the Electricity Commissioners, it has been their practice since 1920 to prescribe a period less than 20 years for the repayment of such loans where there was reason to anticipate that for any special reason the utility of the plant might be superseded during a shorter period, and the enactment of the Electricity (Supply) Act, 1926, which aimed at the supersession of small scale generation of electricity affords an additional ground for the adoption of this practice.
§ Mr. WILLIAMSAre the three cases referred to recent applications, or are they applications made one, two or three years ago?
§ Colonel ASHLEYI am sorry, but could not answer that question without notice.
§ 23. Mr. T. WILLIAMSasked the Minister of Transport if he is aware that an application by the Mexborough Urban District Council for the consent of the Electricity Commissioners to an urgently required extension of their existing generating station has been refused; that the ground upon which the Commissioners based their refusal is that they are not satisfied that the council could, if the proposed extension were allowed, give an adequate supply in the district at a cost not greater than that at which the council could give a supply if they obtained a bulk supply from the Yorkshire Electric Power Company; that the Commissioners have based their calculations upon repayment of the necessary loan over a period of 10 years instead of the usual period of 20 years for such loans; that the facts were such that, without having halved the period of repayment of the loan, the saving was in favour of local generation; and, in view of Section 13 of the Electricity (Supply) Act, 1922, will he have this case reconsidered?
§ Colonel ASHLEYI understand that the facts are substantially as stated in the first two parts of this question. With regard to the third and fourth parts, I may remind the hon. Member that it is the practice of the Electricity Commissioners to allow a period less than 20 years for the repayment of loans for generating plant in cases where there is 195 reason to anticipate that the utility of such plant might be superseded owing to the probability of bulk supply or other circumstances. With regard to the last part of the question, the Commissioners are expressly empowered to refuse their consent to the extension of generating stations where they determine that such refusal is necessary in the interests of the general supply of electricity in the district. Mexborough is in a provisionally-determined electricity district, and in all the circumstances I am not prepared to ask the Commissioners to reconsider their decision.
§ Mr. WILLIAMSDoes the power vested in the Electricity Commissioners not only enable them to belie all the figures prepared by the local authorities, but make it quite impossible, no matter how efficient the local station is, for them to secure a loan? Is the power in the hands of the Electricity Commissioners to reduce that loan down to a point where the local object will be defeated?
§ Colonel ASHLEYI do not think the position is quite as the hon. Member states it. What the Commissioners must visualise is the concentration of the generation of electricity in a few stations as is economically possible. It would not be in the public interest to encourage the continuance of these smaller stations.
§ Mr. WILLIAMSIs the right hon. and gallant Gentleman not aware that all the facts go to show that these local generating plants can produce electricity at a lesser price economically than that at which local authorities can obtain bulk supplies from the larger companies, notwithstanding the great difference in the stations?
§ Colonel ASHLEYThat is the point on which I must say I differ from the hon. Member.