HC Deb 09 March 1931 vol 249 cc810-1

asked the Minister of Transport the names of electricity distributing companies which have capitalised undistributed profits; the aggregate amount of profits capitalised, and the amount so capitalised during the last two years for which accounts are available; and whether such capitalisation of profits during the period has been accompanied by reductions in charges for electricity?

The MINISTER of TRANSPORT (Mr. Herbert Morrison)

I am circulating in the OFFICIAL REPORT a statement giving

THE FOLLOWING STATEMENT in respect of Electricity Supply Companies other than the London Companies* shows the amount capitalised out of undistributed profits which were earned in past years, carried to Reserve and employed in providing capital assets.
Company. Capitalised during 1928. Capitalised during 1929. Aggregate amount capitalised from commencement of Company.
£ £ £
Aldeburgh Electric Supply Co., Ltd. 2,800 2,800
Altrincham Electric Supply, Ltd. 53,350 (b)
Banbury and District Electric Supply Co., Ltd. 25,000 25,000
Bournemouth and Poole Electric Supply Co., Ltd. 360,000 420,000
Bridgwater and District Electric Supply and Traction Co., Ltd.(a) 5,000 5,000
Burgess Hill and District Electric Supply Co., Ltd. 1,750 1,750
Colne Valley Electric Supply Co., Ltd. 12,000 12,000
Folkestone Electricity Supply Co., Ltd. 37,500 37,500
Foots Cray Electricity Supply Co., Ltd. 5,000
Keswick Electric Light Co., Ltd. (a) 2,000 2,000
Ledbury Electric Supply Co., Ltd. 1,500 1,500
Lewes and District Electric Supply Co., Ltd. 12,500 12,500
Market Drayton Electric Light and Power Co., Ltd. 5,156 9,029
Midland Electric Corporation for Power Distribution, Ltd. 350,000 350,000
Minehead Electric Supply Co., Ltd.(a) 1,300 1,973
Ramsgate and District Electric Supply Co., Ltd. 12,000
Weston-super-Mare and District Electric Supply Co., Ltd. 50,000 50,000
Windermere and District Electricity Supply Co., Ltd. 5,000 (b) 5,000 (b) 20,000 (b)
Windsor Electrical Installation Co., Ltd. 25,000 (b) (c)
Woking Electric Supply Co., Ltd. 21,760 21,760
Wycombe (Borough) Electric Light and Power Co., Ltd. 18,000
Scottish Southern Electric Supply Co., Ltd. 8,333 (b) 8,333 (b)
Total 868,193 38,406 1,101,145
* The capitalisation of the free reserves of the London Companies to a prescribed extent was part of the general settlement between the London County Council and the London Companies confirmed by the London Electricity No. 1 and No. 2 Acts of 1925, such settlement containing provision for the fixing of standard prices, for regulating prices and dividends and for securing to consumers a proper share of any subsequent economies.
(b) Reserves capitalised as Preference Shares; all other figures relate to Ordinary Capital.
(c) In the case of the Windsor Company the capitalisation of Reserves was permitted under a Special Order of 1927 which also prescribed a sliding scale of price and dividend.
NOTE.—The above Schedule excludes the sum of £600,000 representing reserves capitalised by Edmundsons Electricity Corporation Ltd. since the operations of this Company cover other matters besides the supply of electricity and the capital attributable to the three authorised electricity undertakings which they operate constitutes only a small proportion of their total capital.
Of the above-mentioned Companies who capitalised reserves during the years 1928 and 1929 contemporary reductions in prices were made by all except those marked (a) in the Table.