DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY5S GOVERNMENT. CABINET. 3 0 2Tj Report of the CoiamSttee appointed to review 264/85. the National ' Problem of the ,Supply of Electrical Energy. I circulate herewith, for the information of members of the Cabinet, a copy of the Report of the Committee appointed to review the National Problem of'tho Supply of Electrical Energy of whioh Lord Weir of Eastwood was Chairman and the other members were Lord Porres and Sir Hardman Lever. I also circulate a covering letter whioh Lord Weir addressed to me wit h the Report, (Sgd.) WILFRID ASHLEY, 25th May, 1925. MINISTRY OF TRANSPORT, 6, Whitehall Gardens-, S.W.I. 20th May, 19535. Sir, In -transmitting our Report on the subject of electricity, we desire to draw your attention to two points which we consider of importance, but which we think can be better dealt with in a letter than In the body of the Report. (1) An essential preliminary to the construction of the "gridiron" will be the making of a complete eleotrical survey of the whole area, which we are advised will take some six months, As the "gridiron" organisation cannot be formed prior to legislation, and we understand that the Electricity Commissioners cannot spare the staff to carry out thie important work, it follows that there must be a delay of some months after the necessary legislation has been passed before the constructlon­ al work on the "gridiron" can be commenced.- We have considered whether it would be possible or expedient to avoid the loss of this time. Our proposals, if accepted, will give a large amount of employment, and,we are of opinion that it would benefit the national situation if this employment could be made available at the earliest possible moment. Further we feel bound to point out that, whatever decision the Government may reach on our recommendations as a whole, we believe that any possible remedial scheme for British Electricity must Include the provision of the "gridiron" as a physical entity. We therefore suggest that, in anticipation of approval and concurrently with the preparation of necessary legislation, the Minister of Transport should be authorised to take the necessary steps to put this survey in hand immediately ao that the Central Electrioity Board may be in a position to commence constructional work directly it is created. We suggest that the survey should be carried out under the general guidanoe of the Advisory Expert Committee (viz Messrs. C.H. Mera, J,M, Kenedy and S.L. Pearce, with Sir John Snell as Chairman) who should lay down the general lines of the survey in accordance with the Technical Scheme prepared by Sir John Snell. We reoommend that, the staffs of two or three leading firms of consulting eleotrical engineers should be employed and we suggest that the most obvious general policy woulOf be for each firm to be responsible for a defined area. (2) in our Report we point out that the existence of the "gridiron" will radically alter the position as regards the possibilities of the electrification of railway^, and v/e recommend that steps should be taken to ensure that railway electrification is reviewed and reconsidered. We have not gone -further than this partly because the matter is strictly outside ouc* fcenroa of reference, and partly because we £eel that any more definite recommendation in a document likely to be published might have the ex"fect of restricting the alternatives open to the Government. Col. The Rt. Hon. Wilfrid Aghlay, M, P., Ministry of Transport, VJhit shall, S.W.I. We desire, however, to record our opinion that a Committee should be at once appointed to investigate the whole question of the electrification of railways, including the capital involved and the economies which would result. I am, Sir, Your obedient Servant, (Signed) WEIR, Chairman. MINISTRY OF TRANSPORT. Confidential. REPORT OF THE Committee appointed to review the National Problem of the Supply of Electrical Energy. MINISTRY OF TRANSPORT. Confidential. REPORT OF THE Committee appointed to review the National Problem of the Supply of Electrical Energy. Members of the Committee. THE EIGHT HON. LORD WEIR OF EASTWOOD (Chairman). THE RIGHT HON. LORD FORRES OF GLENOGIL. SIR S. HARDMAN LEVER, BART., K.C.B. MR. 0. A. SHERRARD (Secretary). Technical Adviser. SIR JOHN SNELL, M.INST.C.E., M.I.E.E. REPORT. To the Right Hon. Lt.-Col. WILFRID ASHLEY, M.P., Minister of Transport. PART I. SIR, 1. Terms of Reference.-We were appointed in January of this year to review the national problem of the supply of electrical energy and to present a report on the broad lines of policy which should be adopted to ensure its most efficient and effective development. 2. Introduction.—The position of the electrical supply in Great Britain was very thoroughly and completely investigated in 1918 by the Electric Power Supply Committee under the Chairmanship of Sir Archibald Williamson, Bart, (now Lord Forres), following upon the work of several earlier committees. This fact has absolved us from the necessity for tracing in detail the early history, legislative and otherwise, of the causes which have led to the present position. 3. We have, however, enjoyed one advantage which was denied to our predecessors, While they took the evidence of many expert witnesses, technical, administrative and commercial, besides hearing the representatives of diverse interests, they were necessarily deprived of the assistance and experience of the body which they themselves brought into existence—the Electricity Commis­ sioners. Whatever may be the position of electricity here compared with other countries, Great Britain is unique in having a body of men who, for over five years, have devoted their entire energies, their patience and their technical and administrative ability to investigating the detailed conditions of this industry and public service throughout the country. The Commissioners, in fact, have functioned as an expert committee carrying out a continuous investigation. The results of their endeavours and experience have been at our disposal. 4. The subject is complex, entailing a mass of technical, administrative and legislative considerations. In order, therefore, that a proper sense of proportion might be preserved, we felt it essential to adopt some one central objective at which to aim. The terms of reference, the necessities of the case, and the whole course of our investigations have led us to adopt, as this definite goal, the reduction in price and the greatest availability of electrical energy to the consumer, ranging from the largest industrial user to the artisan in his home. We felt that if this was kept steadily in vieAv , individual and local interests would fall into their proper place. 5. Regarding the matter from this view-point of the needs of the country as a whole, we find a great consensus of expert opinion, with which we fully and entirely agree, that Great Britain is undoubtedly favourably placed as a potential producer and distributor of cheap electrical energy. We lay stress on this point owing to the very prevalent impression that there are many countries, more especially those with large sources of water power, with which Great Britain cannot compete. In our opinion this view is an exaggeration which is likely to encourage the inadequate methods now employed and prevent expansion on a better system. 6. In the broadest sense, it cannot be denied that while the influence of the Electricity Commissioners during the last five years has been good, their powers have been inadequate to produce effective results; and our review confirms the opinion of the earlier Committee, that, generally speaking, we are still to-day neither generating, transmitting nor distributing electrical energy as cheaply as we might, nor are we consuming electrical energy to anything like the same extent as other highly civilised industrial countries. V. We are also bound to add, without necessarily subscribing to-day to the exact recommendations of the earlier Committee, that if effective legislative action had been taken on the general lines of the recommendations of the Williamson Committee, very substantial savings would have been made. Electricity would nave been cheaper, and our task would have been infinitely easier and possibly unnecessary. 8. We have been greatly impressed by the time element involved in this subject, and regard it as a dominating factor. Great expenditure is being mcurred in many directions, and as in our view that expenditure is not being 52561 A 2 employed to the best advantage, not only is waste taking place, but further obstacles are being placed in the way of rapid and efficient development along the right lines. Accordingly, any change in direction and method must be made at once if it is to be fully effective. - 9- Present Position.—The fundamental data representative of the present position, as shown by the latest figures available, are set out in the following table, to' which frequent reference will be made. TABLE I. A uthorised Undertakings with Supply Powers : Local Authorities ... ... ... ... ... ... 335 Electricity -Companies ... ... ... 209 Power Companies ... ... ... ... ... ... 28 Total ... ... ... ...... ... ... 572 Generating Stations owned by A uthorised Undertakings : Local Authorities ... ... ... ... ... ... 248 Companies ... ... ... ... ... 190 Total ... 438* Capital Invested: (a) Local A utkorities—' £ On generation 49,360,000 On distribution and other items ... ... 54,120,000 Total 103,480,000 (6) Companies— £ On generation 24,320,000 On distribution and other items 33,950,000 Total 58,270,000 (c) Total Capital Expenditure— £ Local Authorities 103,480,000 Companies ... 58,270,000 Total .... ... ... 161,750,000 Average Price Charged to Consumers for all Purposes.—2'047d per unit. Gross Revenue.—£34,256,000. Revenue per £100 invested.—£21'2. Plant Installed.—3,096,535 k.w.