Catalogue description Ministry of Fuel and Power, Electricity Division, and Predecessors: Nationalisation Files

By the middle of 1920 it was recognised that the efficiency of electricity generation in Great Britain lagged behind the standards attained abroad; generation costs were high, and there was confusion in voltages, frequencies and supply systems. To achieve some order, therefore, the Central Electricity Board was established under the Electricity (Supply) Act 1926.

The Board purchased the entire output of generating stations, and fed this into the now familiar "grid"" system, for countrywide distribution. This led to lower generation costs, as was pointed out in the 1936 Report of the McGowan Committee on Electricity Distribution. That committee also recommended, among other proposals, that the industry should pass to public control and that regional boards should be set up to take over all existing undertakings. Neither the workers in the industry, nor the local authorities would countenance the scheme, and the proposals were shelved.

In March 1937, however, the Minister of Transport announced that the Government had decided to adopt, in principle, the main recommendations of the McGowan Committee. A White Paper was issued proposing that the Electricity Commissioners (established under the Electricity (Supply) Act 1919) should review each district and prepare schemes for their consolidation into groups, rather than delegate this duty to District Commissioners.

During the war years the electricity industry was mainly concerned with meeting the demands of war production, and early legislation on reorganisation was abandoned.

In November 1945 the Government announced its plan to nationalise the industry, and this was effected by the introduction of the Electricity Bill in December 1946. The subsequent Electricity Act 1947 received the Royal Assent in August 1947. Under the Act the generation, transmission and distribution of electricity passed to full public ownership; this was effective from April 1948. The British Electricity Authority, later renamed the Central Electricity Authority, was established. Fourteen Area Boards and fourteen Consultative Councils covering England, Wales and the South of Scotland were also formed. Five hundred and forty undertakings had to be absorbed into the Area Boards and the operation of the power stations went to the Authority.

As an outcome of the Herbert Committee, appointed in July 1954, by the Minister of Fuel and Power to inquire into the organisation and efficiency of the electricity supply industry, and under the subsequent Electricity Act 1957 the Central Electricity Generating Board was established. The CEGB took over the powers and duties formerly carried out by the Central Electricity Authority.