Modern Gasworks Practice

PLANNING AND L AYING OUT OF GASWORKS 7 Orders under Sectiön 1 when granted become operative immediately, and refer to mere conversions of methods of charging and adjustment of prices. Special Orders must lie on the table of both Houses for twenty-one days, and do not become law unless no objections are raised. These special Order powers are wide, and embrace all the powers permitted under the Gas & Water Works Facilities Act 1870. The Board can also empower purchase in bulk from any source, and enable undertakings to give separate industrial supplies. Fürther, amalgamations and working arrangements can be effected, and authorization obtained for raising Capital or borrowing money. Lastly, any special Act of an undertaking may be modified by special order under the Gas Regulation Act 1920. If any Gas Undertaking, two years after the passing of the Act, has not applied for an Order, it is within the power of the Board of Trade to make an Order after giving not less tlian three months’ notice. It is not aiiticipated that this clause •will need to be put into frequent operation, as all statutory undertakings will be anxious to gain relief. Some non-statutory undertakings may be large enough. to merit attention from the Board of Trade in this connection, but it is not expected that the very small non-statutory concern will be troubled. It is obvious that some undertakings are so small that the purchase of a record-ing calorimeter, were this insisted on. would appropriate a year’s dividend. Before closing this reference to recent legislation, attention should be drawn to the South Metropolitan Gas Act 1920. This Act was the result of the first attémpt to change the metliod of charging and to work on. a post-war basis of selling price. The Act embodied all the proposed legislation of the Gas Regulation Act 1920, and included its provisions in so far as they applied. But a new feature was intro-duced inasmuch as it pafted Company witli the sliding scale on the old basis, and substituted an irreducible minimum of 5 per cent, dividends for old Capital, and 6 per cent, for new money. The Standard or Basic price is lirf. per therm, and the above dividends can be paid even if the selling price exceeds the standard. But if the price is reduced, then an arrangement comes into force in which the consumer, shareliolder, and employee partake. A sum of money is calculated to represent the difference between the sum actually received and the sum which would have been received had the gas been sold at the basic price. This sum is called the consumers’ share and represents three-quarters of the “ surplus profit.” The remaining one-quarter of the surplus profit, viz., one-third of the consumers’ share, is then divided equally between the shareholders and employees. A further novel point in this Act is a premium to the shareholders and employees should the gas be maintained at a certain standard of purity. If in any year or half-year the carbon bisulphide has been less than one part in forty thousand by volume, then the sélling price shall be deemed to betone farthing per therm less in calculating thé consumers’ share, or one-twelfth. of a penny per therm is to be divided between shareholders and workers.