Although the world-wide movement toward concentration in electricity supply was apparent in England as elsewhere, it had not progressed as far as in the United States. In order to bring about a more rapid concentration of generation by means of inter connected super-power systems, the commissioners were authorized to define provisional electricity districts, the area of which was to be grouped in a manner "as to be most conducive to efficiency and economy of supply and to convenience of administration." Interested parties comprised within each district, chiefly public and private distributors of energy, might then suggest a "scheme" for the reorganization of the district, or the commission might itself formulate one. On the whole the act failed to achieve its end because many public and private authorities refused to co-operate.
Accordingly the Electricity Act of 1926 created a "Central Electricity Board" with power to carry the "scheme" prepared by the electricity commissioners into effect. For this purpose the Central Electricity Board, operating as a limited company, was authorized to sell stock to the public not exceeding £33,500,000, principal and interest of these loans being guaranteed by the Na tional Treasury. The funds are to be used for the construction
of high-tension transmission lines, together with transforming equipment, which will interconnect the poWer stations selected by the electricity commissioners in the particular district. The board is to purchase electrical energy from these plants at cost and such other surplus energy as is available in the district, and sell it again at wholesale to the authorized distributing utilities in the district. It is contemplated that the loans will ultimately he paid off out of profits.