The Central Electricity Authority (CEA) was a body that managed and operated the electricity supply industry in England and Wales between 1 April 1955 and 31 December 1957. The CEA replaced the earlier British Electricity Authority (BEA) as a result of the Electricity Reorganisation (Scotland) Act 1954, which moved responsibility for Scottish electricity supply to the Scottish Office.
Structure
The structure of the management board and the personnel in post remained the same as the BEA with the exception of the removal of representation by the chairman of the North of Scotland Hydro-Electric Board. There was a reduction from 14 to 12 of the number of area electricity boards – the South East Scotland Electricity Board and South West Scotland Electricity Board were removed from the CEA's management. The functions of the remaining area boards were unchanged.
Upon its establishment in April 1955 the chairman of the CEA was Lord Citrine; the two deputy chairmen were Sir Henry Self and Josiah Eccles.
Appointments
Later appointments to the Central Electricity Authority by rotation between area boards were:
- N. Elliott, South Eastern Board, member from January 1956
- C. R. King, East Midlands Board, member from January 1956
- L. Howles, South Wales Board, member from January 1956
- D. H. Kendon, Merseyside and North Wales Board, member from January 1956.
The following were appointed to the board in 1956:
- G. A. S. Nairn, part-time member of North Wales Electricity Board since 1947, member
- Sir Leslie Nicholls, chairman Cable and Wireless, member
- Sir Henry Self, deputy chairman, reappointed
- G. H. E. Woodward, part-time member, reappointed.
The following were appointed to the board in 1957:
- J. D. Peattie, chief engineer of the board retired 31 January but retained as consultant
- F. H. S. Brown, was appointed chief engineer
- E. S. Booth, construction engineer was appointed deputy chief engineer
- J. C. Duckworth, was appointed deputy chief engineer (nuclear power)
Operations
Electricity generation and sales
The electricity generated, supplied and sold by the CEA, in GWh, was as follows:
- Managerial and higher executive: 1,335
- Technical and scientific: 15,480
- Technical staff trainees: 1,624
- Executive, clerical, accountancy and sales: 40,636
- Industrial: 115,934
- Apprentices: 5,914
Strategic issues
In addition to the routine operations of generating and transmitting electricity the Central Electricity Authority dealt with a number of strategic issues.
In the mid-1950s the National Coal Board estimated that it would be unable to supply the electricity industry’s projected demand for coal in the 1960s. Pressure was put on the CEA by the Ministry of Fuel and Power to adopt dual (coal and oil) firing in a large number of power stations being planned or then being constructed. The CEA believed that the cost of extra equipment and the high price of oil would make the scheme uneconomic. The CEA limited dual-firing to a small number of stations in the south of the country remote from coal fields. They had to be in the south of England near the major load centres, but away from major population areas. They needed to have good load-bearing properties for the heavy reactors and have an abundant source of water. Two sites were identified in Bradwell, Essex and Berkeley, Gloucestershire. The CEA was reluctant to give turnkey contracts to these consortia as it wished to retain control of design and ordering. Eventually the CEA vetted the designs but relied on the Atomic Energy Authority advice on the nuclear aspects. In 1956 the AEA considered that there were insufficient resources to meet 3,400 MW of future nuclear plant, but by the following year considered that 5,975 MW was possible. The CEA were concerned about the implications for their coal-fired programme and thought there would be an excessive surplus of coal-fired plant if the 6,000 MW nuclear power programme went ahead. It believed that 3,400 MW was a more realistic target. Nevertheless, in March 1957 the Cabinet approved a 6,000 MW programme of 19 nuclear power stations.
Financial statistics
The financial income and expenditure of the CEA over its two full financial operating years (in £ million) was as follows:
{| class="wikitable"
|+CEA financial summary
! rowspan="2" |£ million
! colspan="2" |Year
|-
!1955/6
!1956/7
|-
! colspan="3" |Combined trading results
|-
|Income from electricity sales
|369.9
|413.2
|-
|Other
|21.1
|11.4
|-
|Total
|382.0
|424.6
|-
|Expenditure
|327.6
|363.6
|-
|Operating profit
|54.4
|61.0
|-
|Interest
|42.2
|49.2
|-
|Profit after interest
|12.2
|11.7
|-
! colspan="3" |Revenue account expenditure
|-
|Fuel
|147.1
|
|-
|Salaries
|77.3
|
|-
|Depreciation
|58.3
|
|-
|Interest
|42.2
|
|-
|Rates
|16.2
|
|-
|Other costs
|28.7
|
|-
|Total
|369.8
|
|-
! colspan="3" |Capital expenditure
|-
|Generation
|114.2
|108.1
|-
|Main transmission
|22.4
|22.2
|-
|Other
|0.6
|0.7
|-
|Total
|137.2
|131.0
|-
|Area boards
|76.1
|75.2
|-
|Total
|213.3
|206.2
|}
Organisational review
The devolution of power exemplified in the Electricity Reorganisation (Scotland) Act 1954 did not satisfy some quarters of the Conservative government who were critical of the over-centralisation in the industry. In July 1954 the Minister of Fuel and Power, Geoffrey Lloyd, appointed a departmental committee, chaired by Sir Edwin Herbert, to examine the efficiency and organisation of the industry and to make recommendations.
The Herbert committee reported in January 1956 and found that the Central Electricity Authority’s dual roles of electricity generation and supervision had led to central concentration of responsibility and to duplication between headquarters and divisional staff which led to delays in the commissioning of new stations.