C. E. B. STOCK
Whatever its critics in the supply industry may say of it, the Central Electricity Board is achieving what it set out to do. In fact, the 1937 report, which should satisfy the most inquisitive of stockholders, shows that financially the Board is rather ahead of schedule. The total interest requirements are at present £2,248,325 per annum, of-which LI,595,566 is interest on the capital of the " grid " proper and the balance interest on capital applied in standardisation of frequency. The first part has to be provided out of the working profit of the " grid " while the £652,759 is met by a levy on the electricity supply industry. Actually, the " grid's " working profit last year was £2,014,508 and as there was other income of £74,985 the interest was covered with £493,927 to spare, a fine achievement when it is remembered that the tariff was framed to cover interest charges over a ten-year period, during the first half of which it was not intended to yield a profit. Allowing for the relative importance of the various areas which are in operation and those which are not, I estimate that the " grid " may be said to have been operating for rather less than four years.
All this is very encouraging for holders of the Board's stock who have had momentary qualms in past years when the whole enterprise has at times seemed a risky financial venture. The Board is nearing the end of its capital development programme and although I should not like to budget on such a rapid expansion of electricity consumption from today's levels as has been achieved since 1931, I should say that demand will continue to grow even in face of a moderate setback in trade. The Board's stocks may, therefore, be said to have won their spurs as a first-class fixed-interest investment and now take their place in the august company of stocks such as London Power debentures.
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