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City of London Electric Lighting Company

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City of London Electric Lighting Company Limited
Company typePrivately held company
IndustryElectricity generation and supply
PredecessorCity of London (Pioneer) Electric Lighting Company
Founded11 July 1891
Defunct31 March 1948
FateNationalisation
SuccessorBritish Electricity Authority
HeadquartersFalcon House, Aldersgate Street, City of London EC1
Area served
City of London and St Saviour's Southwark
Key people
see text
ProductsAC & DC electricity supplies, electric lighting, sale and rental of domestic and commercial electrical goods
Revenuesee tables

The City of London Electric Lighting Company Limited (abbreviated as CLELCo) was established in July 1891 as a British electricity provider dedicated to producing and distributing power within the City of London and the northern sections of Southwark. It managed the Bankside Power Station situated on the south bank of the River Thames. Over time, the firm increased its generation capabilities, encouraged greater electricity consumption, and engaged in both competition and collaboration with other electrical suppliers in London. The company ceased operations on 1 April 1948 as a result of the nationalisation of the UK's electricity sector.

History

In 1889, the City of London Corporation issued invitations for bids from electrical manufacturers to supply electric lighting across the 1.25 square-mile area of the City of London. The eastern district contract was awarded to the Laing, Wharton and Down Construction Syndicate, while the central and western districts were secured by the Anglo-American Brush Electrical Engineering Company. Under provisional orders granted by the Electric Lighting Act 1888 (51 & 52 Vict. c. 12), companies were authorized to install electrical supply systems and provide power.[1] Laing constructed a power facility at Wool Quay close to the Tower of London, whereas Brush established one at Meredith Wharf on Bankside, along the Thames’s southern shore.[2] Due to spatial constraints limiting growth, Wool Quay's station was closed in 1893; its machinery was either sold or relocated to Bankside.[3] Subsequently, these contractors assigned their agreements to a newly incorporated entity on 5 February 1891 named the City of London (Pioneer) Electric Lighting Company, which had an initial capital investment of £50,000. From Bankside power station, direct current electricity began powering street lamps along Queen Victoria Street, London starting on 25 June 1891.[4]

Formation

The City of London Electric Lighting Company Limited was founded on 11 July 1891 with an initial capital investment of £800,000. It acquired the assets of the City of London (Pioneer) Electric Lighting Company for £95,000 and secured provisional orders from both the Laing syndicate and the Brush company.

Legal powers

The company’s authority was established through various legislative instruments, including the City of London Electric Lighting (Brush) Orders from 1890 and 1891; the Southwark Electric Lighting Order 1891; the City of London Electric Lighting Act 1893 (56 & 57 Vict. c. lxxxv); the City of London Electric Lighting Act 1900 (63 & 64 Vict. c. lxxxviii); the London Electric Supply Act 1908 (8 Edw. 7. c. clxvii); and the London Electricity (No. 1) Act 1925 (15 & 16 Geo. 5. c. lxii).

Premises

Between 1896 and 1923, the company’s headquarters were located at 1 & 2 Great Winchester Street, London EC2, before relocating to Falcon House on Aldersgate Street, EC1, where they remained until 1948. Electricity generation was carried out at Bankside power station in London SE1. During the late 1930s, CLELCo maintained a showroom at 33 Ludgate Hill, London EC4.

Growth of demand

The initial supply of alternating current to private customers commenced on 14 December 1891 from Bankside power station. By the mid-1890s, demand was increasing by roughly 1,000 new electric lamps per week within the City. The St Benet Fink sub-station provided electricity to key financial institutions such as the Bank of England and Royal Exchange; the number of connected lamps doubled every three years, growing from 13,000 in October 1894 to 22,500 by October 1896. In 1896, CLELCo had over 5,300 customers and illuminated thirteen miles of City streets publicly. By 1899, it supplied a total of 430,000 incandescent lamps along with 540 arc lamps used for street lighting.

Additionally, the company offered rental services for electrical appliances including kettles, irons, and ovens—installation was complimentary with reasonable rental fees. In 1894, electricity used for cooking purposes was charged at half the usual rate (4d. per kWh compared to the standard 8d.).

Electricity consumption more than doubled from 14 GWh in 1904 to 29 GWh by 1913. The average price per unit steadily declined—from 7.56 d./kWh in 1895 to just 2.27 d./kWh by 1915—making electricity more affordable and competitive in the market. Demand plateaued during World War I but resumed growth in later decades. By 1937, CLELCo provided London's most economical street lighting at a rate of 0.633 d./kWh and offered some of the lowest private electricity tariffs at 1.735 d./kWh.

Operations were notably affected during World War II: a bombing raid in December 1940 damaged auxiliary equipment at Bankside power station while leaving main generators intact. However, destruction within the City resulted in approximately a 40% reduction in connected load; around 2,500 customer premises were lost, leading to an estimated annual revenue decline of £100,000. As a result, dividend payments were halted between 1942 and 1944—the only period during which shareholders did not receive a seven percent return.

Capital expenditure

To accommodate increasing demand, significant investment in new plant and equipment was required as outlined below.

City of London Electric Lighting Company capital expenditure, 1907–1919.
Year 1907 1908 1909 1910 1911 1912
Capital expenditure 87,382 45,535 59,088 50,531 46,043 45,509
Generated Units (MWh) 26,394
Year 1914 1915 1916 1917 1918 1919
Capital expenditure 61,939 25,952 7,775 5,839 5,072 28,596

Revenue

From 1892 through 1916, CLELCo experienced consistent growth in net revenue—calculated as electricity sales income minus operating expenses.

A marked increase in net revenue occurred between 1917 and 1936, reflecting both market enlargement and operational expansion.

During the period from 1936 to 1946, net revenue exhibited variability due to wartime conditions but showed signs of recovery by 1946.

Operating Expenses

Between 1917 and 1936, operating expenses fluctuated in response to changes in operational scale and market dynamics.

From 1937 through 1946, operating costs remained elevated amid the challenges posed by wartime and the subsequent post-war recovery phase.

Dividends to Shareholders

Throughout its existence, the company consistently paid dividends, expressed as an annual percentage of capital raised. These were compared against average dividends paid by London electricity companies.

Shareholder dividends, 1892–1919
Year 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905
Dividend % 0 2.24 4.19 5.24 5.95 6.93 5.74 4.86 2.91 5.10 5.14 5.14 5.53 5.53
Average dividend % 2.10 2.68 3.40 4.01 4.66 5.54 5.10 5.15 4.60 5.29 5.55 5.51 5.79 5.65
Year 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919
Dividend % 5.53 5.53 5.53 5.92 5.92 6.31 6.70 7.10 6.70 6.31 6.31 6.31 6.31 8.27
Average dividend % 5.40 5.14 5.12 5.07 5.07 5.11 5.18 5.33 5.10 4.87 4.68 5.32 4.96 5.76

Competition and Collaboration

Up until 1899, CLELCo maintained exclusive rights to supply electricity within the City of London; however, following a Board of Trade investigation, a provisional order was issued permitting the Charing Cross and Strand Electricity Supply Corporation to enter the market, authorized under the City of London Electric Lighting Act 1900 to establish a generating station at Bow.

The Electricity (Supply) Act 1919 facilitated cooperation among electricity providers by allowing supply exchanges and mergers, prompting CLELCo alongside three other south and east London companies to advocate for the London Electricity (No. 1) Act 1925, which created a joint committee to oversee generation operations while preserving individual company identities connected via interlinking cables.

By 1923, Bankside power station was London's largest with a capacity of 64 MW; the County of London Electric Supply Company followed with 39.7 MW and expanded its Barking ‘A’ station to reach 200 MW by 1930.

The 1919 legislation sought to balance investor returns with consumer interests by limiting dividends to seven percent annually; any surplus profits were redirected towards lowering consumer prices and supporting both employees and shareholders.

Grid interconnections developed during the 1930s under the Electricity (Supply) Act 1926 further unified the ‘No.1 group’. A four-party agreement in 1937 harmonized commercial operations, standardized customer billing practices, minimized duplicate infrastructure expenses, and planned shared showrooms to promote electricity usage; CLELCo operated one such showroom located at 33 Ludgate Hill.

Beyond its primary service area, CLELCo notably increased electricity supply to Southwark Metropolitan Council from 2.17 GWh in 1931/32 to 13.92 GWh by 1936, accounting for roughly 9.5% of Bankside’s total output.

In May 1938, CLELCo extended management services into Finsbury and Holborn districts served by the County of London Company, offering complimentary wiring installations for Peabody Buildings on condition that gas lighting was removed—an investment valued at approximately £10,000 with expected annual lighting revenues around £3,000—this initiative was a joint effort with the County of London Electric Supply Company aimed at encouraging electricity adoption in residential properties.

Land acquisition

To accommodate new generation machinery, CLELCo expanded its Bankside facility by acquiring adjacent properties and land from the mid-1890s through the late 1930s.

In 1897, the company bought and cleared shops and homes on Sumner Street in Southwark, allowing the engine house to be extended toward Sumner Street.

By 1900, CLELCo obtained parliamentary approval through the City of London Electric Lighting Act 1900 (63 & 64 Vict. c. lxxxviii), which authorized compulsory purchase of nearby buildings and rerouting of roads such as Pike Gardens. This legislation also obligated the company to provide housing for 200 artisans or workers in Southwark. CLELCo continued to acquire neighboring properties when available; for example, in 1904 it paid £600 for Nos. 15–17 Noah's Ark Alley, close to the power station.

To increase its financial resources, CLELCo issued an additional 400,000 shares at £1 each in 1931, broadening its shareholder count to approximately 4,000.

During the late 1930s, at the urging of the Central Electricity Board (CEB), CLELCo purchased a 44,900 sq ft (0.417 ha) plot east of Bankside from the City of London Corporation for £34,520. The CEB intended to develop a 180 MW extension to meet both CLELCo’s and London's broader electricity demands. In June 1938, CLELCo acquired a further 79,000 sq ft (0.734 ha) west of Bankside from the South Metropolitan Gas Company for £45,000—significantly below the £120,000 maximum price set by the CEB. This acquisition facilitated plans for a larger station with a capacity between 240 and 250 MW, which was ultimately constructed as Bankside B.

Nationalisation

CLELCo resisted government plans to nationalize Britain's electricity sector. In December 1945, industry representatives convened with the Minister of Fuel and Power to discuss how nationalisation would affect their operations. A board meeting in January 1946 recorded that "the London Companies should combine to oppose the Government’s nationalization proposals." However, following enactment of the Electricity Act 1947, most private and municipal electricity providers—including CLELCo and the CEB—were dissolved on 1 April 1948. Control of all public supply power stations and the national grid transferred to the British Electricity Authority, while local distribution and consumer services in London were assumed by the London Electricity Board.

Key people

CLELCo’s articles allowed for a board consisting of three to ten directors. Initially, directors were required to meet a financial qualification of £1,000 and received fees starting at £3,000 per year, which rose to £5,000 by 1930. Between 1934 and 1948, directors qualified by owning at least 1,000 shares and earned an annual fee of £5,000.

General Managers

  • J. Cecil Bull, served from 1896 to 1905
  • A. F. Harrison, held office between 1930 and 1934
  • Henry John Randall (1894–1967), managed from 1936 to 1939

Joint Managing Directors

  • P. D. Tuckett, Frank Bailey, J. Cecil Bull (1908–1911)
  • P. D. Tuckett, Marquess of Winchester (Henry Paulet), Sir David Lionel Salomons (1915)
  • P. D. Tuckett, Marquess of Winchester, Salomons, Frank Bailey, J. Cecil Bull (1917–1923)
  • P. D. Tuckett, Marquess of Winchester, Frank Bailey, J. Cecil Bull (1926–1928)

Managing Directors

  • J. Cecil Bull (1930–1931)
  • Henry John Randall (1940–1948), who later chaired the London Electricity Board from 1948 to 1956

Chairmen

  • Sir David Lionel Salomons (1896–1900)
  • G. Herring (1901–1906)
  • J. B. Braithwaite (1907–1935)
  • P. D. Tuckett (1936–1948)

Engineers

  • Frank Bailey (1896–1928)
  • C. G. Cutbush (1936)
  • E. Harlow (Generation), A. G. Kemsley (Distribution) (1938–1940)
  • R. Pearce (Station Superintendent), G. H. Fowler (Distribution Superintendent) (1946–1948)

Secretary

  • Henry John Randall (1931–1936)

Architect for Bankside B

  • Sir Giles Gilbert Scott

Consultant Engineer for Bankside B

  • Sir Standen Leonard Pearce (Electricity Commissioner and Engineer-in-chief to the London Power Company)

See also

External links

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