Electricity (Supply) Act, 1927

Provisions consequential on reduction of an area of supply.

44.—Whenever the Board, by an alteration made under this Act of the area of supply of an authorised undertaker, reduces such area (whether the Board does or does not at the same or any other time in other respects extend such area) the following provisions shall have effect, that is to say:—

(a) all wires, transformers, poles, and other fixed machinery and apparatus for the transmission or distribution of electricity which at the date of the coming into operation of the order effecting the alteration of the area of supply are the property of such authorised undertaker and situate in the area (hereinafter called the severed area) taken from such area of supply by such order and all meters, stoves, lamps, wires, connections, and other electrical apparatus which on the said date are the property of such authorised undertaker and are hired to or fixed on the premises of consumers in the severed area shall on the said date vest in and become the property of the Board,

(b) the Board shall within three months after the said date pay to such authorised undertaker the fair value as of the said date of all property of such authorised undertaker which under the foregoing paragraph becomes the property of the Board, such value, in default of agreement, to be fixed by an arbitrator appointed by the Minister,

(c) if the Board becomes itself the authorised undertaker in the severed area, the Board may utilise all such property as aforesaid in such way as it thinks proper,

(d) if some person other than the Board becomes within three months after the said date the authorised undertaker in the severed area, such person shall purchase all such property as aforesaid from the Board for the fair value thereof on the said date and such value shall, so far as not fixed already by an arbitrator under this Act, be fixed, in default of agreement, by an arbitrator appointed by the Minister,

(e) the defrayal of expenses necessarily and properly incurred by such authorised undertaker in providing for the maintenance of the supply of electricity in the part of his area of supply which remains after the severance therefrom of the severed area shall be a purpose for which such authorised undertaker may borrow under this Act.