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14
incorect
position which would have added practically nothing to
their already established de facto position, at the cost
of a limitation of their profits.
5. The advantages of a line connecting the two
power stations are not confined to defence purposes.
It
would ensure the continuous supply of electricity on both
sides of the harbour, in the event of the failure of
either station, whether due to enemy action or any other
cause since it would enable the supply of each station to
be supplemented if necessary by the other. It is from
these advantages that it is thought that some reduction
of running costs might be secured in the event of an
amalgamation or working agreement between the two companies; but at the same time it has been pointed out that since
the peak load in each case occurs during the same hours,
little economy could be expected in ordinary running
costs.
6.
In view of the advantage to the public of
securing a continuous supply in the event of failure from any cause at one station it has been suggested that the companies might reasonably be compelled by law, in default of agreement, to lay down and maintain that line at their
own cost. If a proposal of this kind were put forward
it might lead to a revival of the whole question of
regulation in the public interest of the operation of
these public utilities. Before proceeding any further
therefore I shall be glad to learn whether you would approve in principle, having regard to the circumstances of any compulsion as suggested being put upon these