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Sect. 15.

Clause for protection of canals.

authorised to be broken up by them which may interfere with the exercise of their powers under this Act, on previously making or securing such compensation to the owners of such pipes or wires, and on complying with such conditions as to the mode of making such alterations as may before the commencement of such alterations be agreed upon between the undertakers and owners, or in case of difference as may be determined in manner prescribed by the license or provisional order authorising the undertakers to supply electricity, or where no such manner is prescribed as may be determined by arbitration, and any local or other public authority, company, or person may in like manner alter the position of any electric lines or works of the undertakers, being under any such street or place as aforesaid, which may interfere with the lawful exercise of any powers vested in such local or other public authority, company, or person in relation to such street or place, subject to the like provisions, conditions, and restrictions as are in this section contained with reference to the alteration of the position of any pipes or wires by the undertakers.

See further, s. 17 of the schedule to the Electric Lighting (Clauses) Act, 1899, post, p. 174, which contains elaborate provisions defining the conditions under which the undertakers may alter the position of any pipes (not forming part of any sewer of the local authority) or any wires being under any street or place authorised to be broken up by them which may interfere with the exercise of their powers under the principal Act or their provisional order.

In orders of the Light Railway Commissioners made under the Light Railways Act, 1896, a clause is inserted making provision regarding the alteration of the position of the pipes, etc., of gas or water companies, etc. The clause contains this provision: "Nothing in this section shall apply in the case of any electric lines or works of any undertakers the position of which may be altered under s. 15 of the Electric Lighting Act, 1882.”

16. If at any time after the undertakers have placed any works under, in, upon, over, along or across any canal, any person having power to construct docks, basins or other works upon any land adjoining to or near such canal, constructs any dock, basin or work on such land, but is prevented by the works of the undertakers from forming a communication for the convenient passage of vessels with or without masts between such dock, basin or other work, and such canal; or if the business of such dock, basin or other work is interfered with by reason or in consequence of any such works of the undertakers, then the undertakers at the request of such person, and on having reasonable facilities afforded them by him for placing works round

such dock, basin or other work, under, in, upon, over, along or Sect. 16. across land belonging to or under his control, shall remove and place their work accordingly. If any dispute arises between the undertakers and such person as to the facilities to be afforded to the undertakers, or as to the direction in which the works are to be placed, it shall be determined by arbitration.

By Rule XI. (4), a list of the canals and navigable rivers (if any) within the proposed area of supply must be deposited at the Board of Trade along with the memorial for the provisional order. See p. 238.

The above section protects the interests not only of the canal but also of any person having power to construct docks, basins, or other works upon any land adjoining to or near the canal.

See further, as to the protection of railway and canal companies, s. 19 of the schedule to the Electric Lighting (Clauses) Act, 1899, post, p. 179.

tion for
damage.

17. In the exercise of the powers in relation to the execution Compensaof works given them under this Act, or any license, order, or special Act, the undertakers shall cause as little detriment and inconvenience and do as little damage as may be, and shall make full compensation to all bodies and persons interested for all damage sustained by them by reason or in consequence of the exercise of such powers, the amount and application of such compensation in case. of difference to be be determined by arbitration.

As to what is included in "works," see s. 32, post, p. 133, and the notes to s. 10, ante, p. 101.

The arbitrator under this section is appointed by the Board of Trade. See s. 28, p. 130.

The provisions of this section relating to compensation refer to payment of compensation for damages caused by the execution of the works required to supply electricity and not to damages caused by their user when constructed. Shelfer v. City of London E. L. Co.; and Meux's Brewery Co. v. Same, [1895] 1 Ch. 287. See p. 102.

As to the meaning of the words "do as little damage as may be," see R. v. East and West India Docks (1853), 2 E. & B. 466; and Fenwick v. East London Rail. Co. (1875), L. R. 20 Eq. 544.

See also the provision for compensation contained in s. 6 of the Gasworks Clauses Act, 1847, post, p. 212.

not to
prescribe
special form
burner.
of lamp or

18. The undertakers shall not be entitled to prescribe any Undertakers special form of lamp or burner to be used by any company or person, or in any way to control or interfere with the manner in which electricity supplied by them under this Act, and any license, order, or special Act is used: Provided always that no local authority, company, or person shall be at liberty to use any

3

Sect. 18.

Obligation on
undertakers
to supply
electricity,

as to

form of lamp or burner or to use the electricity supplied to them
for any purposes, or to deal with it in any manner so
unduly or improperly interfere with the supply of electricity
supplied to any other local authority, company, or person by the
undertakers, and if any dispute or difference arises between the
undertakers, and any local authority, company, or person entitled
to be supplied with electricity under this Act, or any license,
order, or special Act, as to the matters aforesaid, such dispute or
difference shall be determined by arbitration.

Some of the Power Acts exclude this section from incorporation" so far as it relates to lamps or burners." See further the Chapter on POWER ACTs, post.

The difficulties which may have been anticipated, and which were intended to be met by the proviso in this section, have not arisen in practice; and it is believed that no arbitration has been held under it. See s. 27 (4) of the schedule to the Electric Lighting (Clauses) Act, 1899, p. 186.

19. Where a supply of electricity is provided in any part of an area for private purposes, then except in so far as is otherwise provided by the terms of the license, order, or special Act authorising such supply, every company or person within that part of the area shall, on application, be entitled to a supply on the same terms on which any other company or person in such part of the area is entitled under similar circumstances to a corresponding supply.

Some of the Power Acts exclude this section from incorporation and substitute special provisions. See more fully the Chapter on POWER ACTS, post.

Mere demand will not entitle an intending consumer to be supplied with electric energy. The Electric Lighting (Clauses) Act, 1899, and provisional orders to which that Act is not applicable, contain the conditions which have to be observed by any owner or occupier requiring a supply of energy. After serving a notice specifying the premises, the maximum power required, and the day upon which the supply is required to commence, the intending consumer must enter into a written contract, if required by the undertakers, to receive and pay for a supply of energy for a period of at least two years, of such an amount that the payments to be made for the supply at the rate of charge for the time being charged by the undertakers for a supply of energy to ordinary consumers within the area of supply shall not be less than 20 per cent. per annum on the outlay incurred by the undertakers in providing any electrical lines required to be provided for the purposes of the supply; and if required by the undertakers, the consumer must also give security. Metropolitan E. S. Co., Limited v. Ginder, [1901] 2 Ch.799. See s. 27 of the schedule to the Electric Lighting (Clauses) Act, 1899, post, p. 185. It is the practice of companies and local authorities supplying electricity to require intending consumers to enter into a contract. See also Husey v. London E. S. Corp., [1902] 1 Ch. 411, cited under s. 20. See further the notes to s. 20.

20. The undertakers shall not, in making any agreements for Sect. 20. a supply of electricity, show any undue preference to any local Charges for authority, company, or person, but, save as aforesaid, they may electricity. make such charges for the supply of electricity, as may be agreed upon, not exceeding the limits of price imposed by or in pursuance of the license, order, or special Act authorising them to supply electricity.

See the preceding section and notes thereto.

Provisional orders have usually provided that the undertakers may charge for energy supplied by them to any ordinary consumer (otherwise than by agreement),

(1.) By the actual amount of energy so supplied; or

(2.) By the electrical quantity contained in such supply; or

(3.) By such other method as may for the time being be approved by the Board of Trade.

An enactment to this effect is contained in s. 31 of the schedule to the Electric Lighting (Clauses) Act, 1899.

The maximum prices chargeable fixed by the provisional order have, as a general rule, been as follows:

(1.) Where the undertakers charge any comsumer by the actual amount of energy supplied to him, they shall be entitled to charge him at the following rates per quarter: For any amount up to 20 units, 13s. 4d.; and for each unit over 20 units, 8d.

(2.) Where the undertakers charge any consumer by the electrical quantity contained in the supply given to him they shall be entitled to charge him according to the rates set forth above, the amount of energy supplied to him being taken to be the product of such electrical quantity and the declared pressure at the consumer's terminals, that is to say, such a constant pressure at those terminals as may be declared by the undertakers under any regulations made under the provisional order. See Regulations B. (6), post, p. 255.

(3.) In the case of a method of charge approved by the Board of Trade, such price as the Board of Trade shall, on approving such method, determine.

See further, ante, p. 35. See also ss. 33 and 34 of the schedule to the Electric Lighting (Clauses) Act, 1899, giving power to make other charges by agreement and making provision as to the price to be paid for supply to public lamps, which, in the absence of agreement, is to be determined by arbitration.

An intending consumer signed a form of request to an electric lighting company, subject to, inter alia, the following terms: (1) The consumer agrees to take the whole of the electric current required for the premises mentioned below from the company for a period of not less than 5 years. (2) The charge for electric energy to be 44d. per Board of Trade unit. No quantity was specified; there was no covenant by the company to supply nor by the defendant to take any energy. Similar forms of request had been signed by other persons for different terms of years and at different prices. The

Cases decided

on special contracts.

Sect. 20.

NOTE.

Cases decided on special contractscontd.

company afterwards supplied another consumer under contract for two years at 4d. per unit; but he was a large consumer and took his supply in the daytime, which was an advantage to the company. It was held that this did not amount to undue preference under ss. 19 and 20 of the Act of 1882; that the phrase "special circumstances" in s. 19 embraced amount of energy consumed, the expense of supplying it and getting payment, uniformity of demand and the fact that some consumers required the energy by day and some by night and that unless all the circumstances were similar, agreements might lawfully be made for different terms and at different rates. The contract (the terms of which were embodied in the form of request) contained no negative covenant not to take electric energy from any other source. The consumer having given to the company notice to remove their meter, and that he had agreed to take his light from another electric lighting company, BUCKLEY, J., granted an injunction at the instance of the company, holding that the negative covenant was to be implied. Metropolitan E. S. Co. v. Ginder, [1901] 2 Ch. 799. Cf. Whitwood Chemical Co. v. Hardman, [1891] 2 Ch. 416.

A limited company owning a large hotel at Westminster obtained a supply of electric current from the London Electric Supply Corporation under an agreement which contained a clause to the effect that the electric company "shall be at liberty to discontinue the supply of energy if and so long as the consumer shall make default in making payment in accordance with the agreement hereinbefore contained," that is by quarterly payments, or if required by the defendants at shorter periods, at the rate specified in the defendants' published scale of charges. In an action by debenture-holders against the hotel company a receiver of the undertaking, property, and assets of the company was appointed, and the company were ordered to deliver over to the receiver "possession of the said premises as far as is necessary for the purposes of the receivership." At this time there was due from the company to the defendants a sum of £437 for electric current supplied by them to the hotel. This amount the receiver refused to pay,. and the electric light company threatened to cut off the supply of current.. In an action by the receiver for injunction it was held by the Court of Appeal that the electric company were entitled to discontinue the supply of current until the receiver had entered into a new contract with them for a supply. Either the receiver stood in the place of the hotel company under their agreement above referred to, or else he was a new tenant. On either contention the Court held the electric company to be in the right;. because in the one case the receiver would be bound by the terms of the agreement which entitle the company to cut off, and in the second case, he was a new tenant who was not entitled to the current as he had not entered into a written contract with the undertakers under s. 47 of their provisional order of 1889, confirmed by 52 & 53 Vict. ch. clxxviii. Husey v. London E. S. Corporation, [1902] 1 Ch. 411: cf. Husey v. Gaslight and Coke Co.. (1902), 18 T. L. R. 299, cited post, p. 121.

The lessee of a theatre entered into a contract with an electric lighting company to take a supply for a year certain, it being stipulated that in the event of the theatre being sub-let for any portion of the period, the liability of the sub-tenant should be substituted for that of the lessee. The theatre was sub-let for a period, and notice was duly given to the company. Subsequently, and within the year, a company was formed which became

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