Second-hand Electrical Plant

Abstract

THE policy of the Central Electricity Board in closing down obsolescent electricity supply stations has had the effect of crowding the machinery and equipment market with plant at very low prices. In his presidential address to the Midland Centre of the Institution of Electrical Engineers, Colonel H. C. Fraser said that this plant is being bought by industrial users, and that this is detrimental to the supply industry. The user having very small capital charges is placed in a strong position to compete with the public supply. The recent sales of electrical plant and fittings from ocean liners, such as the Mauretania and the Olympic, have also decreased to a certain extent the capital charges of the purchasers. On the other hand, mill owners and others are very reluctant to dispose of existing moderately efficient plant at scrap values. The question is one of economics. When the user has capital at his disposal, he can estimate the cost of the renovation of plant and the increase in profits that will probably ensue; and if satisfied, he should not delay the change-over too long. We think that the gain to the community effected by scrapping plant at the proper economical time far more than counterbalances the loss to manufacturers due to the consequent diminished demand for machines and equipment.