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18
The following statement on the subject, which was submitted
by the Clerk to the Board, may be of interest, and
it is therefore reproduced;—
In the district north of the Thames supplied by the Gas
Light and Coke Company, the price of gas is governed by
the rules laid down under Section 19 of the Gas Light and
Coke Company's Act, 1876.
Section 19 provides that the standard price for common
gas shall be 3s. 9d. per 1000 cubic feet, which shall be
increased or diminished, subject to a decrease or increase in
the rate of dividend, to be calculated as follows;—For every
penny charged in excess or diminution of the standard price,
the standard rate of dividend shall be reduced or increased
by 5s. in the £100 per annum.
A limit is placed upon the Capital, which cannot be
increased except under certain conditions, and when
additional capital is raised the new shares must be offered
for sale by auction or tender.
The standard rate of dividend is defined by Section 10 of
the Act as 10 per cent. per annum.
Section 21 provides that if the clear profits in any year
amount to a larger sum than is sufficient to pay the standard
rate of dividend, the excess shall be invested and form an
insurance fund.
The supply of gas to public lamps is governed by Section 24
of the Gas Works Clauses Act, 1871, which require gas to
be supplied within certain distances, and the price to be
charged to be settled by agreement between the Local
Authorities and the Gas Company, or in case of differences,
to be settled by arbitration, regard being had to the circumstances
of the case and the price charged to private consumers