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39-468: The first chairman of the board was Sir Andrew Clow who established the headquarters at 25 Drumsheugh Gardens and 12 Rothesay Terrace Edinburgh. He served until 30 April 1956. In the last of his quarterly letters to his senior management, he reflected on the experience of centralising the control of over two hundred independent undertakings. The remainder of the article is abstracted from that letter and includes explanatory remarks. Each undertaking performed

78-475: A Conversion Executive .  A Gas Conversion Association was also established to represent the interests of contractors. A contract was made with BP in 1967 to purchase natural gas from the West Sole Field. This was to be 50 million cubic feet per day for 15 years. The Gas Council offered 2.5 d . to 4 d . per therm whereas BP proposed 6 d . to 7 d . a therm. After an intervention from the minister

117-544: A figure of 5 d . was agreed. Soon after 25-year contracts were made with Phillips, Shell/Esso and Gas Council/Amoco for gas from fields (Hewett, Leman and Indefatigable) feeding the Bacton terminal in Norfolk. At both Easington , where gas from West Sole landed, and at Bacton the council built terminals to receive cleaned gas which was then metered; blended; had odorant added; and had the flow controlled. The Gas Council built

156-578: A first class plant, first class gas and coke, a first class office and showroom, a first class financial system are all admirable. But these and many more gadgets in the machine will be of little value unless those using them add to their professional competence a sense of vocation and an anxiety to brighten up what Wordsworth calls 'the still, sad music of humanity.'" The Board took over the following local authority and privately owned gas production and supply utilities: Andrew Clow Sir Andrew Gourlay Clow , KCSI, CIE (29 April 1890 – 31 December 1957)

195-471: A gas consultative council and district committees. They were charged with considering any matter affecting the supply of gas in the area; and of considering and reporting to the area board any such matter. Each council had between 20 and 30 members. The annual reports of the Gas Council identify the work of the consultative councils which recognised that they were an important part of the interpretation of

234-489: A network of 36-inch diameter pipelines to transmit the gas, which was to become the National Transmission System . In 1968 a major restructuring of the Gas Council was undertaken, driven by the advent of natural gas and the need to plan nationally. The area boards which had been accountable directly to the minister, now had their activities channelled though the council. A central marketing office

273-407: A range of activities. In 1953 the Gas Council formed D’Arcy Exploration as a joint venture with BP. It allocated £1 million to search for natural gas on land; in 1954 gas was found at Cousland near Edinburgh. The Midlands Research Station was opened at Solihull in 1954. The Gas Council presided over two major changes in the technological basis of the industry. Firstly, from the late 1950s,

312-500: A shift way from conventional carbonising plant for the production of town gas to chemical reforming using light feedstocks from oil refineries. And secondly the conversion of the gas supply from town gas to natural gas as North Sea gas became available from 1967. The first transnational shipment of liquefied natural gas took place left the USA on 25 January 1959, arriving at a new LNG terminal on Canvey Island 27 days later. The council

351-600: The Association of Gas Corporations . The British Gas Federation was established in 1934 to represent collective interests of the council and association. In 1943 the industry proposed the establishment of the British Gas Council amalgamating the two existing bodies. The new organisation was established in 1946 as a company limited by guarantee. It represented 95 percent of the gas suppliers in Britain. It

390-511: The Gas Act 1965 to allow it to borrow more money and to manufacture or acquire gas and supply gas in bulk to area boards. The Gas Council consisted of a chairman and a deputy chairman, both appointed by the Minister of Fuel and Power, and the chairman of each of the 12 area boards, as appointed by the minister. In 1951 the council was constituted as shown. The area board represented by each of

429-571: The Gas Council's policy to the public. The councils had a chairman, a deputy chairman and a secretary. There were members appointed as representatives of local authorities (under Section 9(2)(a) of the Gas Act), as representatives of commerce, industry, labour and other interests (Section 9(2)(b)). The North Thames Gas Consultative Council had four district committees for: Berkshire and Buckinghamshire; Central and North London; East London and Essex; and West London and Surrey. Following nationalisation,

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468-483: The Minister of Fuel and Power appointed a committee of inquiry under the chairmanship of Geoffrey Heyworth to review the structure and organisation of the industry and advise on changes to develop and cheapen gas supplies. The committee reported in November 1945 and recommended the compulsory purchase by the government of all undertakings and the creation of ten regional gas boards. The Heyworth Committee report formed

507-574: The Minister of Fuel and Power appointed the chairman and deputy chairman of the Gas Council and the chairmen of the twelve area boards until 1957. This function then devolved to the renamed Ministry of Power (1957 – 1969), then to the Ministry of Technology (1969 – 1970), and finally to the Department of Trade and Industry (1970 – 1972) through various government reorganisations. To achieve the Gas Council's aims and statutory obligations it undertook

546-553: The North Sea in 1971, in what were to be named the Arbroath and Montrose oil fields . The Gas Council published a range of material to meet statutory obligations and to inform commercial and domestic consumers. These included: In 1969 the government recognised that to fully exploit the benefits of North Sea Gas a radical reorganisation of the industry was needed with increased power to the centre. A bill to realise these changes

585-886: The United Free Church College, Glasgow. He represented the Indian Government as a delegate at the International Labour Conferences at Geneva. He was the Deputy Secretary to the Government of India from 1924 to 1927 and Joint Secretary (Industries and Labour) from 1931 to 1935. From 1938 to 1942, he was a member of the Viceroy's Executive Council responsible for Communications. He was knighted in 1939. After Indian independence, Clow returned to Britain. At

624-611: The age of 58, while being the chief of the Scottish Gas Board , he was appointed the member of the new Gas Council . He was a member of the Restrictive Practices Court from 1957. Gas Council The Gas Council was a UK government body that provided strategic oversight of the gas industry in England, Wales and Scotland between 1949 and 1972. The British gas industry was nationalised under

663-866: The basis of the Gas Act 1948. The Gas Act 1948 was one of a number of Acts promulgated by the post-war Labour government to nationalise elements of the UK's industrial infrastructure; other Acts include the Coal Industry Nationalisation Act 1946 ; the Transport Act 1947 (railways and long-distance road haulage); the Electricity Act 1947 ; and the Iron and Steel Act 1949. The industry was fragmented with limited cooperation and coordination between undertakings. The exception were some industry-wide bodies with an interest in aspects of

702-610: The board chairs are given in brackets. Throughout its operational life of 23 years there were four chairmen of the Gas Council: And there were five deputy chairmen: Upon the establishment of the British Gas Corporation on 1 January 1973 the chairman and deputy chairman of the abolished Gas Council, Sir Arthur Hetherington and Denis Rooke, took similar roles in the new corporation to provide continuity. Provisions were made for each area board to have

741-572: The council's borrowing powers to £1,200 million; it was also allowed to manufacture or acquire gas and supply gas in bulk to Area Boards. The new powers allowed it to enter joint ventures with Amoco on parts of the Leman and Indefatigable gas fields. The Gas Advisory Council was established in 1965 to allow workers and management and trade unions to discuss national objectives. The Gas Council chairman Sir Henry Jones announced in 1966 that Britain would convert from manufactured to natural gas and formed

780-405: The functions of coal gas production and distribution through underground pipes to domestic, commercial and industrial customers, sales promotion, finance, etc. Some works were too small to remain viable and one at Wigton was closed. Studies were conducted to establish whether previously rival works could be integrated, both managerially and physically by linking their distribution systems. Most of

819-493: The gas undertakings. The Act also established the Gas Council. The Act took effect from 1 May 1949. The Gas Council's formal responsibilities were defined in Section 22 of the Gas Act 1948: (a) to advise the Minister in questions affecting the gas industry and matters relating thereto; (b) to promote and assist the efficient exercise and performance by Area Boards of their function. The council's legal powers were extended by

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858-553: The good relations the Board had with the trade unions and, although he welcomed increasing wages, he deplored the fact that wage negotiations were conducted at national level (by the Gas Council ) and that wage awards were "above what the cost of living and our (Scottish) position justified." He regretted that he had to mark his departure with a concomitant rise in gas prices. The chairman concluded his account by remarking that "...

897-467: The industrial market in Scotland because of falling oil prices. One of the largest refinery sites in the country was located almost at the centre of the industrial belt. Domestic customers were becoming ever more sensitive to the price of gas as electric heating, in various forms, became relatively cheaper. New house building after the war was on an unprecedented scale on mainly green-field sites beyond

936-625: The industry. These included the National Gas Council which was established in 1916 to deal with matters that affected the whole of the industry, it included representatives of all the governing bodies. The British Commercial Gas Association was founded in 1912 and served as the publicity agency for the industry. There was also the National Federation of Gas Coke Associations , the Federation of Gas Employers , and

975-402: The joints. Actual 'unaccounted for gas' (loss through leakage and other losses) was estimated as being as much as 25%. Refurbishment and replacement of pipes was a priority, for safety reasons. Little preventive work was carried out; distribution engineering was usually initiated by the detection of a leak. Many gas works had not been adequately maintained, the price of coal and of coke oven gas

1014-515: The larger gas undertakings had been owned by local authorities and employed many expert and talented engineers. However the same authorities were also owners of electricity generating and supply companies (the main rivals of the gas industry); the local authorities had felt no need to promote competition. Immediately after World War II there was a chronic shortage of pipes (for mains replacement and extension to new customers), and other materials. Most gas pipes were made of cast iron and often leaked at

1053-559: The main supply to the premises). The procedure then requires pipes to be purged to ensure that any explosive mixture of gas and air is removed before the main is pressurised again. Finally, every household had to be visited again to ensure safe restoration of supply. Consequently, the engineer manager was more concerned about ensuring continuity of supply and with balancing supply with demand on an hourly basis. The notion that in addition to performing his delicate task, he would have to 'sell' gas by making personal contact with potential customers

1092-526: The provisions of the Gas Act 1948 ( 11 & 12 Geo. 6 . c. 67) which established the Gas Council with effect from 1 May 1949. The council acted as channel of communication between the Minister of Fuel and Power and the industry; it carried out research; undertook labour negotiations on matters such as wages; and acted as the voice of the gas industry. The Gas Council was abolished on 31 December 1972 under

1131-609: The reach of gas mains. Government rules about return on investment often made mains extension impossible, again to the detriment of suppliers of gas versus electricity. While the chairman was confident about the technical expertise of the staff he had inherited, he recognised that, unlike the previous owners, it was necessary to promote gas sales by ' educational advertisement and display, canvassing and salesmanship' and by making 'more contact with domestic customers, local authorities and various personalities'. The industry had, hitherto, been managed mainly by professional engineers, whose aim

1170-499: The terms of the Gas Act 1972 (c. 60). This restructuring of the gas industry, to manage the advent of North Sea gas, established the British Gas Corporation to centralise control and operation of the industry. Prior to nationalisation there were about 1,064 gas supply undertakings in Britain; about one-third were municipal local authority undertakings and about two-thirds were company undertakings. In June 1944

1209-697: Was a British colonial administrator in India. He was a specialist in labour conditions in India. Clow was member for Communications on the Viceroy’s Council until his appointment as Governor of Assam from 1942 to 1947, the last British-born governor. Andrew Clow was born in Aberdeen. He was the elder son of Rev. W. M. Clow, a minister of the South Church, Aberdeen. Rev. Clow was also the Principal at

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1248-412: Was a reference to the notion that pricing of state-owned produce should reflect cost as accurately as possible (a cost-plus pricing model). This was in very sharp contrast to the free-market concept of charging 'what the market will bear' i.e. the highest price that still enables sufficient competitive advantage to retain that customer, thus capturing all the consumer surplus . Gas was losing share of

1287-547: Was chaired by Sir Edgar Sylvester (later chairman of the Gas Council) and its aim was to oppose nationalisation. The Gas Council, under Section 62 of the 1948 Act, took over these bodies. Ministerial oversight of the gas industry prior to nationalisation was exercised by the Board of Trade until 1942, then the Ministry of Fuel and Power (1942 – 1949). The 1948 Act establish twelve area gas boards, which assumed ownership of

1326-453: Was established for selling gas to large industrial customers, the director sat on the Gas Council board. As well as Marketing there were divisions for Economic Planning, Production and Supply; Research and Development and Personnel, whose directors were on the board. The deputy chairman Arthur Hetherington became the chief executive. The Gas Council/Amoco group discovered oil in Block 22/18 of

1365-557: Was introduced in Parliament by the Labour government in November 1969. However, this bill failed as Parliament was dissolved for the 1970 general election. The Conservative government introduced a new Bill in 1972 to put full responsibility for the gas industry into a new statutory body the British Gas Corporation. The Gas Act 1972 (1972 c. 60) received royal assent on 9 August 1972 and came into force on 1 January 1973. The Gas Council

1404-489: Was responsible for the construction of an 18-inch diameter methane pipeline from Canvey to Leeds to supply methane feedstock for reforming plant to most area boards. Following this successful trial a full scale LNG plant was built at Canvey taking LNG from Algeria. The Gas Act 1960 increased the Gas Council's borrowing powers to £500 million. The Gas Act 1965 (c. 36) and the Gas (Borrowing Powers) Act 1965 (c. 60) increased

1443-485: Was rising, contractors were in short supply and the Scottish rating system at that time was such that 'profits might prove as damaging as losses'. Regarding gas tariffs, the chairman wrote "we must keep the allocation of charges between customers fairly close to our estimate of their individual costs and we do not have the freedom of private companies to discriminate between customers whose conditions are similar." This

1482-415: Was to produce and distribute gas as cheaply as possible, bearing in mind that, in the interest of safety, demand had to be met at all times. A failure to supply for any reason had dire consequences. Not only might it entail prosecution for breach of statutory responsibilities, but restoration of supply required, and still requires, every home to be visited to ensure that all gas taps are turned off (including

1521-432: Was unusual. The chairman admitted that "the great amount of work that re-organisation has involved has also had some effect, especially in the bigger places, in leaving Managers too little time to move around and to have frequent and close contact with others at work, whether they are stokers or typists, or mainlayers or meter readers in whatever capacity they serve". Customer contact not mentioned. The chairman remarked on

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