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Supply of electricity in bulk by the Board.
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56.—(1) Whenever the Board offers to an authorised undertaker or a statutory undertaker a supply of electricity in bulk to be supplied by the Board or by another person at a rate of charge (including provision for any expenses necessarily incurred by such undertaker in taking such supply in bulk) which is equal to or less than the cost of generation by such undertaker, such undertaker shall take such supply in bulk upon such terms and conditions as shall be determined by agreement or in default of agreement by the Board.
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(2) An undertaker who takes a supply of electricity in bulk under this section shall not be required to construct outside his area of supply any works for the purpose of such supply as aforesaid, but such an undertaker if so requested by the Board and if he consents to do so may construct outside his area of supply any such works as aforesaid.
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(3) If any dispute arises between any undertaker and the Board as to whether the cost of generation of electricity in the generating station of such undertaker is or is not greater than the rate of charge (including provision for any expenses necessarily incurred by such undertaker in taking such supply in bulk) at which a supply of electricity in bulk is offered under this section to such undertaker, such dispute shall be determined by an arbitrator appointed by the Minister and the decision of such arbitrator shall be final.
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(4) In this section the expression “cost of generation” means all costs incurred by an undertaker which having regard to the items of cost included in the comparative rate of charge for a supply of electricity in bulk ought properly to be allocated to those parts of his undertaking engaged in the production of electricity including (in the case of an undertaker who brings electricity from the generating station of such undertaker to a central station for distribution therefrom to consumers) the costs (if any) incurred by such undertaker in bringing such electricity to such central station but not in any case including any capital charges which remain to be borne by an undertaker after taking a supply of electricity in bulk under the foregoing provisions of this section.
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