From 1925 it formed an association with three other London companies, with the intention of centralising electricity generation in the new, high thermal efficiency, power station at Barking.
The South Metropolitan Company was abolished in March 1948 upon the nationalisation of the British electricity supply industry.
[1] A Provisional Order was granted by the Board of Trade in 1897[3] to supply electricity to Greenwich, Charlton, Eltham, Lee, Kidbrook, and Lewisham.
The local authorities had the right to purchase the part of the undertaking within its district at a premium of 33 per cent above the capital expended.
Following the take-over the combined undertaking was known as the South Metropolitan Electric Light and Power Company Limited.
The Company was authorised to supply current to small areas in the Croydon County Borough and the Beckenham and Penge Urban Districts.
[7] Penge power station also supplied electricity to the South Metropolitan Company system.
The business of the South Metropolitan Company increased to meet the rising demand for electricity.
The following table summarises the growth of the Company in terms of capacity of the plant, the electricity load, the amount of current sold, and the number of customers.
Capital expenditure was needed for the purchase of land, buildings, machinery, mains, transformers, meters, electrical instruments, legal costs, fixtures and furniture at the stations.
The companies remained district electricity supply undertakings; although they were physically joined with interconnecting cables.
[15] The companies envisaged that power stations such as Barking would provide enough capacity for their electricity requirements.
Dividends to shareholders were limited to 7 percent per year and the funds that could be carried forward in the accounts were restricted.
[15] The County of London Company built the 118.75 MW Barking A power station which was commissioned in 1925.
[18] The CEB identified high efficiency ‘selected’ power stations that would supply electricity most effectively.