Adelaide Electricity Supply loses coal war; premier Tom Playford nationalises it in 1946 to fulfil his vision for state
Adelaide Electricity Supply Company in 1946 proudly showed its power transmission network achievements but not enough to convince South Australian premier Tom Playford who wanted to it to use brown coal from Leigh Creek. Right: Playford, at left, at the Leigh Creek open-cut coal mine with Gilbert Poole (Engineering and Water Supply department), T.M. Carey (Zinc Corporation) and I. Stewart (commonwealth coal commission).
Adelaide Electricity Supply Company lost to South Australian premier Tom Playford and his vision for the state in the post World War II coal war of 1946.
Privately-owned and London-based, Adelaide Electricity Supply Company since 1904 had been the monopoly power provider via a network of substations to most Adelaide suburbs and other settled areas of the state, as well as the electric tramway system, with its Osborne power station and Stobie poles from1926.
World War II’s munitions and supply production in Adelaide put such demands for power network upgrades such as Port Adelaide-Penfield 33kV lines and a 66kV line to Morgan, to power the new Morgan-Whyalla water supply pipeline project.
in 1943, as the war ended, the Adelaide Electric Supply Company faced pressure from Playford’s government to pursue even more rapid expansion. This government also was concerned about electricity supply that was affected by difficulties in obtaining sources of good quality coal for the Osborne power plant, due to industrial disputes in New South Wales.
Playford championed the cause of brown coal deposits at Leigh Creek in South Australia’s north and to work out how best to proceed to mine it – drawing on public sector expertise from the mines department, Engineering and Water Supply department, South Australian Railways, the factories and boilers department and Treasury through to the chief storekeeper. In response, Adelaide Electricity Supply’s board and management continued to insist on preferring New South Wales black coal as more economic and to reflect proudly on its record of £850,000 spent on the rural transmission system.
Playford argued that using Leigh Creek coal was essential to South Australia’s postwar survival and independent development. The power struggle’s next phase in 1943 was Playford setting up the South Australian Electricity Commission under Jim Harrod. The commission became active and influential in state government planning. A royal commission into Adelaide Electricity Supply corporate affairs was initiated by the government, along with threatened restrictive government bills, as strong public sentiment backed Playford.
After Leigh Creek started producing in 1944, its coal was successfully tested in the Whyalla steelworks and used for trams, government institutions, including the Royal Adelaide Hospital, and increasing industrial applications. When interstate shortages of coal prevailed, Leigh Creek coal kept the Osborne power station running, entrenching its value to the South Australian economy and community.
In 1946, Adelaide Electric Supply still refused to use Leigh Creek coal, even going to the extent of buying boilers that could only use black coal. Playford responded by asking commonwealth government for funds to nationalise the company. These were provided by Labor prime minister Ben Chifley.
The Electricity Trust of South Australia (ETSA) was created in September 1946 from the nationalisation of Adelaide Electric Supply. The company’s chief engineer F.W.H. “Freddy” Wheadon, who had led it for 48 years, retired, aged around 73.
