Energy in History

Privatising electricity

During the late 1980s, the Thatcher government pursued its largest and most radical privatisation.

The electricity supply sector had always been subject to a significant amount of state regulation and ownership, primarily through municipal enterprises. Privatisation was a major undertaking that involved the comprehensive dismantling of a formerly highly centralised and integrated industry that had changed markedly since it was nationalised in 1948.

Under central government ownership, electricity generation had increased several times over but generation had been concentrated into a small number of large efficient coal and nuclear plants. Privatisation proceeded in the early 1990s, firstly in England and Wales and then in Scotland, followed by Northern Ireland.

It was accompanied by the 'dash for gas' which along with a post-privatisation redundancy drive contributed to a significant reduction in the workforce and a change of ethos from what had been viewed as an industry founded on secure jobs and often a lifetime commitment by workers and employers.

Documents from within the nationalised industry indicate a determination to pursue divergent policies on employment. A Future Strategy for Industrial Relations Machinery was produced in 1989 by the Central Electricity Generating Board ahead of privatisation.

"Total employment" and "cradle to grave personnel policies" were the "basic principles" of the nationalised sector.

In place, it suggested "flexibility" through increased use of contractors and ending distinctions between occupational groupings. Moreover, there was an imperative on  "Manning: need to identify activities where massive capital investment can reduce manpower."

Future Strategy for Industrial Relations Machinery – Note of an information meeting on 10 April 1989, Modern Records Centre, University of Warwick, 959/6 Electricity Supply: Privatisation: internal documents.

Workers' stories

Danny Carrigan, a National Officer for the Electrical, Electronic, Telecommunications and Plumbing Union who had responsibilities for the electricity supply industry addressed a conference of industry shop stewards in May 1990. He pointed out that whilst union activists were opposed to the dismantling of the old unified system of bargaining, they were actually habituating to privatisation and displaying links with the new private companies formed out of the nationalised industry:

"Frank and I, Brendan and Ken Jackson were at the National Joint Industrial Council down in Millbank negotiating wages and we were being berated by pickets outside who were saying, 'no end to the national agreement', 'it is one industry' and we looked around and saw that they were wearing PowerGen ties and carrying National Power bags and so on and so forth. So you can see that vesting day has had an impact already because clearly the companies are trying to inject corporate identity into their companies and they are indeed succeeding to a certain extent."

Abridged Report of the National Conference for the Electricity Supply Industry held at Norbreck Castle Hotel Blackpool from Sunday 20 May to Monday 21 May 1990 (EETPU, 1990)

Many workers simply accepted voluntary redundancy during privatisation, often retiring early in the context of an ageing workforce.

Richard Bottrell, whose father was a power station worker in the Midlands, recalled in 2023 that around thirty years earlier.

"Privatisation destroyed that, really, you know, the number of people that left the industry was amazing. My father was one, who just literally walked out. He didn’t want to be involved in privatisation or the privatisation of the industry, you know, and it just became profit making.

You know, we were told, you are now a profit centre, you know, whereas in the past, we never really looked at that type of thing, we were just there to keep the lights on all the time, then all of a sudden, we were to make money."