Metropolitan Gas Act 1860
Encyclopedia
The Metropolitan Gas Act 1860 was a United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 act of parliament
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...

 that regulated the operation of gas supply companies in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

.

Background

The use of coal gas
Coal gas
Coal gas is a flammable gaseous fuel made by the destructive distillation of coal containing a variety of calorific gases including hydrogen, carbon monoxide, methane and volatile hydrocarbons together with small quantities of non-calorific gases such as carbon dioxide and nitrogen...

 for illumination and heating had expanded since its invention in the early 18th century by William Murdoch
William Murdoch
William Murdoch was a Scottish engineer and long-term inventor.Murdoch was employed by the firm of Boulton and Watt and worked for them in Cornwall, as a steam engine erector for ten years, spending most of the rest of his life in Birmingham, England.He was the inventor of the oscillating steam...

, a Scottish engineer. By the middle of the nineteenth century there were nearly a 1000 gas companies within Great Britain and 13 in London. Increasing competition had led to falling dividends and by the 1850s the industry welcomed change.

The act

The Gas Act 1860 ended the severe competition and encroachment on rival Company's' gas supply areas. It permitted companies to arrange for the monopoly lighting of allotted districts.

The act included the first attempt to produce a standard measure for energy supply when it defined the term candle power.

Outcome

The monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 status of the gas companies led to overcharging and abuse resulting in a public outcry. The City of London Gas Act 1868 tried to regularise this by forcing the remaining gas companies to open their accounts to public view.
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