In 1947, as part of the programme of post war reconstruction through public ownership, the government nationalised the electricity industry of England, Wales and Scotland. The Minister of Fuel and Power was responsible for the industry. The British Electricity Authority was formed to run the power stations and National Grid and to co-ordinate the work of the new Area Electricity Boards which took over the five hundred and sixty existing electricity undertakings.

The Area Boards were responsible for the distribution and sale of electricity to customers. In addition, they undertook contracting work and the sale of electrical appliances. There were twelve boards in England and Wales and two in southern Scotland.

On the 1st April 1955 the Authority was replaced with the Central Electricity Authority because of the introduction of the Electricity Reoragnisation (Scotland) Act 1954. The Authority looked after interests in England and Wales while the South of Scotland Electricity Board was formed to look after generation, distribution and electricity supply in Southern and Central Scotland.