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The capital invested in electricity supply during the 10-year period 1921–22 to 1930–31 is allocated as between generation and distribution, showing how the latter is becoming the more important side of the industry.The revenue derived from sales of electricity during the same period is also reviewed and allocated as between generation and distribution expenses, showing that although the efficiency of generation has increased materially, there has been little, if any, improvement in distribution efficiency. The causes of this lack of improvement are analysed andsuggestions are put forward for the co-ordinated control of distribution in order to effect improvements and economies.