The AESC continued to snub the government.
Playford advocated the use of brown coal from the South Australian Leigh Creek mine to avoid supply complications, and even made into law a bill encouraging its use.
He also championed the development of the town and the expansion of the mine, which had been dormant for several decades, to ease the state's dependency on imported coal.
Much state and federal government money was invested in the scheme, the town infrastructure was built, and the production started in February 1944.
Shortly afterwards, the AESC responded by buying new boilers which would only be able to the more productive black coal.
With more conflicts ensuing, and even with the company slowly relenting, Playford did not stop his struggle.
A Royal Commission in March 1945 was appointed to ascertain a solution between the two parties, and presented its report in August with a recommendation that the AESC be nationalised.
A few months later, Playford's stance received a boost when heavy strikes in New South Wales forced shutdowns in South Australia that saw thousands of labourers out of work.
By then at the head of the only conservative government in the nation, when Playford requested commonwealth funds to assist in the nationalisation of the AESC Prime Minister Chifley responded with glee and enthusiasm.
On 11 October, he presented a bill to Parliament to nationalise the AESC and create the Electricity Trust of South Australia.

Labor, astonished that such an action was to come from a Liberal Premier, resolutely supported the bill, guaranteeing it passage through the House of Assembly 29–6, the only dissenters being LCL members.
However, the Legislative Council was dominated by economic conservatives, fierce adherents of free enterprise and opponents of what they considered to be undue government intervention in the economy.
The LCL councillors tried to have the bill watered down to allow merely for government control of AESC for a brief period.
In the Council, where suffrage was reliant upon wage and property requirements, the ALP only held four seats out of twenty, and only five LCL members supported the nationalisation.
Thus, on 7 November, the bill failed to pass and it was not put to the Parliament again until 1946.
On 6 April, after months of campaigning on Playford's part, he managed to change the mind of MLC Jack Bice, and the bill passed.
The Electricity Trust of South Australia was formed, and was to become a major aid to post-war industrialisation.

The decision to nationalise AESC and develop Leigh Creek proved to be prescient.
In early 1947, mines in New South Wales were again crippled by strikes.
The worst strike came in 1949, forcing Chifley to send in the armed forces to extract coal.
While the other states had to suffer industrial power rationing and thus reduced manufacturing output and more unemployment, South Australia managed to escape as the miners at Leigh Creek worked around the clock.
Within four years the mine was operating at a surplus and the town was further rewarded with federal funding.
From 1947 until the end of Playford's leadership in 1965, the output of the mine increased tenfold to almost two million tons a year.
Transport infrastructure was improved, European immigrant workers were recruited, and twin power plants at Port Augusta were completed in 1960 and named after the premier.
The new plants exclusively used Leigh Creek coal and by 1970, the whole state was self-sufficient for electricity.
ETSA and the mine were generating enough revenue to maintain the town—sometimes dubbed Uncle Tom's Baby—and mine of Leigh Creek and making a profit as well.
From 1946 to 1965, the proportion of South Australians connected to electricity increased from 70 to 96%.

The nationalisation of the AESC was the most prominent manifestation of Playford's economic pragmatism; although ideologically a supporter of free enterprise like his colleagues, he saw ideology as secondary if in the way of his objectives.
He had little time for those who objected to plans that were for the betterment of South Aus
The AESC continued to snub the government. Playford advocated the use of brown coal from the South Australian Leigh Creek mine to avoid supply complications, and even made into law a bill encouraging its use. He also championed the development of the town and the expansion of the mine, which had been dormant for several decades, to ease the state's dependency on imported coal. Much state and federal government money was invested in the scheme, the town infrastructure was built, and the production started in February 1944. Shortly afterwards, the AESC responded by buying new boilers which would only be able to the more productive black coal. With more conflicts ensuing, and even with the company slowly relenting, Playford did not stop his struggle. A Royal Commission in March 1945 was appointed to ascertain a solution between the two parties, and presented its report in August with a recommendation that the AESC be nationalised. A few months later, Playford's stance received a boost when heavy strikes in New South Wales forced shutdowns in South Australia that saw thousands of labourers out of work. By then at the head of the only conservative government in the nation, when Playford requested commonwealth funds to assist in the nationalisation of the AESC Prime Minister Chifley responded with glee and enthusiasm. On 11 October, he presented a bill to Parliament to nationalise the AESC and create the Electricity Trust of South Australia.
Labor, astonished that such an action was to come from a Liberal Premier, resolutely supported the bill, guaranteeing it passage through the House of Assembly 29–6, the only dissenters being LCL members. However, the Legislative Council was dominated by economic conservatives, fierce adherents of free enterprise and opponents of what they considered to be undue government intervention in the economy. The LCL councillors tried to have the bill watered down to allow merely for government control of AESC for a brief period. In the Council, where suffrage was reliant upon wage and property requirements, the ALP only held four seats out of twenty, and only five LCL members supported the nationalisation. Thus, on 7 November, the bill failed to pass and it was not put to the Parliament again until 1946. On 6 April, after months of campaigning on Playford's part, he managed to change the mind of MLC Jack Bice, and the bill passed. The Electricity Trust of South Australia was formed, and was to become a major aid to post-war industrialisation.
The decision to nationalise AESC and develop Leigh Creek proved to be prescient. In early 1947, mines in New South Wales were again crippled by strikes. The worst strike came in 1949, forcing Chifley to send in the armed forces to extract coal. While the other states had to suffer industrial power rationing and thus reduced manufacturing output and more unemployment, South Australia managed to escape as the miners at Leigh Creek worked around the clock. Within four years the mine was operating at a surplus and the town was further rewarded with federal funding. From 1947 until the end of Playford's leadership in 1965, the output of the mine increased tenfold to almost two million tons a year. Transport infrastructure was improved, European immigrant workers were recruited, and twin power plants at Port Augusta were completed in 1960 and named after the premier. The new plants exclusively used Leigh Creek coal and by 1970, the whole state was self-sufficient for electricity. ETSA and the mine were generating enough revenue to maintain the town—sometimes dubbed Uncle Tom's Baby—and mine of Leigh Creek and making a profit as well. From 1946 to 1965, the proportion of South Australians connected to electricity increased from 70 to 96%.
The nationalisation of the AESC was the most prominent manifestation of Playford's economic pragmatism; although ideologically a supporter of free enterprise like his colleagues, he saw ideology as secondary if in the way of his objectives. He had little time for those who objected to plans that were for the betterment of South Aus
Thomas Playford IV