For part I see ibid., vol.21, p.1627 (1988). A new way to describe the mechanism of forming of powder DC electroluminescent panels is proposed that is based on the hypothesis that the surface regions of the phosphor particles adjacent to the anode are oxidised. This irreversible chemical transformation produces the narrow resistive formed layer in which electroluminescence can occur. Electron conduction and photon production is controlled not only by the applied electric field but also by the internal fields within the particles derived from surface-adsorbed oxygen ions. The new observations reported in part I are explained and additional, confirmatory experiments are described. It is argued that identical physical and chemical processes control the brightness of pulsed DC-operated displays and some implications for the solution of the maintenance problem are discussed.