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National Grid plc

From Alfawiki
National Grid plc
Company typePublic limited company
IndustryElectricity and gas utility
FoundedJanuary 1, 1990; 36 years ago (1990-01-01) in London, England
Headquarters
London
,
England, United Kingdom
Area served
United Kingdom, Northeastern United States
Key people
John Pettigrew (CEO)
ProductsElectricity and gas transmission, distribution, generation, and supply
Revenue£18.378 billion (2025)
£4.765 billion (2025)
£2.622 billion (2025)
Total assets£106.742 billion (2025)
Total equity£37.826 billion (2025)
Number of employees
31,645 (2025)
Websitewww.nationalgrid.com

National Grid plc is a multinational utility enterprise based in London, England, specializing in electricity and gas. Its core operations involve managing electricity and natural gas transmission systems across the United Kingdom and the Northeastern region of the United States. Additionally, in the US, it engages in electricity and gas generation and supply services for customers located in New York and Massachusetts.

Recognized as one of the world's largest investor-owned utility firms, National Grid holds a primary listing on the London Stock Exchange as part of the FTSE 100 Index, alongside secondary listings via American depositary receipts on the New York Stock Exchange. The company’s main offerings encompass both transmission and distribution of electricity and gas.

For the fiscal year 2025, National Grid reported revenues amounting to £18.378 billion, operating profits of £4.765 billion, and net earnings of £2.622 billion. Its total assets are valued at £106.742 billion, with shareholders’ equity standing at £37.826 billion, supported by a workforce totaling 31,645 employees.

Background (CEGB before 1990)

Prior to 1990, electricity generation and transmission within England and Wales were overseen by the Central Electricity Generating Board (CEGB). The contemporary UK electricity market structure originated when the CEGB was divided into four separate entities during the 1990s. Generation responsibilities were allocated among PowerGen, National Power, and Nuclear Electric (which later became British Energy and subsequently EDF Energy), while transmission duties were assigned to the National Grid Company.

National Grid and acquisitions (1990–1999)

In 1990, transmission functions previously managed by CEGB were transferred to National Grid Company plc, which was owned by twelve regional electricity companies through the holding firm National Grid Group plc. The company went public on the London Stock Exchange in December 1995.

Expansion and consolidation (2000–2015)

During the 2000s, National Grid significantly grew through mergers and acquisitions. In March 2000, it purchased US-based utilities New England Electric System and Eastern Utilities Associates. This was followed by acquiring New York's Niagara Mohawk Power Corporation in January 2002. Later that year, in October 2002, National Grid merged with Lattice Group—the owner of Transco gas distribution—resulting in a rebranding to National Grid Transco plc. The telecom subsidiary 186K Ltd., acquired through Lattice, was sold to Hutchison Whampoa for £1 in December 2002.

In 2004, National Grid faced a £15 million fine related to a gas explosion incident. That same August, it divested four regional gas distribution networks for £5.8 billion but maintained control over four others that serve nearly half of Great Britain's gas distribution market. In July 2005, National Grid Transco adopted its current name, National Grid plc; its subsidiaries were renamed National Grid Electricity Transmission plc and National Grid Gas plc.

February 2006 marked National Grid's announcement of a $7.3 billion (£4.1 billion) acquisition of KeySpan Corporation—a US utility company—substantially expanding its presence in America. It also acquired New England Gas Company, effectively doubling its US customer base to over eight million users. The KeySpan acquisition was finalized in August 2007 after receiving regulatory clearance.

In May 2007, National Grid partnered with Dutch operator TenneT to establish a joint venture aimed at constructing the BritNed DC link—a 260 km long, 1,000 MW interconnector between UK and Netherlands power grids. Installation commenced in September 2009 and concluded by October 2010. The interconnector started operations in April 2011, primarily facilitating electricity flow from the Netherlands to the UK by early 2012. BritNed is considered an essential element for future European super grid infrastructure.

In early 2011, following rejection of requested rate increases, National Grid withdrew from its operations in New Hampshire.

2015–2021

In November 2015, after a decade as CEO, Steve Holliday declared his intention to step down by March 2016. His successor was named as John Pettigrew, who brought 25 years of experience at National Grid and held the position of executive director. By June 2016, the Energy Select Committee raised concerns regarding conflicts of interest stemming from National Grid’s ownership of international interconnectors and suggested that the company be divided.

In December 2016, National Grid reached an agreement to sell a 61% share of its gas distribution division to a consortium that included Macquarie Infrastructure and Real Assets, Allianz Capital Partners, among others; negotiations for an additional 14% stake were ongoing. The transaction was finalized on 31 March 2017 following approval from the European Commission, resulting in the establishment of Cadent Gas. By June 2019, National Grid had fully divested its remaining 39% interest in Cadent Gas.

In July 2019, the Electricity System Operator within National Grid declared its commitment to join the Powering Past Coal Alliance, targeting a carbon-neutral electricity system by 2025. At that point, based on financial data from 2018, National Grid was the largest energy firm in the UK to become part of this alliance.

Later in 2019, National Grid shifted ownership of its UK operations to entities based in Luxembourg and Hong Kong as a strategic move to protect against nationalisation proposals put forward by the Labour Party. A company representative stated that Labour’s plans for state ownership would negatively impact millions of ordinary shareholders and pension beneficiaries. Conversely, Labour criticized this restructuring as proof that the grid should be publicly owned.

2021–present

In March 2021, National Grid announced its intention to acquire Western Power Distribution from PPL Corporation for £7.8 billion, while simultaneously agreeing to sell its Rhode Island gas and electricity business, Narragansett Electric Company, to PPL for approximately £2.7 billion. The company also planned to divest majority control of its UK gas transmission operations. These deals were subject to approval by shareholders and regulatory bodies. At the same time, National Grid initiated efforts to sell a controlling stake in its UK gas distribution network.

In 2022, National Grid disclosed plans to offload a 60% interest in its UK gas transmission and metering business to a consortium including Macquarie Asset Management and British Columbia Investment Management Corporation. This agreement was completed on 31 January 2023, leading to the creation of a new entity named National Gas, with National Grid receiving approximately £2.2 billion from the transaction. In July 2023, Macquarie expanded its ownership in National Gas to 80% through an additional investment of £700 million and secured an option to purchase the remaining 20% between May and July 2024.

The UK government’s Energy Act of 2023 established the National Energy System Operator (NESO), an independent body responsible for system planning and operation, which nationalized the Electricity Systems Operator (ESO) previously owned by National Grid.

United Kingdom operations

National Grid plc conducts its business through multiple subsidiaries.

Transmission

National Grid Electricity Transmission plc, known as National Grid Company until 2005, is responsible for owning and maintaining the 275kV and 400kV electricity transmission infrastructure in England and Wales. In Scotland, the electricity transmission networks are owned by ScottishPower, covering central and southern regions, and SSE plc, which operates in northern Scotland.

Key interconnectors are jointly owned and operated by other subsidiaries: the 2,000 MW HVDC Cross-Channel link connecting to France (in partnership with RTE) and the 1,000 MW BritNed HVDC interconnector linking to the Netherlands (in collaboration with TenneT).

Historically, National Grid managed the electricity transmission system across Great Britain, overseeing real-time balancing of supply and demand while coordinating markets to secure future energy availability. However, following regulatory decisions by Ofgem in 2017, these system operator responsibilities were transferred to a distinct subsidiary that commenced operations in April 2019.

Concerns about potential conflicts of interest arising from National Grid's ownership of the transmission network led Ofgem in 2021 to advocate for a fully independent system operator. Subsequently, the UK government confirmed in 2022 the establishment of an autonomous public Future System Operator tasked with overseeing both electricity and gas systems, as authorized by the Energy Act 2023.

In January 2024, this entity was designated as the National Energy System Operator (NESO). NESO took over Great Britain's transmission system operator duties on 1 October 2024 after the UK government acquired National Grid’s grid operation division through a £630 million buyout agreement.

Distribution

In 2021, National Grid expanded its footprint by acquiring Western Power Distribution—the largest electricity distribution company in the UK—from American utility PPL. Western Power Distribution administers the electricity distribution network across the Midlands, southwest England, and south Wales, managing substations along with overhead and underground lines at multiple voltage levels. The company was rebranded as National Grid Electricity Distribution in September 2022.

Transmission

National Grid formerly held ownership of National Gas (previously National Grid Gas), which operated the UK's gas transmission network and metering services. In July 2024, National Grid divested its remaining 20% stake in National Gas, with full completion anticipated in early 2025.

Distribution

Between 2017 and 2019, National Grid exited the UK gas distribution market; these operations are now conducted under the Cadent Gas brand.

Other operations

The National Grid Property Portfolio oversees surplus land holdings, office buildings, and depots—either retaining them for operational purposes or leasing them to external entities.

Carbon reduction plays a significant role in tender evaluations. For instance, during the Wimbledon substation redevelopment project from 2018 to 2022, carbon savings were incorporated into tender scoring for the first time. Laing O’Rourke secured the contract by proposing a 23% reduction in carbon emissions alongside a £3 million cost saving—equivalent to removing approximately 7,600 cars from circulation for one year.

United States operations

As of , National Grid United States manages extensive electricity transmission and gas transmission networks serving the Northeast states of Massachusetts, New York, and Rhode Island. With a customer base exceeding 20 million, its headquarters is located in an environmentally friendly facility in Waltham, Massachusetts. This subsidiary operates through several companies under the "National Grid" brand, including:

  • New England Power Company
  • Massachusetts Electric Company (Massachusetts)
  • Nantucket Electric (Massachusetts)
  • Niagara Mohawk Power Corporation (New York State)
  • KeySpan Corporation (serving parts of New York City)
  • Boston Gas Company (including Essex Gas Company in Massachusetts)
  • Colonial Gas Company (Massachusetts)
  • Providence Gas Company (Rhode Island)
  • Narragansett Electric Company (Rhode Island), which was sold to PPL Corporation in March 2021 and renamed Rhode Island Energy

National Grid invests more than $3.5 billion annually into U.S. infrastructure projects, increasingly emphasizing clean energy technologies. Notable initiatives include an offshore wind farm off Rhode Island’s coast and a battery storage project on Nantucket Island in Massachusetts. In 2019, it also allocated $100 million toward acquiring solar and wind assets from Geronimo Energy through a partnership with the Washington State Investment Board.

Controversies

In June 2018, contract talks between National Grid and Massachusetts gas workers represented by the United Steelworkers ended without agreement, prompting the company to initiate a lockout affecting more than 1,000 employees and suspending their wages and healthcare benefits.[1][2]

In November 2019, New York Governor Andrew Cuomo challenged National Grid over its suspension of new natural gas connections, warning that the company’s license to operate its gas services in New York City and Long Island could be revoked due to inconsistent service reliability.[3]

Starting in February 2020, National Grid commenced work on a new natural gas transmission pipeline running from Brownsville to Greenpoint in Brooklyn. The initiative encountered resistance from community activists who raised issues concerning the project's necessity, safety risks, financial impact on customers, and its inconsistency with New York State’s Climate Leadership and Community Protection Act.[4]

From 2012 through 2020, allegations arose accusing National Grid of manipulating energy efficiency initiatives and overbilling customers in Rhode Island by an estimated total of US$2.2 million.[5]

See also

External links

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