20th Jul 2021 09:18
(Alliance News) - National Grid PLC could lose its roles operating the UK electricity and gas systems under government proposals published on Monday.
The Department for Business, Energy & Industrial Strategy said is consulting on plans to "create a new energy system operator separate from National Grid."
"The challenges of meeting commitments to tackle climate change are creating the need for new technical roles and responsibilities in electricity and gas systems...To deliver the roles effectively, a body will be required that is independent of any perceived conflicts of interest within the industry," the department said.
The roles of National Grid ESO, a unit of the company that moves power across the country and matches supply and demand to avoid blackouts, have come under scrutiny from the regulator and members of parliament over conflicts of interest. In January, the energy regulator Ofgem proposed forming an independent body.
In April, National Grid ESO was fined GBP1.5 million by Ofgem over inaccurate demand forecasts which may have led to price rises for consumers.
Shares in National Grid were up 0.1% to 932.30 pence in London.
By Ivan Edwards; [email protected]
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