13th Sep 2024 08:50
(Alliance News) - National Grid PLC on Friday announced it has reached an agreement with the UK government to bring the Electricity System Operator into public hands.
The UK-based electricity and gas utility company will sell its Electricity System Operator, or ESO, arm for an enterprise value of GBP630 million.
ESO is the operation that balances supply and demand in the UK's electricity grid. The deal is part of the plan to launch a new National Energy System Operator, a public body that will support the UK's clean energy transition.
The UK government said: "The publicly owned body will support the UK's energy security, help to keep bills down in the long term and accelerate the government's clean power mission."
There is currently no entity charged with overseeing the planning and design of the UK's electricity and gas networks. "NESO will fill this gap - breaking down the siloes which currently exist between the planning of electricity and gas systems, with independent oversight for the design of all Great Britain's energy networks," the UK government added.
The final cash consideration for the sale may be subject to adjustments before the deal closes.
"This transaction is an important milestone for the creation of the independent National Energy System Operator. National Grid and HM government expect to complete the transaction on October 1, 2024 when HM government, together with Ofgem, aim to establish NESO", National Grid reported.
National Grid Chief Executive John Pettigrew said: "We look forward to working together with NESO to continue to drive the UK's energy transition forward at pace; accelerating the decarbonisation of the energy system for the digital, electrified economies of the future."
Shares in National Grid were down 0.1% at 1,036.00 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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