National Grid (Great Britain)

National Grid (Great Britain)
Name	National Grid
Type	Public limited company
Industry	Electricity and gas transmission
Founded	1990
Predecessor	Central Electricity Generating Board
Hq location	Warwick, England
Key people	John Pettigrew (CEO), Paula Rosput Reynolds (Chair)
Products	Electricity transmission, gas transmission
Revenue	£19.1 billion (2023)
Num employees	~30,000

National Grid (Great Britain). It is the high-voltage electricity transmission network and high-pressure gas transmission system operator for Great Britain. The company, a FTSE 100 Index constituent, plays a critical role in connecting sources of power generation to regional distribution networks and major industrial consumers. Its operations are fundamental to the nation's energy security and the transition to a low-carbon economy, balancing supply and demand across the system in real-time.

History

The origins of the unified grid trace back to the Electricity (Supply) Act 1926, which led to the establishment of the Central Electricity Board to construct a national "gridiron" of high-voltage lines. Following the Electricity Act 1947, the industry was nationalised, with the Central Electricity Generating Board (CEGB) created in 1957 to manage generation and the high-voltage transmission system. The Electricity Act 1989 initiated the privatisation of the UK electricity industry, leading to the formation of the National Grid Company plc in 1990 as an independent entity. It was initially owned by the twelve regional electricity distribution companies before being separately floated on the London Stock Exchange in 1995. Major expansion occurred in 2002 with the acquisition of the UK gas transmission system from Lattice Group, formerly part of British Gas.

Structure and operation

The company is structured into several key business divisions: Electricity Transmission, Gas Transmission, and the independent role of Electricity System Operator (ESO). The National Grid Electricity System Operator (NGESO) is legally separate and is responsible for balancing the entire electricity system second-by-second, managing constraints, and ensuring security of supply. Its National Control Centre in Wokingham performs this real-time function. The physical transmission assets, including over 7,200 kilometres of high-voltage overhead lines, underground cables, and 346 substations, are owned and maintained by the regulated asset divisions. The gas transmission business operates the national high-pressure pipeline network and key facilities like the Bacton Gas Terminal and several Liquefied Natural Gas import terminals.

Electricity transmission

The electricity transmission network in England and Wales operates at 400 kV and 275 kV, connecting to the Scottish networks at interconnectors like the one near Gretna. It forms the backbone of the National Electricity Transmission System (NETS), linking large-scale power stations—including legacy coal, nuclear plants like Sizewell B, and modern offshore wind farms in the North Sea—to the regional networks operated by companies like UK Power Networks and Northern Powergrid. Key infrastructure projects include the London Power Tunnels and the new high-voltage link from the East Anglia coast, designed to transport renewable energy. The network is also physically connected to neighbouring countries via HVDC interconnectors to France, the Netherlands, Belgium, and Norway.

Gas transmission

The national gas transmission system comprises approximately 7,660 kilometres of high-pressure pipelines and over 20 above-ground installations, transporting gas from entry points to distribution networks and large industrial users. Primary entry points include the St Fergus Gas Terminal in Scotland, several LNG terminals such as Grain LNG on the Isle of Grain, and interconnectors from continental Europe like the Belgium-UK Interconnector and the Langeled pipeline from Norway. The system plays a crucial role in managing seasonal demand, with major storage facilities historically like the Rough facility. The network supplies gas to eight regional distribution networks, known as Gas Distribution Networks, which were sold to a consortium led by Macquarie Group in 2017.

Future developments

Future strategy is dominated by facilitating the UK's legally binding net zero targets. The Electricity System Operator's Future Energy Scenarios outline pathways requiring massive expansion of the transmission network to connect new renewable energy generation, particularly offshore wind. Major planned projects include the Eastern Green Link cables from Scotland to England and significant reinforcement of the grid in the North of England. The company is also investing in innovative technologies, including the transition of the gas network to transport hydrogen, as trialled in projects like HyNet, and the development of new electricity interconnectors, such as the Viking Link to Denmark and the proposed link to Germany.

Regulation and ownership

As a monopoly provider of critical national infrastructure, its activities are heavily regulated. The Gas and Electricity Markets Authority (GEMA), which governs the Office of Gas and Electricity Markets (Ofgem), sets price controls through the RIIO (Revenue = Incentives + Innovation + Outputs) framework, determining allowed revenues and performance targets. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholders are typically institutional investment firms. In 2023, it was announced that the Electricity System Operator would be rebranded as the independent National Energy System Operator (NESO), a publicly owned body, to oversee the integrated electricity and gas systems.

Category:Energy companies of the United Kingdom Category:Electric power transmission systems in the United Kingdom Category:Gas industry in the United Kingdom