National Grid plc

National Grid plc
Name	National Grid plc
Founded	1990
Location	London, United Kingdom
Key people	John Pettigrew (CEO), Paula Rosput Reynolds (Chair)
Industry	Electricity transmission, Natural gas transmission
Products	Electricity transmission network, Gas transmission network
Revenue	£19.1 billion (2023)
Operating income	£4.5 billion (2023)
Net income	£3.4 billion (2023)
Assets	£97.9 billion (2023)
Equity	£31.8 billion (2023)
Num employees	~29,000 (2023)
Website	https://www.nationalgrid.com

National Grid plc. It is a multinational electricity and gas utility company headquartered in London, with principal operations in the United Kingdom and the northeastern United States. The company owns and operates the high-voltage electricity transmission network in England and Wales, and the gas transmission system across Great Britain. As a critical part of the energy infrastructure, it plays a central role in connecting sources of energy generation, including renewable energy, to distribution networks and consumers.

History

The company's origins trace back to the privatisation of the Central Electricity Generating Board in 1990, which led to the creation of the National Grid Company. Following the Electricity Act 1989, the transmission assets of the twelve regional electricity companies in England and Wales were vested into this new entity. A significant expansion occurred in 2002 with the acquisition of Lattice Group, the parent company of the UK gas transmission business, Transco. This merger created the combined electricity and gas transmission operator. Further growth was achieved through strategic acquisitions in the United States, including New England Electric System in 2000, KeySpan in 2007, and Western Power Distribution in 2021, solidifying its position on both sides of the Atlantic Ocean.

Operations

In the UK, the company manages the national electricity transmission network at voltages of 275kV and 400kV, connecting power stations to regional distribution networks operated by companies like UK Power Networks and Northern Powergrid. Its Gas transmission network comprises over 7,600 kilometres of high-pressure pipelines and numerous compressor stations. In the US, through its subsidiary National Grid USA, it provides electricity and gas distribution services across states such as New York, Massachusetts, and Rhode Island. Key operational assets include interconnectors like the BritNed cable linking the UK with the Netherlands and the IFA interconnector to France, facilitating international energy trading.

Corporate structure

The group is organised into several key business units: UK Electricity Transmission, UK Gas Transmission, and US Regulated operations. The UK Electricity Transmission business is legally separate as the Electricity System Operator, a role mandated by regulator Ofgem. The US operations are managed through National Grid USA, which oversees regulated utilities including Massachusetts Electric and The Brooklyn Union Gas Company. The company's leadership is based at its head office in London, with significant operational hubs in Warwick, Wokingham, and Syracuse, New York. Its shares are a constituent of the FTSE 100 Index and are listed on the London Stock Exchange.

Financial performance

For the financial year ending March 2023, the group reported an operating profit of £4.5 billion on revenue of £19.1 billion. Its regulated asset base, a key metric for utility companies, exceeded £40 billion. The company maintains a strong investment-grade credit rating from agencies such as Standard & Poor's and Moody's Investors Service. It has a consistent dividend policy, with annual payments to shareholders, and funds significant capital expenditure programmes, including major projects like the London Power Tunnels and upgrades to the Hinkley Point C connection, through a combination of operating cash flows and debt issuance.

Environmental and social initiatives

The company is central to the UK's legally binding commitment to achieve net zero greenhouse gas emissions by 2050. It is heavily involved in facilitating the connection of offshore wind farms, such as those in the Dogger Bank and Hornsea zones, to the national grid. Major innovation projects include the development of a hydrogen transmission pipeline network and trials for blending hydrogen into the existing gas grid. Through its National Grid Electricity System Operator, it manages system stability amidst increasing intermittent renewable generation. The company also runs extensive social programmes, including the Energy Support Fund and partnerships with charities like Citizens Advice, to address fuel poverty and support vulnerable customers.

Regulation and legal framework

In the UK, its electricity and gas transmission activities are regulated by Ofgem under price control reviews, such as the current RIIO-2 framework, which sets allowed revenues and performance targets. In the US, its operations are overseen by state-level public utility commissions including the New York Public Service Commission and the Massachusetts Department of Public Utilities, as well as the Federal Energy Regulatory Commission for interstate transmission. The company must comply with stringent legislation including the UK Climate Change Act 2008 and the US Clean Air Act. It is also subject to the market codes and rules administered by ELEXON and the Gas Transportation System Code.

Category:Companies listed on the London Stock Exchange Category:Energy companies established in 1990 Category:Electric power companies of the United Kingdom