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National Grid spin-off on the cards

Government plans to separate power operator role within the group

National Grid spin-off on the cards image

The UK government and Ofgem are planning to separate National Grid’s electricity system operator (SO) role from the rest of the group by April 2019.

An Ofgem consultation proposes that a more independent SO is established within the company to boost competition and innovation.

Greater separation will allow the new company to play a more proactive role in managing a more flexible electricity system, the UK energy regulator said.

The SO will also will have to work more closely with local electricity distribution network operators to manage electricity flows.

It will have distinct employees, directors and offices from the other National Grid units.

“We need a more flexible energy system so that we can make the transition to a lower carbon future. A more flexible system will also ensure customers get the most out of new smart technologies," Ofgem chief executive Dermot Nolan said.

“As the system changes, it’s important that all the monopoly networks adapt. Having a legally separate system operator will allow it to take on a more proactive role in managing the system and working with others, while mitigating any conflicts of interest.”

Image: National Grid

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