National Grid plc
National Grid plc is a British multinational electricity and gas utility company headquartered in Warwick, United Kingdom. Its principal activities are in the United Kingdom and Northeastern United States. It has a primary listing on the London Stock Exchange, and is a constituent of the FTSE 100 Index. It has a secondary listing on the New York Stock Exchange.
|Public limited company|
|Headquarters||London, United Kingdom (corporate)|
Warwick, United Kingdom (operational)
|Sir Peter Gershon (Chairman)|
John Pettigrew (Chief Executive)
Gas distribution and transmission
|Revenue||£15.250 billion (2018)|
|£3.410 billion (2018)|
|£3.550 billion (2018)|
|Total assets||£58.787 billion (2018)|
|Total equity||£18.832 billion (2018)|
Number of employees
Background (CEGB before 1990)Edit
Before 1990, both the generation and transmission activities in England and Wales were under the responsibility of Central Electricity Generating Board (CEGB). The present electricity market in the United Kingdom was built upon the breakup of the CEGB into four separate companies in the 1990s.
Its generation (or upstream) activities were transferred to three generating companies—PowerGen, National Power, and Nuclear Electric (later British Energy, eventually EDF Energy)—and its transmission (or downstream) activities to the National Grid Company.
National Grid and acquisitions (1990–1999)Edit
In 1990, the transmission activities of the CEGB were transferred to the National Grid Company plc, which was owned by the twelve regional electricity companies (RECs) through a holding company, National Grid Group plc. The company was first listed on the London Stock Exchange in 1995.
Expansion and consolidation (2000–present)Edit
With the beginning of the new millennium, National Grid pursued some major mergers and acquisitions. In 2000, National Grid Group acquired New England Electric System and Eastern Utilities Associates. In January 2002, National Grid Group acquired Niagara Mohawk Power Corporation, a New York State utility.
In October 2002, National Grid Group merged with Lattice Group plc, owner of Transco—the gas distribution business (Lattice demerged from BG Group in 2000). National Grid Group changed its name to National Grid Transco plc. In August 2004, National Grid Transco agreed to sell four of its regional gas distribution networks. The total cash consideration was £5.8 billion.
NGT kept ownership of four other distribution networks, which comprise almost half of Great Britain's gas distribution network. In July 2005, National Grid Transco was renamed National Grid plc. On 26 July 2005, National Grid Company was renamed National Grid Electricity Transmission plc, and on 10 October 2005, Transco was renamed National Grid Gas plc.
In February 2006, National Grid announced that it had agreed to buy KeySpan Corporation, a gas distributor and electricity producer in the United States, for $7.3bn (£4.1bn) in cash. Around the same time, National Grid also announced the acquisition of the Southern Union Company subsidiary, New England Gas Company in Rhode Island.
The acquisitions of the two natural gas delivery companies materially doubled the size of National Grid's American subsidiary, creating the second largest utility in the United States with more than 8 million customers. The acquisition of KeySpan was completed on 24 August 2007 following government and regulatory approval and endorsement by the shareholders of the two companies.
In May 2007, National Grid formed a joint venture with the Dutch transmission operator TenneT for a 260-kilometre (160 mi) 1,000 MW BritNed DC link between the Isle of Grain in Kent and Maasvlakte, near Rotterdam. The installation of the first section of cable link started on 11 September 2009, whilst the entire 260 km (160 mi) cable was completed in October 2010.
The interconnection became operational on 1 April 2011, and by January 2012, electricity flow had mostly been from the Netherlands to the United Kingdom. The BritNed interconnection would serve as a vital link for the foreseeable European super grid project. In the spring of 2011, National Grid sold off its services in New Hampshire, after their request to increase gas and electric rates was denied.
In November 2015, it was announced that Steve Holliday, the CEO for ten years, would leave in March 2016 and that John Pettigrew, its executive director who joined National Grid twenty five years ago, would succeed him. In June 2016, the Energy Select Committee argued that the company faced too many conflicts of interest, particularly with regard to its ownership of international interconnectors. The committee proposed that the company should be split up.
In December 2016, National Grid agreed to sell a 61% stake in its gas distribution business, to a consortium of Macquarie Infrastructure and Real Assets, Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure Limited, with a further 14% stake under negotiation. The sale was completed on 31 March 2017, following clearance by the European Commission, and the resulting company was named Cadent Gas.
- National Grid Electricity Transmission plc (formerly National Grid Company) owns and operates the National Grid high voltage electricity transmission network in England and Wales. Since 1 April 2005, it also operates the electricity transmission network in Scotland (although this is still owned by Scottish Power and Scottish & Southern Energy).
- National Grid plc part owns and operates a 2,000 Megawatt HVDC interconnector to France (HVDC Cross-Channel) with RTE.
- National Grid plc part owns and operates a 1,000 Megawatt HVDC interconnector to the Netherlands (BritNed) with TenneT.
- National Grid Gas plc (formerly Transco) owns and operates the gas transmission network (from terminals to distributors), known as the National Transmission System (NTS).
- National Grid Property Portfolio houses all land, offices and depots used for National Grid operations that are surplus to requirements or let to third parties.
- National Grid Metering maintain an asset base of over twelve million industrial, commercial and domestic gas meters.
- National Grid United States operates over 9,000 miles (14,000 km) of electricity transmission and delivers electricity and natural gas to areas of the Northeast states of Massachusetts, New York, and Rhode Island. The business serves over 3.3 million customers with electrical power and 3.4 million customers with natural gas and is headquartered in Waltham, Massachusetts in a 300,000-square-foot (28,000 m2) LEED certified "green" facility. This subsidiary carries out its business through a number of subsidiary companies (all doing business as "National Grid"). The main ones are:
- New England Power Company;
- Massachusetts Electric Company (in Massachusetts);
- Nantucket Electric (in Massachusetts);
- The Narragansett Electric Company (in Rhode Island);
- Niagara Mohawk Power Corporation (in New York State);
- KeySpan Corporation (parts of New York City);
- Boston Gas Company (including the former Essex Gas Company in Massachusetts); and
- Colonial Gas Company (in Massachusetts).
Contract negotiations with Massachusetts gas workers represented by the United Steelworkers broke down in June 2018, and the company locked out more than 1,000 employees, cutting off healthcare and pay.
On 2 April 1990, the natural gas lines serving homes in Danvers, Massachusetts were accidentally over pressurized by a Boston Gas Co. worker. This resulted in fires and explosions along Lafayette St., Maple St., Venice St. and Beaver Park Av. Six people had to be treated for injuries.
- Contact us
- "Annual Report 2017–18" (PDF). National Grid plc. pp. 37, 94, 99. Retrieved 28 February 2019.
- "Lessons from Liberalised Electricity Markets" (PDF). IEA / OECD. 2005. p. 68. Retrieved 9 April 2017.
- "A whole world sold on sell-offs". The Guardian. 22 November 2000. Retrieved 26 March 2016.
- "NATIONAL GRID Share Price - NG.L- Yahoo! UK & Ireland Finance". Yahoo! Finance. Retrieved 21 March 2015.
- "Commission Notice: National Grid Group plc Acquisition of New England Electric System". U.S. Securities and Exchange Commission. Retrieved 13 July 2017.
- "National Grid acquires Niagara Mohawk". Albany Business Review. Retrieved 13 July 2017.
- "National Grid Transco sells four gas pipelines". CBS. 31 August 2004. Retrieved 25 March 2016.
- "History". National Grid. Archived from the original on 12 March 2017. Retrieved 9 April 2017.
- "National Grid – Keyspan Merger Provides New Savings And Expanded Resources To New Hampshire Customers". Nationalgridus.com. 27 February 2006. Retrieved 18 April 2011.
- "Electric Utility buying Rhode Island Gas Company". Projo.com. 17 February 2006. Retrieved 18 April 2011.
- "National Grid buy US gas company". BBC News. 27 February 2006. Retrieved 18 April 2011.
- "BritNed Submarine HVDC Cable To Connect UK And The Netherlands", Power Online, retrieved 2 October 2008
- Fineren, Daniel (22 May 2007). "New cable to link UK and Dutch power grids". Reuters. Retrieved 26 September 2009.
- Hornby, Catherine (11 September 2009). "Dutch-UK marine power cable laying starts". Reuters. Retrieved 26 September 2009.
- "Global Marine Systems Completes Power Connection Between the Netherlands and the UK" (PDF) (Press release). Global Marine Systems. 27 October 2010. Retrieved 13 January 2011.[permanent dead link]
- Paulsson, Lars (24 February 2011). "Dutch, U.K. Regulators Approve Britned Power Cable Trading". Bloomberg. Retrieved 11 March 2011.
- "BritNed cable electrically connects United Kingdom and the Netherlands" (Press release). TenneT. 1 April 2011. Archived from the original on 9 August 2011. Retrieved 1 April 2011.
- Justin Wilkes et al. The European offshore wind industry: key 2011 trends and statistics. European Wind Energy Association, January 2012. p. 22. Accessed: 26 March 2012.
- "Why Do We Need The Supergrid, What Is Its Scope And What Will It Achieve?". Claverton Energy Group. 19 June 2009. Retrieved 24 July 2011.
- Jorgensen, Jillian. "National Grid will leave NH". The Eagle Tribune. Archived from the original on 25 July 2016.
- "National Grid chief to step down". The Guardian. 3 November 2015. Retrieved 3 November 2015.
- Kiran Stacey (17 June 2016). "National Grid should be broken up, say MPs". Financial Times. Retrieved 19 June 2016.
- "National Grid sells majority stake in gas pipe network". BBC News. 8 December 2016. Retrieved 14 December 2016.
- "What we do in the Electricity Industry". National Grid. Retrieved 26 March 2016.
- Turner, Greg (4 December 2007). "National Grid to settle in Waltham". The Waltham News Tribune. Waltham, Massachusetts: GateHouse Media, Inc. Archived from the original on 25 July 2016. Retrieved 25 July 2016.
- LaFratta, Kristin (25 June 2018). "National Grid locks out more than 1,000 gas workers in Massachusetts over contract dispute". MassLive.com. Advance Publications. Retrieved 1 January 2019.
- LaFratta, Kristin (5 July 2018). "National Grid union workers lose health insurance amid contract dispute". MassLive.com. Advance Publications. Retrieved 1 January 2019.
- Writer, Kelsey Bode Staff. "Merrimack Valley gas disaster similar to 1990 Danvers emergency". Salem News. Retrieved 15 September 2018.