Jan 12, 2017
National Grid spared from break-up by Ofgem ruling
National Grid has been spared from an enforced break-up after the company agreed to increase protections against conflicts of interest in its role running Britain's electricity system. Under the deal announced on Thursday by Ofgem, the UK energy regulator, the system operator unit will be made a legally separate entity - but stay within the National Grid group. The decision followed a review by ministers and regulators of whether National Grid should be stripped of its responsibility for operating as well as owning the infrastructure that carries electricity around the UK. Instead Ofgem said there would be "Greater separation" for the system operations unit, with distinct employees, board and offices from the rest of National Grid. The decision may disappoint those, including some MPs, who had wanted the system operator role taken away from National Grid - although the creation of a separate legal entity appeared to leave open the possibility of a full split in future. National Grid makes most of its UK revenues from charging utilities for access to its high-voltage transmission network; its operations role gives it control of the system and an influential voice in government energy policy.
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