- Britain’s National Grid said it had agreed to sell its Electricity System Operator (ESO) to the UK government for 630 million pounds.
- The government has said the NESO will “play a vital role in supporting the UK’s energy security, transition to net zero and minimising customers’ bills”.
Britain’s National Grid said it had agreed to sell its Electricity System Operator (ESO) to the UK government for 630 million pounds ($827.95 million), including debt, paving the way for the division to transition into public ownership.
The energy infrastructure operator said it expected to complete the deal by October 1, when the Labour government and energy regulator Ofgem aim to establish an independent National Energy System Operator (NESO).
National Grid’s ESO operates the control room that balances power supply and demand in real-time. Its sale comes after the passage of the Energy Act in October 2023, which will enable the ESO to become a public corporation that will act as the UK’s independent system operator and planner.
The government has stated that the NESO will “play a vital role in supporting the UK’s energy security, transition to net zero, and minimising customers’ bills.” The corporation is due to be chaired by Paul Golby, the former chief executive of E.ON UK.
National Grid said the final value of the sale of its ESO would be subject to “customary closing adjustments”. The company operates energy networks on both sides of the Atlantic and earns most of its revenue from regulated settlements levied on energy bills.
Energy Secretary Ed Miliband noted, “Today marks a milestone for Britain’s energy system as we bring the system operator into public ownership to provide impartial, whole-system expertise on building a network that is fit for the future.”
The new National Energy System Operator has a massive role in delivering our mission to make Britain a clean energy superpower.
John Pettigrew, National Grid’s CEO, commented, “We look forward to working together with NESO to continue to drive the UK’s energy transition forward at pace, accelerating the decarbonisation of the energy system for the digital, electrified economies of the future.”