National Grid to Separate Electricity Operator System into Independent Company

By Ian Walker

LONDON--National Grid PLC (NG.LN) plans to separate its electricity operator system into a new, independent, wholly owned company by April 2019, it said Thursday.

Under proposals, which are subject to consultation, the electricity system operator will carry out its existing functions, as well as taking on new responsibilities, including the promotion of smart solutions, National Grid said.

Ofgem, the U.K. energy regulator, said the new company would have its own license, separate staff and offices to other National Grid electricity subsidiary companies. The new company's board members won't be able to sit on the National Grid group board or other National Grid electricity company boards, it added.

The plan is designed to help keep household bills down by working to ensure and enable more competition, coordination and innovation across the system.

"We believe National Grid is best placed to deliver the role of system operator, especially during a time when the energy landscape is changing rapidly," National Grid Chief Executive John Pettigrew said.

"We share the same priorities towards keeping customer bills down, increasing certainty, enabling greener energy, and security of supply. We will be working closely with key stakeholders to achieve these objectives while further evolving the independence of the system operator role within National Grid."

Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

January 12, 2017 02:59 ET (07:59 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.