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National Grid plc

National Grid plc
Public limited company
Traded as
ISINGB00B08SNH34 Edit this on Wikidata
IndustryUtilities
PredecessorLattice Group Edit this on Wikidata
Founded1990; 29 years ago (1990)
(London)
HeadquartersLondon, United Kingdom (corporate)
Warwick, United Kingdom (operational)[1]
Key people
Sir Peter Gershon (Chairman)
John Pettigrew (Chief Executive)
ProductsElectricity transmission
Gas distribution and transmission
Revenue£15.250 billion (2018)[2]
£3.410 billion (2018)[2]
£3.550 billion (2018)[2]
Total assets£58.787 billion (2018)[2]
Total equity£18.832 billion (2018)[2]
Number of employees
22,650 (2018)[2]
Websitewww.nationalgrid.com
A National Grid Mercedes-Benz Vario van working in central England in 2007

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.

National Grid is one of the largest "investor-owned" utility companies in the world, and it provides gas to 10 million customers and electricity to 10 million customers.[3]

History

Background (CEGB before 1990)

Before 1990, both the generation and transmission activities in England and Wales were under the responsibility of the 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.[4]

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.[5]

National Grid and acquisitions (1990–1999)

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.[6]

Expansion and consolidation (2000–present)

With the beginning of the new millennium, National Grid pursued mergers and acquisitions. In 2000, National Grid Group acquired New England Electric System and Eastern Utilities Associates.[7] In January 2002, National Grid Group acquired Niagara Mohawk Power Corporation, a New York State utility.[8]

In October 2002, National Grid Group merged with Lattice Group plc, owner of the Transco gas distribution business (Lattice had 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 for a total cash consideration of £5.8 billion.

NGT kept ownership of four other distribution networks, which comprise almost half of Great Britain's gas distribution network.[9] 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.[10]

In February 2006, National Grid announced that it had agreed to buy KeySpan Corporation,[11] 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 New England Gas Company, a Rhode Island subsidiary of Southern Union Company.[12]

The acquisitions of the two natural gas delivery companies 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.[13]

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.[14][15] The installation of the first section of cable link started on 11 September 2009,[16] and the entire 260 km (160 mi) cable was completed in October 2010.[17]

The interconnection became operational on 1 April 2011,[18][19] and by January 2012, electricity flow had mostly been from the Netherlands to the United Kingdom.[20] The BritNed interconnection would serve as a vital link for the foreseeable European super grid project.[21] 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.[22]

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 earlier, would succeed him.[23] 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.[24]

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.[25]

In July 2019, National Grid's Electricity System Operator arm, separately from its Electricity Transmission arm, announced its intent to join the Powering Past Coal Alliance, furthering its goal of becoming a zero carbon electricity system by 2025.[26] At the time of its announcement, National Grid was the largest energy company based in the United Kingdom to join the alliance, according to publicly available 2018 financial figures.[27][28][29][30]

Later in the year the company moved ownership of its UK operations to Luxembourg and Hong Kong to protect itself from Labour's nationalisation plans[31]. A spokesman said, "Labour's proposals for state ownership of National Grid would be highly detrimental to millions of ordinary people who either hold shares in the company or through their pension funds." The Labour Party said the "rip-off" move showed the grid needed to be in public hands[32].

Operations

United Kingdom

  • 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).[33]
    • 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.

United States

  • National Grid United States operates 8,881 miles (14,293 km) of electricity transmission and 35,560 miles of gas transmission and delivers electricity and natural gas to areas of the Northeast states of Massachusetts, New York, and Rhode Island. The business serves over 20 million customers in Massachusetts, Rhode Island, and New York State[34] and is headquartered in Waltham, Massachusetts in a 300,000-square-foot (28,000 m2) LEED certified "green" facility.[35] This subsidiary carries out its business through a number of subsidiary companies (all doing business as "National Grid"). The main ones are:[10]
    • 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).

Investment and green technologies

National Grid invests over $3.5 billion a year in infrastructure in the United States. As of 2019, the company increased its investments into "cleaner, greener technologies" in the last few years. Examples of projects include an offshore wind farm in Rhode Island and a battery-storage project in Nantucket, Massachusetts.[34]

Controversies

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.[36][37]

In 2019, the company squabbled with New York Governor Andrew Cuomo over the company's own moratorium on new natural gas hookups. Cuomo threatened "to revoke the company’s authority to operate its gas franchise in New York City and Long Island, for failing to provide customers with reliable service," according to Utility Dive.[38]

Accidents

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.[39]

See also

References

  1. ^ Contact us
  2. ^ a b c d e f "Annual Report 2017–18" (PDF). National Grid plc. pp. 37, 94, 99. Retrieved 28 February 2019.
  3. ^ "Utilities prioritize natural gas in sustainability plans". Daily Energy Insider. 13 November 2019. Retrieved 18 November 2019.
  4. ^ "Lessons from Liberalised Electricity Markets" (PDF). IEA / OECD. 2005. p. 68. Retrieved 9 April 2017.
  5. ^ "A whole world sold on sell-offs". The Guardian. 22 November 2000. Retrieved 26 March 2016.
  6. ^ "NATIONAL GRID Share Price - NG.L- Yahoo! UK & Ireland Finance". Yahoo! Finance. Retrieved 21 March 2015.
  7. ^ "Commission Notice: National Grid Group plc Acquisition of New England Electric System". U.S. Securities and Exchange Commission. Retrieved 13 July 2017.
  8. ^ "National Grid acquires Niagara Mohawk". Albany Business Review. Retrieved 13 July 2017.
  9. ^ "National Grid Transco sells four gas pipelines". CBS. 31 August 2004. Retrieved 25 March 2016.
  10. ^ a b "History". National Grid. Archived from the original on 12 March 2017. Retrieved 9 April 2017.
  11. ^ "National Grid – Keyspan Merger Provides New Savings And Expanded Resources To New Hampshire Customers". Nationalgridus.com. 27 February 2006. Retrieved 18 April 2011.
  12. ^ "Electric Utility buying Rhode Island Gas Company". Projo.com. 17 February 2006. Retrieved 18 April 2011.
  13. ^ "National Grid buy US gas company". BBC News. 27 February 2006. Retrieved 18 April 2011.
  14. ^ "BritNed Submarine HVDC Cable To Connect UK And The Netherlands", Power Online, retrieved 2 October 2008
  15. ^ Fineren, Daniel (22 May 2007). "New cable to link UK and Dutch power grids". Reuters. Retrieved 26 September 2009.
  16. ^ Hornby, Catherine (11 September 2009). "Dutch-UK marine power cable laying starts". Reuters. Retrieved 26 September 2009.
  17. ^ "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]
  18. ^ Paulsson, Lars (24 February 2011). "Dutch, U.K. Regulators Approve Britned Power Cable Trading". Bloomberg. Retrieved 11 March 2011.
  19. ^ "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.
  20. ^ 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.
  21. ^ "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.
  22. ^ Jorgensen, Jillian. "National Grid will leave NH". The Eagle Tribune. Archived from the original on 25 July 2016.
  23. ^ "National Grid chief to step down". The Guardian. 3 November 2015. Retrieved 3 November 2015.
  24. ^ Kiran Stacey (17 June 2016). "National Grid should be broken up, say MPs". Financial Times. Retrieved 19 June 2016.
  25. ^ "National Grid sells majority stake in gas pipe network". BBC News. 8 December 2016. Retrieved 14 December 2016.
  26. ^ "National Grid ESO joins Powering Past Coal Alliance". BusinessGreen. 15 July 2019. Retrieved 15 July 2019.
  27. ^ "Members | Powering Past Coal Alliance". Powering Past Coal Alliance (PPCA). Retrieved 15 July 2019.
  28. ^ "Iberdrola Results Presentation / 2018" (PDF). Iberdrola. 20 February 2019. Retrieved 15 July 2019.
  29. ^ "DRAX GROUP PLC (Symbol: DRX) FULL YEAR RESULTS FOR THE TWELVE MONTHS ENDED 31 DECEMBER 2018" (PDF). Drax Group. 26 February 2019. Retrieved 15 July 2019.
  30. ^ "Report for the year ended 31 March 2019" (PDF). National Grid. 16 May 2019. Retrieved 15 July 2019.
  31. ^ "National Grid and SSE move offshore over Labour plans". 24 November 2019. Retrieved 25 November 2019.
  32. ^ "National Grid and SSE shift some UK operations into offshore groups". Financial Times. 24 November 2019. Retrieved 25 November 2019.
  33. ^ "What we do in the Electricity Industry". National Grid. Retrieved 26 March 2016.
  34. ^ a b Riley, Kim (12 November 2019). "CFOs predict future impacts on energy companies, industry at EEI Financial Conference". Daily Energy Insider. Retrieved 18 November 2019.
  35. ^ 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.
  36. ^ 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.
  37. ^ LaFratta, Kristin (5 July 2018). "National Grid union workers lose health insurance amid contract dispute". MassLive.com. Advance Publications. Retrieved 1 January 2019.
  38. ^ "Cuomo threatens to revoke National Grid's license to provide gas in NYC due to hookup moratorium". Utility Dive. Retrieved 18 November 2019.
  39. ^ Writer, Kelsey Bode Staff. "Merrimack Valley gas disaster similar to 1990 Danvers emergency". Salem News. Retrieved 15 September 2018.

External links