National Grid : welcomes new electricity System Operator proposals

12 Jan 2017

National Grid has welcomed an announcement by BEIS and the energy regulator Ofgem, confirming a joint belief that a more independent electricity system operator within National Grid can realise benefits for consumers.

Greater independence for National Grid's electricity System Operator role is considered to be the best approach to meet the needs of a changing energy market. More independence can deliver customer value through competition, greater flexibility and efficient markets, while establishing a level playing field for all technologies.

Under the proposals, the electricity System Operator will carry out its existing functions, as well as taking on new responsibilities, including the promotion of smart solutions, in place of traditional network investment.

Subject to consultation, the electricity System Operator will be incorporated into a separate company, wholly owned by National Grid, with its own board. Staff will be physically separate from any other National Grid electricity subsidiary company by April 2019.

National Grid CEO John Pettigrew said: '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. The Government and Ofgem have recognised our vast experience and expertise in balancing the electricity system and ensuring the market runs efficiently.

'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.'