National Grid plc
|Type||Public limited company|
|Traded as||LSE: NG., NYSE: NGG|
|Headquarters||London, United Kingdom|
|Key people||Sir Peter Gershon (Chairman)
Steve Holliday (Chief Executive)
Gas distribution and transmission
|Revenue||£14,359 million (2013)|
|Operating income||£3,644 million (2013)|
|Net income||£2,296 million (2013)|
National Grid plc (LSE: NG., NYSE: NGG) is a British multinational electricity and gas utility company headquartered in London, United Kingdom. Its principal activities are in the United Kingdom and northeastern United States.
National Grid has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £28.7 billion as of 2 August 2013, the 21st-largest of any company with a primary listing on the London Stock Exchange. It has a secondary listing on the New York Stock Exchange.
Background (CEGB before 1990)
Before 1990, both the generation and transmission activities in England and Wales were under the responsibility of Central Electricity Generating Board (CEGB). The present electricity market in the UK was built upon the breakup of the CEGB into four separate companies in the 1990s. 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.
National Grid and acquisitions (1990-2000)
In 1990, the transmission activities of the CEGB were transferred to the National Grid Company plc, which was owned by the 12 Regional Electricity Companies (RECs) through a holding company, National Grid Group plc. The company was first listed on the London Stock Exchange in 1995. Within a year, most of the RECs had disposed of their interests.
With the beginning of the new millennium, National grid pursued some major mergers and acquisitions. In 2000, National Grid Group acquired New England Electric System and Eastern Utilities Associates. In January 2002, National Grid Group acquired Niagara Mohawk Holdings, Inc, a New York State utility.
In October of the same year, National Grid Group merged with Lattice Group plc, owner of Transco – the UK gas distribution business (Lattice demerged from BG Group in 2000). National Grid Group changed its name to National Grid Transco plc.
Expansion and consolidation (2000-present)
In 2004, National Grid Transco agreed to sell four of its regional gas distribution networks. The total cash consideration was £5.8 billion. NGT kept ownership of other four distribution networks, which comprise almost half of Great Britain's gas distribution network.
In 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.
In February 2006, National Grid announced that it had agreed to buy KeySpan Corporation, 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 the Southern Union Company subsidiary, New England Gas Company in Rhode Island. The acquisitions of the two natural gas delivery companies materially 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.
In May 2007, National grid formed a joint venture with the Netherlands transmission operator TenneT for a 260-kilometre (160 mi) 1,000 MW BritNed DC link between the Isle of Grain, Kent and Maasvlakte, near Rotterdam. The installation of the first section of cable link started on 11 September 2009, whilst the entire 260 km (160 mi) cable was completed in October 2010. The interconnection became operational on 1 April 2011, and as of January 2012, electricity flow has mostly been from the Netherlands to the UK. The BritNed interconnection would serve as a vital link for the foreseeable European super grid project.
- 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).
- National Grid plc part owns and operates a 2,000 Megawatt HVDC link to France (HVDC Cross-Channel) with RTE.
- National Grid plc part owns and operates a 1,000 Megawatt HVDC link 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), and four distribution networks (from national network to customers): North West of England, East of England (which is split into two areas – East Anglia & East Midlands), West Midlands and London; the distribution networks were former regional divisions of British Gas.
- National Grid USA
The utility operates over 9,000 miles (14,000 km) of electricity transmission and delivers electricity and natural gas to areas of the Northeast states of Massachusetts, New Hampshire, New York, Rhode Island and Vermont, serving over 3.3 million customers with electrical power and 3.4 million customers with natural gas. National Grid USA is currently headquartered in Waltham, Massachusetts in a 300,000-square-foot (28,000 m2) LEED certified "green" facility. The US subsidiary carries out its business through a number of subsidiary companies (all doing business as "National Grid"). The main ones are:
- New England Power Company;
- Massachusetts Electric Company (in Massachusetts);
- Nantucket Electric (in Massachusetts);
- The Narragansett Electric Company (in Rhode Island);
- Granite State Electric Company (in New Hampshire);
- Niagara Mohawk Power Corporation (in New York State);
- KeySpan Corporation (on Long Island, NY, and in parts of New York City);
- Boston Gas Company (in Massachusetts);
- Colonial Gas Company (in Massachusetts); and
- EnergyNorth Natural Gas, Inc (in New Hampshire).
- "Annual Report and Accounts 2012/13". National Grid. Retrieved 5 August 2013.
- "FTSE All-Share Index Ranking". stockchallenge.co.uk. Retrieved 5 August 2013.
- Yahoo Finance
- "Another US buy for National Grid". BBC News. 26 January 1999. Retrieved 18 April 2011.
- "National Grid acquires Niagara Mohawk". Findarticles.com. Retrieved 18 April 2011.
- Barker, Sophie (23 April 2002). "Grid and Lattice form utility supergroup". The Daily Telegraph. UK. Retrieved 18 April 2011.
- "National Grid History"
- "National Grid – Keyspan Merger Provides New Savings And Expanded Resources To New Hampshire Customers". Nationalgridus.com. 27 February 2006. Retrieved 18 April 2011.
- "Electric Utility buying Rhode Island Gas Company". Projo.com. 17 February 2006. Retrieved 18 April 2011.
- "National Grid buy US gas company". BBC News. 27 February 2006. Retrieved 18 April 2011.
- "BritNed Submarine HVDC Cable To Connect UK And The Netherlands", Power Online, retrieved 2 October 2008
- Fineren, Daniel (2007-05-22). "New cable to link UK and Dutch power grids". Reuters. Retrieved 2009-09-26.
- Hornby, Catherine (2009-09-11). "Dutch-UK marine power cable laying starts". Reuters. Retrieved 2009-09-26.
- "Global Marine Systems Completes Power Connection Between the Netherlands and the UK" (PDF) (Press release). Global Marine Systems. 2010-10-27. Retrieved 2011-01-13.
- Paulsson, Lars (2011-02-24). "Dutch, U.K. Regulators Approve Britned Power Cable Trading". Bloomberg. Retrieved 2011-03-11.
- "BritNed cable electrically connects United Kingdom and the Netherlands" (Press release). TenneT. 2011-04-01. Retrieved 2011-04-01.
- Justin Wilkes et al. The European offshore wind industry key 2011 trends and statistics p22 European Wind Energy Association, January 2012. Accessed: 26 March 2012.
- Turner, Greg (4 December 2007). "National Grid to settle in Waltham". The Daily News Tribune (Waltham, Massachusetts: GateHouse Media, Inc.). Retrieved 13 August 2008.