National Grid welcomes ‘Electricity System Operator’ decision

03 Aug 2017

National Grid welcomes Ofgem’s decision today to create a National Grid Electricity System Operator (NGESO) company within the National Grid Group, legally separate from the Electricity Transmission Owner (ETO).

This decision follows the consultation Ofgem and BEIS published in January this year proposing to create a more separate role for the electricity System Operator.

National Grid CEO John Pettigrew said:

“This marks a significant milestone that enables a more secure, competitive and flexible energy system which will ultimately benefit consumers.

“We are pleased the Government and Ofgem have recognised our vast experience and expertise in balancing the electricity system and ensuring the market runs efficiently.”

The NGESO will be incorporated as a separate company, wholly owned by National Grid, with its own board which will appoint three sufficiently independent directors. NGESO employees will be physically separate from any other National Grid electricity subsidiary company by April 2019.

Legal separation of the electricity System Operator within the National Grid Group is considered to be the best approach to meet the needs of a changing energy market. Separation can deliver customer value through competition, greater flexibility and efficient markets, while establishing a level playing field for all technologies.

The NGESO 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.

- Ends -

Contact for media information only

Corporate Media Relations Manager
Gemma Stokes
+44 (0)7974 198333
+44 (0)1926 655272

Share this page

Notes for editors

Ofgem’s decision can be found here:


Notes to Editors:

National Grid is one of the largest investor-owned energy companies in the world and was named Responsible Business of the Year 2014 by Business in the Community. This accolade acknowledges all of our efforts in getting involve with the things that really matter to us and to society. We own and manage the grids that connect people to the energy they need, from whatever the source.  In Britain and the north-eastern states of the US we run systems that deliver gas and electricity to millions of people, businesses and communities.

In Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country.  In the North Eastern US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles.

National Grid in the UK:

  • We own the high-voltage electricity transmission network in England and Wales, operating it across Great Britain
  • We own and operate the high pressure gas transmission system in Britain
  • We also own a number of related businesses including LNG importation, land remediation and metering
  • Our portfolio of other businesses is mainly concerned with infrastructure provision and related services where we can exploit our core skills and assets to create value. These businesses operate in areas such as Metering, Grain LNG Import, Interconnectors and Property. National Grid Carbon Ltd is a wholly owned subsidiary of National Grid. It undertakes Carbon Capture Storage related activities on behalf of National Grid.

Find out more about the energy challenge and how National Grid is helping find solutions to some of the challenges we face at

National Grid undertakes no obligation to update any of the information contained in this release, which speaks only as at the date of this release, unless required by law or regulation.

Related Videos

Where Energy Comes From

Where Energy Comes From

Tags:National Grid UK, uk, Corporate Videos, energy, electricity, gas

National Grid offers T-pylon for the first time in the UK.

National Grid offers T-pylon for the first time in the UK.

Tags:electricity, Corporate Videos, managing the energy networks, uk, National Grid UK, youtube

The Future of Energy

The Future of Energy

Tags:electricity, Corporate Videos, energy, gas