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Business Review

What we do

National Grid is dedicated to becoming the world’s premier network utility. Our core skills are in the management of large and complex networks. Our businesses are primarily concerned with energy delivery and other infrastructure and related services where we can exploit our core skills to create value.

UK electricity and gas transmission

Size and scope

4,500 miles
of overhead line

415 miles
of underground cable

337 electricity substations

4,300 miles of high pressure gas pipeline

Men in protective clothing working on a UK electricity transmission tower

Area of operation

We own and operate the electricity transmission system in England and Wales. This is the high-voltage network that runs across both countries. We operate (but do not own) the electricity transmission system in Scotland. We also own and operate the gas transmission network in Great Britain. This is the high pressure gas pipeline network that runs across the country.

2005/06 highlights

On 1 April 2005, we became responsible for operating the Great Britain electricity transmission system, setting charges and maintaining the charging statements for all transmission users in Great Britain.

The winter of 2005/06 saw demand from the electricity transmission network in England and Wales hit a peak of 53.73 GW (gigawatt). This compares with the previous year’s peak of 53.29 GW.

 

 

 

US electricity transmission

Size and scope

8,900 miles of overhead line

94 miles
of underground cable

496 substations

US electricity transmission site, in the snow

Area of operation

We own and operate an electricity transmission network of approximately 9,000 miles. We are the largest electricity transmission service provider in the northeastern US by reference to the length of our high-voltage transmission line. We also own and operate a 139-mile direct current transmission line that is a key section of an interconnector between New England and Canada.

2005/06 highlights

Capital investment in the replacement, reinforcement and extension of the US electricity transmission networks in 2005/06 was £91 million, compared with £74 million in 2004/05.

 

 

 

UK gas distribution

Size and scope

Distributes gas to 11 million homes and businesses

82,000 miles of gas distribution pipeline

Yellow gas distribution pipes as used in the UK

Area of operation

Our UK gas distribution business comprises almost half of Great Britain’s gas distribution system. This system comprises the gas pipelines that service homes and businesses. Our gas distribution business remains the largest in the country.

We continue to operate the UK national gas emergency number for our networks, the sold networks and other gas transporters.

2005/06 highlights

On 1 June 2005/06, we successfully completed the sales of four gas distribution networks for £5.8 billion.

We achieved our 35% controllable cost-reduction target one year early.

 

 

 

US electricity and gas distribution

Size and scope

72,000 circuit miles of electricity distribution network

8,600 miles of gas pipeline forming the gas distribution network

Clapboard house in the US with electricity lines in front of it

Area of operation

Our US electricity and gas distribution business serves approximately 3.4 million electricity customers in Massachusetts, New Hampshire, New York and Rhode Island, and around 569,000 gas customers in New York.

2005/06 highlights

We launched the multi-year ‘Reliability Enhancement Programme’ that utilises new information technologies to identify problem areas together with a combination of asset replacement, increased maintenance and inspections, and other actions to improve reliability cost effectively.

The Nantucket Island cable project was completed (at a cost of more than $40 million) to deliver electricity to the island with enhanced capacity and reliability.

 

 

 

Wireless infrastructure

Size and scope

5,500 active sites used for mobile communications

750 purpose-built broadcast towers for radio and television broadcasting

Man in a hard hat on top of a  broadcast  transmission tower in the UK

Area of operation

In the UK, we are the leading independent provider of network infrastructure, such as towers, to mobile telephone operators and one of two providers of transmission networks to television and radio broadcasters. Our US business provides communications infrastructure and related network services to wireless and fixed network operators in the northeastern US.

2005/06 highlights

During 2005/06, we completed the process of integrating the UK operations of Crown Castle International Corp. that we acquired for £1.1 billion in 2004/05.

In November, we concluded an agreement with the BBC, the UK-based public service broadcaster, to extend the provision of analogue television until 2012, and AM and FM radio until 2013.

 

 

 

Other businesses

Large yellow truck  used by National Grid Property during site remediation with two men  in high visibilty jackets  and hard hats in the background

National Grid Metering provides regulated gas metering and meter-reading services on behalf of our UK gas distribution business.

OnStream provides gas and electricity metering and meter-reading services to the competitive market.

National Grid Australia provides the 224-mile interconnector linking the electricity network on the island of Tasmania to mainland Australia – the longest such cable in the world.

National Grid Grain is a liquefied natural gas (LNG) import terminal and storage facility constructed and operated in the UK.

National Grid Property is responsible for the management of all our major occupied property in the UK and the management, clean up and disposal of surplus properties.

Fulcrum Connections provides gas connections and associated design services on behalf of gas distribution networks in the UK.

Advantica is a consultancy business providing engineering and software services to enhance safety and performance in the gas, oil, electricity and water sectors.