National Grid announces result of review of Shared Services

08/10/2009

  • National Grid concludes Shared Services review at offices in Warwick, Newcastle and Northampton

National Grid has finished an extensive review of its internal UK Shared Services department.

The review was carried out to ensure the company is delivering its services to customers as efficiently and effectively as possible. The review looked at how the Shared Services department delivers its support functions including finance and human resource activities, which are currently carried out at offices in Warwick, Newcastle and Northampton.

The review considered many options, including asking external companies for their views and recommendations on how we might deliver these services more efficiently and effectively. Staff also identified a number of internal improvements that could be made to improve efficiency and effectiveness, but these improvements were insufficient to meet the savings required.

As a result of this review, National Grid proposes to transfer delivery of some of its services to Tata Consultancy Services (TCS), a business solutions company which already provides information systems development and support to National Grid.

The Shared Services department will continue to have a significant presence in the Warwick and Northampton offices, where National Grid also has many other departments and functions. However, it is proposed that the office in Newcastle will close.

Approximately 300 employees are expected to be affected by the proposed changes and they will be encouraged to apply for alternative positions with the company, including those available at other locations.

National Grid employs around 10,500 staff in the UK and recruited more than 250 employees across the business during the first eight months of 2009.  In addition, National Grid invested around £2bn in its UK networks during the year ended 31 March 2009. This investment indirectly supports thousands of other jobs in the supply chain. The company remains committed to consulting with employees and unions throughout the implementation of the proposed changes over the coming months.

Steve Noonan, Director of UK Shared Services said: “We recognise that these are sensitive and difficult times for those employees affected by the result of the review.

“However, National Grid has a great track record in looking after its employees through change. We strongly encourage staff to take up positions elsewhere in the company and to investigate retraining for other available roles.

“And for those who choose to leave the company, we offer generous severance packages, and we provide outplacement support to help them find alternative work.”

Ends

For further media information only, please contact Graham McQuarrie, National Grid Media Relations on 01926 655273

Notes to editors:

  • National Grid employs about 27,900 staff, including about 10,500 in the UK.
  • Staff affected by the changes were informed at briefings today (Thursday 8 October) at National Grid’s offices at Warwick, Newcastle and Northampton.
  • The number of permanent and agency staff affected by the review of National Grid’s Shared Services is around 300, of whom 163 are located in Newcastle with the remainder spread between the Warwick and Northampton offices.
  • The reduction in the number of employees within Shared Services will be completed by the end of 2010.
  • The phased transfer of activities to TCS will take place between spring and late summer 2010.

National Grid

National Grid is an international electricity and gas company and one of the largest investor-owned energy companies in the world. We play a vital role in delivering gas and electricity to millions of people across Great Britain and northeastern US in an efficient, reliable and safe manner. We believe the power of action can play a major role in safeguarding our global environment for future generations and tackling the effects of climate change, providing all our customers with the highest standards of service through network investment and through our talented, diverse workforce.

National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. It also owns and operates the high pressure gas transmission system in Britain and its distribution business delivers gas to 11 million homes and businesses.

National Grid manages the National Gas Emergency Service freephone line 0800 111 999*.  

*All calls are recorded and may be monitored.