ESO and ETO business separation
In the near future, we will set up a new, legally separate company to carry out our electricity system operator (ESO) function within the National Grid Group. The ESO has a central role in planning and operating the electricity system.
The role and the form of the ESO will adapt to keep pace with an ever-changing system. It is an opportunity for us to keep consumers' household bills down by working to ensure and enable more competition, coordination, and innovation across the system.
The ESO role includes balancing the electricity grid second by second. As the electricity system becomes more flexible this role will need to evolve. The ESO will need to work more closely with local electricity distribution network operators (DNOs) to manage electricity flows across the grids.
What you need to know
- National Grid Electricity System Operator (NGESO) will start operating as a separate company, within the National Grid Group, from April 2019.
- To make sure we get legal separation right, we will be virtually separating the ESO and Electricity Transmission Owner (ETO) from autumn 2018. This means you’ll start to see the ESO and ETO acting as separate entities ahead of the April 2019 go-live date.
- NGESO will continue to align to National Grid’s purpose, vision, and values, but will have its own visual identity.
- Our support functions will continue to provide their services to all businesses within the National Grid Group through a business partner model that maintains existing efficiencies.
- Warwick-based NGESO employees will be based in a separate part of the building from other National Grid companies. From April 2019, there will be a separate entrance for NGESO.
- Wokingham-based NGESO colleagues are already physically separate from other employees and will, therefore, remain in their current location.
If you have any further questions, please contact [email protected].