In April 2019 the Electricity System Operator (ESO) became a legally separate business within the wider National Grid Group, to remove any perceived conflicts of interest and offer greater transparency of the ESO operation. Following legal separation, within the business it retained a ‘single system operator’ structure – comprising the gas system operator and electricity system operator, to enable both to take a whole energy system view.
We have now reviewed this model, making our business clearer and simpler for customers and stakeholders who interact with us.
This week we welcome our Gas System Operator into National Grid’s Gas Transmission business, to realign the licensed gas businesses under a single entity – National Grid Gas Transmission. This will give us all a clearer identity and voice. It will also make it simpler to understand who has accountability for our interaction with customers and who is speaking on behalf of National Grid Gas to the industry.
There are no proposed headcount reductions associated with the change and whole system thinking will still play a vital role for both the ESO and National Grid Gas Transmission.
Whole-system publications, such as the Future Energy Scenarios, are already delivered by the ESO and this will continue under the new arrangements.
As you may have seen, we have now also submitted our updated Business Plans for RIIO-2. We strongly feel that by simplifying our internal structure and aligning all National Grid Gas licence activities under National Grid Gas Transmission, we will be better prepared for the RIIO-2 period and able to respond more effectively to the changing long-term needs of consumers.