U.K. to Buy National Grid Unit to Create New Energy Authority
(Bloomberg) --
The U.K. will purchase a key part of National Grid Plc's business as it creates as a new authority oversee the nation's energy system.
The government is establishing a Future System Operator that will work to secure Britain's energy security while helping to lower carbon emissions in the coming decades, according to a statement. As part of that effort, it plans to buy National Grid's Electricity System Operator, which keeps power supply and demand in balance.
“We will continue to work closely with all relevant parties to ensure a smooth transition” in the creation of the new entity, National Grid Chief Executive Officer John Pettigrew said in the statement.
Last year's energy crisis, along with the record prices and volatility caused by Russia's war in Ukraine, have increased focus on energy markets and security. Individual nations as well as the European Union are drawing up plans on how to obtain more diverse supplies.
What's Behind Europe's Skyrocketing Energy Prices?: QuickTake
The new authority will shift management of the energy network to what the government calls a “whole system” approach, integrating the oversight of power, gas and new technologies including hydrogen and carbon capture.
“A fully independent system operator will help to transform Great Britain's energy system and cut customers' energy bills,” said Jonathan Brearley, chief executive officer of energy regulator Ofgem.
The U.K. will compensate National Grid and any other relevant parties for assets that are transferred to the new entity, the government said in a response to a consultation.
The Future System Operator will operate as a public corporation that has operational independence from the government and is licensed and regulated by Ofgem, it said. The government plans to implement the new body in phases to ensure a smooth transition.
There is no set date for the operator to begin its work, but it will require legislation to be passed and could be established by 2024.
©2022 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
