National Grid plc

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This article is about the energy company. For the electric power transmission network, see National Grid.

National Grid plc is a multi-national electricity and gas utility company, focused on transmission and distribution activities in both the UK and the USA; the company is headquartered in Warwick. Business segments include:

  • UK Electricity Transmission: National Grid Electricity Transmission plc owns and operates the National Grid, the high voltage electricity transmission networks in England and Wales.ref,ref Website
  • UK Gas Transmission: National Grid Gas plc owns and operates the Gas Transmission System, the gas transmission network, from terminals to distributors. Website
  • UK Gas Distribution: includes approximately 4 of the 8 regional networks of the gas distribution system.ref
  • Electricity System Operator: National Grid plc balances electricity supply and demand in real time.ref Although National Grid plc is the system operator for the high-voltage electricity transmission networks in Scotland (since Apr.2005), ownership is retained by Scottish Power and Scottish and Southern Energy.Website
  • Interconnectors: National Grid plc part-owns and operates a submarine HVDC link to France with Réseau de Transport d'ÉlectricitéWikipedia-W.svg; and BritNed, an HVDC link to the Netherlands with TenneT Holding BVWikipedia-W.svg.

Corporate Political Engagement Rating:[1] Transparency International    B  

Climate Policy Rating: InfluenceMap  B+[2]
National Grid appears to be actively and positively engaged with climate policy, but in 2013 expressed support for shale gas. National Grid is a member of the Confederation of British Industry, which resists climate regulation.

Tax Policy: National Grid shifted its gas and electricity businesses into new subsidiaries in Luxembourg and Hong Kong in 2019. Offshoring can also protect directors from litigation by disgruntled shareholders.[3]

Property Holdings

In 2012, the National Grid Property Portfolio was formed to house all RESP land, offices and depots used for National Grid operations that are surplus to requirements, or let to third parties. BNP Paribas was appointed as the single-source Real Estate Service Provider (RESP), managing the disposal of National Grid's 'redundant' surplus property portfolio.ref
Joint venture w/Berkeley Homes: "St William Homes LLP", building ~1,100 homes, with planning permission for another 1,880. CH 2018 a/cs, p.33

Company

ToDo: https://www.nationalgrid.com/group, Reports, Ventures

Shareholders

Total float: 92.5%
Source: MarketScreener.svg, Mar.2020

Corporate Grouping

National Grid plc, CH, subsids 2018 a/cs, p.16

  • National Grid Holdings One plc, CH
    • Quadgas Holdco Ltd (39%), CH see Cadent Gas Ltd § Company
    • National Grid Holdings Ltd, investment company, CH (todo)
      • National Grid Electricity Transmission plc, operates the electricity transmission system, CH
        • Elexon Ltd, ref, A/cs Mar.2018. Elexon is the Balancing and Settlement Code Company for the electricity market. (Market mechanisms of the Electricity Market Reform under the Energy Act 2013.) Compares contracts to buy and sell electricity in the wholesale market with actual volumes, and ensures everyone is paid accurately for any differences; to do this they take 1.25m meter readings every day. website, Elexon Portal
          • Elexon Clear Ltd, legal counterparty to balance and imbalance transactions under the BSC.
          • Poolserco Ltd, historic; has ceased trading.
          • Poolit Ltd, holds intellectual property developed by Pool Members jointly under the Pool. Non-trading.
          • BSC Co. Ltd, acquired from NGET in Mar.2009; dormant.
          • EMR Settlement Ltd, formally designated by BEIS to undertake the settlement function for the contract for Difference and Capacity
      • National Grid Four Ltd, investment company
      • The National Grid Group Quest Trustee Company ltd, trustee company
      • National Grid International Ltd, investment company
      • NG Jersey Ltd, investment company, reg. Jersey. Flag-Jersey.svg
      • NG Nominees Ltd, investment company
      • NGT Holding Company (Isle of Man) Ltd, investment company, reg. Isle of Man. Flag-Isle-of-Man.svg
    • Lattice Group Ltd, investment company, CH. Lattice Group own 4 of the 8 regional gas distribution networks, as at Mar.2017.
      • National Grid Blue Power Ltd, dormant
      • National Grid Commercial Holdings Ltd, investment holding company and provision of corporate centre services
      • National Grid Gas Holdings Ltd, investment holding company
        • National Grid Gas plc, operates the gas transmission system, CH
      • National Grid Grain LNG Ltd, gas storage company
      • National Grid Smart Ltd, dormant
      • National Grid Energy Metering Ltd, dormant
ToDo:

Figure out where these fit in (gas)

  • Beegas Nominees Ltd
  • Birch Sites Ltd
  • Croylsdon metering Services Ltd
  • Landranch Ltd
  • Lattice Group Employee Benefit Trust Ltd
  • Lattice Group Trustees Ltd
  • National Grid Metering Ltd
  • National Grid Property Holdings Ltd
  • National Grid Twenty Eight Ltd
  • National Grid Twenty Seven Ltd
  • National Grid William Ltd
  • Ngrid Intellectual Property Ltd
  • NGT Telecom No 1 Ltd
  • Port Greenwich Ltd
  • Stargas Nominees Ltd
  • Thamesport Interchange Ltd
  • Warwick Technology Park Management Company (No.2) Ltd (60.56%)
  • British Transco International Finance BV, (reg. Netherlands)
  • Lattice Telecom Finance (No.1) Ltd, Isle of Man, in liquidation
  • National Grid Insurance Company (Ireland) Designated Activity Company (reg. Republic of Ireland)
  • Joint Radio Company Ltd (50%)
  • St William Homes LLP (50%)

Figure out where these fit in (elec):

  • Gridcom Ltd
  • Icelink Interconnector Ltd
  • Natgrid Ltd
  • National Grid Electricity Group Trustee Ltd
  • National Grid Fourteen Ltd
  • National Grid Seventeen Ltd
  • National Grid Thirty Six Ltd
  • National Grid Ventures Ltd, LNG terminal, energy metering, developing and operating electricity interconnectors from and to GB, with 2 subsea links in operation, and 3 under construction to Belgium, France and Norway.
  • NGC Employee Shares Trustee Ltd
  • Supergrid Electricity Ltd
  • Supergrid Energy Transmission Ltd
  • Supergrid Ltd
  • Transco Ltd
  • National Grid Australia Pty Ltd, Australia reg.
  • National Grid Insurance Company (Isle of man) Ltd, IoM reg.
  • National Grid Holdings BV, Netherlands reg.
  • NGET/SPT Upgrades Ltd, UK reg (NGET plc owned 50 x £1 ordinary shares)
  • Coreso SA, (15.84%), Belgium reg., associate
  • Energis plc (33.06%), associate, in administration

Figure out where these fit in:

  • British Transco Finance (No.1) Ltd, dissolved Apr.2018, reg. Cayman Islands
  • British Transco Finance (No.2) Ltd, dissolved Apr.2018, reg. Cayman Islands
  • KeySpan (UK), in liquidation
  • National Grid Belgium Ltd, dormant
  • National Grid Carbon Ltd, carbon capture
  • Gas Distribution Property Holdings Ltd, (previously National Grid Thirty Eight Ltd), ++
  • National Grid Gas Distribution Ltd (previously National Grid Thirty Seven Ltd), ++
  • National Grid Interconnector Holdings Ltd, holdco
  • National Grid Interconnectors Ltd, interconnector between the UK and France
  • National Grid Jersey Investments Ltd, investment company, reg. Jersey
  • National Grid Offshore Ltd, dormant
  • National Grid Thirty Four Ltd, dormant
  • National Grid UK Ltd, investment company
  • National Grid Distributed Energy Ltd, investment company
  • National Grid Technologies Ltd (previous National Grid Thirty Four Ltd), dormant
  • National Grid Property Ltd, sold off 44 sites w/ 5 more planned.

++ 61% stake + property + 45% stake in Xoserve Ltd sold for $$s + 39% stake in Quadgas HoldCo Ltd (Macquirie + National Grid Holdings One plc) in 2017. These two companies form the UK Gas Distribution business. Planning to sell off remaining stake to Quadgas Investments BidCo Ltd. See p.125 2018 a/cs

See also National Grid Holdings One plc A/cs 2018, p.21 re more subsids / joint ventures, etc.

Timeline

Public ownership discussion, link (Mar.2018)

ToDo: nationalgrid.comArchive-org-sm.svg, 2001 A/csArchive-org-sm.svg, history
ToDo: link, link, link, link, link, link, Reports
  • Mar.2017: National Grid plc sold a majority shareholding of 61% in its Gas Distribution business, which was subsequently rebranded as Cadent Gas Ltd. National Grid Holdings One plc retained a 39% shareholding. ref,ref,ref
  • Dec.2016: National Grid sold a majority stake in its gas distribution business (the gas pipe network) to a consortium of investors, led by Macquarie, and backed by China Investment Corporation, Qatar Investment Authority, along with fund managers including Hermes and Allianz. Unison said the gas distribution business is a regulated private monopoly with fixed returns, meaning the company running it is guaranteed to make money. + “Macquarie has poor form already – in building up huge company debt, repatriating massive dividends to the southern hemisphere and charging customers more for a much poorer service.” ref,ref
  • Mar.2016: Concerns re conflicts of interest: it "owns many of the country's electricity transmission lines and pipelines… [and] has a financial interest in supplying ever larger volumes of power rather than encouraging demand reduction, which is another way of preventing power shortages and keeping the lights on".ref Govt started considering the idea of a publicly-owned, not-for-profit company taking over the "system operator" role. It would "manage the country's electricity supplies, switch off factories and request emergency back-up generation" to prevent blackouts.ref So it would be stripped of key powers to oversee a network from which it derives big profits. That's no bad thing, say its critics, and is, in fact, the main reason the reforms are being considered. The model govt is thought to be "leaning" towards is one similar to that used for Network Rail: the company would be independent of govt but publicly-owned and overseen at arm's length by OfGem.ref
  • May.2015: National Grid contemplated selling domestic gas meters to raise funds (did this happen?).ref
  • Jul.2005: National Grid plc: National Grid Transco was renamed to provide 'a unifying identity across its operations'.ref
  • Jun.2005: Regional Gas Distribution Networks: Scotland and the South of England regions were sold to Scotia Gas Networks; the North of England region was sold to Northern Gas Networks; and the Wales and the West region was sold to Wales & West Utilities.ref,ref
  • Apr.2005: NGC took over operation of the transmission system in Scotland, with the implementation of the British Electricity Trading and Transmission Arrangements (BETTA) (Energy Act Jul.2004).
  • Aug.2004: Regional Gas Distribution Networks: National Grid plc sold four of its regional gas distribution networks in order to raise funds for expansion: Scotland, South of England, North of England, and Wales and the West.ref
  • 2004: Sold half of the assets it had acquired from Lattice Group, to Li Ka-shing, Macquarie, Scottish & Southern Energy, and United Utilities, etc.ref
  • May.2004: Blackstone Ltd, including Jersey, was acquired (100%). Renamed as National Grid Jersey Investments Ltd; disposed of in Aug.2004.A/cs Mar.2005, p.23
  • Oct.2002: National Grid Transco plc: NGC's ultimate parent, National Grid Group plc, merged with Lattice Group plc to form National Grid Transco plc. The Group combined the management of NGC's electricity and Transco's gas transmission operations.ref
  • Oct.2002: Lattice Group plc, owner of one-time gas monopoly Transco, was acquired; National Grid acquired most of the UK's gas distribution network when it bought the Lattice Group.ref Lattice Group plc was established in 2000 when BG Group demerged and renamed its UK gas transmission business (formerly known as Transco).ref
  • Dec.1995: First Hydro Ltd, the National Grid Company's pumped-storage businesses that it was given on the breakup of the CEGB, was sold to Edison Mission Energy (USA). As part of the arrangements for the demerger of The Nationla Grid Group plc, First Hydro Ltd was retained by the regional electricity companies and subsequently sold.A/cs Mar.1996, p.41 See Engie SA § Power Stations and Privatisation Policy § Electricity
  • Dec.1995: National Grid Company plc was floated on the stock market. NGC plc owned and operated the 275/400 kV transmission system in England and Wales, and was joint owner (with the Scottish companies) of the interconnector with Scotland and (with Electricité de France) of the cross-Channel cable. The NGC has a central role in the industry and a specific remit to facilitate competition. It provides open access to the grid for all generators and distributors who meet the technical requirements of the Grid Code. It is responsible for the scheduling and dispatch of generating plant above 100 MWe to meet demand at the lowest cost to the customer. The transmission licence holders (NGC, ScottishPower, HydroPower and NEI) publish Seven Year Statements each year of trends in demand to assist grid users determine investment decisions and business opportunities.ref
  • 1990: National Grid Company plc: The transmission activities of the CEGB were transferred to the National Grid Company plc, which was owned by the 12 Regional Electricity Companies through a holding company, National Grid Group plc.

Xoserve Ltd CH . See p.41 re shareholders of Xoserve Ltd.
Shareholders = National Grid Gas plc + Cadent Gas Ltd + Southern Gas Networks plc + Scotland Gas Networks plc + Northern Gas Networks Ltd + Wales & West Utilities Ltd
89,000 A shares allotted + 11,000 B shares allotted (2015)
National Grid Gas plc = 45,570 A = 51.2%
Northern Gas Networks Ltd = 10,380 A = 11.66%
Scotland Gas Networks plc = 6,970 A = 7.83%
Southern Gas Networks plc = 16,050 A = 18.03%
Wales & West Utilities Ltd = 10,030 A = 11.27%
National Grid Gas plc = 11,000 B

Articles

  • Dec.06.2018: Nemo link power cable will help to bridge energy gaps. The Nemo link, An 80-mile subsea power link between Britain and Belgium is expected to start transmitting power early next year. National Grid co-owns Britain’s existing interconnectors to France and the Netherlands. In addition to the Nemo link, it is working on building three others — another link to France, one to Norway and one to Denmark. Emily Gosden, The Times.
  • Jul.19.2013: George Osborne unveils 'most generous tax breaks in world' for fracking. Environmental groups furious as chancellor sets 30% rate for shale gas producers - that compares with a top rate of 62% on new North Sea oil operations and up to 81% for older offshore fields. National Grid has scrapped the greenest growth scenario from its energy planning models, saying the scenario is no longer credible. The company, which operates the pipes and pylons for UK energy infrastructure, said it would only use two, more modest, modelling options: "gone green" – under which carbon reduction targets are hit – and "slow progression" – where they are not. Terry Macalister, Fiona Harvey, The Guardian.

References

  1. ^ Corporate Political Engagement Index 2018. The new index of 104 multi-national companies, many of whom regularly meet with govt, has found nearly 75% are failing to adequately disclose how they engage with politicians. Only one company received the highest grade, with the average grade being "E" – representing poor standards in transparency. Transparency International UK, Nov.2018.
  2. ^ The A-List of Climate Policy Engagement. Which global companies lead in strategic lobbying for the ambitions of Paris? Rankings measure how a corporation or trade association behaves towards 2°C aligned climate and energy policy. Influence Map, Apr.2018.
  3. ^ Power giants National Grid and SSE go offshore to escape Jeremy Corbyn’s clutches. National Grid quietly shifted ownership of its British operations into offshore companies in Luxembourg and Hong Kong. John Collingridge, The Times, Nov.24.2019.