National Grid

(Alliance News) - UK energy regulator Ofgem on Monday said it recommends the creation of an independent body and full separation of the running of the electricity system from National Grid PLC.
Ofgem said the separation would "help lead the path to net zero at the lowest cost to consumers". The body would be fully separated from National Grid, which has managed the UK energy system since it was privatised.
Ofgem said the independent body would help charge electric vehicles and allow for "a huge increase in renewable power while maintaining secure energy supplies."
In December, the UK government committed to consult on reviewing energy system management and acknowledged that any further responsibilities might necessitate further independence from National Grid.
Ofgem estimated that the independent body could save customers GBP400 million to GBP4.8 billion between 2022 and 2050.
New responsibilities for the body would include a more active role in the planning and designing of new grid infrastructure, as well as providing the government with advice on how to hit its net zero emissions target by 2050.
"This body, or independent system operator, would be fully separated from National Grid, which also owns the electricity transmission network, to avoid any perceived or real potential conflict of interest," Ofgem explained.
This follows the 2019 creation of a legally separate function within national Gird to manage the electricity system and help avoid such conflict.
However, with the "scale of the net zero challenge" Ofgem has recommended that the government go further and consider full separation, making sure that energy system management decisions "are taken in the interest of customers, helping to keep costs at low as possible".