The Government is to buy the Electricity System Operator (ESO) from National Grid after striking a deal worth £630 million.
It will pave the way for the ESO – the operation which oversees balancing supply and demand in the UK’s electricity grid – to be taken into public hands.
The move is part of the launch of the new National Energy System Operator (NESO) – a public body designed to aid the UK’s clean energy transition and support energy security.
The Department for Energy Security and Net Zero said the new body will launch on October 1 following the deal with National Grid.
National Grid said the “final cash consideration” for the sale is still subject to potential adjustments before the deal closes.
The new state-owned body will bring together planning for the UK’s electricity and gas networks under one roof, following the passage of the Energy Act in October last year.
The NESO will be chaired by former E.ON chief executive Paul Golby, with Fintan Slye as its chief executive.
Energy Secretary Ed Miliband said: “Today marks a milestone for Britain’s energy system as we bring the system operator into public ownership to provide impartial, whole-system expertise on building a network that is fit for the future.
“The new National Energy System Operator has a huge role to play in delivering our mission to make Britain a clean energy superpower.
“This is another step forward by a Government in a hurry to deliver for the British people.”
John Pettigrew, chief executive of National Grid, said: “We look forward to working together with NESO to continue to drive the UK’s energy transition forward at pace; accelerating the decarbonisation of the energy system for the digital, electrified economies of the future.”
Paul Golby said: “This is a pivotal moment as we head closer to the launch of the National Energy System Operator on 1 October.
“NESO will support a more integrated and coordinated strategy to meet the unprecedented challenges of climate change, ensuring security of energy supply and keeping bills as low as possible.”
