its principal activities are in the united kingdom and north eastern united states .

national grid has a primary listing on the london stock exchange , and is a constituent of the ftse 100 index .

it had a market capitalisation of approximately £ 40.4 billion on 23 september 2016 , the twentieth largest of any company , with a primary listing on the london stock exchange .

it has a secondary listing on the new york stock exchange .

national grid plc

the last ic recommendation on national grid plc shares was buy at 887 . 50 on 24 may 2018
news about national grid plc . , including commentary and archival articles published in the new york times .
in october 2002 , national grid group merged with lattice group plc , owner of transco—the gas distribution business ( lattice demerged from bg group in 2000 ) . national grid group changed its name to national grid transco plc . in august 2004 , national grid transco agreed to sell four of its regional gas distribution networks . the total cash consideration was £5 . 8 billion . ngt kept ownership of four other distribution networks , which comprise almost half of great britain ' s gas distribution network . [ 9 ] in july 2005 , national grid transco was renamed national grid plc . on 26 july 2005 , national grid company was renamed national grid electricity transmission plc , and on 10 october 2005 , transco was renamed national grid gas plc . [ 10 ]
national grid plc part owns and operates a 1 , 000 megawatt hvdc link to the netherlands ( britned ) with tennet .
may 17british power grid operator national grid plc ' s full - year profit rose 3 . 5 percent , helped by growth in its u . s . business .
national grid plc part owns and operates a 2 , 000 megawatt hvdc link to france ( hvdc cross - channel ) with rte .
national grid gas plc ( formerly transco ) owns and operates the gas transmission network ( from terminals to distributors ) , known as the national transmission system ( nts ) .
in 1990 , the transmission activities of the cegb were transferred to the national grid company plc , which was owned by the twelve regional electricity companies ( recs ) through a holding company , national grid group plc . the company was first listed on the london stock exchange in 1995 . [ 6 ]
national grid plc is a british multinational electricity and gas utility company headquartered in warwick , expansion and consolidation ( 2000 - present ) with the beginning of the new millennium , national grid pursued some major mergers and acquisitions .
principal subsidiaries : british electricity international ltd . ; national power international holdings ltd . ; national power international ltd . ; national power ( north ) ltd . ; national wind power ltd . ; seafield resources plc .
national grid plc is a british multinational electricity and gas utility company headquartered in warwick , united kingdom . its principal activities are in the united kingdom and northeastern united states .
copyright © 2018 national grid usa service company , inc . all rights reserved .
uk ' s national grid reports profit rise helped by u . s . business
british power grid operator national grid was optimistic about its growth prospects after the company reported stronger than expected full - year profit .
national grid ' s full - year profits rise helped by u . s . business
may 17 british power grid operator national grid was optimistic about its growth prospects after the company reported stronger than expected full - year profit .
the britned project is a joint venture between subsidiary companies of tennet holding and national grid .
national grid share price - ng . l - yahoo ! uk & ireland finance
national grid plc is an electricity and gas utility company focused on transmission and distribution activities in electricity and gas in both the united kingdom and the united states . the company ' s segments include uk electr
may 22 britain ' s gas and electricity markets regulator ofgem has launched an investigation into national grid plc ' s uk transmission business , looking at its obligations to produce and publish appropriate forecasts of demand .
national grid is a utility , but there ' s a lot more going on than that .
on monday , national grid plc ( ng . : lse ) closed at 867 . 80 , - 11 . 61 % below its 52 - week high of 981 . 77 , set on sep 01 , 2017 .
national grid plc was set up on 11 jul 2000 and has its registered office in london . its current status is listed as
active
. it currently has 13 directors . the company employs 10000 + people .
update 1 - national grid ' s full - year profits rise helped by u . s . business
with the beginning of the new millennium , national grid pursued some major mergers and acquisitions . in 2000 , national grid group acquired new england electric system and eastern utilities associates . [ 7 ] in january 2002 , national grid group acquired niagara mohawk power corporation , a new york state utility . [ 8 ]
national grid has agreed to sell a majority stake in its gas pipe network to a group of investors .
national grid chief steve holliday has long been a vocal advocate of energy infrastructure investment . photograph : rex features
keyspan is a natural extension of our business and our strategy ,
said national grid chief roger urwin .
national grid owns and operates the electricity transmission network that takes power from generators to regional suppliers in england and wales .
in november 2017 , daily energy insider reported that national grid signed an agreement with the department of energy’s pacific northwest national laboratory ( pnnl ) . the agreement has national grid and pnnl partner with each other to modernize the electric grid and add resiliency to the system . the agreement also focuses efforts on cyber security , distributed energy resources , advanced transmission network controls and
grid scale energy storage .
[ 26 ]
makes up abut 50 % of their respective capital structures . so national grid is higher , but not out of line .
this article is about the energy company . for the electric power transmission network , see national grid ( great britain ) .
national grid’s chairman , sir peter gershon , said : “steve has made a significant contribution to the energy sector and national grid . under his leadership the company has delivered excellent returns for shareholders ensuring its place as one of the world’s leading utilities . ”
the chief executive of national grid is to step down after 10 years . steve holliday , who will leave the power network operator in march , will be replaced by john pettigrew , its uk executive director , who joined national grid nearly 25 years ago .
diesel generators potential use to deal with intermittency and support uk national grid ( 738 . 3 kib , 26 , 795 hits )
national grid has been keen to boost its presence in the us , where it currently makes about 40 % of its profits .
national grid is a “global” utility , but it kind of isn ' t - - that ' s the biggest problem here .
national grid , will buy half the output of cape wind , which if built would be the nation’s first offshore wind farm .
has no position in any stocks mentioned . the motley fool recommends national grid and southern company . try any of our foolish newsletter services
uk utility group national grid has agreed to buy us gas distributor keyspan for $ 7 . 3bn ( £4 . 1bn ) in cash .
year on year national grid plc ' s net income fell - 54 . 46 % from 7 . 80bn to 3 . 55bn despite relatively flat revenues . a contributing factor has been an increase in the percentage of sales devoted to the cost of goods sold from 27 . 68 % to 31 . 05 % .
national grid plc is an electricity and gas utility company focused on transmission and distribution activities in electricity and gas in both the united kingdom and the united states . the company ' s segments include uk electricity transmission , which is engaged in high voltage electricity transmission networks in great britain ; . . . ( more )
national grid said that the consortium was also in talks to acquire an additional 14 % of the business at a similar price to the agreed transaction .
national grid will also take on $ 4 . 5bn in debt , but says the deal will lead to annual savings of $ 200m when completed .
this subsidiary carries out its business through a number of subsidiary companies ( all doing business as
national grid
) . the main ones are :
in spring 2011 , national grid sold off its services in new hampshire , after their request to increase gas and electric rates was denied . [ 22 ]
find corporate information including strategy , governance and reports , details on national grid ventures , and how we create long - term value for customers and communities .
jonathan davis , one of the principals in davis marcus partners , developer for reservoir woods campus , said the national grid building will be finished by next summer .
national grid plc is an electricity and gas utility company focused on transmission and distribution activities in electricity and gas in both the united kingdom and the united states . the company ' s segments include uk electricity transmission , which is engaged in high voltage electricity transmission networks in great britain ; uk gas transmission , which is the gas transmission network in great br
as a utility , national grid is highly regulated . so governments basically set how much the company can charge customers . in exchange , national grid gets monopoly privileges . it ' s a reasonable trade - off , since it would be prohibitive in multiple ways to have two different electric systems serving one area . the same is true in some of the company ' s gas businesses . being a utility , however , national grid can increase rates if it spends money to maintain and upgrade its systems .
its generation ( or upstream ) activities were transferred to three generating companies— powergen , national power , and nuclear electric ( later british energy , eventually edf energy ) —and its transmission ( or downstream ) activities to the national grid company . [ 5 ]
the deal needs clearance from the european commission to go ahead . assuming it is not blocked , national grid expects the transaction to complete on or before 31 march next year .
the last piece of steel was ceremoniously hoisted yesterday onto the top of what will become national grid ' s new england headquarters in the east campus of reservoir woods on sylvan street .
has no position in any stocks mentioned . the motley fool recommends heico , national grid , southern company , and veolia environnement ( adr ) . try any of our foolish newsletter services
this thursday , urltoken has initiated reports coverage on the following utilities equities : nextera energy inc . ( nyse : nee ) , national grid plc ( nyse : ngg ) , oneok inc . ( nyse : oke ) , and south jersey industries inc . ( nyse : sji ) . all you have to do is sign up today for this free limited time offer by clicking the link below .
the deal still needs to win the backing of both national grid and keyspan ' s shareholders , as well as regulatory approval in the us and uk , before it can go ahead .
national grid , the british utility company , emerged yesterday as the front - runner to acquire the keyspan corporation , which provides electricity and natural gas to more than a million customers on long island , for about $ 7 . 3 billion , people involved in the process said yesterday . national grid , which was formed after the electricity grid of england and wales was privatized in 1990 , appears to have the edge over its local rival , consolidated edison , these people said . a deal could be reached as early next week , they said , still cautioning that it was possible that consolidated edison could emerge with a new offer or the negotiations with national grid could collapse .
national power plc is the largest of the three main electricity generating companies created from the break - up of the nationalized electricity industry in england and wales . carved out as a separate division of the central electricity generating board in 1989 as privatization loomed , national power was incorporated as a public limited company ( plc ) in 1990 and the majority of its shares were sold to the public a year later . national power , nuclear electric , and powergen became the big three electricity generators in england and wales . in the mid - 1990s , national power and powergen ' s market share was decreasing - - and was expected to decline yet further & mdash the industry became more competitive . while national power would likely continue to hold a significant niche in the home energy market , the company was also looking to allied ventures for new areas of growth , in particular the opportunities offered in international power markets .
here you can find out the approximate location of our national gas and electricity transmission networks .
but , if you look at the uk as akin to a reasonably large u . s . state , you can pit national grid against large u . s . - focused utilities , such as
caterpillar inc said on friday it named andrew bonfield of britain ' s national grid as its chief financial officer , replacing brad halverson , who has been with the company for more than three decades .
the macquarie communications infrastructure group agreed to buy the british wireless network division of national grid for £2 . 5 billion ( $ 4 . 93 billion ) and combine the unit with its arqiva broadcast business . national grid , owner of the power and gas networks in britain , said national grid ' s wireless unit had access to more than 14 , 500 communication sites in england , scotland , ireland and wales . the unit , based in warwick , england , owns more than 2 , 500 sites and has contracts with its parent for access to electricity transmission towers , national grid said . arqiva , based in hampshire , england , offers networking services to broadcasters and mobile phone companies including the vodafone group , telefónica , o2 and orange of france télécom . macquarie is based in sydney , australia .
global - ish there ' s no way around it : national grid is a direct play on the utility needs of the united kingdom . roughly a third of its revenues come from its uk electricity business , and about 30 % or so is derived from its gas transmission and distribution operations . so around two - thirds of national grid ' s revenues are directly tied to utility issues in england .
london , may 15 zurich insurance has agreed a longevity swap deal to cover more than two billion pounds ( $ 2 . 71 billion ) of pensioner liabilities for national grid , it said on tuesday .
in the end , national grid is a fine utility , but still something of an odd duck . and the
foreign
exposure it offers might not be worth the extra leg work for many investors .
words such as
globalisation
have quickly eclipsed
privatisation
in the city ' s lexicon of catchphrases . the big , national monopolies that were privatised increasingly drew their customers outside national boundaries .
geography matters at the end of the day , national grid is basically a boring utility . it ' s neither great nor awful . however , what really separates it is its geographic mix . if you just want a basic utility , national grid is probably more than you ' re bargaining for . however , for someone who ' s interested in a little diversification , this uk / u . s . mash - up might be just the thing . adding some allure to that is the fact that national grid ' s electric assets are transmission based , so it doesn ' t have to deal with the power generation issues that many of its u . s . competitors face .
national grid ' s distribution arm comprises four uk gas networks . together they distribute gas on behalf of gas shippers to approximately half of the uk ' s connected households and a substantial proportion of the uk ' s business premises .
oslo , may 15 british utility national grid has developed a tool that can forecast the carbon intensity of electricity generation by region for up to 48 hours ahead of the power production , the company said in a statement on tuesday .
the three - story , 312 , 000 - square - foot building will be home to some 1 , 800 of the energy company ' s employees , said marcy reed , national grid ' s senior vice president of corporate affairs .
all aspects of the contracts for the connection to and use of the national electricity transmission system ( nets ) .
in february 2006 , national grid announced that it had agreed to buy keyspan corporation , [ 11 ] a gas distributor and electricity producer in the united states , for $ 7 . 3bn ( £4 . 1bn ) in cash . around the same time , national grid also announced the acquisition of the southern union company subsidiary , new england gas company in rhode island . [ 12 ] the acquisitions of the two natural gas delivery companies materially doubled the size of national grid ' s american subsidiary , creating the second largest utility in the united states with more than 8 million customers . the acquisition of keyspan was completed on 24 august 2007 following government and regulatory approval and endorsement by the shareholders of the two companies . [ 13 ]
holliday said : “the business is in a strong position with good regulatory frameworks and excellent prospects for growth , and i am pleased to be leaving national grid in the very capable hands of john pettigrew and a high - performing management team . ”
at national grid , we manage the flow , security , and quality of electricity to britain’s homes and businesses – managing the network on a real - time basis , making sure supply and demand are perfectly matched from one second to the next .
as our permanent corporate home in new england , it demonstrates our commitment to being a significant regional employer and a good corporate citizen ,
tom king , national grid ' s president of u . s . business said in a press release .
assuming regulators approve of the spending , which can be a contentious issue at times , national grid makes more if it spends more . and when it comes to spending , the utility ' s u . s . business has been eating up a lot of cash - - around half of the company ' s capital spending - - slightly more , in fact , than its much larger uk businesses taken together . basically , national grid sees more growth opportunity stateside than it does in its home market .
national grid , the electricity and gas provider to several northeastern states , last week announced the expansion of its home energy report program , which delivers energy - use statements to homeowners showing how they stack up against their neighbors in similar - size homes .
hermes said it had been
actively pursuing
an investment in national grid ' s gas distribution business in the uk for the past year , saying it offered the prospects of
low level of operational risk
and
relative certainty of earnings
.
national grid operates in the united kingdom and the in the northeastern united states . true , its businesses span across electricity and natural gas , but it ' s a very different level of diversification . in fact , the uk wouldn ' t even count among the top 10 states in the u . s . , in terms of size . so it ' s hard to suggest that national grid is really a globally diversified utility - - it ' s a uk utility growing in the u . s . market .
that ' s why you need to ask yourself if national grid ' s foreign exposure is worth the effort and risk . you can buy a diversified u . s . utility of roughly similar size offering a similar yield , such as duke or southern , and avoid the need to deal with , and understand , foreign markets . but if you want foreign diversification , national grid only really offers up exposure to the united kingdom . if foreign exposure is your real goal , veolia is a much more diversified entity .
jupiter fund management plc operates as a fund manager . it focuses on managing equity investments on behalf of retaail , institutional , and private investors across the uk and offshore mutual funds , segregated mandates , and investment trusts . the company was founded in 1985 and is headquartered in london , the united kingdom .
national grid has about 3 . 3 million customers in massachusetts , new hampshire , new york and rhode island , as well as 3 . 8 million gas customers in those areas . the company has signed a 20 - year lease for the building in waltham .
now , those big - picture issues aside , national grid is a fairly stable company . debt makes up about 60 % of the capital structure . that ' s not unreasonable in the capital - intensive utility space . for example , long - term debt at
the united kingdom isn ' t all that big , but it ' s still a foreign nation and accounts for a large piece of national grid ' s business - - roughly two thirds of the company ' s operating profits ! and while the company is planning on expanding its u . s . business to push the accelerator on growth , what happens in the uk is clearly important . you just can ' t look at national grid without getting to know the electricity and gas markets in the united kingdom pretty well .
we will use our technical expertise and extensive high voltage network to assist you in connecting to the national grid in england and wales , whether you are a demand or generation customer . we are keen to discuss your business requirements , so you can connect with confidence .
in 1927 , lord weir reported to the government that we needed to build the uk national grid , which was then built in its first form in a matter of less than 10 years . all other european countries reached the same conclusion at roughly the same time and constructed their national grids . thus the european supergrid could be constructed in similar timescales if all of europe again acted in concert .
is a uk utility with a base of assets in the united states . this is both a strength and a weakness , depending on your take of things . but in the end , getting your head around this diversification is the biggest problem investors will have with national grid .
data and support for users of the national electricity transmission system ( nets ) including the latest operational data , forum , and more .
spending it , in the states so even though you need to pay close attention to the uk if you own national grid , you ' ll also want to watch what ' s going on in the united states . but here ' s where that story gets more interesting . . .
if you ' re looking at national grid , you ' ll want to keep this in mind at all times . it ' s very much a multi - utility , with a core operation in one region and expansion opportunities in others . that ' s where the 20 % of the business tied to the united states comes in . it has a material footprint in the northeast . in fact , roughly 30 % of its utility assets are located in the u . s . market . as in the uk , national grid ' s u . s . business spans electricity and natural gas .
national power was also moving into the field of combined heat and power generation ( chp ) , another wave of the future for the energy industry . one of national power ' s business units , national power cogen , was responsible for the development of schemes for such clients as lancaster university , the chemical manufacturers albright & wilson ltd . , the paper manufacturers sca , and sterling organics ltd . , makers of paracetemol .
national grid , britain ' s electricity carrier , reported a net loss yesterday after writing down the value of telecommunications businesses by the equivalent of $ 1 . 1 billion . the loss , its first since it became a public company seven years ago , was $ 712 million for the fiscal year that ended march 31 , the company said . national grid has expanded significantly in the united states , where it completed the $ 8 . 9 billion acquisition of niagara mohawk power , based in syracuse , in january . the company ' s shares declined slightly , to 499 pence . alan cowell ( nyt )
if that ' s not an issue for you , then by all means get to know the u . k . utility space a little better and buy national grid . if what you want is a sleep - well - at - night utility investment , then you ' ll probably be better off with a large u . s . - only utility such as duke or southern , avoiding the complexity that national grid throws into the mix . and if what you really want is a globally diversified utility , then a company such as veolia , with operations around the world , will be a better fit .
national power also looked to the international arena for its future growth . the cebg ' s overseas activities in its state sector days were restricted almost exclusively to consulting projects carried out by the subsidiary british electricity international ltd . after privatization , with its share of the home market dwindling , national power substantially boosted its international profile . the creation , via a 1993 internal restructure , of a full - fledged division within national power devoted to researching and developing overseas business strategies and opportunities is indicative of the company ' s vision of its future . in 1993 the company moved into the united states with the purchase of american national power for £103 million . a well - established and successful enterprise , american national power operated in virginia , georgia , and new jersey . national power ' s other major foreign ventures included portugal ' s pego power station , owned by a consortium led by national power , and a £64 million investment in an oil - fired power station project in pakistan . while national power ' s international presence was still young , the company was confident of its prospects . independent financial commentators tended to agree . blessed as the company was with healthy cash reserves , and clearly aware of the tremendous potential of the international market , national power could expect to be well compensated through such wise investments .
peter atherton is a managing director and heads citigroup ' s european utility sector and climate change research group . he joined citigroup in 2000 after four years at kleinwort benson . before that peter spent eight years working in the utility industry , where he latterly was part of the national grid ' s corporate strategy team .
in a decision that may shake up brazil ' s long - distance industry , the sprint corporation was barred from managing its brazilian subsidiary after its partner in the company , national grid p . l . c . of britain , persuaded a court that delicate corporate information might be disclosed to mci worldcom . the ruling , which effectively removes sprint from participation in day - to - day decisions at intelig , a start - up concern formed together with national grid and france telecom s . a . , came after mci worldcom announced plans earlier this year to acquire sprint . mci worldcom already operates brazil ' s dominant long - distance carrier , called embratel .
in order to assess national power ' s role within the electricity industry , it is helpful to understand how the system operates . the provision of electricity consists of four components : generation , transmission , distribution , and supply . in england and wales in the 1990s , generation was the province of national power , powergen , and nuclear electric , and an increasing number of independent generators and suppliers
imported
from france and scotland . transmission , the transfer of electricity via the national grid , was accomplished through overhead lines , underground cables , and ngc substations ; distribution , or the delivery of electricity from the national grid to local distribution systems , was operated by the regional electricity companies ( recs ) . supply , a term distinct from distribution in the electricity industry , referred to the transaction whereby electricity is purchased from the generators and transmitted to customers . under the terms of its license , national power had the right to supply electricity directly to consumers , and in the mid - 1990s was increasingly doing so , although its main customers were the recs , who in turn sold the electricity on to the end users .
national grid p . l . c . , a british utility company that has agreed to buy new england electric system of the united states , said yesterday that it would post a net gain of $ : 677 million ( $ 1 . 1 billion ) after selling off part of its telecommunications unit and closing out interest - rate swaps . national grid said it would record a net gain of $ : 713 million after placing 60 million shares in energis p . l . c . , its telecommunications unit . the company will also have a one - time charge of $ : 36 million from closing out $ : 415 million of interest - rate swaps .
one other factor to keep in mind about national grid is that it doesn ' t generate electricity , instead focusing on transmission . that means that it doesn ' t have to worry about building , maintaining , or fueling power plants . which helps to reduce its exposure to often - volatile energy prices , a plus on the risk front .
this situation remained for 30 years , until 1987 , when the government proposed to privatize the electricity industry . the proposal became the electricity act of 1989 , and a new organizational scheme was unveiled . the cegb was splintered into four divisions , destined to become successor companies : national power , powergen , nuclear electric , and the national grid company ( ngc ) . national power and powergen were to share between them england and wales ' s fossil - fueled power stations ; nuclear electric was to take over nuclear power stations ; and the ngc was to be awarded control of the national electricity distribution system . the 12 area boards were converted , virtually unchanged , into 12 regional electricity companies ( recs ) , and these were given joint ownership of the ngc . the recs ' shares were the first to be sold to the public , at the end of 1990 . the majority of national power and powergen ' s shares were offered for sale the following year , though the government retained ownership of 40 percent of each of the new companies ' shares .
electricity was first harnessed for practical use in the united kingdom in the late nineteenth century with the introduction of street lighting in 1881 . by 1921 over 480 authorized but independent electricity suppliers had sprung up throughout england and wales , creating a rather haphazard system operating at different voltages and frequencies . in recognition of the need for a more coherent , interlocking system , the electricity ( supply ) act of 1926 created a central authority to encourage and facilitate a national transmission system ; this
national grid
was achieved by the mid - 1930s .
keyspan , which provides power to 1 . 1 million customers on long island , agreed yesterday to be sold to national grid , a british utility , for about $ 7 . 3 billion in cash , according to people involved in the negotiations . the companies , which approved the transaction during board meetings yesterday , plan to announce the deal this morning , these people said .
national grid and nlink — a subsidiary of tennet — are building an electricity interconnector between britain and the netherlands called britned . the britned cable will join the electricity transmission systems in the uk and the netherlands making a significant contribution to the security and diversity of electricity supplies in both countries . it will also facilitate further competition by helping to enhance the ( north - west ) european energy market .
controller of nearly half of britain ' s electricity market at the end of 1990 , national power had only a third of that market four years later , and the company ' s share was expected to diminish still more as competition increases . nonetheless , national power would likely remain a significant force in u . k . power generation , as the company continued to improve and adapt to meet changing conditions in the energy industry . furthermore , with a strong cash base to support an avowed and active interest in overseas projects , national power was poised for international expansion .
so for investors , the u . s . business should get a little more attention when you consider growth . this is in line with national grid ' s thinking , since the utility is specifically looking to up the profile of its u . s . assets . that makes sense since growth in the uk will be harder to come by based on the company ' s already notable size in what is a relatively small market .
national corporate income tax rate at a glance . corporate income tax rate ( % ) 25 . 5 . capital gains tax rate ( % ) 25 . 5 . branch tax rate ( % ) 25 . 5
in november 2015 , it was announced that steve holliday , the ceo for ten years , would leave in march 2016 and that john pettigrew , its executive director who joined national grid 25 years ago , would succeed him . [ 23 ] in june 2016 , the energy select committee argued that the company faced too many conflicts of interest , particularly with regard to its ownership of international interconnectors . the committee proposed that the company should be split up . [ 24 ]
in december 2016 , national grid agreed to sell a 61 % stake in its gas distribution business , to a consortium of macquarie infrastructure and real assets , allianz capital partners , hermes investment management , cic capital corporation , qatar investment authority , dalmore capital and amber infrastructure limited , with a further 14 % stake under negotiation . the sale was completed on 31 march 2017 , following clearance by the european commission , and the resulting company was named cadent gas . [ 25 ]
we do not sell electricity . distribution network operators ( dnos ) own and operate the distribution network of towers and cables that bring electricity from our national transmission network to homes and businesses . they don’t sell electricity to consumers .
the demand to sell a portion of its holdings was expected to cause little hardship to national power . moreover , the issue of which plant to sell and when was up to the company ' s discretion , provided it complied with offer ' s deadline of december 31 , 1995 . thus the company would not be forced to make a disadvantageous sale . in preference to an outright sale , some speculated that national power might arrange an asset exchange with a foreign power company . another alternative under consideration was the demerger option , whereby a new company , designed to own and operate the capacity in question , could be created from a portion of national power ' s capital holdings .
in buying this gas infrastructure , macquarie and other investors are surely aware of how old the uk ' s gas grid is and the extent of maintenance needed to keep it going ,
said jonathan marshall , energy analyst at the energy and climate intelligence unit .
in may 2007 , national grid formed a joint venture with the dutch transmission operator tennet for a 260 - kilometre ( 160 mi ) 1 , 000 mw britned dc link between the isle of grain in kent and maasvlakte , near rotterdam . [ 14 ] [ 15 ] the installation of the first section of cable link started on 11 september 2009 , [ 16 ] whilst the entire 260 km ( 160 mi ) cable was completed in october 2010 . [ 17 ] the interconnection became operational on 1 april 2011 , [ 18 ] [ 19 ] and by january 2012 , electricity flow had mostly been from the netherlands to the united kingdom . [ 20 ] the britned interconnection would serve as a vital link for the foreseeable european super grid project . [ 21 ]
he has operated at the interface between research , policy - making and business throughout his career . he is a founding member of the committee on climate change and a vice - chair of the intergovernmental panel on climate change working group iii ( climate change mitigation ) . he is also on the board of the blackrock new energy investment trust plc . he was launch director for the low carbon vehicle partnership and for several years chaired the scottish power green energy trust . he also chaired the technical advisory group that developed the british standards institution specification for assessing the life cycle greenhouse gas emissions of goods and services .
the top line , meanwhile , has been heading higher over the past three years , after a dip in 2012 . duke and southern ' s revenue trends aren ' t any better . earnings have been more volatile than revenues at national grid , but the dividend has held up relatively well . like revenues , it dipped slightly in 2012 . that said , over the past five years , dividend growth has been about 3 % . that ' s not something to write home about , though it does roughly keep up with the historical rate of inflation .
is the big problem worth it ? when you invest in a company , you have to get your head around the big picture , both for the company and how it fits into your portfolio . for national grid , the big picture is a u . k . foundation supporting u . s . growth . that ' s neither good nor bad , but it means that the utility probably won ' t be a clean fit for most portfolios . indeed , it ' s not really domestic , and it offers only a little bit of foreign diversification .
tim tutton is one of the uk ' s leading specialists in the regulation and restructuring of the electricity and gas sectors and continues to advise major clients in these sectors . he was director of regulation at national grid from 1999 to 2007 and , before that , director of uk utility regulation in the management consultancy practice of pricewaterhousecoopers . in addition , he has been a senior adviser at the economics consultancy oxera , a senior economist at the central electricity generating board , an economic adviser at the then department of energy and a lecturer in economics at city university .
simon has recently contributed to cse ' s work on : supporting ' low carbon localism ' ; analyzing the distributional impacts of uk climate policies , and ; enhancing community engagement with sustainable energy initiatives . his many advisory roles include decc ' s green deal consumer advisory panel , ofgem ' s consumer challenge group and university of surrey ' s resolve programme . simon is a non - executive director of triodos renewables plc and represents cse on the board of energy advice south west ltd , a joint venture between four charities delivering energy advice across sw england . he has spoken on the challenges for uk energy policy of embedding a sophisticated understanding of big society and localism .
and to be fair , southern and duke are in the same ballpark - - though both have kept an upward dividend trajectory throughout that span . here it ' s important to note that national grid is a uk company , and they do dividends differently over there . breaking it down , you ' ll get two dividends a year instead of four , and dividends tend to move with financial performance - - unlike the u . s . , where consistency is preferred regardless of financial performance . and don ' t forget there are some tax issues involved with foreign income .
the electricity industry was slowly but dramatically changing in the 1990s . while plans were being laid to modernize and improve power generation , coal - and oil - fired plants remained the mainstay of the utility . most of the stations national power inherited after privatization were products of the 1960s and 1970s ( with the notable exception of the 1980s - vintage drax ) . british - mined coal remained , in 1995 , the overwhelmingly dominant fuel source , but national power , like others in the industry , was exploring a more diversified fuel base .
isn ' t really a household name in the united states . but it ' s pretty well known in its home country of england . that said , the united states accounts for around 20 % of the company ' s operating profit and eats up nearly half of its capital investment . so as a u . s . investor , you might be interested in national grid ' s story . . . not to mention its roughly 4 . 7 % yield . but you might also be wondering how safe the stock is . here are a couple of things to consider .
in 1994 , the industry watchdog , the office of electricity regulation ( offer ) , became concerned about national power and powergen ' s continuing dominance of the market . the market share of the big two had in fact declined since privatization , with national power controlling some 33 percent and powergen holding less than 25 percent , but nonetheless rumors were rife that offer would refer them to the monopolies and mergers commission . after six months of deliberation , offer stopped short of that proceeding , but the regulator did lay strictures on the two generating companies , requiring that they should use all reasonable endeavors to sell a specified amount of generating capacity - - in the case of national power 3 , 000 - 4 , 000mw , or 15 percent , of its total power output - - and submit to price capping for a period of two years .
national grid transco , the company that controls most of britain ' s high - voltage power lines , said that the aug . 28 blackout in london was caused by two faults in the system , one that occurred because the wrong - size fuse was installed on one of the four lines that carry power into the city . two of the four lines were shut down for regular maintenance . a third line was shut just after 6 p . m . , after an alarm went off . a fuse on the fourth line was one ampere , not the required five amperes . heather timmons ( nyt )
the government , apart from its concerns about fair competition and price , was especially eager to resolve any controversy or questions regarding national power and powergen to clear the way for the sale of its remaining 40 percent share in each of the two companies . the sell - off to the public , in february 1995 , raised a welcome £4 billion for the government , some £2 . 5 billion of which was attributable to national power . controversy dogged the two generators right to the end , however , as spiraling prices in the electricity pool , albeit over a period of only around a month , prompted offer to delay publication of the share prospectus .
let us be clear , the czisch supergrid is not an incremental extension to existing grid interconnections ( which is happening all the time ) , but a step change in transmission specifically to allow access to production from widely separated sources . this means that within a few decades , less with clear leadership , we could have access to affordable renewable electricity cutting carbon emissions by around 50 % .
to the dismay of the beleaguered british coal industry , national power , like the other electricity generators , continued to look at the import of foreign coal for use in its stations . foreign - mined coal was not only potentially cheaper but in general had a significantly lower sulphur content than its british counterpart , thus obviating the need for expensive desulphurization equipment .
apart from the unions and the labour party , everybody seemed happy . the government had extra cash to spend on tax cuts , voters had shares which were going up in value and those running the companies had freedom to act and much fat ter pay packets . but how much has really changed ? to be sure , many of those working in the old nationalised industries have lost their jobs as the newly cost - conscious companies responded to shareholder demands to boost productivity and profits . but bt is still seen as flabby and staid , ba is struggling to compete in the global airlines business , and railtrack - a company sold off long after mrs thatcher was ousted - is dogged by controversy about whether privatisation is to blame for the state of the nation ' s railways . the tough regulation to prevent the privatised utilities exploiting their natural monopolies has made some of them hanker after giving up their plc status .
national power branched out into the industrial property business in 1993 , leasing land at its eggborough power station to an air separation plant , air gas products . the mutually profitable idea behind the arrangement was that new factories , conveniently located , could tap directly into their power source , therefore rendering unnecessary the need for a middleman in the form of a regional electricity company .
munir heads up the clean energy practice at cms cameron mckenna llp , which is ranked as a top - tier practice by the leading client legal directories chambers & partners and legal 500 . he focuses on major renewables , carbon capture and power projects . he currently advises on national grid ' s ccs projects , the moray firth round 3 offshore wind project and on a number of other onshore and offshore wind , tidal and solar developments . over the past ten years , munir has advised on the development of a number of the uk ' s electricity industry arrangements , advised across the spectrum of technologies , including on the uk ' s current new nuclear build programme and the development of new network infrastructure , and has advised on similar matters across a number of other jurisdictions across the world .
judith is an energy policy professional with long - standing practical experience of both the utility and consumer worlds . she is an adviser to the uk business council for sustainable energy ( ukbcse ) and a board member of the institute for european environment policy . judith spent fourteen years with national grid ( 1990 - 2004 ) , where her last role was a six - year period as group head of public affairs . her early career was spent , inter al , in policy roles with the house of commons environment select committee and with the national electricity consumers ' council . she has a master ' s degree in energy resources management . over the past six years , judith has written several major policy papers on low carbon energy for the ukbcse , and has published extensively on policies for gb household smart meters with the environment think - tank , sustainability first . this demand - side work is now being taken forward in a major new gb electricity demand - side study by sustainability first , supported under the low carbon networks fund , and coordinated via a smart demand forum . judith is an honorary fellow of the university of exeter and a member of the decc / ofgem smart grids forum .
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a look at national power ' s 1995 sales figures showed a mixed but on the whole optimistic prospect . on one hand , the company ' s market share was much reduced and electricity prices were down . furthermore , capital expenditure was up , due to investments in new plants and environmental improvements . nevertheless , costs to the company were dramatically reduced , due to a rigorous , some might say ruthless , cost - cutting program implemented since privatization . under the plan , rationalization and increased efficiency measures decisively chopped operational costs , fuel supply expenses were pared , and staff costs were drastically slashed ( the pre - privatization work force of 17 , 000 was just over 5 , 000 in 1995 ) . as a result , national power saw consistently rising profits despite continually falling market share .
with gas an increasingly popular and sensible option for the energy industry , national power also took steps to ensure its own reliable and cost - effective supply ; in 1991 alone the company arranged to buy the entire output from the caister field in the north sea , made a 15 - year deal with norwegian suppliers , and made another deal with ranger oil ( uk ) . the company was also involved in gas exploration , having a 25 percent stake in a consortium led by total oil marine , which was exploring a block in the southern north sea . even wind power was being investigated and employed , though on a very small scale as of the mid - 1990s . the subsidiary national wind power ltd . was established in 1991 and was expected to be producing 250mw by the end of the century .