Bid to rid Grid of power role

MOVE MAY KNOCK BILLIONS OFF BILLS

NATIONAL Grid should be stripped of its role running Britain’s electricity system, Ofgem has recommended.

The regulator said handing the task to an independent body would form part of the biggest shake-up of our energy market in a hundred years.

The proposed overhaul is in preparation for huge changes brought about by an expected rapid rise in electric vehicles and renewable energy sources, including wind power.

National Grid has been responsible for managing the country’s electricity needs – matching supply and demand to prevent blackouts – since privatisation in 1990.

Ofgem believes that role, along with planning for Britain’s future power needs, should be given to a new operator, possibly in public hands.

It estimates taking away any “conflicts of interest” could save households anything up to £4.8billion over the next three decades. Jonathan Brearley, Ofgem chief executive, said: “The energy system needs to undergo the biggest transformation in over a century to meet Britain’s ambitious climate goals.”

Ofgem’s proposal comes as the Government aims for net-zero greenhouse gas emissions by 2050.

One way to help achieve this is by rapidly expanding the number of electric cars on the roads.

But it’s a move that along with changes to home heating, is expected to see a huge growth in power usage.

National Grid said it “would continue to work closely with government and Ofgem over the coming months.”

Analysts believe the company would be happy to give up its role of day-to-day managing of the electricity system, which accounts for just 1.5% of its revenues. Instead it could focus on its more profitable work, including gas networks here and in the USA.

Says Ofegm

TIME FOR CHANGE