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Should investors worry about National Grid ‘breakup’ threat?

The government and regulator Ofgem are considering whether National Grid’s role in balancing the UK’s supply and demand of electricity should be transferred to an independent body
November 9, 2020
  • National Grid’s role as ‘Electricity System Operator’ (ESO) could be transferred to an independent body to avoid potential conflicts of interest.
  • The ESO was hived off into a separate legal entity in 2019 although currently remains part of the wider group.
IC TIP: Hold at 947p

The energy industry breathed a collective sigh of relief in December as the election of a majority Conservative government banished the spectre of nationalisation. But it appears that the trouble is not quite over for National Grid (NG.). According to a report from The Telegraph over the weekend, the government is mulling a potential breakup of the group to guard against any conflicts of interest in the push to achieve net zero carbon emissions.

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