National Grid PLC (LSE:NG.) has announced terms have been agreed for the sale of Britain’s electricity system operator (ESO) to the government.
ESO, which manages the UK’s grid, will be sold for an enterprise value of £630 million, National Grid announced Friday, with the deal set to close early next month.
This follows government plans to create a public body responsible for operating Britain’s electricity and gas networks.
National Grid has long overseen operations on the UK’s power network, with the ESO legally becoming a separate business in 2019.
The company itself is the distribution network operator for South West England, the Midlands and southern Wales, responsible for maintaining the areas’ grid systems.
The ESO is responsible for managing energy supply for the whole country in real-time, by buying power or paying stations to reduce output.
Britain’s National Energy System Operator is set to be set up in the wake of the sale as an independent public body to manage the grid as the UK transitions to net zero.