National Grid plc. is a multinational gas and electricity company. It is headquartered in Warwick in United Kingdom.
Its major business operations are in United Kingdom and Northeastern United States, and is primarily listed on London Stock Exchange. It is also part of the FTSE 100 Index and is the 20th largest company to be listed on London Stock Exchange with a secondary listing on New York Stock Exchange.
National Grid is the company responsible for a vast network of gas supplies and electricity to British homes. This way it earned £6.8 billion last year, out of which £2.6 billion was profit.
The company runs mostly as a monopoly in UK, so the energy regulator Ofgem, oversees the prices which can be charged by suppliers which use the network. But there have been speculations that with a profit margin of 38% which beats the likes on SSE and British Gas, there are accusations that the company charges the suppliers very much, which has to be paid by households in the form of bill.
The cost to deliver and transport electricity makes around 20% of average household energy bill. Gas makes up around 18%. This amount is charged by National Grid according to Director of EnergyHelpline, which is a comparison site. He claims that 25% reduction in charges to energy suppliers through the instrument of fair price limits would save the households £37 a year. He has called Ofgem for a crackdown on National Grid to introduce fair pricing.
The history of the company dates back to 1990, when both transmission and generation activities were taken care by Central Electricity Generating Board in England & Wales.
The present electricity market of UK is divided into four separate companies in 1990s.Its generation activities were taken care by National Power, Nuclear Electric and PowerGen and the transmission part was taken over by National Grid Company