Utility Week

UTILITY WEEK | APRIL 2021 | 7 "We need to get the right risk balance between consumer protection and less certain outcomes but using techniques that deliver far better impact to our regions" Liz Barber, chief executive of Yorkshire Water, speaking at Utility Week's Customer Summit (see p24-25) The Month in Review Centrica snaps up Nabuh Energy Disruptor brand Nabuh Energy has been bought by Centrica for an undisclosed sum. The Sheffield- based supplier has 36,000 custom- ers, all of which will be transferred to British Gas and remain supplied by the Nabuh brand. Approximately 70 employees from Nabuh, mainly customer service staff, will also make the move along with two members of the core lead- ership team – its head of operations and a member of the finance team. Sheffield-based Nabuh had a tumultuous period in the market, having been issued with a provi- sional order in 2019 over missed Renewables Obligation payments and being ranked bottom of that year's Q2 Citizens Advice star ratings table. In response to the news, Centrica chief executive Chris O'Shea said: "We are delighted to welcome both Nabuh Energy's customers and our new colleagues. "This deal is part of our strategy to focus on and invest in our core markets and follows the acquisition of Robin Hood Energy's customer base last year and more recently Sim- plicity Energy. "This is a really exciting time for British Gas as we seek to return the business to growth and put custom- ers at the heart of everything we do, by offering a competitive and innova- tive service." National Grid to buy WPD in strategic 'pivot' towards power by Tom Grimwood National Grid has agreed to buy Western Power Distribution (WPD) in a deal that values the electricity distribution network at £7.8 billion, while also selling the Rhode Island based Narragansett Electric Com- pany to WPD's US owner PPL Corpo- ration for $3.8 billion (£2.7 billion). The group additionally announced plans to sell a majority stake in its gas transmission busi- ness National Grid Gas (NGG). Taken together, National Grid said the transactions will "strategi- cally pivot" its UK portfolio towards power, increasing the proportion of its assets in electricity from roughly 60 to 70 per cent. Chief executive John Pettigrew said: "The acquisition of WPD is a one-off opportunity to acquire a significant scale position in UK electricity distribution. WPD has a high qual- ity, fast-growing asset base and an excellent track record of customer satisfaction, operational performance and financial returns. "We have received a premium valuation for our Rhode Island business and I am confident that we will also deliver attractive shareholder value from the NGG sale in due course. "In combination with the continued successful execu- tion of our strategy in the US, establishing National Grid as the leading electricity transmission and distribution operator in the UK will strengthen our long-term growth prospects, enhance our role in the UK's energy transition and drive long term shareholder value." He continued: "As we move our portfolio to higher growth assets, we have taken the decision to sell a major- ity stake in NGG. Given the strategic nature of its business coupled with its central position in a transition towards a hydrogen economy, it will continue to play a vital role in the UK's energy system. We expect strong interest when the sale process begins, likely to be in the second half of this year. "Our vision for National Grid remains unchanged, to be at the heart of a clean, fair and affordable energy future," Pettigrew added. "With increased exposure to the UK's electricity sector, these transactions enhance our role in the progress towards net zero, underpinning our core ambition which is to enable the energy transition for all." National Grid said it expects the acquisition of WPD to take place within the next four months and the sale of Narragansett Electric Company to be completed before the end of the first quarter of 2022. To ensure management continuity, National Grid said the chief executive and chief financial officers of WPD will lead the business as part of an enlarged group. It said it also intends to maintain the WPD headquarters in Bristol and offices in other key locations. The sale process for National Grid Gas is expected to launch in the second half of this year and be completed approximately a year later. National Grid CEO John Pettigrew A year of Keeping Us Connected The end of March signalled a sombre anniversary as the UK marked a year since the start of the Covid-19 lockdown. Utility Week spoke to companies across the sector to reflect on how working practices changed overnight and workers went above and beyond their dayjobs to keep the country connected. https://utilityweek.co.uk/a-year-of-keeping-us-connected/

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