History and development of the business

In October 2002, National Grid Group plc merged with Lattice Group plc and was re-named National Grid Transco plc, bringing together substantial gas and electricity businesses.

When the electricity industry was restructured in England and Wales in 1990, National Grid Company (NGC) assumed ownership and control of the transmission network and certain interests in the interconnectors with Scotland and France from the Central Electricity Generating Board. The predominant shareholders in NGC were the 12 Regional Electricity Companies (RECs) which owned and operated the local distribution systems. In 1995, NGC’s shares were listed on the London Stock Exchange and by 1996 each REC had disposed of substantially all of its respective shareholdings.

National Grid entered the US electricity market in 2000 with its acquisitions of New England Electric System (NEES) and Eastern Utilities Associates (EUA). National Grid expanded its operations in the US with the completion of its merger with Niagara Mohawk in January 2002. The Group’s holding company for its US operations is called National Grid USA.

Lattice was one of the three successor companies to what was formerly British Gas plc. Its principal business was Transco, the owner and operator of the substantial majority of Britain’s gas transportation system.

Like the electricity industry, the UK gas industry was restructured. In 1986, British Gas was incorporated as a public limited company. In 1997, Centrica was demerged from British Gas which was re-named BG. In December 1999, BG completed a restructuring programme which resulted in the creation of a new parent company, BG Group, and involved separating its UK regulated business, Transco, from its other businesses. In October 2000, Lattice was demerged from BG Group and comprised Transco, together with start-up telecommunications and non-regulated infrastructure services businesses.