National Grid has defended itself from calls for the company to be re-nationalised, claiming that it is now 30% cheaper to maintain the transmission network that it was prior to privatisation in 1990.
The Labour Party’s general election manifesto raised the debate around the issue, claiming households would save £220 a year if the state were to once again take control of the FTSE 100 company.
National Grid released a detailed defence position in its half year results on Thursday, after what it described as “wide ranging commentary on the functioning and ownership of the UK’s energy sector, and whether it is delivering value for customers”.
It argued the cost of transmission makes up just 3% of household bills, which is made up of the costs of maintaining, operating and upgrading infrastructure. As a whole, network costs make up a quarter of bills.
The results said: “Since privatisation National Grid has made significant progress. Electricity Transmission costs today are 30 per cent lower than pre-privatisation levels on a real basis and in the last 10 years, National Grid has invested around £14bn in transmission infrastructure.”