Western Power Distribution Explained

Western Power Distribution
Type:Subsidiary
Foundation:1999
Defunct:2022
Location:Bristol, England, United Kingdom
Area Served:Wales & South West, East Midlands & West Midlands
Industry:Electricity
Products:Electric power distribution
Parent:PPL Corporation
Fate:absorbed into National Grid

Western Power Distribution is a trade name formerly used by four electricity distribution companies in the United Kingdom: WPD South West (operating in South West England), WPD South Wales (in South Wales) and WPD Midlands (two companies, in the East Midlands and West Midlands). Each company was the distribution network operator for its respective region. Western Power Distribution, which had headquarters in Bristol, served approximately 7.7 million customers in its combined distribution areas. In 2022 the company was absorbed into its new parent company, National Grid.

History

Formation

In 1998, WPD South West was formed from the demerger of the electricity distribution arm of SWEB.[1] In September 2000, the American energy company PPL Corporation purchased Hyder for £565m and sold Welsh Water and other interests, leaving the electricity distribution arm Infralec which was renamed WPD South Wales.[2] In April 2011, PPL purchased Central Networks (the distribution network operator for the East and West Midlands)[3] from E.ON for £3.5 billion and rebranded it as WPD Midlands.

2022 redress payment

In May 2022, WPD made a £14.9million voluntary redress payment after an investigation by industry regulator Ofgem found shortfalls in the company's implementation of its obligations to vulnerable customers.[4]

Acquisition by National Grid

Western Power Distribution was a subsidiary of PPL for many years.[5] In August 2020, PPL announced an intention to sell WPD.[6] In March 2021, PPL announced a swap with National Grid in which it divested WPD and acquired Narragansett Electric of Rhode Island.[7] The acquisition was completed in June 2021,[8] and approved by the Competition and Markets Authority in September of that year.[9] In September 2022, the company was renamed to National Grid Electricity Distribution.[10]

Notes and References

  1. Web site: 30 June 2003 . Who owns whom in the UK electricity industry . dead . https://web.archive.org/web/20050508132703/http://www.catalyst-commercial.co.uk/who_owns_whom.pdf . 8 May 2005 . Catalyst Commercial . Electricity Association . Internet Archive.
  2. News: Hyder faces fresh battle. BBC News. 18 August 2000.
  3. Web site: 20 February 2004 . City briefs . 2023-06-19 . The Telegraph.
  4. Web site: Grundy . Alice . 2022-05-04 . WPD pays £14.9m for failing vulnerable customers . 2022-09-26 . Current . en-gb.
  5. http://www.pplweb.com/ppl+global/international+operations/Western+Power+Distribution.htm Western Power Distribution
  6. Web site: 11 August 2020 . WPD put up for sale by US owner PPL as it looks to reposition its portfolio . 2020-08-13 . Current News . en-gb.
  7. Web site: Armitage . Jim . 2021-03-18 . National Grid to quit gas in major shift to green electricity . 2021-03-18 . Evening Standard . en.
  8. Web site: Acquisition completion: Western Power Distribution - 11:06:23 14 Jun 2021 - NG . 2021-06-16 . London Stock Exchange.
  9. Web site: John . Adam . 2021-09-02 . CMA clears National Grid's acquisition of WPD . 2022-09-26 . Utility Week . en-US.
  10. Web site: National Grid Electricity Distribution plc . 26 September 2022 . Companies House.