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Daniel WestermanHead of Network ManagementNational Grid Electricity Transmission

Establishing the Future Energy System

Why Electricity Transmission?

Fundamentals ValueYesterday

Tomorrow

Mislocationof supply & demand

Economies of scale

Portfolio diversity

Efficiency at high voltage

Average annual household cost of Electricity Transmission

£20

Share of average household electricity bill

3.2%

Amount given back to consumers since RIIO

£330m

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The role of Electricity Transmission?

Fulfil the basic economic rationale

Integrate new generation sources & technologies

Enable decarbonisationjourney

Deliver at the lowest total lifecycle cost

Maintain security of supply Collaborate across industry

P2R

V2Ploss =

The important issues going forward (1/2)

Reactive Interval Condition Risk

Time-based Interventions Risk-based Interventions

Relentless focus on customer needs

Driving value through innovation

The right connection solutions at lowest cost

Distinctive asset manage-ment

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The important issues going forward (2/2)

Evolving our industry structure & regulatory frameworks

Enhance resilience & reliability

Enable electrification of transport

Conclusion

Backbone of the modern energy system

Ecosystem of energy assets is evolving

Distinctive engineering & asset management required

Alignment of industry around future needs