National Grid 2008 Annual Report Download - page 517

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 55977
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 6
Description: EXHIBIT 15.1
0/13202.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/202/13*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 55977
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 6 Description: EXHIBIT 15.1
0/13202.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/202/13*
Table of Contents
14
About National Grid
National Grid plc
Operating and Financial Review
Contents to Operating
and Financial Review
14 Principal operations
15 Vision, strate
gy
and ob
j
ectives
16
Business drivers, risks and
o
pp
ortunities
18
External market and
re
g
ulator
y
environment
20 Organisation and structure
22 Current and future developments
24
Performance summary
and key performance
indicators
26
Performance against
our objectives
44 Transmission
52 Gas Distribution
60
Electricity Distribution
& Generation
68
Non-regulated businesses
and other
73 Discontinued operations
74
Financial position and
financial management
82 Accounting policies
86
Independent Corporate
Responsibility Report
This Operating and Financial Review describes the main trends and factors
underlying our development, performance and position during the year ended 31
March 2008 as well as those likely to affect our future development, performance
and position. It has been prepared in line with the guidance provided in the
Reporting Statement on the Operating and Financial Review issued by the UK
Accounting Standards Board.
Principal operations
Our principal operations are the ownership and operation of regulated electricity and gas infrastructure
networks in the UK and the US, serving around 19 million consumers directly and many more indirectly.
We also have interests in related markets, including electricity interconnectors, metering services,
liquefied natural gas (LNG) facilities and property in the UK, LNG storage and transportation, unregulated
gas transmission pipelines and home energy services in the US.
We have approximately 27,600 employees located in the UK and the US.
The performances of our principal businesses are reported by segment, reflecting the management
responsibilities and economic characteristics of each activity. Our principal businesses and segments,
together with other activities and discontinued operations, are as follows:
Businesses and se
g
ments Descri
p
tion of
p
rinci
p
al activities
Transmission UK
The transmission of electricity and gas in the UK as owner and operator of the
high-voltage electricity transmission network in England and Wales, the gas
national transmission system in Great Britain, electricity interconnectors with
Scotland and with France and storage facilities for LNG. Operator of the
electricit
y
transmission networks in Scotland.
US
The transmission of electricity in the northeastern US as owner of high-voltage
electricity transmission networks in upstate New York and in New England.
Gas Distribution
UK
The distribution of gas in England as owner and operator of four of the UK’s
eight gas distribution networks.
US
The distribution of gas in the northeastern US as owner and operator of gas
distribution networks in upstate New York, New York City, Long Island,
Massachusetts, New Hampshire and Rhode Island.
Electricity
Distribution
& Generation
US
The distribution and generation of electricity in the northeastern US as owner
of electricity distribution networks in upstate New York, Massachusetts, New
Hampshire and Rhode Island, as operator and manager of the electricity
transmission and distribution network in Long Island on behalf of the Long
Island Power Authorit
y
, and as a
g
enerator of electricit
y
on Lon
g
Island.
Non-regulated
businesses and other
The delivery of other services in markets related to our principal operations,
principally in the UK where they comprise metering services, property
management and our LNG import terminal on the Isle of Grain. They do not
constitute a segment in their own right and so are reported together with other
operations and corporate activities, including business development, under
the headin
g
‘other activities’.
Discontinued
operations
Businesses that we have exited or are committed to exit, including the
Ravenswood generation station in New York City that we have agreed to sell,
our UK and US wireless infrastructure operations, sold on 3 April and 15
August 2007 respectively, and the Basslink electricity interconnector in
Australia sold on 31 Au
g
ust 2007.