Experience-the England and Wales network

NGC (National Grid Company), the transmission company in England and Wales is the holder of the transmission licence for England and Wales. NGC has five years experience of operating in the private sector. It is from that experience that the author approach's the themes of network pricing, investment and access. The author approaches it by considering: the legal and institutional framework of the industry; a more detailed look at the regulation of transmission; the pricing solutions NGC has adopted; and an overview of the position today. NGC's pricing system has been designed to send clear signals to participants in the market regarding investment and other costs imposed. Setting the network prices involves balancing transparency and stability, which facilitate access, and cost-reflectivity, which provides for economic efficiency.