Swedish utility Vattenfall is to enter the electricity distribution business in the UK, following its move into both business and consumer energy retail.
Ofgem alerted market participants to the move earlier this week when publishing its decision to grant Vattenfall a distribution licence, but the firm remained tight-lipped on its plans until this morning.
Vattenfall already runs significant distribution operations in Sweden and Germany. Its new UK unit, Vattenfall Networks Limited, will build and operate new connections to the existing network in new residential, retail or industrial areas.
It is unbundled from, and independent of, Vattenfall’s existing UK sales and generation business and will be headed by managing director, Stewart Dawson.
“This is an another important step for Vattenfall in the UK which is an interesting market where we see good opportunities to further grow with our climate smart energy solutions. This is in line with our overall strategy to become fossil free in a generation and supporting our customers in reducing their carbon footprint”, said Magnus Hall, Vattenfall’s president and CEO.
“Vattenfall has extensive experience in operating electricity networks, including smart meters, and we are now also investing in micro grids and smart street lighting. We will use our expertise to develop the British networks business. Vattenfall will offer integrated and climate smart energy solutions to future customers in Great Britain”, said Annika Viklund, Vattenfall’s head of distribution.