National Grid to create separate system operator

OSLO (Reuters) - Britain's National Grid will create a new company to separately operate its electricity system by April 2019, energy regulator Ofgem said on Thursday. "National Grid should proceed with plans to set up a new legally separate company to carry out its electricity system operator function," Ofgem said in a statement. The new company will require a different licence, staff and offices from other National Grid units, while its board members will not be able to sit on the National Grid's and its units' boards, it said. Ofgem expects the new company to be fully operational by April 2019. Ofgem and the energy ministry in January proposed the separation of National Grid's two main businesses to ensure the group avoids conflicts of interest as both operator and owner of Britain's power grid. Ofgem said at the time: "A more independent system operator will help to keep household bills down by working to ensure and enable more competition, coordination and innovation across the system." (Reporting by Lefteris Karagiannopoulos; editing by Jason Neely)