Arup was appointed by First State Investments and JP Morgan to provide integrated commercial and technical advice for a robust review of Electricity North West, a distribution network operator (DNO) in the North of England. Our work enabled them to sell a 50% stake in an electricity distribution utility company with a regulated asset value of c. £1.7bn; the first sale of its kind in nearly a decade.
An integrated team
Led by our business and investor advisory team, we brought together a breadth of in-house expertise to ensure that our integrated technical, commercial and regulatory vendor due diligence review was robust and comprehensive. Experts from across the firm supported the project delivery providing expertise from regulation to business transformation to economics.
Powering the North West
Electricity North West is one of 14 DNO’s in the UK regulated by Ofgem and provides power to over five million people, across 2.4 million homes stretching from Manchester to rural Cumbria. This deal aligns with the Northern Powerhouse agenda across Manchester, Liverpool, Leeds, Sheffield, Hull and Newcastle that will see further investment into the North West.
1st sale of a DNO in ten years
£1.7bnregulated asset value
Helping achieve Net Zero
With the drive to become Net Zero by 2050, including electrification of heat, the business is set to go through a big transformation over the coming years. Our extensive knowledge of the energy industry, allowed us to understand how the business will change over the next price control periods. This synergy meant we could work across the technical, commercial and regulatory aspects, and could provide additional knowledge on organisation structure and people aspects to opine on the integrated business case.
Critically a truly integrated approach was the key to achieve this extensive evaluation of a regulated utility business.
“ Working as a trusted advisor to our clients, we are proud to be helping the UK strive towards decarbonisation through innovation. Combining our international award-winning advisory teams, and built environment expertise from across the firm, enabled us to successfully deliver this once in a decade project for the North West. ” James Theobalds Associate Director, Transactions