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National Grid Electricity Group of the Electricity Supply Pension Scheme
The National Grid Electricity Group (NGEG) section of the Electricity Supply Pension Scheme (ESPS) dates to the 1983 restructuring of the UK electricity...
National Grid Electricity Group of the Electricity Supply Pension Scheme
The National Grid Electricity Group (NGEG) section of the Electricity Supply Pension Scheme (ESPS) dates to the 1983 restructuring of the UK electricity industry. It functions as the principal funded defined-benefit plan for employees of National Grid Electricity Transmission plc and several related entities, including Elexon Limited. The section sits within the broader ESPS framework, with Electricity Pensions Trustee Limited (EPTL) acting as central scheme trustee, while National Grid plc provides the ultimate parental guarantee. Its investment strategy reflects the long-dated liabilities of a mature defined-benefit plan. The scheme allocates across global listed equities and credit, but directs material capital toward income-generating real assets. Known allocations include a global commercial real estate portfolio managed through external property managers — the scheme requires those managers to report to the Global Real Estate Sustainability Benchmark (GRESB) — and forestry investments that offer inflation-linked cash flows. A longevity swap contract transfers the risk of members living longer than actuarial assumptions predict, a common de-risking tool among large UK pension funds. This arrangement, paired with a contingent security structure, forms the risk-management backbone. The scheme's assets and membership profile shifted meaningfully in 2024, when the UK government brought the National Energy System Operator (NESO) into public ownership. Certain members and liabilities within the NGEG section transferred to the NESO entity, altering the pool's demographic composition. Professional oversight sits with National Grid's in-house pensions team, led by Pensions Director Steve Scruton. The scheme's manager selection requires signatory status to the Principles for Responsible Investment (PRI), embedding a stewardship filter across all external mandates. The NGEG section's structural differentiator is its hybrid position — neither a standalone corporate pension fully walled off from its sponsor, nor a pure multi-employer scheme. It operates within the ESPS industry-wide framework while remaining principally sponsored by a single regulated utility. That architecture, combined with the 2024 NESO transfer, creates a governance footprint where the investment strategy must serve a shrinking active-membership base against a growing deferred and pensioner population, locking the scheme into a de-risking trajectory.
General information
Firm type
Corporate Pension Fund
Year founded
1983
AUM
$10B–$20B (Altss estimate)
Location
Region
Europe
Country
United Kingdom
City
London
Corporate office
London, United Kingdom
Principals
Steve Scruton
Pensions Director, National Grid
Electricity Pensions Trustee Limited
Trustee
Sector focus
Frequently asked questions
Who runs investment decisions for the NGEG section?
Investment strategy and oversight sit with National Grid's in-house pensions team, led by Pensions Director Steve Scruton. Day-to-day asset management is delegated to external fund managers, with the requirement that every manager be a signatory to the Principles for Responsible Investment. The central scheme trustee, Electricity Pensions Trustee Limited, provides fiduciary governance.
How did the NESO public ownership transfer affect the pension scheme?
In October 2024, the UK government took the National Energy System Operator into public ownership. As a result, certain active members and a corresponding block of assets and liabilities were separated from the NGEG section and transferred to the new NESO entity. This shifted the NGEG section's demographic mix further toward deferred and pensioner members, reinforcing a de-risking orientation.
What real assets does the scheme hold?
The NGEG section carries a global commercial real estate portfolio, with property managers required to benchmark through GRESB. It also holds forestry investments that function as inflation-sensitive long-duration assets. These sit alongside a longevity swap contract that hedges the risk of members outliving actuarial assumptions — a common de-risking instrument among large UK defined-benefit funds.
Does the scheme allocate to private markets directly or through funds?
The NGEG section accesses private markets primarily through external fund mandates rather than direct deals. Its real estate and forestry holdings are managed by third-party specialists. The scheme's manager-selection rules — requiring PRI signatory status — apply uniformly across both public and private market strategies.
What is the relationship between the NGEG section and the broader Electricity Supply Pension Scheme?
The NGEG section is a constituent part of the Electricity Supply Pension Scheme, an industry-wide pension framework serving the UK electricity sector. While it shares the ESPS's central trustee (Electricity Pensions Trustee Limited) and governance infrastructure, the NGEG section is principally sponsored by National Grid Electricity Transmission plc, with National Grid plc as ultimate parent guarantor. This hybrid architecture gives it a distinct funding and liability profile within the larger scheme.
How does the scheme incorporate sustainability criteria?
The NGEG section mandates that all external asset managers be PRI signatories, which imposes a baseline ESG-integration requirement across the portfolio. For its real estate holdings, the scheme further requires property managers to participate in GRESB benchmarking. The sponsoring employer, National Grid, operates in the regulated energy transmission sector, tying the scheme's long-term horizon to the UK's energy transition.
What is the scheme's current funding position trajectory?
As a mature UK defined-benefit plan with a declining active-membership base, the NGEG section is structurally oriented toward de-risking. The 2024 NESO transfer accelerated this trend by removing a cohort of active members. The longevity swap and real-asset allocations are explicit features of a liability-driven investment approach aimed at narrowing the funding gap over time.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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