This move was first proposed in January by Ofgem and the government, and has been confirmed today following a period of consultation.
Prospect is the largest union representing staff working for National Grid.
Steve Thomas, Prospect national secretary for National Grid, said:
“We welcome the end of uncertainty and the confirmation that the Electricity System Operator will remain in the National Grid Group, albeit with legal separation. This decision recognises that the changing energy market is best supported by experience and know-how of National Grid and our members rather than unnecessary fragmentation.”
However, Prospect will make sure members views are listened to and the interests of the National Grid workforce are protected in any changes, Thomas adds:
"We will be fully involved in consultation with the company to understand the operational impact on the work that our members do.
"We are also seeking assurances that protect terms and conditions for our members; a commitment to job security, assurances on how career and skills development are not diminished and that collective bargaining is maintained."