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Other activities include the following businesses and activities:
| Business or activity | Description |
|---|---|
| Metering | National Grid Metering and OnStream provide installation, maintenance and meter reading services to gas and electricity suppliers in the regulated and unregulated markets. National Grid Metering provides services for an asset base of around 20 million domestic, industrial and commercial gas meters. OnStream’s focus is the provision of metering services to the competitive market. |
| National Grid Australia | The Basslink project is a 600 MW interconnector linking the electricity network on the island state of Tasmania to mainland Australia. |
| Grain LNG | The Isle of Grain liquefied natural gas (LNG) import terminal
is the first new LNG import terminal |
| National Grid Property | National Grid Property is responsible for the management of all major occupied properties in the UK, and for the management, clean up and disposal of surplus properties, largely comprising contaminated former gas works. |
| Fulcrum Connections | Fulcrum Connections is the largest provider of gas connections and associated design services with a national footprint in the UK. |
| Advantica | Advantica is a consultancy providing engineering and software services to enhance safety in the gas, oil, electricity and water sectors, primarily in the UK and US. |
| Corporate activities | This includes corporate overheads that are not allocated to individual businesses, and expenditure incurred on business development. |
The majority of our other businesses either operate in markets related to those of our principal businesses or provide support to our own businesses.
With the exception of National Grid Metering, which is subject to price controls, our other businesses are only indirectly affected by the relevant regulatory regimes. Grain LNG was granted an exemption by Ofgem from the regulated third party access provisions for both Phase I and Phase II of the development. The exemption introduced certain obligations to put in place effective measures to allow third parties to access unused capacity. The exemption is similar in nature to that in place at other new gas supply infrastructure projects in the UK.
National Grid Metering is regulated by Ofgem as it has a dominant market position in the provision of existing meters to UK gas suppliers. OnStream is a participant in the competitive market that now exists in the provision of new meters to gas and electricity suppliers who wish to install or to replace meters as required.
National Grid Australia is a supplier to a regulated electricity utility, Hydro Tasmania, and so is indirectly affected by the requirements of state and federal energy regulators in Australia.
The principal business drivers for our other activities are considered to be as follows:
| Regulatory price controls | National Grid Metering operates within the parameters set out within its licence. |
|---|---|
| Multi-year contractual arrangements | The majority of National Grid Metering’s domestic meters are covered by long-term contracts with gas suppliers. These contracts provide gas suppliers with the flexibility to replace our meters while reducing the risk of asset stranding. OnStream has a five-year contract with Centrica for the provision of gas and electricity meters. National Grid Australia has a 25-year contract with Hydro Tasmania to build, own and operate the Basslink Interconnector. Phase I of Grain LNG is underpinned by a long-term contract with BP/Sonatrach. Similarly Phase II, currently under construction, is underpinned by long-term contracts signed with Centrica, Gaz de France and Sonatrach. |
| Capital investment | We seek to make capital investments in projects that utilise our infrastructure expertise, such as our investments |
| Efficiency | National Grid Property is responsible for the management of all major occupied properties in the UK, and for the management, clean up and disposal of surplus properties, largely comprising contaminated former gas works. |
| Efficiency | Efficiency in delivering capital programmes and in operating our other businesses and corporate activities results in driving improved financial performance. |