When the Trade Unions rumbled the Company's plans to close Newcastle and off shore the work, Stephen Byers MP, got involved.  In a letter to Stephen Byers MP, Mr Holliday appears to blame the Regulator Ofgem for any proposed closures and off shoring.  In his letter to Stephen Byers of the 5th January Steve Holliday wrote "National Grid performs essentially regulated monopoly activities in the UK and as such is subject to price controls from the Regulator, Ofgem.  The price controls examine National Grid's cost base, including all controllable costs, such as the tasks carried out by our Shared Services Centre."  Following this letter,  the Trade Unions went to see Ofgem.  Steve Smith, Managing Director of Networks at Ofgem,  wrote to Unions making it clear that "As an independent company with fiduciary duties to shareholders, if National Grid believes that changes to its operations in the north east are necessary to improve efficiency, they would of course make those changes irrespective of any price control settlement … Our proposals are a package, with no specific requirement on National Grid to move to the frontier in shared services or any other cost area and certainly no requirement on National Grid to offshore activities.  In this same letter from Steve Holliday to Ofgem, Steve Smith has advised us that Steve Holliday was no longer blaming Ofgem for the threat to Newcastle but that they had "a duty to look at more efficient ways to do business to satisfy the obligations that they have to shareholders and customers." 

It is clear that the position Steve Holliday took on the 5th January 2009, when writing to Stephen Byers changed markedly after he was contacted by Ofgem following the Trade Union meeting with Steve Smith, Managing Director, Networks at Ofgem.  It is clear that Mr Holliday had not been straight with National Grid employees about the rationale for the threat to the jobs at Newcastle.  Given that Mr Holliday acknowledges his obligations to shareholder and customers it would seem fair to ask if he is actually delivering.

In February 2007, National Grid vacated their long established Norgas House office block (pictured) and moved into a new facility at Quorum 4. Asides from the £1million to move offices, Quorum 4 is being leased at the cost of over £362 000 per year. Scandalously Norgas House remains empty and disused.  However,  we presume that it still costs National Grid shareholders and ultimately all customers money to meet the costs of upkeep and what we understand to be a security guard in site 24/7.

Norgas old office block

Norgas Quorum 4