Electricity North West

In December 2019, an Equitix led consortium acquired a complete stake in Electricity North West (ENW) a distribution network operator with a class-leading efficiency and innovation track-record.

Equitix has made other investments in the regulated utility market over the last decade – gas distribution with the acquisition of Firmus Energy, and offshore transmission – however, ENW represents its first investment in the electricity distribution market.

A 50 % stake was initially acquired earlier in the year from First State and JP Morgan alongside Kansai Electric Power Company (“Kansai”) who fronted the investment on behalf of a wider Japanese consortium.

However in December 2019, Equitix completed the acquisition of the remaining 50% in ENW with the final shareholdings being: Equitix managed funds with 40%; Kansai (Japanese consortium) with 40% and CNIC, a Chinese investor, with 20%. The asset has a strong market position and defensive characteristics which suit the long-term needs of our investors.

ENW operates as a natural monopoly regulated by Ofgem under a revenue cap regulatory regime in line with the terms of its licence. The company has historically shown strong operating performance resulting in industry-leading quality of service combined with high levels of cost efficiency to the benefit of ENW’s customers.

ENW delivers over 20TWh of electricity each year to approximately 5m customers including 2.5m premises across its 12,500km2 monopoly area. The project comprises over 45,000km of underground cables, 86,000 items of switchgear, 35,000 transformers and 13,000km of overhead lines.