The National Grid has reached a deal to sell its Electricity System Operator (ESO) to the UK Government for £630m, including debt.
In an announcement to the markets on Friday morning, National Grid said it expected the transition to be completed by October 1, when the government and Ofgem will look to establish an independent National Energy System Operator (NESO).
The current ESO balances power supply and demand second-by-second, develops markets and advises on network investments.
According to the UK Government, the new NESO "will help connect new generation projects with the electricity grid, working alongside Great British Energy to deploy renewable energy, so bill payers can reap the benefits of clean, secure, homegrown power."
Energy Secretary, Ed Miliband, said: "Today marks a milestone for Britain’s energy system as we bring the system operator into public ownership to provide impartial, whole-system expertise on building a network that is fit for the future.
"The new NESO has a huge role to play in delivering our mission to make Britain a clean energy superpower.
"We need to move Britain off expensive, insecure fossil fuel markets, and onto clean, cheap homegrown power that we control. This is how we reduce bills in the long term, strengthen our energy independence and support skilled jobs across the country.
"This is another step forward by a government in a hurry to deliver for the British people."
The government says the deal will support its "rapid action to accelerate to net zero".
NESO is set to be commissioned to provide advice on how the UK will reach its goal of delivering clean power by 2030.
John Pettigrew, Chief Executive of National Grid, said: "We look forward to working together with NESO to continue to drive the UK’s energy transition forward at pace; accelerating the decarbonisation of the energy system for the digital, electrified economies of the future."
Paul Golby, Chair of the National Energy System Operator said: "This is a pivotal moment as we head closer to the launch of the National Energy System Operator on 1 October. NESO will support a more integrated and coordinated strategy to meet the unprecedented challenges of climate change, ensuring security of energy supply and keeping bills as low as possible.
"NESO brings together critical roles and responsibilities under one roof, creating an environment that is essential for success. We will have a broad strategic oversight of both the electricity and gas systems, managing system planning, market operations, and ensuring that our energy infrastructure is secure, resilient, flexible, and future-proof."