The UK Government has agreed to buy the National Grid’s Electricity System Operator (ESO) for £630m ($827.95m) to “support energy security, help to keep bills down and accelerate the government’s clean power mission”.

In a statement released on Friday, the infrastructure operator said it expects the deal, which includes debt, to be completed by 1 October.

At this point, the new Labour Government, which made power and energy key elements of its election manifesto, and the energy regulator Ofgem will establish an independent NESO.

The statement revealed that the NESO will be an independent, publicly owned body, with more oversight over electricity and gas distribution.

The 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.”

UK Energy Secretary Ed Miliband said the NESO “has a huge role to play in delivering our mission to make Britain a clean energy superpower”.

He added that the UK needs “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.”

The NESO will be chaired by former E.ON CEO Paul Golby, who explained in the statement that this is a “pivotal moment as we head closer to the launch of the National Energy System Operator”.

In July, Macquarie Asset Management exercised its option to acquire the remaining 20% equity interest in National Gas from National Grid, achieving full ownership. 

National Gas owns and operates the UK’s 7,660km gas transmission system. The system facilitates the transportation of energy to power stations, industries and homes, while also maintaining more than six million gas meters.