National Grid has said an IT, process and finance reorganisation has successfully put it on track for cost savings of $100 million (£68 million) this year.

Following the acquisition of US energy firm KeySpan in 2006, National Grid began the ambitious programme to cut costs by standardising IT, and sharing business and finance processes globally.

By November last year, National Grid had established global centres for its UK and US "front line" business processes, IT and finance departments, with three quarters of activities being managed on a global or line-of-business basis. It also began running standardised processes for customer service, asset management and work delivery.

The changes were “progressing ahead of plan”, with the company already achieving the savings rate ahead of a 31 March target, National Grid told investors. It announced quarterly trading “in line” with expectations.

At the start of April, the energy and gas utility said, savings would be “well in excess” of the $100 million planned.

“This framework provides an excellent platform for improving customer service, reliability, safety and environmental performance,” the company said last November. It expects to make "significant" savings on its annual £2bn cost base.

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