A line was roughly drawn down the city's Grainger Street, with NESCo supplying the area to the east and DisCo that to the west.

This led to the rapid expansion of NESCo, and gave the Tyneside industries an advantage over those in other areas.

In 1905 NESCo expanded its territory by taking over the Walker and Wallsend Union Gas Company.

After a series of parliamentary battles with DisCo, NESCo extended its supply and distribution area south of the River Tyne, and it opened Dunston Power Station in this new territory in 1910.

[2] In 1927, the company moved into their new headquarters at Carliol House in Newcastle's city centre.

The industry was reorganised by region and the British Electricity Authority (NESCo) was set up for the North East region and was based upon the area covered by NESCo, but also included the areas covered by DisCo, the Askrigg and Reeth Supply Company and the Hawes Electric Lighting Company.