Publication of updated RIIO-T1 business plans

RNS Number : 0533Z

National Grid PLC

09 March 2012

 



9 March 2012                    

National Grid plc

Publication of updated RIIO-T1 Business Plans for 2013-2021

As part of the ongoing process for agreeing price controls (RIIO-T1) for National Grid's UK gas and electricity transmission networks, National Grid has submitted to Ofgem an update to its comprehensive business plan for both businesses for the period April 2013 to March 2021. National Grid has published the summary of these updated business plans today and will be hosting a web-based conference call this afternoon to set out the highlights and provide an opportunity for investors and analysts to ask questions.  

Capital and operating expenditure of £30.3bn in the updated business plans remains broadly unchanged from our July submission and includes £21.3bn in electricity transmission and £9.0bn in gas transmission.

If the business plans were to be adopted and delivered in all aspects for the next price control there would be increases in National Grid's element of transmission charges of a similar scale to those in our July submission.  Under the revised plans, the National Grid electricity transmission element of the average household electricity bill would increase, in real terms, to around £22 in 2013/14 and £28 in 2020/21 compared to £17 in 2010/11.  For gas, the transmission element of the average household gas bill would increase, in real terms, to around £23 in 2013/14 and £24 in 2020/21 compared to £18 in 2010/11.

The updated business plan submission incorporates financing proposals, including an allowed cost of equity of 7.5%, a gearing ratio of 55% and transitional arrangements for the migration of new electricity transmission investments to 45 year asset lives over two regulatory periods in line with our submission in July.

The summary of the business plans can be found at www.talkingnetworkstx.com/  

WEBINAR

A webinar for investors and analysts hosted by Paul Whittaker, Pauline McCracken and John Dawson to discuss the detail of the submissions will be held today, Friday 9 March 2012 at 2.00pm (UK time).

To view and listen live to the webinar please use this link:

http://view-w.tv/p/786-1014-10782/en

You can also dial in using the following numbers (please note - investors and analysts who wish to participate in the Question & Answer section of the webinar need to join via the conference call):

UK:  [phone] 

US:  [phone] 

Please quote 'National Grid' when dialling into the conference

If you cannot make the webinar a replay facility will be available shortly after the webinar has finished by following the link above or alternatively at www.nationalgrid.com/investors 

CONTACTS

National Grid:

Investors                                                                                                                                                                    

John Dawson	[phone]	[phone] (m)
George Laskaris	[phone]	[phone] (m)
Andy Mead	[phone]	[phone] (m)
Victoria Davies	[phone]	[phone]  (m)
Iwan Hughes Tom Hull	[phone] [phone]	[phone] (m) [phone] (m)

Media                                                                                                                                                                          

Chris Mostyn	[phone]	[phone] (m)
Isobel Rowley	[phone]	[phone] (m)
Brunswick Tom Burns Rebecca Shelley Tom Batchelar		[phone]

 

 

 

 

 

 

 

CAUTIONARY STATEMENT

This announcement contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include information with respect to National Grid's financial condition, its results of operations and businesses, strategy, plans and objectives. Words such as 'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook', 'seeks', 'estimates', 'targets', 'may', 'will', 'continue', 'project' and similar expressions, as well as statements in the future tense, identify forward-looking statements. These forward-looking statements are not guarantees of National Grid's future performance and are subject to assumptions, risks and uncertainties that could cause actual future results to differ materially from those expressed in or implied by such forward-looking statements. Many of these assumptions, risks and uncertainties relate to factors that are beyond National Grid's ability to control or estimate precisely, such as changes in laws or regulations and decisions by governmental bodies or regulators; breaches of, or changes in, environmental, climate change and health and safety laws or regulations, including breaches arising from the potentially harmful nature of its activities; network failure or interruption, the inability to carry out critical non network operations and damage to infrastructure, due to adverse weather conditions including the impact of Hurricane Irene and other storms; performance against regulatory targets and standards and against National Grid's peers with the aim of delivering stakeholder expectations regarding costs and efficiency savings, including those related to investment programmes,  restructuring and internal transformation projects; and customers and counterparties failing to perform their obligations to the Company. Other factors that could cause actual results to differ materially from those described in this announcement include fluctuations in exchange rates, interest rates and commodity price indices; restrictions in National Grid's borrowing and debt arrangements, funding costs and access to financing; National Grid's status as a holding company with no revenue generating operations of its own; inflation; seasonal fluctuations; the funding requirements of its pension schemes and other post-retirement benefit schemes; the loss of key personnel or the ability to attract, train or retain qualified personnel and any disputes arising with its employees or the breach of laws or regulations by its employees; accounting standards, rules and interpretations, including changes of law and accounting standards and other factors that may affect National Grid's effective rate of tax; and incorrect or unforeseen assumptions or conclusions relating to business development activity. For a more detailed description of some of these assumptions, risks and uncertainties, together with any other risk factors, please see National Grid's filings with and submissions to the US Securities and Exchange Commission  (and in particular the 'Risk factors' and 'Operating and Financial Review' sections in its most recent Annual Report on Form 20-F). The effects of these factors are difficult to predict. New factors emerge from time to time and National Grid cannot assess the potential impact of any such factor on its activities or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Except as may be required by law or regulation, National Grid undertakes no obligation to update any of its forward-looking statements, which speak only as of the date of this announcement. The content of any website references herein do not form part of this announcement.

 

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