National Grid (NG.)

[idpickering]

Pre-Close Update ahead of 2021/22 Full Year Results.

National Grid today issues a pre-close update in respect of the full year ending 31 March 2022. Full year results will be announced on 19 May 2022.

We expect underlying operating profit across our New England, New York, and National Grid Ventures (NGV and Other) business units to be in line with the guidance given at our half year results on 18 November 2021. However, we now expect to deliver underlying operating profit in our UK Electricity Transmission and Electricity Distribution business units above that guidance, largely driven by higher inflation.

We also now expect a higher underlying effective tax rate (pre joint ventures) for FY22 of around 25%, due to an additional tax charge of around £100m which reflects the expected impact in the income statement of deferred tax reversing at a higher rate in the future. The underlying effective tax rate for FY23 is expected to reduce to around 23%.

Taking all of the above into account, we expect full year underlying earnings per share to be modestly higher than the guidance given on 18 November.

We also note, and as previously disclosed,

- the acquisition of Western Power Distribution (WPD) completed on 14 June 2021, and its contribution has been included since this date,

- following the announcement of a sale of a majority stake in National Grid Gas on 27 March 2022, both the UK Gas Transmission and our legacy Metering businesses will continue to be held as discontinued operations until the transaction closes, expected later in 2022, and

- the sale of our 50% equity interest in the St William Homes joint venture to The Berkeley Group was announced on the 15 March 2022, with the gain on sale to be reported as exceptional.

The sale of our Rhode Island business to PPL continues to make progress. While all regulatory approvals have been obtained, the Rhode Island Attorney General has appealed one of the approvals and we now expect the sale to complete in the first quarter of this financial year. Rhode Island will continue to be reported within the New England business unit until the transaction completes.

Finally, the UK government announced on 6 April 2022 its intention to create a Future System Operator (FSO), that will take on all the main existing Electricity System Operator (ESO) roles and the longer-term elements of the Gas System Operator (GSO). We will continue to work closely with all relevant parties to ensure a smooth transition, subject to parliamentary approval and conclusion of the transaction process, expected by or in 2024.

https://www.investegate.co.uk/national- ... 00053415I/

[idpickering]

National Grid Full Year Results 2021/22.

https://www.investegate.co.uk/national- ... 00100283M/

Ian.

[idpickering]

Scrip Dividend for 2021/22 Final Dividend.

The optional scrip dividend, allowing shareholders to receive new fully paid ordinary shares in the Company, instead of a cash dividend, is available to ordinary shareholders on the register on 6 June 2022, the 2021/22 final dividend record date. A timetable is provided below.

For ordinary shareholders, the scrip dividend reference price for the 2021/22 final dividend is 1,106.80 pence. This is calculated as the average closing mid-market price of an ordinary share for the five dealing days commencing with, and including, the ordinary share ex-dividend date.

https://www.investegate.co.uk/national- ... 00064945O/

Ian.

[idpickering]

RIIO-ED2 price control draft determinations.

As part of its process for setting new price controls for electricity distribution companies, Ofgem has today published its draft determinations for RIIO-ED2 which will cover UK Electricity Distribution for the period from April 2023 to March 2028.

These draft determinations are the next step along the process towards agreeing a regulatory framework that will enable the delivery of critical investment required to maintain the UK's progress to net zero, and follows the submission of our final business plan in December 2021. Against a backdrop of higher living costs for consumers, our plan set out our ambition to increase total investment levels, whilst delivering efficiencies, and keeping customer bills broadly flat in real terms, after adjusting for the move to CPIH.

We are working through the detail of these draft determinations, in particular the proposed reduction in totex across each operating company. As we move towards final determinations, we will work hard with Ofgem to ensure we agree a price control that meets the outcomes our customers have asked of us, including resilient and reliable networks, as well as enabling the transition to net zero. Final determinations are expected in December.

https://www.investegate.co.uk/national- ... 10045537Q/

Ian.

[idpickering]

National Grid plc Scrip Dividend

National Grid confirms that an application has been made to the Financial Conduct Authority for ordinary shares to be admitted to the Official List, and to the London Stock Exchange for 10,284,667 ordinary shares to be admitted to trading, in relation to the operation of the Scrip Dividend Scheme for the 2021/22 final dividend, payable on 17 August 2022. Dealings are expected to commence on 17 August 2022 and the shares will rank pari passu with the existing issued ordinary shares of the Company.

In accordance with the terms of the scrip dividend, 9,739,267 ordinary shares are to be issued at a price of 1,106.80 pence per share. In accordance with the terms of the scrip dividend for US holders of American Depositary Receipts ('ADRs'), 109,080 ADRs (each representing 5 ordinary shares) are to be issued at a price of US$69.3576, representing 545,400 ordinary shares (including fractional entitlements).

The current terms and conditions of the scrip dividend scheme are available in the Investors section on the Company's website and from Equiniti on 0800 169 7775 or help.shareview.co.uk .

https://www.investegate.co.uk/national- ... 00060849W/

Ian.

[idpickering]

Pre-Close Update ahead of 2022/23 Half Year Results.

National Grid today issues a pre-close update in respect of the half year ending 30 September 2022. Overall, the group continues to perform in line with our expectations and remains focused on delivering the clean energy transition. Half year results will be announced on 10 November 2022.

These results will include a full six-month contribution of National Grid Electricity Distribution (formerly Western Power Distribution) following completion of the acquisition on 14 June 2021. It will also include a contribution from Rhode Island up until completion of sale on 25 May 2022.

As such, underlying operating profit in UK Electricity Distribution is expected to be more equally weighted half-on-half in the current year, with New England being less weighted to the second half than the prior year given the sale of Rhode Island. As announced alongside the sale of our St William joint venture in March 2022, we have completed the sale of most of the additional property sites to Berkeley Group during the first half.

Overall, we expect underlying EPS to have a more marginal weighting to the second half than we have seen in prior years.

Notes:

' Underlying ' represents statutory results excluding exceptional items, remeasurements, timing and major storm costs.

https://www.investegate.co.uk/national- ... 00072589C/

Ian.

[idpickering]

National Grid 2022/23 Half Year Results Statement.

Highlights

Robust financial delivery

■ Underlying operating profit up 50% at actual exchange rates to £2.1 billion (44% at constant currency). Of the 50% increase, 38% came from a full six months underlying operating profit from UK Electricity Distribution and higher property sales to Berkeley Group; and the remaining 12% came from other key drivers, including a first half contribution from North Sea Link and IFA1 insurance receipts, a stronger USD, partly offset by the sale of Narragansett Electric Company (NECO, Rhode Island) and the impact of NG Partners (NGP) fair value movements.

■ Underlying EPS for continuing operations of 32.4p, up from 22.8p in the prior period. This was driven by the above factors but also includes the impact of higher interest costs principally from inflation on index-linked debt and additional interest costs following the UK Electricity Distribution acquisition.

■ Statutory operating profit up 50% to £2.2 billion, driven principally by the gain on the sale of NECO this year and lower remeasurement gains and adverse timing movements compared to the prior year.

■ Statutory EPS of 30.8p, up from 10.5p on the prior period, driven principally by the gain on the sale of NECO this year, and no repeat of the exceptional deferred tax charge (UK rate change) from half year 2021/22.

■ Interim dividend 17.84p/share in line with policy (17.21p/share in the prior period).

The Directors are proposing an interim dividend of 17.84 pence per share to be paid in respect of the year ending 31 March 2023. This would absorb approximately £653 million of shareholders' equity.

https://www.investegate.co.uk/national- ... 00109088F/

Ian.

[idpickering]

Ofgem's RIIO-ED2 Final Determination published.

Ofgem has today published its Final Determination for the RIIO-ED2 framework covering our National Grid Electricity Distribution regulated businesses for the period April 2023 to March 2028.

We will now review in detail the full package contained within the Final Determination to see whether it incentivises sufficient investment to ensure safe, secure and reliable supply of electricity alongside the need to help transition to a low carbon domestic energy system, at the lowest cost to customers.

We expect Ofgem to publish its statutory consultation on the proposed licence modifications required to implement the Final Determination in December. The consultation period will be followed by a period for Ofgem to consider responses, at the end of which Ofgem will publish its decision to modify the licences. Given the expected timeline, we anticipate that we will make a decision on whether to accept or appeal the licence modifications by February 2023.

https://www.investegate.co.uk/national- ... 11320036I/

Ian.

[idpickering]

Scrip Dividend for 2022/23 Interim Dividend.

The optional scrip dividend, allowing shareholders to receive new fully paid ordinary shares in the Company, instead of a cash dividend, is available to ordinary shareholders on the register on 25 November 2022, the dividend record date. A timetable is provided below.

For ordinary shareholders, the scrip dividend reference price for the 2022/23 interim dividend is 1014.90 pence. This is calculated as the average closing mid-market price of an ordinary share for the five dealing days commencing with, and including, the ordinary share ex-dividend date.

Ex dividend was 24 Nov 22, paid on 11 Jan 23.

https://www.investegate.co.uk/national- ... 00062727I/

Ian.

[idpickering]

Satisfaction of conditions to sale of majority interest in NGGT and Metering.

National Grid plc is pleased to announce that all the conditions relating to the sale of a 60% equity interest in its UK gas transmission and metering business ("NGG") to a consortium (the "Consortium") comprised of Macquarie Asset Management and British Columbia Investment Management Corporation (the "Transaction") have now been fully met. Completion of the Transaction is expected to occur on or around 31 January 2023.

https://www.investegate.co.uk/national- ... 00025049I/

Ian.

[MrFoolish]

So they bought the gas transmission network and now they've sold it. What's the point in churning assets like this? It seems to be a common trait amongst UK companies, especially in the energy sector.

[Dod101]

So they bought the gas transmission network and now they've sold it. What's the point in churning assets like this? It seems to be a common trait amongst UK companies, especially in the energy sector.

Times change and they change with them. SSE did the same. I do not think they are churning assets. There was a time when these companies wanted to be an energy supplier (I guess they still do) but in recent times, it has been shown that gas has a limited life so they want to get out and move into something more sustainable such as renewables I guess. In case you did not notice the energy sector is undergoing huge change and this is evidence of Nat Grid adapting to the new conditions.

Dod

[MrFoolish]

So they bought the gas transmission network and now they've sold it. What's the point in churning assets like this? It seems to be a common trait amongst UK companies, especially in the energy sector.

Times change and they change with them. SSE did the same. I do not think they are churning assets. There was a time when these companies wanted to be an energy supplier (I guess they still do) but in recent times, it has been shown that gas has a limited life so they want to get out and move into something more sustainable such as renewables I guess. In case you did not notice the energy sector is undergoing huge change and this is evidence of Nat Grid adapting to the new conditions.

Dod

Yes, but whoever bought the gas assets obviously thought it was something worth getting into. If it can work for the buyer, why not for NG?

I ask because I've seen Centrica constantly shuffling assets, and it doesn't seem to have done them any good at all.

[Dod101]

So they bought the gas transmission network and now they've sold it. What's the point in churning assets like this? It seems to be a common trait amongst UK companies, especially in the energy sector.

Times change and they change with them. SSE did the same. I do not think they are churning assets. There was a time when these companies wanted to be an energy supplier (I guess they still do) but in recent times, it has been shown that gas has a limited life so they want to get out and move into something more sustainable such as renewables I guess. In case you did not notice the energy sector is undergoing huge change and this is evidence of Nat Grid adapting to the new conditions.

Dod

Yes, but whoever bought the gas assets obviously thought it was something worth getting into. If it can work for the buyer, why not for NG?

I ask because I've seen Centrica constantly shuffling assets, and it doesn't seem to have done them any good at all.

I understand your point and am certainly not particularly defending Nat Grid but obviously companies will have different priorities. For instance there was a thread on Jim Ratcliffe recently. He mad his fortune by buying assets the others like the big oil companies did not want. He was able to specialise in chemicals and buying up assets which were being cast off by others he was able to build a big and highly successful business. I am not saying that Nat Grid is selling its gas transmission business on the cheap-I do not know- but they obviously have different priorities now. As I said, SSE did the same and for them it was to release funds to put into renewables where they saw a bigger and better future. Presumably Nat Grid sees the same. Time will tell who is right, but that is what business is about surely?

Dod

[tjh290633]

So they bought the gas transmission network and now they've sold it. What's the point in churning assets like this? It seems to be a common trait amongst UK companies, especially in the energy sector.

If you go back in time, they bought Lattice 2 years after it had been demerged from BG Group, almost on the anniversary (20th Oct 2000 and 21st Oct 2002). NGG then became NGT (National Grid Transco).

The local distribution networks began to be disposed of some years ago, and NG. has tended to take more interest in electrical power distribution and supply.

Looks to me like a change of emphasis, and getting rid of part of the bsiness which distracts them from their main objective, especially bearing in mind the costs of connecting remote wind power and other systems to the grid.

TJH

[idpickering]

So they bought the gas transmission network and now they've sold it. What's the point in churning assets like this? It seems to be a common trait amongst UK companies, especially in the energy sector.

If you go back in time, they bought Lattice 2 years after it had been demerged from BG Group, almost on the anniversary (20th Oct 2000 and 21st Oct 2002). NGG then became NGT (National Grid Transco).

The local distribution networks began to be disposed of some years ago, and NG. has tended to take more interest in electrical power distribution and supply.

Looks to me like a change of emphasis, and getting rid of part of the business which distracts them from their main objective, especially bearing in mind the costs of connecting remote wind power and other systems to the grid.

TJH

There was a comment on Bloomberg this morning that the IEA expect renewable energy use, ie wind and solar, to double in the next five years. I'm toying with adding Bluefield Solar Income Fund, and Forsight Solar Income Fund to my HYP over the coming months, but let's not stray from the topic of this thread.

Ian.

[idpickering]

Ofgem's decision on accelerated onshore electricity transmission investment published.

Ofgem has today published its decision on accelerated onshore electricity transmission investment, confirming that National Grid Electricity Transmission (NGET) will be responsible for the delivery of 17 major onshore electricity transmission projects.

We welcome the clarity and commitment that this decision gives NGET, and the wider industry, as the next step towards a more affordable, resilient and clean energy system. Whilst this investment is fundamental to the successful delivery of the decarbonisation of our electricity system, it will also bring greater security of supply, as well as improved affordability for customers in the long run.

However, as Ofgem highlights, urgent reform is still required across a number of areas. The planning system needs streamlining to allow for the delivery of this critical national infrastructure in a timely fashion; the setting of allowances needs to enable a programmatic approach; and communities must see clear long-term economic benefit to hosting infrastructure for the UK to achieve its net zero ambition.

We will continue to work alongside Government and Ofgem to progress these critical projects, as we look towards agreeing a regulatory and financial framework that can enable the delivery of this infrastructure in future years.

https://www.investegate.co.uk/national- ... 25087657J/

Ian.

[BullDog]

Ofgem's decision on accelerated onshore electricity transmission investment published.

Ofgem has today published its decision on accelerated onshore electricity transmission investment, confirming that National Grid Electricity Transmission (NGET) will be responsible for the delivery of 17 major onshore electricity transmission projects.

We welcome the clarity and commitment that this decision gives NGET, and the wider industry, as the next step towards a more affordable, resilient and clean energy system. Whilst this investment is fundamental to the successful delivery of the decarbonisation of our electricity system, it will also bring greater security of supply, as well as improved affordability for customers in the long run.

However, as Ofgem highlights, urgent reform is still required across a number of areas. The planning system needs streamlining to allow for the delivery of this critical national infrastructure in a timely fashion; the setting of allowances needs to enable a programmatic approach; and communities must see clear long-term economic benefit to hosting infrastructure for the UK to achieve its net zero ambition.

We will continue to work alongside Government and Ofgem to progress these critical projects, as we look towards agreeing a regulatory and financial framework that can enable the delivery of this infrastructure in future years.

https://www.investegate.co.uk/national- ... 25087657J/

Ian.

Thanks, grid connection is a massive bottle neck in many projects. Good to hear it's being addressed.

[idpickering]

Ofgem's decision on accelerated onshore electricity transmission investment published.

Ofgem has today published its decision on accelerated onshore electricity transmission investment, confirming that National Grid Electricity Transmission (NGET) will be responsible for the delivery of 17 major onshore electricity transmission projects.

We welcome the clarity and commitment that this decision gives NGET, and the wider industry, as the next step towards a more affordable, resilient and clean energy system. Whilst this investment is fundamental to the successful delivery of the decarbonisation of our electricity system, it will also bring greater security of supply, as well as improved affordability for customers in the long run.

However, as Ofgem highlights, urgent reform is still required across a number of areas. The planning system needs streamlining to allow for the delivery of this critical national infrastructure in a timely fashion; the setting of allowances needs to enable a programmatic approach; and communities must see clear long-term economic benefit to hosting infrastructure for the UK to achieve its net zero ambition.

We will continue to work alongside Government and Ofgem to progress these critical projects, as we look towards agreeing a regulatory and financial framework that can enable the delivery of this infrastructure in future years.

https://www.investegate.co.uk/national- ... 25087657J/

Ian.

Thanks, grid connection is a massive bottle neck in many projects. Good to hear it's being addressed.

You're welcome. I feel pretty much the same as you on this.

I'm a very happy NG. shareholder, of many years standing, and it has remained untouched in my portfolio throughout that time, apart from the odd top up of my NG. holdings that is.

Ian.

[Dod101]

Ofgem's decision on accelerated onshore electricity transmission investment published.

Ofgem has today published its decision on accelerated onshore electricity transmission investment, confirming that National Grid Electricity Transmission (NGET) will be responsible for the delivery of 17 major onshore electricity transmission projects.

We welcome the clarity and commitment that this decision gives NGET, and the wider industry, as the next step towards a more affordable, resilient and clean energy system. Whilst this investment is fundamental to the successful delivery of the decarbonisation of our electricity system, it will also bring greater security of supply, as well as improved affordability for customers in the long run.

However, as Ofgem highlights, urgent reform is still required across a number of areas. The planning system needs streamlining to allow for the delivery of this critical national infrastructure in a timely fashion; the setting of allowances needs to enable a programmatic approach; and communities must see clear long-term economic benefit to hosting infrastructure for the UK to achieve its net zero ambition.

We will continue to work alongside Government and Ofgem to progress these critical projects, as we look towards agreeing a regulatory and financial framework that can enable the delivery of this infrastructure in future years.

https://www.investegate.co.uk/national- ... 25087657J/

Ian.

SSE has today published an RNS addressing the same decision by Ofgem and maybe the two should be read together

Dod