National Grid Share Discussion Threads

[muffinhead] 02/2/2018 12:04

National Grid adr fairing better. Maybe New York knows something London doesn't

[db125] 02/2/2018 11:37

Is the deck for this falling knife 720?

[arf dysg] 02/2/2018 10:36

Newbank (5854)

"McDonnell [of the Labour Party] ... Since then he has been allowed onto the Andrew Marr show on the BBC to promote his rhetoric"

What is the alternative? Presumably you'd like a country where certain people (you, for example?) can decide what is and is not allowed to be said in public. That way lies a totalitarian regime and a police state.

If you don't like what he's saying, why don't YOU get onto the Andrew Marr show to put YOUR point of view?


If what McDonnell says is true, you shouldn't try to shut him up.

If what McDonnell says is false, then let everyone listen and laugh.

[wskill] 02/2/2018 10:27

What sane voter would give the Marx brothers their vote cannot see Labour getting into power with the present line up .with a new line up it may be possible in 2027 they return to power.

[arf dysg] 02/2/2018 10:27

Newbank (5847)

"I hope if OFGEM doesn’t get real and keeps sucking up to Gov National Grid should walk away from this contract and then wait and see how the costs escalate beyond imagination."


Surely we've had a very recent lesson on this - Carillion trying to (or forced to) cut costs to the bone and beyond - it was a progressive disaster waiting to happen and some saw it coming a few years in advance. National Grid wouldn't want to repeat that story.

(edit - I earlier mistakenly put "OFGEM" in the last sentence when I meant "National Grid".)

[pogue] 02/2/2018 10:22

I am watching this share now having bailed out but feel I have to say something as some of the conclusions being reached are to me a bit odd.
Newbank on your rational Labour should pay the share price before they announced they were going to nationalise NG, so I guess last year’s price? Not many people would expect them to pay a price that a share was 5 years out of date when they get elected surely?
If your rational were to be applied to the current market would buyers of a company be allowed to buy at the price a target company was when they announce their bid? Speculation always drives share prices to say that the government cannot benefit from it same as others would be hard to prove in court I would say.

[newbank] 02/2/2018 08:04

MJ19,

You are right but this is what Labour do. McDonnell says he will pay market price to swap shares for Bonds. But in his view Market Price is what the share Price is at the time he wants to take it over.
There are certain Hedge Funds working alongside Labour to depress the value of NG shares for that purpose.
If you look at the sale of the Gas Dist business, at the time MacDonnell said NG should return all the proceeds to customers not shareholders. So that is like someone saying if you sell part of your house you should give the money away.
Since then he has been allowed onto the Andrew Marr show on the BBC to promote his rhetoric and confidence in NG has deteriorated from £11 / share to £7.97.
That is why I believe if they (Marx Bros) ever get into power they will have Court Battles on their hands. Because the value cannot be based on firesale levels. It must be based on the value before they started their threats to renationalise the energy sector.

[jonwig] 02/2/2018 07:58

@ MJ19 - where is safe? Lawyers, of course. Brexit has been great for them, Labour would provide a field day. Three London-quoted law firms and one litigation financier.

Today's RNS: US tax changes will benefit customers, not the company. Link in header.

[mj19] 02/2/2018 07:53

Trump threatening pharma pricesCorbyn threatening utilitiesWho's next? Where is safe?

[careful] 02/2/2018 07:49

Right now the problem is interfering, ignorant, regulation.
It was proven by the recent surge in RMG, a Corbyn target, that the market is ignoring the threat of nationalisation.

[mj19] 02/2/2018 07:39

Why are people worried about Corbyn next election is 2022. He can't nationalise anything right now?

[skinny] 02/2/2018 07:06

National Grid provides an update on the expected impact of the US Tax Cuts and Jobs Act on the Group.

Overall, the US tax reform changes are significantly positive for our US customers and economically neutral for National Grid.

National Grid anticipates that there will be a non-cash tax credit of around $2 billion due to the revaluation of certain deferred tax balances. This credit will be reflected as an exceptional item and is expected to be returned to customers over a period of 20 to 30 years. There will be no other material impact on the results for the financial year ending 31 March 2018.

The full implications of the new legislation on earnings and cash flows are still being reviewed, and will depend on the outcome of discussions with regulators for each of our 14 regulated entities in the US. To date, this has been reflected in our Joint Proposal for Niagara Mohawk Electric and Gas, and our ongoing Massachusetts Gas and Rhode Island rate filings, which together represented 48% of the US rate base at 31 March 2017. The total annualised revenue increase for these companies is estimated to reduce by $130 million and will come into effect as these changes are adopted in new rates in FY19. The reduction in revenue will be offset by a corresponding reduction in the tax charge.

National Grid does not expect a material impact on the year ending 31 March 2019, but we expect to provide more detailed guidance at the full year results.

[veryniceperson] 02/2/2018 00:29

Nice post newbank. Thanks.

[newbank] 01/2/2018 23:10

Abbotslynn,


OFGEM are currently sucking up to the Gov by trying to put the squeeze on the revenue that they will allow NG to get back from customer’s bills.
The revenue comes from the Capital expenditure that NG puts in to build what’s needed. Through complex use of system charges they recoup the costs through customer’s bills spread over many years.
However, with Hinkley, OFGEM are saying they, NG, can build it for much cheaper than NG say it would cost. But OFGEM are not Engineering specialists and haven’t a clue about building and running a system, I know, I have dealt with them and their knowledge of Engineering design, solutions and delivery is pretty dire!
So you have pen pushing admin staff at Ofgem deciding how much NG should spend on a build.

So in answer to your question like Hinkley, no, they can say to OFGEM get someone else to build the infrastructure to allow Hinkley to connect to the NG System. However, if it was built by someone else the standard of design and work has to meet stringent standards, otherwise NG are allowed through Law to refuse connection to their system.

I hope if OFGEM doesn’t get real and keeps sucking up to Gov National Grid should walk away from this contract and then wait and see how the costs escalate beyond imagination. That’s because NG are pretty good in getting a good job done due to world class expertise.

Why would anyone accept a contract that doesn’t pay.

[abbotslynn] 01/2/2018 22:13

Do the N Grid have an obligation to take any contract on OFGEMs terms. Presumably the N Grid would be reluctant to lose control of part of their grid.

[newbank] 01/2/2018 17:04

Price cap should effect SSE and the other big six retail energy Co’s but NG is somewhat ammune. As for the Marx Bros, the next election is 2022 and support for them is waning. Also, even if the Industry is Nationalised they can’t touch the US business and according to EU law any Gov taking control of a private utility must pay market value.
However, lawyers are already arguing that the current depressed price is not fair market value so even if the Marx Bros get in to power (god help the economy), there would be long deliberations in the Courts.

[newbank] 01/2/2018 16:52

This is getting ridiculous, IMO it’s vastly oversold and the US business is worth £7 alone.

The overall share price should be £11.64 not £7.97 so a 46% increase is needed!

It’s about time Brexit is done and put to bed. Decide on what is required then JDI!

[newbank] 01/2/2018 08:38

Jan was a horrible month for NG and others let’s hope Feb and beyond brings some sense back to the market and we see some good rises!

[bountyhunter] 31/1/2018 13:57

Lol!

SSE trading statement this morning not too bad imo considering the political backdrop

[db125] 31/1/2018 13:15

This thread seems to be as traumatised as the share price! :)

[coxsmn] 30/1/2018 21:13

Tue 30th Jan"National Grid, which runs the UK's electricity transmission network, said that it was in talks with BP, Shell, Ford, BMW, Tesla and other companies about building infrastructure for super rapid chargers at motorway service stations."HTTPS://www.theguardian.com/environment/2018/jan/30/bp-charging-points-electric-cars-uk-petrol-stations

[andyj] 29/1/2018 13:21

Been watching NG for many months hoping for an entry point, happy to buy @7.99 for the long term.

[abbotslynn] 29/1/2018 10:24

Down a tad this morning

[newbank] 29/1/2018 10:16

SSE rising but NG falling?? Price cap more likely to effect SSE more than NG and any threat of renationalisation should effect SSE more than NG. Logic .... there isn’t any!