National Grid Share Discussion Threads

[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!

[bargainbob] 28/1/2018 10:46

You can get some free PLUS1 from the faucet here:

[septimus quaid] 28/1/2018 10:09

I wonder, in a way, if Ofgem are fighting for their own survival (in its present form)?

NG. should go back to Ofgem with this latest security issue and demand an improved settlement (or a least use it as an issue for general negotiation).

[jonwig] 28/1/2018 08:55

"Britain's energy, water and transport companies have been ordered to strengthen their cyber defences or risk fines amid growing fears that Russian hackers are planning an attack on critical infrastructure."



Can't argue against that: but it costs money, which demands an adequate return on capital, which brings us back to Ofgem's attempted squeeze.

[abbotslynn] 26/1/2018 19:30

Up again I note:)

[coxsmn] 26/1/2018 17:33

Closed above the 805p resistance level.

[gary hindsight] 26/1/2018 14:14

Just in response to the adr vs sharesThere are appointed adr conversion agents appointed by each issue so you can actually buy the uk version get it converted to adr's and sell the adr's. It's still a bit of a process to do but it is often the mechanism used when arbitraging. In addition there is a process called pre-release where the adr's are issued in advance of the conversion actually happening (sort of short term loan). So traders could buy uk and sell adr's same day and not fail on the adr deliveryHope that helps

[newbank] 26/1/2018 13:53

They don’t like it when it’s positive do they? You can see the moneymakers are trying to get this down. Encouraging the Yanks to take over the batton to drive it lower.

[philanderer] 26/1/2018 13:53

On the broker note front, Goldman Sachs made some changes to its stance on utility and water stocks, upgrading National Grid to ‘neutral’ and initiated covered of Severn Trent, United Utilities and Pennon at ‘sell’ and ‘neutral’, respectively.

[arf dysg] 26/1/2018 12:44

Septimus Quaid (5825) "The only way would be to sell your shares on LSE, realise the cash, convert it to dollars and buy ADSs"

Isn't that exactly the kind of arbitrage which traders would make, just to make money on the changing exchange rate? The bigger the discrepancy, the bigger the motivation for traders to do it. It would, as a side effect, maintain the relative values of UK shares and ADRs.

[ch1ck] 26/1/2018 11:20

I may be wrong but these look a good buy at this price even if it's just for the dividend