National Grid PLC Ofgem - Sector Specific Methodology Decision

RNS Number : 8477W

National Grid PLC

18 July 2024

 

18 July 2024

National Grid plc

 

Ofgem publishes its Sector Specific Methodology Decision

 

 

Ofgem has today published sector specific decision documents for our UK Electricity Transmission business relating to the RIIO-T3 regulatory period which will be effective from April 2026 through to March 2031.

Overall, we are pleased to see Ofgem continuing to recognise the need for an appropriate financial framework that retains and attracts the capital the sector requires as it embarks on a big step up of investment.

Ofgem has set out an initial cost of equity range of 4.57-6.35%, which it will then use as it considers cross checks, forward looking risks, and the need to ensure the price control is 'investable'.

These documents are the next step of a regulatory process that will run through to the final determination at the end of 2025. We will include the outcomes of this methodology decision document in our Electricity Transmission business plan for RIIO-T3, which will be submitted in late 2024.

We will continue to engage constructively with Ofgem, as well as wider stakeholders, to agree the right policy and regulatory frameworks to deliver a net zero energy system.

 

Enquiries and contacts

 

Investors and Analysts:

 

Nick Ashworth                                     [phone]

Angela Broad                                      [phone]

James Flanagan                                 [phone]

 

Media:

 

Ben Davis                                            [phone]

Alex Roache                                      [phone]

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 

END

 

 

MSCUBOURSWUBAUR