U.K. Electricity-Network Operator National Grid Names CFO -- Update

By Nina Trentmann 

U.K. natural-gas and electricity-network operator National Grid PLC appointed interim Chief Financial Officer Andy Agg as permanent finance chief, effective Jan. 1.

Mr. Agg has served as interim CFO since July, when his predecessor Andrew Bonfield left the company to become CFO at U.S. construction equipment maker Caterpillar Inc. Before his appointment as interim CFO, Mr. Agg worked as National Grid's group tax and treasury director since 2016.

The company balances Britain's electricity supply and demand and operates close to 4,500 miles of overhead line and about 1,000 miles of underground cable. National Grid also provides electricity and gas in Massachusetts, New York and Rhode Island. It is in the process of spinning out its U.K. gas distribution business, a process expected to be complete in 2019.

Mr. Agg will likely seek to adjust the company's pricing model in the U.K. following a review by Ofgem, the country's regulator for gas and electricity markets.

The methodology review, to be published next week, is expected to result in lower returns for companies such as National Grid, said Graham Taylor, a senior credit officer at Moody's Investors Service. The new pricing structures have to be in place by April 2021 and will set prices until 2026, according to Mr. Taylor.

"National Grid is in a solid position," Mr. Taylor said. "It is well diversified across the U.K. and the U.S."

Like other utility companies, FTSE 100-listed National Grid could face nationalization claims should the U.K. Labour Party, currently in opposition to the Conservatives, come into power. Labour leader Jeremy Corbyn's party has sought to nationalize utilities, rail companies and Royal Mail PLC.

"With his broad experience in operational and corporate finance roles and deep knowledge of National Grid, Andy is well placed to help steer the company through the next phase of its operation," John Pettigrew, National Grid's chief executive, said in a statement.

Mr. Agg will receive an annual salary of GBP595,000 ($747,356) and benefits including a car allowance, private medical insurance and life insurance. He will be eligible to participate in the company's annual and long-term performance plans, National Grid said in a filing.

Write to Nina Trentmann at [e-mail]

(END) Dow Jones Newswires

December 12, 2018 14:35 ET (19:35 GMT)

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