By Razak Musah Baba

LONDON--The U.K. electricity and gas utility, National Grid PLC (NG.LN), said Tuesday that it won't need to take an allowance the country's energy regulator had earmarked for network investment.

The company said that after reviewing its needs it had volunteered to defer 480 million pounds ($598.5 million) worth of allowances.

The allowance, known as RIIO-T1, are intended to promote effective services for energy consumers.

National Grid said it has discussed its proposal with the U.K. energy regulator, Ofgem, and expects the change to be enacted through the November 2017 Ofgem annual iteration process.

-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

March 28, 2017 03:34 ET (07:34 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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