National Grid PLC Ofgem announcement on Mid-Period Review (4897H)
August 18 2016 - 2:01AM
UK Regulatory
TIDMNG.
RNS Number : 4897H
National Grid PLC
18 August 2016
18 August 2016
Ofgem announcement on Mid-Period Review
Ofgem has announced an update on its Mid-Period Review (MPR) for
the RIIO-T1 price control. As expected, the scope of this MPR is
narrow with no change to key financial parameters of the
framework.
The areas covered by the MPR related to specific outputs with
eight year allowances in Gas Transmission (for a pipeline project
at Avonmouth as anticipated at the start of RIIO) and Electricity
Transmission. Following the review, Ofgem propose that allowances
are adjusted to reflect that some outputs are no longer required,
resulting in a reduction of GBP169 million in Gas Transmission and
GBP38 million in Electricity Transmission. Ofgem is also proposing
to approve GBP21 million of the request related to enhanced System
Operator outputs.
These changes are expected to be implemented from April
2018.
National Grid welcomes Ofgem's continued commitment to the
clarity and certainty offered by the eight-year RIIO framework,
which has started to deliver important benefits for customers.
CONTACTS
Investors:
+44 (0)20
Aarti Singhal 7004 3170
+44 (0)20
David Brining 7004 3166
Media
+44 (0)19
Gemma Stokes 2665 5272
+44 (0)20
Sean Kemp 7004 3149
Brunswick
+44 (0)20
Tom Burns 7404 5959
+44 (0)20
Mike Smith 7396 3540
CAUTIONARY STATEMENT
This announcement contains certain statements that are neither
reported financial results nor other historical information. These
statements are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include information with respect to National Grid's
financial condition, its results of operations and businesses,
strategy, plans and objectives. Words such as 'anticipates',
'expects', 'should', 'intends', 'plans', 'believes', 'outlook',
'seeks', 'estimates', 'targets', 'may', 'will', 'continue',
'project' and similar expressions, as well as statements in the
future tense, identify forward-looking statements. These
forward-looking statements are not guarantees of National Grid's
future performance and are subject to assumptions, risks and
uncertainties that could cause actual future results to differ
materially from those expressed in or implied by such
forward-looking statements. Many of these assumptions, risks and
uncertainties relate to factors that are beyond National Grid's
ability to control or estimate precisely, such as changes in laws
or regulations, announcements from and decisions by governmental
bodies or regulators (including the timeliness of consents for
construction projects); the timing of construction and delivery by
third parties of new generation projects requiring connection;
breaches of, or changes in, environmental, climate change and
health and safety laws or regulations, including breaches or other
incidents arising from the potentially harmful nature of its
activities; network failure or interruption, the inability to carry
out critical non network operations and damage to infrastructure,
due to adverse weather conditions including the impact of major
storms as well as the results of climate change, due to
counterparties being unable to deliver physical commodities, or due
to the failure of or unauthorised access to or deliberate breaches
of National Grid's IT systems and supporting technology;
performance against regulatory targets and standards and against
National Grid's peers with the aim of delivering stakeholder
expectations regarding costs and efficiency savings, including
those related to investment programmes and internal transformation
and remediation plans; and customers and counterparties (including
financial institutions) failing to perform their obligations to the
Company. Other factors that could cause actual results to differ
materially from those described in this announcement include
fluctuations in exchange rates, interest rates and commodity price
indices; restrictions and conditions (including filing
requirements) in National Grid's borrowing and debt arrangements,
funding costs and access to financing; regulatory requirements for
the Company to maintain financial resources in certain parts of its
business and restrictions on some subsidiaries' transactions such
as paying dividends, lending or levying charges; inflation or
deflation; the delayed timing of recoveries and payments in
National Grid's regulated businesses and whether aspects of its
activities are contestable; the funding requirements and
performance of National Grid's pension schemes and other
post-retirement benefit schemes; the failure to attract, train or
retain employees with the necessary competencies, including
leadership skills, and any significant disputes arising with the
National Grid's employees or the breach of laws or regulations by
its employees; and the failure to respond to market developments,
including competition for onshore transmission, the treats and
opportunities presented by emerging technology, development
activities relating to changes in the energy mix and the
integration of distributed energy resources, and the need to grow
the Company's business to deliver its strategy, as well as
incorrect or unforeseen assumptions or conclusions (including
unanticipated costs and liabilities) relating to business
development activity, including assumptions in connection with
joint ventures. For further details regarding these and other
assumptions, risks and uncertainties that may impact National Grid,
please read the Strategic Report section and the 'Risk factors' on
pages 183 to 186 of National Grid's most recent Annual Report and
Accounts. In addition, new factors emerge from time to time and
National Grid cannot assess the potential impact of any such factor
on its activities or the extent to which any factor, or combination
of factors, may cause actual future results to differ materially
from those contained in any forward-looking statement. Except as
may be required by law or regulation, the Company undertakes no
obligation to update any of its forward-looking statements, which
speak only as of the date of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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