National Grid PLC Update on UK Electricity Transmission Allowances (6797A)
March 28 2017 - 2:01AM
UK Regulatory
TIDMNG.
RNS Number : 6797A
National Grid PLC
28 March 2017
28 March 2017
Update on UK Electricity Transmission Allowances
Through the ongoing reviews of UK Electricity Transmission's
investment plans, National Grid has concluded that some investments
are no longer needed in this price control. As a result, National
Grid has volunteered a deferral of GBP480m of RIIO T1 allowances.
We believe that such a deferral would enable better alignment of
the funding (allowances) with the likely timing of spend and help
to lower customer bills in the near-term. The need for these
deferred investments in the future and the associated level of
funding required will form part of RIIO-T2 discussions.
John Pettigrew, Chief Executive Officer said, "We want to play
an active role alongside Ofgem in addressing the broader issue of
energy affordability in the UK, and we are pleased to have
identified this opportunity to help to lower customer bills in the
near-term. We continue to expect UK Electricity Transmission to
deliver strong outperformance above the base return under RIIO
T1."
National Grid has discussed its proposal with Ofgem and expects
the change to be enacted through the November 2017 Ofgem annual
iteration process. This will lead to lower Electricity Transmission
revenues in RIIO T1, of approximately GBP100m in total, phased
across fiscal years 2019/20 and 2020/21.
Notes to Editors:
All financial figures above are quoted in 2009/10 prices, as per
the regulatory Price Control Framework Model (PCFM).
CONTACTS
Investors:
+44 (0)20
7004 3170
Aarti Singhal +44 (0)20
David Brining 7004 3166
Media
+44 (0)79
Sean Kemp 600 12356
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, as updated by National Grid's unaudited half-year
financial information for the six months ended 30 September 2016
published on 10 November 2016. 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
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