National Grid PLC RIIO-2 Final Business Plan Submission (1237W)
09 Diciembre 2019 - 1:00AM
UK Regulatory
TIDMNG.
RNS Number : 1237W
National Grid PLC
09 December 2019
09 December 2019
National Grid plc
National Grid Submits Final RIIO-2 Business Plans
National Grid has today submitted its final business plans to
Ofgem for its UK Electricity and Gas Transmission businesses, as
well as the Electricity System Operator, for the 2021-2026 RIIO-2
period. These plans have been developed following extensive
engagement with customers, industry stakeholders, non-domestic
consumers and households across the country.
Our Electricity Transmission plan has a baseline totex spend of
GBP7.1bn over the five years. It assumes connection of 15.3GW of
customer capacity, providing the UK with clean power and flexible
storage, as well as continued investment to maintain reliability
and resilience. Our Gas Transmission plan has a baseline totex
spend of GBP2.8bn over the five year plan. It assumes an increase
in asset health and cyber related investment, as well as a
programme of work needed to test and prove hydrogen conversion
options. The baseline spend, under our financial framework, would
see consumer bills reduced slightly in real terms for both
Electricity and Gas Transmission.
The plans include the financial framework that we believe will
be necessary to incentivise the investment required to maintain and
build the flexible grids of the future. We provide more evidence to
demonstrate why we believe a real 6.5% (CPI stripped) allowed cost
of equity is the right level to deliver this in RIIO-2. With a
growing societal focus on the speed of decarbonisation and the
challenges in meeting the UK's 2050 net zero emissions target, the
plans provide options for additional anticipatory investment to
facilitate additional wind generation and develop a national EV
rapid charging network.
This is an exciting time for the energy industry, and we remain
committed to delivering and maintaining world class networks that
provide the means to lower carbon emissions, and to meeting net
zero targets, that will be to the benefit of all consumers. We look
forward to engaging further with all our stakeholders as we explain
and debate our plans, including through the open forums in March
and April 2020, ahead of initial determinations from Ofgem in
summer 2020, and final determinations in late 2020.
For additional information, please follow this link to the
RIIO-2 section of our investor website.
Investors and Analysts
+44 (0) 20 7004 3170 +44 (0) 7989 492 447
Aarti Singhal (d) (m)
+44 (0) 20 7004 3166 +44 (0) 7584 206 578
Nick Ashworth (d) (m)
+44 (0) 20 7004 3460 +44 (0) 7899 928 247
Jon Clay (d) (m)
+44 (0) 20 7004 3129 +44 (0) 7970 778 952
James Flanagan (d) (m)
Media
+44 (0) 7583 102 727
Molly Neal (m)
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 'aims',
'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, including any arising as a result of the United
Kingdom's exit from the European Union; announcements from and
decisions by governmental bodies or regulators, including proposals
relating to the RIIO-T2 price controls as well as increased
political and economic uncertainty; 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;
failure to adequately forecast and respond to disruptions in energy
supplies; performance against regulatory targets and standards and
against National Grid's peers with the aim of delivering
stakeholder expectations regarding costs and efficiency savings;
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; 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,
develop and retain employees with the necessary competencies,
including leadership and business capabilities, and any significant
disputes arising with 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 threats 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. 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 212 to 225 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 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 rns@lseg.com or visit www.rns.com.
END
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