UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE
SECURITIES EXCHANGE ACT OF 1934
Date: 18 December 2024
Commission File Number: 001-14958
NATIONAL GRID plc
(Translation
of registrant’s name into English)
England and Wales
(Jurisdiction
of Incorporation)
1-3 Strand, London, WC2N 5EH, United Kingdom
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or
Form 40-F.
☒ Form 20-F ☐ Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T
Rule
101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T
Rule
101(b)(7): ☐
Indicate
by check mark whether the registrant by furnishing the information
contained in this Form is also
thereby
furnishing the information to the Commission pursuant to Rule 12g3-
2(b) under the Securities
Exchange
Act of 1934. ☐ Yes ☒ No
If
“Yes” is marked, indicate below the file number
assigned to the registrant in connection with Rule
12g3-2(b):
n/a
EXHIBIT INDEX
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Exhibit No.
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Description
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99.1
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Exhibit
99.1 Announcement sent to the London Stock Exchange on 18 December
2024 —
National Grid: RIIO-T3 Business Plan published
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Exhibit
99.1
18 December 2024
National Grid plc
RIIO-T3 Business Plan published: framework to deliver most
significant step forward in the UK's transmission network for a
generation
National Grid has today published the RIIO-T3 business plan for its
National Grid Electricity Transmission (NGET) business, covering
the period from April 2026 to March 2031. The
submission follows extensive consultation with national, regional
and local stakeholders.
Investing at an unprecedented level
The plan includes an
unprecedented level of investment of up
to £35 billion over the five years to March 2031,
including:
●
baseline investment of over
£11 billion to
maintain and upgrade our existing networks, alongside construction
works for the first three of our Accelerated Strategic Transmission
Investment (ASTI) projects where project assessments have been
approved; and
●
pipeline investment of around
£24 billion, which includes around £15 billion to
increase network capacity, most of which relates to the 14 further
confirmed ASTI projects.
Pipeline investment also includes additional potential
projects that may be triggered by the UK government's evolving
priorities.
Delivering a future-proofed, innovative and reliable transmission
network
Altogether this ambitious plan enables NGET to:
●
maintain world
leading 99.9999% reliability levels;
●
develop and deliver
major network
reinforcement and expansion
projects, including the 17 ASTI projects, and the
upgrade of c.3,500km of our existing overhead lines, nearly
doubling the amount of power we can transfer around the
country;
●
deploy innovative technologies such as
power control devices, and dynamic line ratings to maximise the
capacity of our existing infrastructure;
●
connect 35GW of new
generation and storage, and 19GVA of large
demand customers such as data centres and gigafactories,
as well as creating a further 26GW of future connection
options;
●
help consumers avoid c.£12
billion of system constraint costs across the
period;
●
contribute to the group's wider UK
investment which supports 55,000 more jobs by 2030;
and
●
deliver a 50% reduction in our own
emissions versus a 2018/19 baseline, and biodiversity net gain
equivalent to more than 8,000 acres of land, seven times the impact
of RIIO-T2.
In line with Ofgem's guidance, the plan aligns with the National
Energy System Operator's (NESO) Future Energy Scenario 2024
Holistic Transition pathway. The optionality in the plan also means
it can be adapted to the UK government's clean power plan.
Whilst the
specific investments required will be clarified through NESO's
connection reform process in 2025, the RIIO-T3 plan
further underpins
and is consistent with our expected £60 billion investment
across the group for
the five years to March 2029.
The NGET plan includes the financial framework that we believe is
needed to provide
an attractive and investable proposition that can compete with the
international demands for capital. We have
clearly set out why
we believe a real 6.3% (at
60% gearing, CPIH
stripped) allowed cost of equity is the right level to deliver this
in RIIO-T3. We also set
out the levels of cash generation necessary to support investment
levels and propose
a number of incentive mechanisms that
will deliver benefits to consumers and networks during
RIIO-T3.
Commenting on the final Business Plan, John
Pettigrew, CEO of National Grid plc, said: "This
plan represents the most significant step forward in
the electricity network that we've seen in a generation.
Through it we will nearly double the amount of energy that can be
transported around the country, support the electrification of the
industries of today and tomorrow; create new jobs; and support
inward investment for the UK.
It is an ambitious plan, set to future proof the network with
strategic capacity and flexibility for the longer term.
We've laid the foundations for its delivery through the steps
we've already taken to progress ASTI projects, secure the supply
chain, and fund the wider Group. We have done this whilst keeping a
relentless focus on consumer bills and affordability.
It is now critical that Ofgem plays its part in developing an
investable framework that will allow us to deliver at the
unprecedented scale and pace that is needed to meet the UK's
ambitious climate goals."
We look forward to engaging further with all our stakeholders,
ahead of draft determinations from Ofgem in summer 2025, and final
determinations in late 2025.
For additional information, please follow this link
www.riiot3.nationalgrid.com to the RIIO-T3 section of our
website.
Notes
Allowed cost of equity of 6.3% CPIH real at 60% gearing is in line
with Ofgem's Sector Specific Methodology Decision range of 4.57% to
6.35%. Translates to 5.8% CPIH real at 55% gearing.
Business plan investment of up to £35 billion relates to total
expenditure (or totex) and is quoted on a 2023/24 price
base.
The 17 ASTI projects form a key part of The Great Grid Upgrade,
which is building the significant new electricity network
infrastructure required to connect offshore wind and reduce the
UK's reliance on fossil fuels.
Enquiries and contacts
Investors and Analysts:
Angela Broad
+44 (0) 7825 351 918
Tom Edwards
+44 (0) 7976 962 791
Media:
Ben
Davis
+44
(0) 7971 539 999
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 (the
Company) 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. This document also references climate-related targets
and climate-related risks which differ from conventional financial
risks in that they are complex, novel and tend to involve
projection over long term scenarios which are subject to
significant uncertainty and change. 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 or
targets. Many of these assumptions, risks and uncertainties relate
to factors that are beyond National Grid's ability to control,
predict or estimate precisely, such as changes in laws or
regulations and decisions by governmental bodies or regulators,
including those relating to current and upcoming price controls in
the UK and rate cases in the US, as well as the future of system
operation in the UK; 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;
reliability of and access to IT systems, including or due to the
failure of or unauthorised access to or deliberate breaches of
National Grid's systems and supporting technology; failure to
adequately forecast and respond to disruptions in energy supply;
performance against regulatory targets and standards and against
National Grid's peers with the aim of delivering stakeholder
expectations regarding costs and efficiency savings, as well as
against targets and standards designed to support its role in the
energy transition; 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 breaches of laws
or regulations by its employees; the failure to respond to market
developments, including competition for onshore transmission; the
threats and opportunities presented by emerging technology; the
failure by the Company to respond to, or meet its own commitments
as a leader in relation to, climate change development activities
relating to energy transition, including 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 the announced sale of certain of its businesses, its
strategic infrastructure projects and joint ventures and the
separation and transfer of the ESO to the public sector. 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 226 to 231
of National Grid's most recent Annual Report and Accounts as
updated by the principal risks and uncertainties statement in its
most recent half year results statement. 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 announcement is for informational purposes
only and does not constitute an offer to sell or the solicitation
of an offer to buy any securities.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
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NATIONAL GRID
plc
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By:
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Beth Melges
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Beth Melges
Head of Plc Governance
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Date:
18 December
2024
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