National Grid PLC Ofgem's sector specific consultation (7948K)
18 December 2018 - 6:07PM
UK Regulatory
TIDMNG.
RNS Number : 7948K
National Grid PLC
18 December 2018
18 December 2018
National Grid plc
Ofgem's Sector Specific Consultation
Ofgem has today published sector specific consultation documents
for our UK transmission businesses as part of the ongoing RIIO 2
regulatory process. The detailed consultation covers a wide range
of topics including the cost of capital, incentives, outputs and
other financial parameters.
We welcome Ofgem's continued commitment to the key principles of
RIIO-T1 of incentives, innovation and output based regulation. The
consultation is a very detailed document which we will need to work
through; however we are disappointed with the proposed financial
package, in particular the cost of equity range as we do not
believe it appropriately reflects the level of risk borne by
transmission networks. In order to deliver the major capital
programme required across our networks in a rapidly changing energy
market, we need to ensure the regulatory framework also provides
for fair returns to shareholders and enables us to continue to
deliver world class networks for consumers.
We will provide a detailed response to the consultation in early
2019. This consultation is expected to conclude in the second
quarter of 2019 with the RIIO 2 price control commencing in April
2021.
Inside Information
This announcement is being disclosed in accordance with the
Market Abuse Regulation (EU596/2014) and has been determined to
contain inside information in line with the definition therein.
Investors and Analysts
+44 (0) 20 7004 3166 +44 (0) 7584 206 578
Will Jackson (d) (m)
+44 (0) 20 7004 3129 +44 (0) 7970 778 952
James Flanagan (d) (m)
Media
+44 (0) 7960 012356
Sean Kemp (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 (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. 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, predict 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 role of the UK electricity system
operator, 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 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, including those related to investment
programmes and internal transformation, cost efficiency 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, 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; 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, including assumptions in connection with the
Company's sale of the remaining Cadent stake. 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 193 to 196 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 2018 published on 8 November 2018. 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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