30 September 2014
Investor site visit and publication of RIIO Stakeholder documents
National Grid is today hosting a visit of investors and analysts to its UK Capital Delivery team's offices at Castle Donington. Management from the UK business, led by John Pettigrew, National Grid's Executive Director UK, will be describing some of the major investment activities and setting out in more detail some of the changes the business has been introducing to generate cost savings and efficiencies across its planned investment programme.
In addition, National Grid is today publishing the RIIO Stakeholder documents for the UK regulated businesses, as required by Ofgem, which report on the performance achieved in 2013/14 and set out high level expectations for the remainder of the price control. These include a range of investment scenarios, from a low case, broadly equivalent to "Slow Progression", where new generation build continues to push back into the next RIIO period, to a higher case, similar to "Gone Green", in which new generation growth increases in the later RIIO-T1 years and, as a result, National Grid's investment increases by up to £1bn per annum. In aggregate these scenarios would see National Grid investing between £16bn and £20bn over the eight year period in new capital projects to sustain the essential energy infrastructure in England, Wales and Scotland, with the resulting growth in UK regulated asset value ranging from 5% to 6% on average over the period.
The updated investment scenarios reflect significant activities in maintenance as well as new connections and network reinforcement. They also reflect material capital efficiencies that the business hopes to deliver over the price control. If achieved, these efficiencies will drive additional savings to consumers over the 8-year period, a direct result of the sharing mechanisms included in the new RIIO price controls.
National Grid's half year results will be announced on 7 November 2014. At this time there are no changes to the technical guidance provided in the first quarter statement published in July 2014. National Grid continues to expect to deliver healthy returns and good organic growth to support the commitment to sustainable dividend growth.
Materials provided at today's event will be available on National Grid's website and Investor Relations App from 9am UK time.
CONTACTS
Investors and Analysts
John Dawson +44 (0)20 7004 3170 +44 7810 831944 (m)
Andy Mead +44 (0)20 7004 3166 +44 7752 890787 (m)
Tom Hull +1 917 524 4099 (m)
George Laskaris +1 917 375 0989 (m)
Victoria Davies +44 (0)20 7004 3171
Caroline Dawson +44 (0)20 7004 3169
Media
National Grid
Clive Hawkins +44 (0)20 7004 3147 +44 (0)7836 357173 (m)
Chris Mostyn +44 (0)20 7004 3149 +44 (0)7774 827710 (m)
Brunswick
Mike Smith or Emma Walsh +44 (0)20 7404 5959
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 or due to 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 projects (including the US financial system and controls); 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; 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 and 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 167 to 169 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.
