London (Platts)--29Jan2013/648 am EST/1148 GMT
National Grid expects to invest GBP3.6 billion ($5.66 billion) in its UK and US transmission and distribution infrastructure this year, the company said in an interim management statement Tuesday. Reconfirming its positive outlook for 2012/13, the transmission company said solid operational performance was achieved "despite our US employees being affected by payroll issues associated with a new system implementation and the impact of 'Superstorm' Sandy on our operations." In the UK and US a number of National Grid's regulated businesses had reached milestones in the development of new regulatory frameworks, Chief Executive Steve Holliday said. In December, UK regulator Ofgem published final proposals for RIIO (Revenue=Incentives+Innovation+Outputs), a new model that seeks to ensure consumers get some GBP32 billion of necessary investment in Britain's power and gas networks at a fair price. Article continues below...Request a free trial of: Power in EuropePower in Europe is an indispensable resource for power executives who need critical information delivered in a clear, concise and accurate manner. It provides the insights you need for effective strategic planning, forecasting and intelligent decision making.
National Grid expects to invest GBP3.6 billion ($5.66 billion) in its UK and US transmission and distribution infrastructure this year, the company said in an interim management statement Tuesday. Reconfirming its positive outlook for 2012/13, the transmission company said solid operational performance was achieved "despite our US employees being affected by payroll issues associated with a new system implementation and the impact of 'Superstorm' Sandy on our operations." In the UK and US a number of National Grid's regulated businesses had reached milestones in the development of new regulatory frameworks, Chief Executive Steve Holliday said. In December, UK regulator Ofgem published final proposals for RIIO (Revenue=Incentives+Innovation+Outputs), a new model that seeks to ensure consumers get some GBP32 billion of necessary investment in Britain's power and gas networks at a fair price.
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Power in Europe is an indispensable resource for power executives who need critical information delivered in a clear, concise and accurate manner. It provides the insights you need for effective strategic planning, forecasting and intelligent decision making.
"The final proposals cover all of National Grid's transmission and distribution owner and system operator businesses in the UK, with a regulated asset value in excess of GBP22 billion and a significant proposed investment programme over the next eight years," it said. "As such, the proposals are both lengthy and wide ranging. As expected, they are taking some time to review in detail before a final decision can be made about the acceptability of some or all of the plans." National Grid must communicate its final decision to Ofgem by early March, it said. "At the same time, our US team has made good progress advancing regulatory discussions in both Rhode Island and New York, with new rate plans approved in Rhode Island in December," Holliday said. "Our capital investment this year is expected to be around GBP3.6 billion, reflecting sustained value-adding investment in our regulated activities," National Grid said. There were no material changes to National Grid's financial position since half-year results November 15, 2012, the company said. Full-year results will be announced May 2013.--Henry Edwardes-Evans, henry_edwardes-evans@platts.com--Edited by James Leech, james_leech@platts.com
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