National Grid sets investment levels up to £3.9bn
MIDLAND based utility National Grid has said it continues to make good progress and is planning to invest in the region of £3.6bn to £3.9bn in its businesses in 2013/14.
The company said the level of investment was consistent with its expectation of growing regulated assets by around 6% per annum over the next few years, while maintaining a secure and well financed balance sheet.
In a trading update it said there had been good progress in the UK while its operations in the US had made a positive start.
The regulated Transmission and Distribution businesses in the UK is likely to receive capital investment for 2013/14 in line with 2012/13 levels, it said. Major activities underway include the London Power Tunnels project and further progress on planning for the western high voltage direct current (HVDC) link with Scotland.
In the US, investment continues at a steady level, in line with the updated medium term guidance of around £1.3bn to £1.4bn ($2bn) per annum. This is focused improving and renewing existing infrastructure, the delivery of improved service, selected transmission investments and connection of new customers.
Steve Holliday, National Grid chief executive, said: “Our businesses have started the year well. In the UK, our focus has been on embedding developments in our business model to enable performance improvements under the new agreed RIIO framework. Alongside changes to our organisational model and wider cost saving initiatives, we have also developed our approach to investment and efficiency, to drive improved execution and help us to deliver the performance expected of us.
“In the US, our team continues to focus on improving customer service and returns by securing the benefits of the recent rate filings while focusing on resolving issues related to the SAP implementation started last year.
“As a result, we are maintaining our outlook for 2013/14, reflecting the expected delivery of another year of solid operating and financial performance.”
