REG - National Grid PLC - Sale of Electricity System Operator

National GridAnnouncement

13/09/2024 07:00

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RNS Number : 0295E  National Grid PLC  13 September 2024

13 September 2024

National Grid plc

 

Sale of Electricity System Operator

 

 

National Grid plc ("National Grid") is pleased to announce that it has reached
agreement with HM Government on the terms of the sale of National Grid's
Electricity System Operator ("ESO") for an enterprise value of £630 million
(the "Transaction"). The final cash consideration will be subject to customary
closing adjustments (including for timing differences).

 

 

The Transaction is an important milestone for the creation of the independent
National Energy System Operator ("NESO"). National Grid and HM Government
expect to complete the Transaction on 1 October 2024 when HM Government,
together with Ofgem, aim to establish NESO.

 

 

 

Enquiries and contacts

 

Investors and Analysts:

 

Angela Broad
                                     +44
(0) 7825 351 918

Tom Edwards
     +44 (0) 7976 962 791

 

Media:

 

Danielle Dominey-Kent                       +44 (0) 7977
054 575

 

 

Notes to Editors

About National Grid

National Grid lies at the heart of a transforming energy system, spanning the
UK and the US. Our businesses supply gas and electricity, safely, reliably and
efficiently to millions of customers and communities. But we also drive change
through engineering innovation and by incubating new ideas with the power to
revolutionise our industry.

National Grid is pioneering ways to decarbonise the energy system including
delivering The Great Grid Upgrade - the largest overhaul of the UK grid in
generations - and building the Upstate Upgrade, the largest investment in New
York's electricity transmission network for over a century.

As one of the largest investor-owned energy companies in the world, National
Grid is at the centre of a clean, fair and affordable energy future, and is
one of the FTSE's largest investors in the energy transition.

 

 

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. 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.

 

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