2nd Mar 2026 11:22
(Alliance News) - National Grid PLC on Monday upped its outlook as it backed a UK regulatory framework for the energy sector.
SSE PLC, meanwhile, said the RIIO-T3 price control period will help to unlock the UK's "full clean energy potential".
National Grid shares climbed 1.1% to 1,406.00 pence each in London on Monday morning. SSE was slightly higher at 2,691.00p.
UK regulator Ofgem's RIIO-T3 framework covers the April 2026 to March 2031 period.
National Grid said it has accepted the framework, which covers its UK Electricity Transmission business. It also noted "constructive recent US regulatory outcomes".
The London-based electricity and gas utility said it has "increased visibility and momentum" over the next five years, noting a cumulative capital investment of at least GBP70 billion across its assets.
National Grid said GBP31 billion, nearly half, will come in its UK Electricity Transmission arm. In UK Electricity Distribution, an investment of around GBP9 billion is expected. In the New York Regulated offering and New England Regulated, investments of GBP17 billion and GBP12 billion are expected.
Investment in National Grid Ventures, which includes subsea electricity interconnectors as well as wind and solar power generation, investment of GBP1 billion is expected.
"Our investment plan represents a 70% increase relative to the prior 5 years reflecting a doubling of investment into UK electricity networks, and an almost 50% increase in investment into our US gas and electricity networks. Our efficient delivery is connecting more new generation and demand load faster than ever before, enabling economic growth, bolstering energy security and supporting clean, affordable energy for our communities and customers on both sides of the Atlantic," National Grid said.
"As a result, we expect Group assets to reach around GBP115 billion by FY31, subject to ongoing cycles of regulatory approval, customer demand and similar factors. Our balance sheet strength combined with higher earnings growth will allow us to execute this step up in investment and deliver attractive levels of long-term growth for shareholders. This balance sheet strength extends beyond FY31, complemented by significant hybrid capacity."
For the financial year that ends later this month, National Grid said it is trading in line with expectations, which is for underlying earnings per share to rise between 6% and 8% from 73.3p.
For financial 2027, it now expects underlying EPS growth of of 13% to 15%, "reflecting higher allowed revenue as we step up delivery from RIIO-T2 to RIIO-T3". For the wider five year period, it sees compound underlying EPS growth of 8% to 10% from financial 2026's level.
"Ofgem's Final Determination delivers a price control that enables networks to invest at the pace and scale needed to meet the ramp up in power demand, with plans to nearly double the amount of power that can flow across the country, avoiding constraint costs and ensuring a resilient, clean, future-proofed network that will be critical to underpinning economic competitiveness and growth for Britain in the years ahead," National Grid said.
Perth, Scotland-based electricity generator SSE also confirmed its "acceptance" of the framework, "following a thorough review".
"The RIIO-T3 price control comes at a critical time for securing clean, affordable and reliable power for families and businesses across the country. The investment it delivers will help reduce reliance on imported energy from overseas, remove grid bottlenecks and strengthen energy security. It will also act as a major catalyst for economic growth, jobs and supply chain investments across the UK to unlock the country's full clean energy potential," SSE said.
"SSEN Transmission has already demonstrated its commitment to delivering the critical transmission infrastructure upgrades required to help deliver the country's energy and economic ambitions. These investments are largely represented by 11 major transmission reinforcements, which SSEN Transmission continues to progress having already secured 75% of major planning consents, with six of these schemes fully consented and five already in the construction phase."
By Eric Cunha, Alliance News news editor
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