National Grid invests in expanding regulated assets

29th Jul 2013 10:23

National Grid announced on Monday the planned expansion of regulated assets and reported a "strong operational and financial performance" in the three months to July 28th.The British multinational electricity and gas utility company expects to invest around £3.6bn to £3.9bn in its businesses in 2013/14.The move is part of the firm's plan to expand regulated assets by around 6.0% per annum over the next few years, while maintaining a secure and well financed balance sheet. In the regulated UK Transmission and Distribution businesses capital investment for 2013/14 is expected to be in line with 2012/13 levels. Activities underway include the London Power Tunnels project and progress on 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 per annum, focused on the improvement and renewal of existing infrastructure, the delivery of improved service, selected transmission investments and connection of new customers. Major projects include the $800m New England East West System transmission project, now about 65% complete. "Our businesses have started the year well," said Chief Executive, Steve Holliday. He referred to National Grid's strong balance sheet, underpinned by regulatory revenues, which is key to securing the required long-term funding for UK and US businesses. Holliday said the group was maintaining its outlook for 2013/14, reflecting the "expected delivery of another year of solid operating and financial performance".RD