02 March 2026
National Grid plc
Extended and upgraded 5-year Financial Framework and acceptance of RIIO-T3
National Grid today announces an extended and upgraded 5-year Financial Framework[1] to FY31, further underpinning our attractive investor proposition of growth and yield, with:
· Cumulative capital investment of at least £70 billion;
· Group asset growth CAGR of around 10%;
· Upgraded underlying earnings per share CAGR of 8-10% from an FY26 baseline, more aligned with our asset growth;
· A strong balance sheet, with credit metrics consistent with current Group rating; and
· Aim to grow the dividend per share in line with UK CPIH.
We are also announcing our acceptance of the RIIO-T3 regulatory framework for our UK Electricity Transmission Business, which along with constructive recent US regulatory outcomes and our progress in securing supply chain creates improved visibility and momentum across the Group over the next five years to FY31.
Zoë Yujnovich, Chief Executive said: “Today marks a further step in accelerating investment in Britain and the US Northeast at a time when modern, resilient networks are fundamental to economic growth. Building on National Grid’s strong track record of delivery, we are expanding our record levels of investment to at least £70 billion by FY31, driving around 10% asset growth and an upgraded underlying EPS CAGR of between 8 and 10%. Our focus is clear: disciplined execution, at scale, supported by regulatory frameworks that recognise the critical role of networks. We are delivering infrastructure that will ensure reliable, cleaner and increasingly affordable energy – for customers, communities and long‑term investors alike.”
National Grid’s new 5-year Financial Framework to FY31 is supported by multiple investment drivers from decarbonisation and energy security to accelerating demand growth from data centres and the rise of AI, alongside the electrification of industrial demand. This, together with our robust delivery plans and strong balance sheet allows us to extend and upgrade our financial framework.
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.
The expected split of the at least £70 billion of capital investment across the Group is:
· UK Electricity Transmission c.£31 billion
· UK Electricity Distribution c.£9 billion
· New York Regulated c.£17 billion
· New England Regulated c.£12 billion
· National Grid Ventures c.£1 billion
As a result, we expect Group assets to reach around £115 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 FY26, the Group’s performance remains in line with our expectations and for FY27 we now expect underlying EPS growth of 13-15%, reflecting higher allowed revenue as we step up delivery from RIIO-T2 to RIIO-T3.
RIIO-T3 price control accepted
National Grid today also confirms that it has accepted all of the RIIO-T3 price control arrangements proposed by Ofgem in its Final Determination, which covers our UK Electricity Transmission business for the period April 2026 to March 2031.
We have engaged in detail with Ofgem on its Final Determination for the RIIO-T3 price control, which was published on 4 December 2025. We have made positive progress working with Ofgem in ensuring the new licence provides clarity on the design of the incentives package and improvements to the workability of the framework that will enable transmission owners to recover the efficient cost of their investments whilst progressing projects at the pace expected by our stakeholders.
As a result, 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.
RIIO-T3 performance
UK Electricity Transmission has a strong track record of performance and expects to continue to deliver strong operational and financing performance over the RIIO-T3 period. We are confident that this price control enables delivery of an overall return on equity above 9% across the price control.
We expect that operational performance will be delivered through totex efficiencies and performance against Output Delivery Incentives (ODI), with the timing of ODI incentive recognition unevenly phased across the price control period. Together these incentives will deliver significant value to consumers including through innovation in our working methods, timely delivery of major projects as we deliver these later in the RIIO-T3 period, and optimising our project plans to minimise constraint costs, whilst achieving globally competitive overall returns.
[1] Guidance based on an assumed USD FX rate of $1.35:£1; long-run UK CPIH and US CPI and interest rate assumptions; and scrip uptake of 25%.