Our investment proposition

We aim to be a low risk business focused on generating shareholder value through both dividends and asset/equity growth by investing in essential assets under predominantly regulated market conditions to service in essential assets long-term sustainable consumer led demands.

New dividend policy effective 1 April 2013 – aim is to grow ordinary dividend at least in line with RPI for the foreseeable future.

£38bn
regulated asset value

£4.1bn
operating profit

43.34p
dividend per share

Reducing risk

  • Balance of activities

    UK & US

    Electricity & gas

    Transmission & distribution

    Local expertise & global functions

  • Regulated income growth

    RPI linked UK revenues

    Asset growth leading to increased revenues

    Updated rate cases

  • Macro-economic protection

    Bad debt trackers and credit protection

    UK inflation linked revenues and assets

    Price control 're-openers'

  • Commodity and volume protection

    Revenue decoupling

    Energy commodity pass through

Investing in essential assets

Investment: Asset Growth
5%+ pa

Core growth

  • UK and US regulated ~5%

Additional opportunities

  • Accelerated UK load related
  • US network modernisation
  • US gas roll out
  • Business development: 
    - UK interconnectors
    - US transmission and repowering

UK RAV
£25.4bn

  • Increased incentive to deliver innovative and efficient capital investments
  • Totex regime allows opportunity to grow RAV without investment
  • RPI inflation applies to RAV

US rate base
$17.2bn

  • Excludes $2.8bn of other regulated assets including $0.4bn of working capital outside of rate base
  • US capex continues to be related to natural gas demand, mains replacement and reliability spend

Net debt
£23.9bn

  • Maintaining strong credit ratings - key driver of value for the Group
  • Low single A credit ratings for UK operating companies
  • Majority of US OpCos rated low single A
  • NG plc rated BBB+