Developing the business

National Grid is a portfolio of distinct regulated businesses in the UK and the US and some unregulated businesses, primarily in the UK.

This includes a mixture of:

  • cash generative developed assets with minimal investment requirements (such as our existing interconnectors and National Grid Metering business)
  • businesses with low to medium levels of growth and positive cash generation (such as our US and UK distribution businesses)
  • businesses with high levels of investment and growth (such as our UK electricity transmission business and potential new unregulated investments).

Total shareholder return

We aim to optimise our TSR by:

  • managing a leveraged business model to drive consistent TSR performance by providing growth in dividends and assets
  • balancing the rate of asset growth with secure financing
  • providing additional investments
Total shareholder return = dividend yield + growth in the per share value of shareholders' equity

Key strategic priorities 2015/16

UK Deliver efficent investment and enhance customer service to drive out performance under RIIO
US Sustain returns and growth, deliver new filings on time

Conclusion and outlook

  • Good financial and solid operating performance
  • Strong asset growth and attractive pipeline of investment opportunities to sustain growth
  • Period of significant clarity for our businesses