National Grid Responds to Ofgem's Draft Determination

TL;DR

National Grid is pushing back on Ofgem's draft price control, signaling potential regulatory battles ahead.

AI Summary

National Grid plc filed a Form 6-K on August 27, 2025, to report its response to the UK's energy regulator, Ofgem's, draft determination for the RIIO-ET3 price control period. The filing indicates National Grid's engagement with Ofgem regarding the proposed framework for electricity transmission networks.

Why It Matters

This filing is important as it outlines National Grid's position on regulatory decisions that will significantly impact its future investments and operational framework for electricity transmission in the UK.

Risk Assessment

Risk Level: medium — The filing relates to regulatory decisions which can significantly impact a company's financial performance and future strategy.

Key Players & Entities

• NATIONAL GRID PLC (company) — Filer of the report
• Ofgem (company) — UK energy regulator whose draft determination is being responded to
• RIIO-ET3 (regulation) — The specific price control period and framework
• August 27, 2025 (date) — Filing date of the Form 6-K

FAQ

Filing Documents

• a7622w.htm (6-K) — 39KB
• 0001654954-25-010066.txt ( ) — 40KB

From the Filing

TO OFGEM'S RIIO-ET3 DRAFT DETERMINATION a7622w         UNITED STATES   SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549     FORM 6-K     REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934   Date: 27 August 2025   Commission File Number: 001-14958       NATIONAL GRID plc   (Translation of registrant’s name into English)   England and Wales   (Jurisdiction of Incorporation)        1-3 Strand, London, WC2N 5EH, United Kingdom (Address of principal executive office)       Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.   ☒   Form 20-F       ☐   Form 40-F   Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐   Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐   Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3- 2(b) under the Securities Exchange Act of 1934.   ☐   Yes     ☒   No   If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a             EXHIBIT INDEX   Exhibit No.   Description     99.1   Exhibit 99.1 Announcement sent to the London Stock Exchange on 27 August 2025   — Response to Ofgem's RIIO-ET3 Draft Determination     Exhibit 99.1   27 August 2025   National Grid plc   Ofgem's RIIO-ET3 Draft Determination: Consultation Response       As part of the ongoing process to agree the RIIO-ET3 price control which covers our National Grid Electricity Transmission business, we have submitted our response to Ofgem's Draft Determinations.   We welcome the continued positive intent from Ofgem on the design of the framework. The commitment to an £80 billion investment plan in the electricity transmission sector, recognition of the need for urgency in delivery, and the changes Ofgem have made to the financial package since the Sector Specific Methodology Decision are all valuable steps forward.   However, the Draft Determination does not sufficiently recognise the practical realities of delivering the biggest expansion of the electricity system in more than a generation and the required two and a half times increase in investment in our transmission network.   We have submitted evidence and solutions for the changes required by Final Determination to achieve a framework that is:   -       Investable   by creating the conditions required to deliver the unprecedented increase in investment. Changes are needed in relation to the baseline return and the incentives framework to allow high performing networks to achieve a globally competitive overall return; and -       Workable   by streamlining the overly complex suite of funding mechanisms, and changing the approach taken by Ofgem to make decisions in reopener processes. A workable framework enables transmission owners to recover the efficient costs of their investment and allows them to progress projects at the pace expected by our stakeholders.    Both investability and workability are necessary for transmission business plans including accelerating the decarbonisation of the energy system, and cost savings for consumers.   As we move towards the Final Determination in December, we will continue to engage with Ofgem at all levels to agree a price control that attracts the investment needed to ensure the reliable and affordable flow of clean electricity whilst also meeting the ramp up in demand for power. A resilient, future-proofed network will be critical to economic competitiveness and growth for Britain in the years ahead.   The executive summary to the company's detailed responses can be accessed from our   RIIO-T3 homepage .         Enquiries and   contacts                                       Investors and Analysts:   Angela Broad &#

View Full Filing

View this 6-K filing on SEC EDGAR