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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
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For the fiscal year ended
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
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For the transition period from
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Non-accelerated filer
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Accelerated filer
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Emerging growth company
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| Item | Form 20-F caption | Location in the document | Page(s) | |||||||||||||||||||||||||||||||||||||||||||||||
| 1 | Identity of directors, senior management and advisors | Not applicable | — | |||||||||||||||||||||||||||||||||||||||||||||||
| 2 | Offer statistics and expected timetable | Not applicable | — | |||||||||||||||||||||||||||||||||||||||||||||||
| 3 | Key Information | |||||||||||||||||||||||||||||||||||||||||||||||||
| 3A [Reserved] | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| 3B Capitalization and indebtedness | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 3C Reasons for the offer and use of proceeds | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 3D Risk Factors |
“Additional Information—Internal control and risk factors—Risk factors”
|
226-231 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 4 | Information on the company | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4A History and development of the company | “Strategic Report—National Grid at a glance”; “—Where we operate”; “—Our business model: “What we do” “—How we create value” | 2-5 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Chair’s statement” | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Chief Executive’s review” | 7-9 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our business environment” | 12-15 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Succeeding with our strategy” | 16-17 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our key performance indicators (KPI)” | 18-21 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our business units “—UK Electricity Transmission (UK ET)”; “—UK Electricity System Operator (ESO)”; “—UK Electricity Distribution (UK ED)”; —New England”; —New York”; “—National Grid Ventures (NGV)”; “—Other activities” | 32-36 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Financial review—Summary of Group financial performance for the year ended 31 March 2024” | 61-73 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—2. Segmental analysis—(c) Capital investment” | 139 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—10. Assets held for sale and discontinued operations” | 156-158 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—The business in detail—UK Regulation”; “—US Regulation” and “—Summary of US price controls and rate plans” | 220-225 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Shareholder information—Articles of Association—General” | 232 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Shareholder Information— Documents on display” | 233 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Other unaudited financial information—Alternative performance measures/non-IFRS reconciliations—Capital investment at constant currency” | 248 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Want more information or help?” | 263 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4B Business overview | “Strategic Report—National Grid at a glance”; “—Where we operate”; “—Our business model: “What we do” “—How we create value” | 2-5 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Chair’s statement” | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our Business environment” | 12-15 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Succeeding with our strategy” | 16-17 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our business units “—UK Electricity Transmission (UK ET)”; “—UK Electricity System Operator (ESO)”; “—UK Electricity Distribution (UK ED)”; —New England”; —New York”; “—National Grid Ventures (NGV)”; “—Other activities” | 32-36 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Financial review—Segmental operating profit” | 63-66 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—2. Segmental analysis” | 137-139 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—3. Revenue” | 140-143 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—10. Assets held for sale and discontinued operations” | 156-158 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—17. Derivative financial instruments—(b) Commodity contract derivatives” | 171-172 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—The business in detail—UK Regulation”; “—US Regulation” and “—Summary of US price controls and rate plans” | 220-225 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Internal control and risk factors—Risk factors” | 226-231 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4C Organizational structure | “Financial Statements—Notes to the consolidated financial statements—34. Subsidiary undertakings, joint ventures and associates” | 206-209 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 4D Property, plants and equipment | “National Grid at a glance—Where we operate” | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Task Force on Climate-related Financial Disclosures (TCFD)” | 44-58 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Financial review—Financial Position” | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Consolidated statement of financial position” | 131 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—5. Exceptional items and remeasurements—“—2023—Changes in environmental provisions” | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—13. Property, plant and equipment” | 162-165 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—21. Borrowings” | 175-176 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Other disclosures—Property, plant, equipment and borrowings” | 240 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4A | Unresolved staff comments | “Additional Information—Other disclosures—Unresolved SEC staff comments” | 239 | |||||||||||||||||||||||||||||||||||||||||||||||
| 5 | Operating and financial review and prospects | |||||||||||||||||||||||||||||||||||||||||||||||||
| 5A Operating results | “Strategic Report—Our business model” | 4-5 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our business environment” | 12-15 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our business units “—UK Electricity Transmission (UK ET)”; “—UK Electricity System Operator (ESO)”; “—UK Electricity Distribution (UK ED)”; —New England”; —New York”; “—National Grid Ventures (NGV)”; “—Other activities” | 32-36 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Financial review” | 60-73 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—2. Segmental analysis” | 137-139 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—32. Financial risk management—(c) Currency risk” | 196 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—The business in detail—UK Regulation”; “—US Regulation” and “—Summary of US price controls and rate plans” | 220-225 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Internal control and risk factors—Risk factors—Law, regulation and political and economic uncertainty” | 229 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Commentary on consolidated financial statements” | 257-258 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 5B Liquidity and capital resources | “Strategic Report—Financial review” | 60-73 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Consolidated cash flow statement” | 132 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—1.A Going concern” | 133 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—17. Derivative financial instruments” | 170-172 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—20. Cash and cash equivalents” | 174 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—21. Borrowings” | 175-176 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—29. Net debt” | 189-190 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—30. Commitments and contingencies” | 191 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—32. Financial risk management” | 192-204 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—33. Borrowing facilities” | 205 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Internal control and risk factors—Risk factors—Financing and liquidity” | 231 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 5C Research and development, patents and licenses, etc. | “Additional Information—Other disclosures—Research, development and innovation activity” | 241 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 5D Trend information | “Strategic Report—Financial review” | 60-73 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 5E Critical Accounting Estimates | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 6 | Directors, senior management and employees | |||||||||||||||||||||||||||||||||||||||||||||||||
| 6A Directors and senior management | “Corporate Governance Report—Our Board” | 78-79 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 6B Compensation | “Corporate Governance Report—Directors’ Remuneration report” | 98-114 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Directors’ Remuneration report—Summary of Policy table and approach taken for 2023/24 with intended approach for 2024/25” | 100-114 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Directors’ Remuneration report—Statement of implementation of Policy in 2023/24” | 103-105 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Directors’ Remuneration report—Statement of implementation of Policy in 2023/24—Single total figure of remuneration–Executive Directors” | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Directors’ Remuneration report—Statement of implementation of Policy in 2023/24—Single total figure of remuneration—Non-executive Directors” | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—4. Other operating costs—(c) Key management compensation” | 145 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—25. Pensions and other post-retirement benefits” | 178-184 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 6C Board practices | “Corporate Governance Report—Our Board” | 78-79 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Corporate Governance overview” | 76-77 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Audit & Risk Committee report” | 90-95 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Directors’ Remuneration report” | 98-114 | |||||||||||||||||||||||||||||||||||||||||||||||||
|
“Additional Information—Shareholder Information—Articles of Association—Directors”
|
232 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 6D Employees | “Strategic Report—Our business model” | 4-5 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our commitment to being a responsible business —Our People” —Gender demographic as at 31 March 2024” | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—4. Other operating costs—(b) Number of employees” | 144 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 6E Share ownership | “Corporate Governance Report—Directors’ Remuneration report—Summary of Policy table and approach take for 2023/24 with intended approach for 2024/25” | 100-102 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Other disclosures—All-employee share plans” | 238 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Share ownership” | “Further Information” | |||||||||||||||||||||||||||||||||||||||||||||||||
| 6F Disclosure of a registrant’s action to cover erroneously awarded compensation | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 7 | Major shareholders and related party transactions | |||||||||||||||||||||||||||||||||||||||||||||||||
| 7A Major shareholders | “Additional Information—Shareholder information—Material interests in shares” | 234 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Material interests in shares”; and “Material interest in American Depositary Shares” | “Further Information” | |||||||||||||||||||||||||||||||||||||||||||||||||
| 7B Related party transactions | “Financial Statements—Notes to the consolidated financial statements—30. Commitments and contingencies” | 191 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—31. Related party transactions” | 192 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Material interests in shares” | “Further Information” | |||||||||||||||||||||||||||||||||||||||||||||||||
| 7C Interests of experts and counsel | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 8 | Financial information | |||||||||||||||||||||||||||||||||||||||||||||||||
| 8A Consolidated statements and other financial information | “Strategic Report—Chair’s statement” | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Financial review” | 60-73 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Corporate governance overview—Board focus during the year” | 80-81 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance—Audit & Risk Committee report—Significant issues/judgments relating to the financial statements—Application of the Group’s exceptional items framework” | 91 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Statements—“Financial Statements” | 127-218 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—5. Exceptional items and remeasurements” | 146-149 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—9. Dividends” | 156 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Reports of Independent Registered Public Accounting Firm—Audit opinions for Form 20-F” | “Further Information” | |||||||||||||||||||||||||||||||||||||||||||||||||
| 8B Significant changes | “Strategic Report—Financial Review—Post balance sheet events” | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—36. Post balance sheet events” | 211 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Shareholder Information—Events after the reporting period” | 233 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Subsequent Events” | “Further Information” | |||||||||||||||||||||||||||||||||||||||||||||||||
| 9 | The offer and listing | |||||||||||||||||||||||||||||||||||||||||||||||||
| 9A Offer and listing details | “Additional Information—Shareholder Information—Share information” | 234 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 9B Plan of distribution | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 9C Markets | “Additional Information—Shareholder information—Share Information” | 234 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 9D Selling shareholders | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 9E Dilution | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 9F Expenses of the issue | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||
| 10A Share capital | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10B Memorandum and articles of association |
“Additional Information—Shareholder information—Articles of Association”
|
232 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Other disclosures—Change of control provisions” | 238 | |||||||||||||||||||||||||||||||||||||||||||||||||
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“Additional Information—Other disclosures—Corporate governance practices: differences from NYSE listing standards”
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238 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 10C Material contracts |
“Additional Information—Other disclosures—Material contracts”
|
240 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10D Exchange controls |
“Additional Information—Shareholder information—Exchange controls”
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233 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10E Taxation |
“Additional Information——Shareholder information—Taxation”
|
236-237 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10F Dividends and paying agents | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10G Statement by experts | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10H Documents on display | “Additional Information—Shareholder information—Documents on display” | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 10I Subsidiary information | “Financial Statements—Notes to the consolidated financial statements—34. Subsidiary undertakings, joint ventures and associates” | 206-209 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 11 | Quantitative and qualitative disclosures about market risk | |||||||||||||||||||||||||||||||||||||||||||||||||
| 11(a) Quantitative information about market risk | “Financial Statements—Notes to the consolidated financial statements—17. Derivative financial instruments” | 170-172 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—32. Financial risk management” | 192-204 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Internal Control and Risk factors—Risk Factors” | 226-231 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 11(b) Qualitative information about market risk | “Financial Statements—Notes to the consolidated financial statements—35. Sensitivities” | 210-211 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 11(c) Interim Periods | Not Applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 11(d) Forward looking statement safe harbor | “Additional Information—Cautionary statement” | 264 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 12 | Description of securities other than equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||
| 12A Debt securities | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 12B Warrants and rights | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 12C Other securities | Not applicable | —– | ||||||||||||||||||||||||||||||||||||||||||||||||
| 12D American depositary shares | “Additional Information—Shareholder information—Depositary payments to the Company” | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Definitions and glossary of terms” | 259-262 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Material interest in American Depositary Shares” | “Further Information” | |||||||||||||||||||||||||||||||||||||||||||||||||
| 13 | Defaults, dividend arrearages and delinquencies | Not applicable | — | |||||||||||||||||||||||||||||||||||||||||||||||
| 14 | Material modifications to the rights of security holders and use of proceeds | Not applicable | — | |||||||||||||||||||||||||||||||||||||||||||||||
| 15 | Controls and procedures | |||||||||||||||||||||||||||||||||||||||||||||||||
| 15(a) Disclosure controls and procedures | “Additional information —Internal control and risk factors—Disclosure controls” | 226 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 15(b) Management’s annual report on internal control over financial reporting | “Additional Information—Internal control and risk factors——Internal control over financial reporting” | 226 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Audit & Risk Committee report” | 90-95 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 15(c) Attestation report of the registered public accounting firm | “Report of Independent Registered Public Accounting Firm—Audit opinions for Form 20-F” | “Further Information” | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16 | 16A Audit committee financial expert | “Corporate Governance Report—Our Board” | 78-79 | |||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance—Audit & Risk Committee report—Committee financial experience” | 91 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 16B Code of ethics |
“Additional Information—Other disclosures—Code of Ethics”
|
238 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16C Principal accountant fees and services | “Corporate Governance Report—Audit & Risk Committee report—External audit—External Auditor fees” | 95 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Corporate Governance Report—Audit & Risk Committee report—External audit—Non-audit services” | 95 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Notes to the consolidated financial statements—Note 4. Other operating costs—(e) Auditors’ remuneration” | 145 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 16D Exemptions from the listing standards for audit committees | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16E Purchases of equity securities by the issuer and affiliated purchasers | “Additional Information—Shareholder information—Material interests in shares—Authority to purchase shares” | 235 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16F Change in registrant’s certifying accountant | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16G Corporate governance | “Additional Information—Other disclosures—Corporate governance practices: differences from NYSE listing standards” | 238 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16H Mine safety disclosure | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16I Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | Not applicable | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16J Insider Trading Policies | “Insider Trading Policy” | “Further Information” and Exhibit 11(b) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 16K Cybersecurity Disclosures | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 16K(b) Risk management and strategy | “Strategic Report—Our principal risks and uncertainties—Catastrophic cyber security incident” | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Our principal risks and uncertainties—Cyber security risk management and strategy” | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Additional Information—Internal control and risk factors—Risk factors—Cyber or physical security breaches” | 226 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 16K(c) Governance | “Strategic Report—Our principal risks and uncertainties—Catastrophic cyber security incident” | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||
| “Strategic Report—Cybersecurity governance” | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 17 | Financial statements | Not applicable | — | |||||||||||||||||||||||||||||||||||||||||||||||
| 18 | Financial statements | |||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Statements—“Financial Statements” | 127-218 | |||||||||||||||||||||||||||||||||||||||||||||||||
| “Financial Statements—Reports of Independent Registered Public Accounting Firm—Audit opinions for Form 20-F” | “Further Information” | |||||||||||||||||||||||||||||||||||||||||||||||||
| 19 | Exhibits | Filed with the SEC | — | |||||||||||||||||||||||||||||||||||||||||||||||
|
2024
|
Notes
|
Total
£m
|
|
|
Continuing operations
|
|||
|
Revenue
|
2
(a),
3
|
|
|
|
Provision for bad and doubtful debts
|
4
|
(
|
|
|
Other operating costs
|
4
|
(
|
|
|
Other operating income
|
|
||
|
Operating profit
|
2
(b)
|
|
|
|
Finance income
|
6
|
|
|
|
Finance costs
|
6
|
(
|
|
|
Share of post-tax results of joint ventures and associates
|
16
|
|
|
|
Profit before tax
|
2
(b)
|
|
|
|
Tax
|
7
|
(
|
|
|
Profit after tax from continuing operations
|
|
||
|
Profit after tax from discontinued operations
|
10
|
|
|
|
Total profit for the year (continuing and discontinued)
|
|
||
|
Attributable to:
|
|||
|
Equity shareholders of the parent
|
|
||
|
Non-controlling interests from continuing operations
|
|
||
|
Earnings per share (pence)
|
|||
|
Basic earnings per share (continuing)
|
8
|
|
|
|
Diluted earnings per share (continuing)
|
8
|
|
|
|
Basic earnings per share (continuing and discontinued)
|
8
|
|
|
|
Diluted earnings per share (continuing and discontinued)
|
8
|
|
|
|
2023
|
Notes
|
Total
£m
|
|
|
Continuing operations
|
|||
|
Revenue
|
2
(a),
3
|
|
|
|
Provision for bad and doubtful debts
|
4
|
(
|
|
|
Other operating costs
|
4
|
(
|
|
|
Other operating income
|
|
||
|
Operating profit
|
2
(b)
|
|
|
|
Finance income
|
6
|
|
|
|
Finance costs
|
6
|
(
|
|
|
Share of post-tax results of joint ventures and associates
|
16
|
|
|
|
Profit before tax
|
2
(b)
|
|
|
|
Tax
|
7
|
(
|
|
|
Profit after tax from continuing operations
|
|
||
|
Profit after tax from discontinued operations
|
10
|
|
|
|
Total profit for the year (continuing and discontinued)
|
|
||
|
Attributable to:
|
|||
|
Equity shareholders of the parent
|
|
||
|
Non-controlling interests from continuing operations
|
|
||
|
Earnings per share (pence)
|
|||
|
Basic earnings per share (continuing)
|
8
|
|
|
|
Diluted earnings per share (continuing)
|
8
|
|
|
|
Basic earnings per share (continuing and discontinued)
|
8
|
|
|
|
Diluted earnings per share (continuing and discontinued)
|
8
|
|
|
|
|
|
Financial Statements
|
|
127
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2022
|
Notes
|
Total
£m
|
|
|
Continuing operations
|
|||
|
Revenue
|
2
(a),
3
|
|
|
|
Provision for bad and doubtful debts
|
4
|
(
|
|
|
Other operating costs
|
4
|
(
|
|
|
Other operating income
|
|
||
|
Operating profit
|
2
(b)
|
|
|
|
Finance income
|
6
|
|
|
|
Finance costs
|
6
|
(
|
|
|
Share of post-tax results of joint ventures and associates
|
|
||
|
Profit before tax
|
2
(b)
|
|
|
|
Tax
|
7
|
(
|
|
|
Profit after tax from continuing operations
|
|
||
|
Profit after tax from discontinued operations
|
10
|
|
|
|
Total profit for the year (continuing and discontinued)
|
|
||
|
Attributable to:
|
|||
|
Equity shareholders of the parent
|
|
||
|
Non-controlling interests from continuing operations
|
|
||
|
Earnings per share (pence)
|
|||
|
Basic earnings per share (continuing)
|
8
|
|
|
|
Diluted earnings per share (continuing)
|
8
|
|
|
|
Basic earnings per share (continuing and discontinued)
|
8
|
|
|
|
Diluted earnings per share (continuing and discontinued)
|
8
|
|
|
|
128
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|||
|
Notes
|
£m
|
£m
|
£m
|
||
|
Profit after tax from continuing operations
|
|
|
|
||
|
Profit after tax from discontinued operations
|
|
|
|
||
|
Other comprehensive income from continuing operations
|
|||||
|
Items from continuing operations that will never be reclassified to profit or loss:
|
|||||
|
Remeasurement (losses)/gains on pension assets and post-retirement benefit obligations
|
25
|
(
|
(
|
|
|
|
Net gains on equity instruments designated at fair value through other comprehensive income
|
|
|
|
||
|
Net (losses)/gains in respect of cash flow hedging of capital expenditure
|
(
|
|
(
|
||
|
Tax on items that will never be reclassified to profit or loss
|
7
|
|
|
(
|
|
|
Total items from continuing operations that will never be reclassified to profit or loss
|
(
|
(
|
|
||
|
Items from continuing operations that may be reclassified subsequently to profit or loss:
|
|||||
|
Retranslation of net assets offset by net investment hedge
|
(
|
|
|
||
|
Exchange differences reclassified to the consolidated income statement on disposal
|
|
(
|
|
||
|
Net gains/(losses) in respect of cash flow hedges
|
|
|
(
|
||
|
Net gains/(losses) in respect of cost of hedging
|
|
(
|
|
||
|
Net gains/(losses) on investment in debt instruments measured at fair value through other
comprehensive income
|
|
(
|
(
|
||
|
Share of other comprehensive income of associates, net of tax
|
|
|
|
||
|
Tax on items that may be reclassified subsequently to profit or loss
|
7
|
(
|
|
|
|
|
Total items from continuing operations that may be reclassified subsequently to profit or loss
|
(
|
|
|
||
|
Other comprehensive (loss)/income for the year, net of tax from continuing operations
|
(
|
(
|
|
||
|
Other comprehensive income/(loss) for the year, net of tax from discontinued operations
|
10
|
|
(
|
|
|
|
Other comprehensive (loss)/income for the year, net of tax
|
(
|
(
|
|
||
|
Total comprehensive income for the year from continuing operations
|
|
|
|
||
|
Total comprehensive income for the year from discontinued operations
|
10
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
||
|
Attributable to:
|
|||||
|
Equity shareholders of the parent
|
|||||
|
From continuing operations
|
|
|
|
||
|
From discontinued operations
|
|
|
|
||
|
|
|
|
|||
|
Non-controlling interests
|
|||||
|
From continuing operations
|
|
|
|
|
|
|
Financial Statements
|
|
129
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Share
capital
£m
|
Share
premium
account
£m
|
Retained
earnings
£m
|
Other equity
reserves
1
£m
|
Total
shareholders’
equity
£m
|
Non-
controlling
interests
£m
|
Total
equity
£m
|
|||
|
At 31 March 2021
|
|
|
|
(
|
|
|
|
||
|
Profit for the year
|
—
|
—
|
|
—
|
|
|
|
||
|
Other comprehensive income for the year
|
—
|
—
|
|
|
|
|
|
||
|
Total comprehensive income for the year
|
—
|
—
|
|
|
|
|
|
||
|
Equity dividends
|
—
|
—
|
(
|
—
|
(
|
—
|
(
|
||
|
Scrip dividend-related share issue
2
|
|
(
|
—
|
—
|
(
|
—
|
(
|
||
|
Issue of treasury shares
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Transactions in own shares
|
—
|
|
(
|
—
|
|
—
|
|
||
|
Share-based payments
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Tax on share-based payments
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Transfer of accumulated gains and losses on sale
of equity investments
3
|
—
|
—
|
|
(
|
|
—
|
|
||
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
—
|
—
|
—
|
|
|
—
|
|
||
|
At 1 April 2022
|
|
|
|
(
|
|
|
|
||
|
Profit for the year
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Other comprehensive (loss)/income for the year
|
—
|
—
|
(
|
|
(
|
|
(
|
||
|
Total comprehensive income for the year
|
—
|
—
|
|
|
|
|
|
||
|
Equity dividends
|
—
|
—
|
(
|
—
|
(
|
—
|
(
|
||
|
Scrip dividend-related share issue
2
|
|
(
|
—
|
—
|
|
—
|
|
||
|
Issue of treasury shares
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Transactions in own shares
|
—
|
|
(
|
—
|
|
—
|
|
||
|
Share-based payments
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
—
|
—
|
—
|
|
|
—
|
|
||
|
At 1 April 2023
|
|
|
|
(
|
|
|
|
||
|
Profit for the year
|
—
|
—
|
|
—
|
|
|
|
||
|
Other comprehensive loss for the year
|
—
|
—
|
(
|
(
|
(
|
—
|
(
|
||
|
Total comprehensive income/(loss) for the year
|
—
|
—
|
|
(
|
|
|
|
||
|
Equity dividends
|
—
|
—
|
(
|
—
|
(
|
—
|
(
|
||
|
Scrip dividend-related share issue
2
|
|
(
|
—
|
—
|
(
|
—
|
(
|
||
|
Issue of treasury shares
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Transactions in own shares
|
—
|
|
(
|
—
|
(
|
—
|
(
|
||
|
Share-based payments
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Tax on share-based payments
|
—
|
—
|
|
—
|
|
—
|
|
||
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
—
|
—
|
—
|
|
|
—
|
|
||
|
At 31 March 2024
|
|
|
|
(
|
|
|
|
|
130
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
|||
|
Notes
|
£m
|
£m
|
||
|
Non-current assets
|
||||
|
Goodwill
|
11
|
|
|
|
|
Other intangible assets
|
12
|
|
|
|
|
Property, plant and equipment
|
13
|
|
|
|
|
Other non-current assets
1
|
14
|
|
|
|
|
Pension assets
|
25
|
|
|
|
|
Financial and other investments
|
15
|
|
|
|
|
Investments in joint ventures and associates
|
16
|
|
|
|
|
Derivative financial assets
|
17
|
|
|
|
|
Total non-current assets
|
|
|
||
|
Current assets
|
||||
|
Inventories and current intangible assets
|
18
|
|
|
|
|
Trade and other receivables
1
|
19
|
|
|
|
|
Current tax assets
|
|
|
||
|
Financial and other investments
|
15
|
|
|
|
|
Derivative financial assets
|
17
|
|
|
|
|
Cash and cash equivalents
|
20
|
|
|
|
|
Assets held for sale
|
10
|
|
|
|
|
Total current assets
|
|
|
||
|
Total assets
|
|
|
||
|
Current liabilities
|
||||
|
Borrowings
|
21
|
(
|
(
|
|
|
Derivative financial liabilities
|
17
|
(
|
(
|
|
|
Trade and other payables
|
22
|
(
|
(
|
|
|
Contract liabilities
|
23
|
(
|
(
|
|
|
Current tax liabilities
|
(
|
(
|
||
|
Provisions
|
26
|
(
|
(
|
|
|
Liabilities held for sale
|
10
|
(
|
(
|
|
|
Total current liabilities
|
(
|
(
|
||
|
Non-current liabilities
|
||||
|
Borrowings
|
21
|
(
|
(
|
|
|
Derivative financial liabilities
|
17
|
(
|
(
|
|
|
Other non-current liabilities
|
24
|
(
|
(
|
|
|
Contract liabilities
|
23
|
(
|
(
|
|
|
Deferred tax liabilities
|
7
|
(
|
(
|
|
|
Pensions and other post-retirement benefit obligations
|
25
|
(
|
(
|
|
|
Provisions
|
26
|
(
|
(
|
|
|
Total non-current liabilities
|
(
|
(
|
||
|
Total liabilities
|
(
|
(
|
||
|
Net assets
|
|
|
||
|
Equity
|
||||
|
Share capital
|
27
|
|
|
|
|
Share premium account
|
|
|
||
|
Retained earnings
|
|
|
||
|
Other equity reserves
|
28
|
(
|
(
|
|
|
Total shareholders’ equity
|
|
|
||
|
Non-controlling interests
|
|
|
||
|
Total equity
|
|
|
|
|
|
Financial Statements
|
|
131
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|||
|
Notes
|
£m
|
£m
|
£m
|
||
|
Cash flows from operating activities
|
|||||
|
Total operating profit from continuing operations
|
2
(b)
|
|
|
|
|
|
Adjustments for:
|
|||||
|
Gain on sale of investments
|
|
(
|
(
|
||
|
Other fair value movements
|
(
|
|
(
|
||
|
Depreciation, amortisation and impairment
|
|
|
|
||
|
Share-based payments
|
|
|
|
||
|
Changes in working capital
|
(
|
|
(
|
||
|
Changes in provisions
|
|
(
|
|
||
|
Changes in pensions and other post-retirement benefit obligations
|
|
(
|
(
|
||
|
Cash generated from operations – continuing operations
|
|
|
|
||
|
Tax paid
|
(
|
(
|
(
|
||
|
Net cash inflow from operating activities – continuing operations
|
|
|
|
||
|
Net cash inflow from operating activities – discontinued operations
|
|
|
|
||
|
Cash flows from investing activities
|
|||||
|
Purchases of intangible assets
|
(
|
(
|
(
|
||
|
Purchases of property, plant and equipment
|
(
|
(
|
(
|
||
|
Disposals of property, plant and equipment
|
|
|
|
||
|
Investments in joint ventures and associates
|
(
|
(
|
(
|
||
|
Dividends received from joint ventures, associates and other investments
|
|
|
|
||
|
Acquisition of National Grid Electricity Distribution¹
|
|
|
(
|
||
|
Disposal of interest in the UK Gas Transmission business
2
|
10
|
|
|
|
|
|
Disposal of interest in The Narragansett Electric Company
2
|
|
|
|
||
|
Disposal of interest in Millennium Pipeline Company LLC
|
|
|
|
||
|
Disposal of interest in St William Homes LLP
|
|
|
|
||
|
Disposal of financial and other investments
|
|
|
|
||
|
Acquisition of financial investments
|
(
|
(
|
(
|
||
|
Contributions to National Grid Renewables and Emerald Energy Venture LLC
|
(
|
(
|
(
|
||
|
Net movements in short-term financial investments
|
(
|
|
(
|
||
|
Interest received
|
29
(b)
|
|
|
|
|
|
Cash inflows on derivatives
|
29
(b)
|
|
|
|
|
|
Cash outflows on derivatives
|
29
(b)
|
|
(
|
(
|
|
|
Insurance claim from loss of property, plant and equipment
|
|
|
|
||
|
Net cash flow (used in)/from investing activities – continuing operations
|
(
|
|
(
|
||
|
Net cash flow from/(used in) investing activities – discontinued operations
|
|
(
|
(
|
||
|
Cash flows from financing activities
|
|||||
|
Proceeds from issue of treasury shares
|
|
|
|
||
|
Transactions in own shares
|
(
|
|
(
|
||
|
Proceeds received from loans
|
29
(b)
|
|
|
|
|
|
Repayment of loans
|
29
(b)
|
(
|
(
|
(
|
|
|
Payments of lease liabilities
|
29
(b)
|
(
|
(
|
(
|
|
|
Net movements in short-term borrowings
|
29
(b)
|
|
(
|
(
|
|
|
Cash inflows on derivatives
|
29
(b)
|
|
|
|
|
|
Cash outflows on derivatives
|
29
(b)
|
(
|
(
|
(
|
|
|
Interest paid
|
29
(b)
|
(
|
(
|
(
|
|
|
Dividends paid to shareholders
|
9
|
(
|
(
|
(
|
|
|
Net cash flow from/(used in) financing activities – continuing operations
|
|
(
|
|
||
|
Net cash flow used in financing activities – discontinued operations
|
|
(
|
(
|
||
|
Net increase/(decrease) in cash and cash equivalents
|
29
(b)
|
|
(
|
|
|
|
Reclassification to held for sale
|
10
,
29
(b)
|
(
|
|
(
|
|
|
Exchange movements
|
29
(b)
|
(
|
|
|
|
|
Cash and cash equivalents at start of year
|
|
|
|
||
|
Cash and cash equivalents at end of year
|
20
|
|
|
|
|
132
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Accounting policies describe our approach to recognising and measuring transactions and balances in the year. The accounting policies
applicable across the financial statements are shown below, whereas accounting policies that are specific to a component of the financial
statements have been incorporated into the relevant note.
This section also shows areas of judgement and key sources of estimation uncertainty in these financial statements. In addition, we have
summarised new International Accounting Standards Board (IASB) accounting standards, amendments and interpretations and whether these
are effective for this year end or in later years, explaining how significant changes are expected to affect our reported results.
|
|
|
|
Financial Statements
|
|
133
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
134
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
|
|
Financial Statements
|
|
135
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
136
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
This note sets out the financial performance for the year split into the different parts of the business (operating segments). The performance of
these operating segments is monitored and managed on a day-to-day basis. Revenue and the results of the business are analysed by operating
segment, based on the information the Board of Directors uses internally for the purposes of evaluating the performance of each operating
segment and determining resource allocation between them. The Board is National Grid’s chief operating decision maker (as defined by IFRS 8
‘Operating Segments’) and assesses the profitability of operations principally on the basis of a profit measure that excludes certain income and
expenses. We call that measure ‘adjusted profit’. Adjusted profit excludes exceptional items and remeasurements (as defined in note
5
) and is
used by management to monitor financial performance as it is considered that it aids the comparability of our reported financial performance
from year to year. As a matter of course, the Board also considers profitability by segment, excluding the effects of timing, major storm costs
and deferred tax in our UK Electricity Transmission and UK Electricity Distribution businesses. However, the measure of profit disclosed in this
note is operating profit before exceptional items and remeasurements, as this is the measure that is most consistent with the IFRS results
reported within these financial statements.
|
|
UK Electricity Transmission
|
The high-voltage electricity transmission networks in England and Wales. This includes our Accelerated Strategic
Transmission Investment projects to connect more clean, low-carbon power to the transmission network in England
and Wales.
|
|
UK Electricity Distribution
|
The electricity distribution networks of NGED in the East Midlands, West Midlands and South West of England and
South Wales.
|
|
UK Electricity System Operator
|
The Great Britain system operator. The ESO met the criteria to be classified as held for sale at the end of October 2023
(see note 10).
|
|
New England
|
Gas distribution networks, electricity distribution networks and high-voltage electricity transmission networks
in New England.
|
|
New York
|
Gas distribution networks, electricity distribution networks and high-voltage electricity transmission networks in New York.
|
|
National Grid Ventures
|
Comprises all commercial operations in LNG at the Isle of Grain in the UK and Providence, Rhode Island in the US, our
electricity generation business in the US, our electricity interconnectors in the UK and our investment in National Grid
Renewables Development LLC, our renewables business in the US. Whilst NGV operates outside our regulated core
business, the electricity interconnectors in the UK are subject to indirect regulation by Ofgem regarding the level of returns
they can earn. Our US LNG operations were reclassified from the New England segment following an internal reorganisation
in the year.
|
|
2024
|
2023
|
2022
|
|||||||||
|
Total
sales
£m
|
Sales
between
segments
£m
|
Sales
to third
parties
£m
|
Total
sales
£m
|
Sales
between
segments
£m
|
Sales
to third
parties
£m
|
Total
sales
£m
|
Sales
between
segments
£m
|
Sales
to third
parties
£m
|
|||
|
Operating segments – continuing operations:
|
|||||||||||
|
UK Electricity Transmission
|
|
(
|
|
|
(
|
|
|
(
|
|
||
|
UK Electricity Distribution
|
|
(
|
|
|
(
|
|
|
(
|
|
||
|
UK Electricity System Operator
|
|
(
|
|
|
(
|
|
|
(
|
|
||
|
New England
|
|
|
|
|
|
|
|
|
|
||
|
New York
|
|
|
|
|
|
|
|
|
|
||
|
National Grid Ventures
|
|
(
|
|
|
(
|
|
|
|
|
||
|
Other
|
|
(
|
|
|
|
|
|
|
|
||
|
Total revenue from continuing operations
|
|
(
|
|
|
(
|
|
|
(
|
|
||
|
Split by geographical areas – continuing operations:
|
|||||||||||
|
UK
|
|
|
|
||||||||
|
US
|
|
|
|
||||||||
|
Total revenue from continuing operations
|
|
|
|
||||||||
|
|
|
Financial Statements
|
|
137
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Before exceptional items
and remeasurements
|
Exceptional items
and remeasurements (see note 5)
|
After exceptional items
and remeasurements
|
|||||||||
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Operating segments – continuing operations:
|
|||||||||||
|
UK Electricity Transmission
|
|
|
|
(
|
(
|
(
|
|
|
|
||
|
UK Electricity Distribution
|
|
|
|
(
|
(
|
|
|
|
|
||
|
UK Electricity System Operator
|
|
|
|
(
|
(
|
(
|
|
|
|
||
|
New England
|
|
|
|
(
|
|
|
|
|
|
||
|
New York
|
|
|
|
(
|
(
|
|
|
|
|
||
|
National Grid Ventures
|
|
|
|
|
|
(
|
|
|
|
||
|
Other
|
(
|
|
|
(
|
(
|
|
(
|
(
|
|
||
|
Total operating profit from
continuing operations
|
|
|
|
(
|
|
|
|
|
|
||
|
Split by geographical area – continuing operations:
|
|||||||||||
|
UK
|
|
|
|
(
|
|
|
|
|
|
||
|
US
|
|
|
|
(
|
|
|
|
|
|
||
|
Total operating profit from
continuing operations
|
|
|
|
(
|
|
|
|
|
|
||
|
Before exceptional items
and remeasurements
|
Exceptional items
and remeasurements (see note 5)
|
After exceptional items
and remeasurements
|
|||||||||
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Reconciliation to profit before tax:
|
|||||||||||
|
Operating profit from continuing operations
|
|
|
|
(
|
|
|
|
|
|
||
|
Share of post-tax results of joint ventures
and associates
|
|
|
|
(
|
(
|
(
|
|
|
|
||
|
Finance income
|
|
|
|
|
(
|
(
|
|
|
|
||
|
Finance costs
|
(
|
(
|
(
|
|
|
|
(
|
(
|
(
|
||
|
Profit before tax from continuing operations
|
|
|
|
(
|
|
|
|
|
|
||
|
Depreciation, amortisation and impairment
|
2024
|
2023
|
2022
|
|
£m
|
£m
|
£m
|
|
|
Operating segments:
|
|||
|
UK Electricity Transmission
|
(
|
(
|
(
|
|
UK Electricity Distribution
|
(
|
(
|
(
|
|
UK Electricity System Operator
|
(
|
(
|
(
|
|
New England
|
(
|
(
|
(
|
|
New York
|
(
|
(
|
(
|
|
National Grid Ventures
|
(
|
(
|
(
|
|
Other
|
(
|
(
|
(
|
|
Total
|
(
|
(
|
(
|
|
Asset type:
|
|||
|
Property, plant and equipment
|
(
|
(
|
(
|
|
Non-current intangible assets
|
(
|
(
|
(
|
|
Total
|
(
|
(
|
(
|
|
138
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
1
|
2022
1
|
|
|
£m
|
£m
|
£m
|
|
|
Operating segments:
|
|||
|
UK Electricity Transmission
|
|
|
|
|
UK Electricity Distribution
|
|
|
|
|
UK Electricity System Operator
|
|
|
|
|
New England
|
|
|
|
|
New York
|
|
|
|
|
National Grid Ventures
|
|
|
|
|
Other
|
|
|
|
|
Total
|
|
|
|
|
Asset type:
|
|||
|
Property, plant and equipment
|
|
|
|
|
Non-current intangible assets
|
|
|
|
|
Equity investments in joint ventures and associates
2
|
|
|
|
|
Capital expenditure prepayments
|
|
|
|
|
Total
|
|
|
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Split by geographical area:
|
|||
|
UK
|
|
|
|
|
US
|
|
|
|
|
|
|
|
|
|
Reconciliation to total non-current assets:
|
|||
|
Pension assets
|
|
|
|
|
Financial and other investments
|
|
|
|
|
Derivative financial assets
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Financial Statements
|
|
139
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Revenue arises in the course of ordinary activities and principally comprises:
•
transmission services;
•
distribution services; and
•
generation services.
Transmission services, distribution services and certain other services (excluding rental income) fall within the scope of IFRS 15 ‘Revenue from
Contracts with Customers’, whereas generation services (which solely relate to the contract with LIPA in the US) are accounted for under IFRS 16
‘Leases’ as rental income, also presented within revenue. Revenue is recognised to reflect the transfer of goods or services to customers at an
amount that reflects the consideration to which the Group expects to be entitled to in exchange for those goods or services and excludes
amounts collected on behalf of third parties and value added tax. The Group recognises revenue when it transfers control over a product or
service to a customer.
Revenue in respect of regulated activities is determined by regulatory agreements that set the price to be charged for services in a given period
based on pre-determined allowed revenues. Variances in service usage can result in actual revenue collected exceeding (over-recoveries) or
falling short (under-recoveries) of allowed revenues. Where regulatory agreements allow the recovery of under-recoveries or require the return
of over-recoveries, the allowed revenue for future periods is typically adjusted. In these instances, no assets or liabilities are recognised for
under-
or over-recoveries respectively, because the adjustment relates to future customers and services that have not yet been delivered.
Revenue in respect of non-regulated activities primarily relates to the sale of capacity on our interconnectors, which is determined at auctions.
Capacity is sold in either day, month, quarter or year-ahead tranches. The price charged is determined by market fundamentals rather than
regulatory agreement. The interconnectors are subject to indirect regulation with regard to the levels of returns they are allowed to earn. Where
amounts fall below this range they receive top-up revenues and where amounts exceed this range they must pass back the excess. In these
instances, assets or liabilities are recognised for the top-up or pass-back respectively.
|
|
140
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
|
|
Financial Statements
|
|
141
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Revenue for the year ended 31 March 2024
|
UK Electricity
Transmission
£m
|
UK Electricity
Distribution
£m
|
UK Electricity
System
Operator
£m
|
New
England
£m
|
New
York
£m
|
National
Grid
Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
||||||||
|
Transmission
1
|
|
|
(
|
|
|
|
|
|
|
Distribution
|
|
|
|
|
|
|
|
|
|
System Operator
|
|
|
|
|
|
|
|
|
|
Other
2
|
|
|
|
|
|
|
|
|
|
Total IFRS 15 revenue
|
|
|
|
|
|
|
|
|
|
Other revenue
|
||||||||
|
Generation
|
|
|
|
|
|
|
|
|
|
Other
3
|
|
|
|
|
|
(
|
|
|
|
Total other revenue
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations
|
|
|
|
|
|
|
|
|
|
Geographical split for the year ended
31 March 2024
|
UK Electricity
Transmission
£m
|
UK Electricity
Distribution
£m
|
UK Electricity
System
Operator
£m
|
New
England
£m
|
New
York
£m
|
National
Grid
Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
||||||||
|
UK
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
|
|
|
|
Total IFRS 15 revenue
|
|
|
|
|
|
|
|
|
|
Other revenue
|
||||||||
|
UK
|
|
|
|
|
|
(
|
|
|
|
US
|
|
|
|
|
|
|
|
|
|
Total other revenue
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations
|
|
|
|
|
|
|
|
|
|
Revenue for the year ended
31 March 2023
|
UK Electricity
Transmission
£m
|
UK Electricity
Distribution
£m
|
UK Electricity
System
Operator
£m
|
New
England
£m
|
New
York
£m
|
National
Grid
Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
||||||||
|
Transmission
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
|
|
|
|
|
|
|
System Operator
|
|
|
|
|
|
|
|
|
|
Other
1
|
|
|
|
|
|
|
|
|
|
Total IFRS 15 revenue
|
|
|
|
|
|
|
|
|
|
Other revenue
|
||||||||
|
Generation
|
|
|
|
|
|
|
|
|
|
Other
2
|
|
|
|
|
|
(
|
|
|
|
Total other revenue
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations
|
|
|
|
|
|
|
|
|
|
142
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Geographical split for the year ended
31 March 2023
|
UK Electricity
Transmission
£m
|
UK Electricity
Distribution
£m
|
UK Electricity
System
Operator
£m
|
New
England
£m
|
New
York
£m
|
National
Grid
Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
||||||||
|
UK
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
|
|
|
|
Total IFRS 15 revenue
|
|
|
|
|
|
|
|
|
|
Other revenue
|
||||||||
|
UK
|
|
|
|
|
|
(
|
|
|
|
US
|
|
|
|
|
|
|
|
|
|
Total other revenue
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations
|
|
|
|
|
|
|
|
|
|
Revenue for the year ended
31 March 2022
|
UK Electricity
Transmission
£m
|
UK Electricity
Distribution
£m
|
UK Electricity
System
Operator
£m
|
New
England
£m
|
New
York
£m
|
National
Grid
Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
||||||||
|
Transmission
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
|
|
|
|
|
|
|
System Operator
|
|
|
|
|
|
|
|
|
|
Other¹
|
|
|
|
|
|
|
|
|
|
Total IFRS 15 revenue
|
|
|
|
|
|
|
|
|
|
Other revenue
|
||||||||
|
Generation
|
|
|
|
|
|
|
|
|
|
Other
2
|
|
|
|
|
|
(
|
|
|
|
Total other revenue
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations
|
|
|
|
|
|
|
|
|
|
Geographical split for the year ended
31 March 2022
|
UK Electricity
Transmission
£m
|
UK Electricity
Distribution
£m
|
UK Electricity
System
Operator
£m
|
New
England
£m
|
New
York
£m
|
National
Grid
Ventures
£m
|
Other
£m
|
Total
£m
|
|
Revenue under IFRS 15
|
||||||||
|
UK
|
|
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
|
|
|
|
Total IFRS 15 revenue
|
|
|
|
|
|
|
|
|
|
Other revenue
|
||||||||
|
UK
|
|
|
|
|
|
(
|
|
|
|
US
|
|
|
|
|
|
|
|
|
|
Total other revenue
|
|
|
|
|
|
|
|
|
|
Total revenue from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
143
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Below we have presented separately certain items included in our operating costs from continuing operations. These include a breakdown
|
|
Total
|
|||
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Depreciation, amortisation and impairment
|
|
|
|
|
Payroll costs
|
|
|
|
|
Purchases of electricity
|
|
|
|
|
Purchases of gas
|
|
|
|
|
Property and other taxes
|
|
|
|
|
UK electricity balancing costs
|
|
|
|
|
Other
|
|
|
|
|
Other operating costs
|
|
|
|
|
Provision for bad and doubtful debts
|
|
|
|
|
Total operating costs from continuing operations
|
|
|
|
|
Operating costs from continuing operations include:
|
|||
|
Inventory consumed
|
|
|
|
|
Research and development expenditure
|
|
|
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Wages and salaries
1
|
|
|
|
|
Social security costs
|
|
|
|
|
Defined contribution scheme costs
|
|
|
|
|
Defined benefit pension costs
|
|
|
|
|
Share-based payments
|
|
|
|
|
Severance costs (excluding pension costs)
|
|
|
|
|
|
|
|
|
|
Less: payroll costs capitalised
|
(
|
(
|
(
|
|
Total payroll costs from continuing operations
|
|
|
|
|
31 March
2024
|
Monthly
average
2024
|
31 March
2023
|
Monthly
average
2023
|
31 March
2022
|
Monthly
average
2022
|
|
|
UK
|
|
|
|
|
|
|
|
US
|
|
|
|
|
|
|
|
Total number of employees (continuing operations)
|
|
|
|
|
|
|
|
144
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Short-term employee benefits
|
|
|
|
|
Post-employment benefits
|
|
|
|
|
Share-based payments
|
|
|
|
|
Total key management compensation
|
|
|
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Audit fees payable to the Parent Company’s auditor and their associates in respect of:
|
|||
|
Audit of the Parent Company’s individual and consolidated financial statements
1
|
|
|
|
|
The auditing of accounts of any associate of the Company
|
|
|
|
|
Other services supplied
2
|
|
|
|
|
|
|
|
|
|
Total other services
3
|
|||
|
All other fees:
|
|||
|
Other assurance services
4
|
|
|
|
|
Other non-audit services not covered above
|
|
|
|
|
|
|
|
|
|
Total auditor’s remuneration
|
|
|
|
|
|
|
Financial Statements
|
|
145
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
To monitor our segmental financial performance, we use an adjusted consolidated profit measure that excludes certain income and expenses. We
exclude items from adjusted profit because, if included, these items could distort understanding of our performance for the year and the
comparability between periods. This note analyses these items, which are included in our results for the year but are excluded from adjusted
profit.
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Included within operating profit
|
|||
|
Exceptional items:
|
|||
|
Transaction, separation and integration costs
1
|
(
|
(
|
(
|
|
Cost efficiency programme
|
(
|
(
|
(
|
|
IFA fire
|
|
|
|
|
Changes in environmental provisions
|
(
|
|
|
|
Provision for UK electricity balancing costs
|
(
|
|
|
|
Net gain on disposal of NECO
|
|
|
|
|
Net gain on disposal of Millennium Pipeline Company LLC
|
|
|
|
|
New operating model implementation costs
|
|
|
(
|
|
Release of St William Homes LLP deferred income
|
|
|
|
|
Net gain on disposal of St William Homes LLP
|
|
|
|
|
Environmental insurance recovery
|
|
|
|
|
(
|
|
|
|
|
Remeasurements – commodity contract derivatives
|
|
(
|
|
|
(
|
|
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Included within operating profit from continuing operations
|
(
|
|
|
|
Included within finance income and costs
|
|||
|
Remeasurements:
|
|||
|
Net gains/(losses) on financial assets at fair value through profit and loss
|
|
(
|
(
|
|
Net gains on financing derivatives
|
|
|
|
|
|
|
|
|
|
Included within share of post-tax results of joint ventures and associates
|
|||
|
Remeasurements:
|
|||
|
Net losses on financial instruments
|
(
|
(
|
(
|
|
Total included within profit before tax
|
(
|
|
|
|
Included within tax
|
|||
|
Exceptional items – movements arising on items not included in profit before tax:
|
|||
|
Deferred tax charge arising as a result of UK tax rate change
|
|
|
(
|
|
Tax on exceptional items
|
|
(
|
(
|
|
Tax on remeasurements
|
(
|
|
(
|
|
|
(
|
(
|
|
|
Total exceptional items and remeasurements after tax
|
(
|
|
(
|
|
Analysis of total exceptional items and remeasurements after tax
|
|||
|
Exceptional items after tax
|
(
|
|
(
|
|
Remeasurements after tax
|
(
|
(
|
|
|
Total exceptional items and remeasurements after tax
|
(
|
|
(
|
|
146
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
|
|
Financial Statements
|
|
147
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
148
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
|
|
Financial Statements
|
|
149
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
This note details the interest income generated by our financial assets and interest expense incurred on our financial liabilities, primarily our
financing portfolio (including our financing derivatives). It also includes the net interest on our pensions and other post-retirement assets.
|
|
2024
|
2023
|
2022
|
|||
|
Notes
|
£m
|
£m
|
£m
|
||
|
Finance income
|
|||||
|
Net interest income on pensions and other post-retirement benefit obligations
|
25
|
|
|
|
|
|
Interest income on financial instruments:
|
|||||
|
Bank deposits and other financial assets
|
|
|
|
||
|
Dividends received on equities held at fair value through other comprehensive income (FVOCI)
|
|
|
|
||
|
Net gains/(losses) on FVTPL financial assets
|
|
(
|
(
|
||
|
Other income
|
|
|
|
||
|
|
|
|
|||
|
Finance costs
|
|||||
|
Interest expense on financial liabilities held at amortised cost:
|
|||||
|
Bank loans and overdrafts
|
(
|
(
|
(
|
||
|
Other borrowings
1
|
(
|
(
|
(
|
||
|
Interest on derivatives
|
(
|
(
|
(
|
||
|
Unwinding of discount on provisions
|
26
|
(
|
(
|
(
|
|
|
Other interest
|
(
|
(
|
|
||
|
Derivatives designated as hedges for hedge accounting²
|
|
|
|
||
|
Derivatives not designated as hedges for hedge accounting²
|
(
|
|
|
||
|
Less: interest capitalised³
|
|
|
|
||
|
(
|
(
|
(
|
|||
|
Finance income
|
|
|
|
||
|
Finance costs
4
|
(
|
(
|
(
|
||
|
Net finance costs from continuing operations
|
(
|
(
|
(
|
|
150
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Tax is payable in the territories where we operate, mainly the UK and the US. This note gives further details of the total tax charge and tax
liabilities, including current and deferred tax. Current tax charge is the tax payable on this year’s taxable profits. Deferred tax is an accounting
adjustment to provide for tax that is expected to arise in the future due to differences in the accounting and tax bases.
|
|
|
|
Financial Statements
|
|
151
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Current tax:
|
|||
|
UK corporation tax at
25%
(
2023
:
19%
;
2022
:
19%
)
|
|
|
|
|
UK corporation tax adjustment in respect of prior years
|
(
|
|
(
|
|
|
|
|
|
|
Overseas corporation tax
|
|
|
|
|
Overseas corporation tax adjustment in respect of prior years
|
(
|
(
|
(
|
|
(
|
|
(
|
|
|
Total current tax from continuing operations
|
|
|
|
|
Deferred tax:
|
|||
|
UK deferred tax
|
|
|
|
|
UK deferred tax adjustment in respect of prior years
|
|
|
(
|
|
|
|
|
|
|
Overseas deferred tax
|
(
|
|
|
|
Overseas deferred tax adjustment in respect of prior years
|
|
|
|
|
|
|
|
|
|
Total deferred tax from continuing operations
|
|
|
|
|
Total tax charge from continuing operations
|
|
|
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Current tax:
|
|||
|
Share-based payments
|
(
|
(
|
|
|
Deferred tax:
|
|||
|
Investments at fair value through other comprehensive income
|
|
(
|
|
|
Cash flow hedges, cost of hedging and own credit reserve
|
|
(
|
(
|
|
Remeasurements of pension assets and post-retirement benefit obligations
|
(
|
(
|
|
|
Share-based payments
|
|
|
(
|
|
|
(
|
|
|
|
Total tax recognised in the statements of comprehensive income from continuing operations
|
|
(
|
|
|
Total tax relating to share-based payments recognised directly in equity from continuing operations
|
(
|
|
(
|
|
|
(
|
|
|
152
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Profit before tax from continuing operations
|
|
|
|
|
Profit before tax from continuing operations multiplied by UK corporation tax rate of
25%
(
2023
:
19%
;
2022
:
19%
)
|
|
|
|
|
Effect of:
|
|||
|
Adjustments in respect of prior years
1
|
(
|
|
(
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
Non-taxable income
2
|
(
|
(
|
(
|
|
Adjustment in respect of foreign tax rates
3
|
(
|
|
|
|
Deferred tax impact of change in UK tax rate
|
|
|
|
|
Adjustment in respect of post-tax profits of joint ventures and associates included within profit before tax
|
(
|
(
|
(
|
|
Other
4
|
(
|
(
|
(
|
|
Total tax charge from continuing operations
|
|
|
|
|
%
|
%
|
%
|
|
|
Effective tax rate – continuing operations
|
|
|
|
|
|
|
Financial Statements
|
|
153
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Regulatory
licences
£m
|
Accelerated
tax
depreciation
£m
|
Share-
based
payments
£m
|
Pensions
and other
post-
retirement
benefits
£m
|
Financial
instruments
£m
|
Other net
temporary
differences
1
£m
|
Total
£m
|
|
|
Deferred tax liabilities/(assets)
|
|||||||
|
At
1 April 2022
|
|
|
(
|
|
(
|
(
|
|
|
Exchange adjustments and other
2
|
|
|
(
|
|
|
(
|
|
|
Charged/(credited) to income statement
|
|
|
(
|
|
(
|
|
|
|
Charged/(credited) to other comprehensive income and equity
|
|
|
|
(
|
(
|
|
(
|
|
Disposals
|
|
|
|
|
|
|
|
|
At
1 April 2023
(as previously reported)
|
|
|
(
|
|
(
|
(
|
|
|
Impact of IAS 12 amendment
3
|
|
|
|
|
|
(
|
|
|
At
1 April 2023
(as restated)
|
|
|
(
|
|
(
|
(
|
|
|
Exchange adjustments and other
2
|
|
(
|
|
(
|
|
|
(
|
|
Charged/(credited) to income statement
|
|
|
(
|
|
|
(
|
|
|
(Credited)/charged to other comprehensive income and equity
|
|
|
|
(
|
|
|
|
|
Disposals
|
|
(
|
|
|
|
|
(
|
|
Reclassification to held for sale (note 10)
|
|
(
|
|
(
|
|
(
|
(
|
|
At
31 March 2024
|
|
|
(
|
|
(
|
(
|
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Capital losses
|
|
|
|
Trading losses
|
|
|
|
154
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
EPS is the amount of profit after tax attributable to each ordinary share. Basic EPS is calculated on profit after tax for the year attributable to equity
shareholders divided by the weighted average number of shares in issue during the year. Diluted EPS shows what the impact would be if all
outstanding share options were exercised and treated as ordinary shares at year end. The weighted average number of shares is increased by
additional shares issued as scrip dividends and reduced by shares repurchased by the Company during the year. The earnings per share
calculations are based on profit after tax attributable to equity shareholders of the Company which excludes non-controlling interests.
|
|
Earnings
|
EPS
|
Earnings
|
EPS
|
Earnings
|
EPS
|
|
|
2024
|
2024
|
2023
|
2023
|
2022
|
2022
|
|
|
£m
|
pence
|
£m
|
pence
|
£m
|
pence
|
|
|
Earnings from continuing operations
|
|
|
|
|
|
|
|
Earnings from discontinued operations
|
|
|
|
|
|
|
|
Total earnings
|
|
|
|
|
|
|
|
2024
|
2023
|
2022
|
||||
|
millions
|
millions
|
millions
|
||||
|
Weighted average number of ordinary shares – basic
|
|
|
|
|
Earnings
|
EPS
|
Earnings
|
EPS
|
Earnings
|
EPS
|
|
|
2024
|
2024
|
2023
|
2023
|
2022
|
2022
|
|
|
£m
|
pence
|
£m
|
pence
|
£m
|
pence
|
|
|
Earnings from continuing operations
|
|
|
|
|
|
|
|
Earnings from discontinued operations
|
|
|
|
|
|
|
|
Total earnings
|
|
|
|
|
|
|
|
2024
|
2023
|
2022
|
||||
|
millions
|
millions
|
millions
|
||||
|
Weighted average number of ordinary shares – diluted
|
|
|
|
|
2024
|
2023
|
2022
|
|
|
millions
|
millions
|
millions
|
|
|
Weighted average number of ordinary shares – basic
|
|
|
|
|
Effect of dilutive potential ordinary shares – employee share plans
|
|
|
|
|
Weighted average number of ordinary shares – diluted
|
|
|
|
|
|
|
Financial Statements
|
|
155
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|||||||||
|
Pence
per share
|
Cash
dividend
£m
|
Scrip
dividend
£m
|
Pence
per share
|
Cash
dividend
£m
|
Scrip
dividend
£m
|
Pence
per share
|
Cash
dividend
£m
|
Scrip
dividend
£m
|
|||
|
Interim dividend in respect of the current year
|
|
|
|
|
|
|
|
|
|
||
|
Final dividend in respect of the prior year
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|||
|
The results and cash flows of significant assets or businesses sold during the year are shown separately from our continuing operations, and
presented within discontinued operations in the income statement and cash flow statement. Assets and businesses are classified as held for sale
when their carrying amounts are expected to be recovered through sale rather than through continuing use. They only meet the held for sale
condition when the assets are ready for immediate sale in their present condition, management is committed to the sale and it is highly probable
that the sale will complete within one year. Depreciation ceases on assets and businesses when they are classified as held for sale and the
assets and businesses are impaired if the proceeds less sale costs fall short of the carrying value.
|
|
2024
|
2023
|
||||||
|
Total
assets
held for sale
£m
|
Total
liabilities
held for sale
£m
|
Net assets
held for sale
£m
|
Total
assets
held for sale
£m
|
Total
liabilities
held for sale
£m
|
Net assets
held for sale
£m
|
||
|
UK Electricity System Operator
|
|
(
|
(
|
|
|
|
|
|
Investment in GasT TopCo Limited
|
|
|
|
|
|
|
|
|
FAA option
|
|
|
|
|
(
|
(
|
|
|
RAA option
|
|
(
|
(
|
|
|
|
|
|
Net assets held for sale
|
|
(
|
|
|
(
|
|
|
|
£m
|
|
|
Intangible assets
|
|
|
Property, plant and equipment
|
|
|
Trade and other receivables
|
|
|
Pension asset
|
|
|
Cash and cash equivalents
|
|
|
Financing derivatives
|
|
|
Total assets
|
|
|
Borrowings
|
(
|
|
Other liabilities
|
(
|
|
Provision for UK electricity balancing costs
|
(
|
|
Total liabilities
|
(
|
|
Net liabilities
|
(
|
|
156
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Total
|
|||
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Discontinued operations
|
|||
|
Revenue
|
|
|
|
|
Other operating costs
|
|
(
|
(
|
|
Operating profit
|
|
|
|
|
Finance income
|
|
|
|
|
Finance costs
1
|
|
(
|
(
|
|
Profit before tax
|
|
|
|
|
Tax
2
|
(
|
(
|
(
|
|
Profit after tax from
discontinued operations
|
|
|
|
|
(Loss)/gain on disposal
|
(
|
|
|
|
Total profit after tax from
discontinued operations
|
|
|
|
|
|
|
Financial Statements
|
|
157
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Profit after tax from discontinued operations
|
|
|
|
|
Other comprehensive (loss)/income from discontinued operations
|
|||
|
Items from discontinued operations that will never be reclassified to profit or loss:
|
|||
|
Remeasurement (losses)/gains on pension assets and post-retirement benefit obligations
|
|
(
|
|
|
Net losses on financial liability designated at fair value through profit and loss attributable to changes in own credit risk
|
|
|
(
|
|
Tax on items that will never be reclassified to profit or loss
|
|
|
(
|
|
Total (losses)/gains from discontinued operations that will never be reclassified to profit or loss
|
|
(
|
|
|
Items from discontinued operations that may be reclassified subsequently to profit or loss:
|
|||
|
Net gains in respect of cash flow hedges
|
|
|
|
|
Net gains/(losses) in respect of cost of hedging
|
|
|
(
|
|
Net gains on investments in debt instruments measured at fair value through other comprehensive income
|
|
|
|
|
Tax on items that may be reclassified subsequently to profit or loss
|
(
|
(
|
|
|
Total gains/(losses) from discontinued operations that may be reclassified subsequently to profit or loss
|
|
|
(
|
|
Other comprehensive income/(loss) for the year, net of tax from discontinued operations
|
|
(
|
|
|
Total comprehensive income for the year from discontinued operations
|
|
|
|
|
158
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Goodwill represents the excess of what we paid to acquire businesses over the fair value of their net assets at the acquisition date. We assess
whether goodwill is recoverable by performing an impairment review annually or more frequently if events or changes in circumstances indicate
a potential impairment.
|
|
Total
£m
|
|
|
Net book value at 1 April 2022
|
|
|
Exchange adjustments
|
|
|
Net book value at 1 April 2023
|
|
|
Exchange adjustments
|
(
|
|
Net book value at 31 March 2024
|
|
|
2024
|
2023
|
|
|
CGU or group of CGUs
|
£m
|
£m
|
|
Goodwill:
|
||
|
National Grid Ventures – US
|
|
|
|
New England
|
|
|
|
New York
|
|
|
|
UK Electricity Distribution
1
|
|
|
|
Total goodwill
|
|
|
|
Indefinite-lived intangibles (regulatory licences related to UK Electricity Distribution):
|
||
|
West Midlands
|
|
|
|
East Midlands
|
|
|
|
South Wales
|
|
|
|
South West
|
|
|
|
Total indefinite-lived intangibles
|
|
|
|
|
|
Financial Statements
|
|
159
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
160
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Other intangible assets are the software assets controlled by us and the electricity distribution licences which provide us with the right to operate
and invest in the relevant network that operates as a monopoly in the licensed geographical area. The regulatory licences were acquired following
the Group’s acquisition of NGED.
|
|
Regulatory
licences
£m
|
Software
£m
|
Assets in the
course of
construction
£m
|
Total
£m
|
|
|
Cost at 1 April 2022
|
|
|
|
|
|
Exchange adjustments
|
|
|
|
|
|
Additions
|
|
|
|
|
|
Disposals
|
|
(
|
|
(
|
|
Reclassifications
1
|
|
|
(
|
|
|
Cost at 1 April 2023
|
|
|
|
|
|
Exchange adjustments
|
|
(
|
(
|
(
|
|
Additions
|
|
|
|
|
|
Disposals
|
|
(
|
|
(
|
|
Reclassifications¹
|
|
|
(
|
|
|
Reclassification to held for sale (note 10)
|
|
(
|
(
|
(
|
|
Cost at 31 March 2024
|
|
|
|
|
|
Accumulated amortisation at 1 April 2022
|
|
(
|
(
|
(
|
|
Exchange adjustments
|
|
(
|
|
(
|
|
Amortisation charge for the year
|
|
(
|
|
(
|
|
Accumulated amortisation of disposals
|
|
|
|
|
|
Reclassifications¹
|
|
(
|
|
(
|
|
Accumulated amortisation at 1 April 2023
|
|
(
|
(
|
(
|
|
Exchange adjustments
|
|
|
|
|
|
Amortisation charge for the year
|
|
(
|
|
(
|
|
Accumulated amortisation of disposals
|
|
|
|
|
|
Reclassifications¹
|
|
(
|
|
(
|
|
Reclassification to held for sale (note 10)
|
|
|
|
|
|
Accumulated amortisation at 31 March 2024
|
|
(
|
(
|
(
|
|
Net book value at 31 March 2024²
|
|
|
|
|
|
Net book value at 31 March 2023
|
|
|
|
|
|
|
|
Financial Statements
|
|
161
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Years
|
||||
|
Software
|
|
|||
|
Regulatory licences
|
Indefinite
|
|
Property, plant and equipment are the physical assets controlled by us. The Group’s interest comprises legally protected statutory or contractual
|
|
162
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Land and
buildings
£m
|
Plant and
machinery
£m
|
Assets
in the
course of
construction
£m
|
Motor
vehicles
and office
equipment
£m
|
Total
£m
|
|
|
Cost at 1 April 2022
|
|
|
|
|
|
|
Exchange adjustments
|
|
|
|
|
|
|
Additions
|
|
|
|
|
|
|
Disposals
|
(
|
(
|
(
|
(
|
(
|
|
Adjustment for change in discount rate on decommissioning provisions (note 26)
|
|
(
|
(
|
|
(
|
|
Reclassifications
1
|
|
|
(
|
|
(
|
|
Cost at 1 April 2023
|
|
|
|
|
|
|
Exchange adjustments
|
(
|
(
|
(
|
(
|
(
|
|
Additions
|
|
|
|
|
|
|
Disposals
|
(
|
(
|
(
|
(
|
(
|
|
Adjustment for change in discount rate on decommissioning provisions (note 26)
|
|
|
|
|
|
|
Reclassifications
1
|
|
|
(
|
|
(
|
|
Reclassification to held for sale (note 10)
|
(
|
(
|
(
|
(
|
(
|
|
Cost at 31 March 2024
|
|
|
|
|
|
|
Accumulated depreciation at
1 April 2022
|
(
|
(
|
(
|
(
|
(
|
|
Exchange adjustments
|
(
|
(
|
|
(
|
(
|
|
Depreciation charge for the year²
|
(
|
(
|
(
|
(
|
(
|
|
Disposals
|
|
|
|
|
|
|
Reclassifications
1
|
|
|
|
(
|
|
|
Accumulated depreciation at 1 April 2023
|
(
|
(
|
(
|
(
|
(
|
|
Exchange adjustments
|
|
|
|
|
|
|
Depreciation charge for the year²
|
(
|
(
|
(
|
(
|
(
|
|
Disposals
|
|
|
|
|
|
|
Reclassifications
1
|
(
|
|
|
(
|
|
|
Reclassification to held for sale (note 10)
|
|
|
|
|
|
|
Accumulated depreciation at 31 March 2024
|
(
|
(
|
(
|
(
|
(
|
|
Net book value at 31 March 2024
|
|
|
|
|
|
|
Net book value at 31 March 2023
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
163
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Years
|
|||
|
UK
|
US
|
Weighted
average
remaining
UEL
|
|
|
Freehold and leasehold buildings
|
up to
|
up to
|
|
|
Plant and machinery:
|
|||
|
Electricity transmission plant and wires
|
up to
|
|
|
|
Electricity distribution plant
|
|
|
|
|
Electricity generation plant
|
n/a
|
|
|
|
Interconnector plant and other
|
|
|
|
|
Gas plant – mains, services and regulating equipment
|
n/a
|
|
|
|
Gas plant – storage
|
|
|
|
|
Gas plant – meters
|
n/a
|
|
|
|
Motor vehicles and office equipment
|
up to
|
up to
|
|
|
Increase in depreciation expense for
the year ended
31 March 2024
|
Increase in depreciation expense for
the year ended
31 March 2023
|
||||
|
New York
£m
|
New England
£m
|
New York
£m
|
New England
£m
|
||
|
UELs limited to 2050
|
|
|
|
|
|
|
UELs limited to 2060
|
|
|
|
|
|
|
UELs limited to 2070
|
|
|
|
|
|
|
164
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Land and
buildings
£m
|
Plant and
machinery
£m
|
Assets
in the
course of
construction
£m
|
Motor
vehicles
and office
equipment
£m
|
Total
£m
|
|
|
Net book value at 1 April 2022
|
|
|
|
|
|
|
Exchange adjustments
|
|
|
|
|
|
|
Additions
|
|
|
|
|
|
|
Disposals
|
(
|
|
|
(
|
(
|
|
Depreciation charge for the year
|
(
|
(
|
|
(
|
(
|
|
Net book value at 31 March 2023
|
|
|
|
|
|
|
Exchange adjustments
|
(
|
(
|
|
(
|
(
|
|
Additions
|
|
|
|
|
|
|
Reclassifications
|
|
(
|
|
|
|
|
Reclassification to held for sale (note 10)
|
(
|
|
|
(
|
(
|
|
Disposals
|
(
|
|
|
(
|
(
|
|
Depreciation charge for the year
|
(
|
(
|
|
(
|
(
|
|
Net book value at 31 March 2024
|
|
|
|
|
|
|
2024
|
2023
|
||||
|
£m
|
£m
|
||||
|
Included within net finance income and costs:
|
|||||
|
Interest expense on lease liabilities
|
(
|
(
|
|||
|
Included within revenue:
|
|||||
|
Lease income
1
|
|
|
|||
|
Included within operating expenses:
|
|||||
|
Expense relating to short-term and low-value leases
|
(
|
(
|
|
Other non-current assets include assets that do not fall into specific non-current asset categories (such as goodwill or property, plant and
equipment) where the benefit to be received from the asset is not due to be received until after 31 March 2025.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Other receivables¹
|
|
|
|
Prepayments²
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
165
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
The Group holds a range of financial and other investments. These investments include short-term money market funds, quoted investments
in equities or bonds of other companies, investments in our venture capital portfolio (National Grid Partners), bank deposits with a maturity of
greater than three months, and investments that cannot be readily used in operations, principally collateral deposited in relation to derivatives.
|
|
166
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Non-current
|
||
|
FVOCI debt and other investments
|
|
|
|
FVTPL investments
|
|
|
|
|
|
|
|
Current
|
||
|
FVTPL investments
|
|
|
|
Financial assets at amortised cost
|
|
|
|
|
|
|
|
|
|
|
|
Financial and other investments include the following:
|
||
|
Investments in short-term money market funds
|
|
|
|
Investments held by National Grid Partners
|
|
|
|
Investments in Sunrun
|
|
|
|
Balances that are restricted or not readily used in operations:
|
||
|
Collateral
1
|
|
|
|
Insurance company and non-qualified plan investments
|
|
|
|
Cash surrender value of life insurance policies
|
|
|
|
Other investments
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
167
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Investments in joint ventures and associates represent businesses we do not control but over which we exercise joint control or significant
influence. They are accounted for using the equity method. A joint venture is an arrangement established to engage in economic activity, which
the Group jointly controls with other parties and has rights to a share of the net assets of the arrangement. An associate is an entity which is
neither a subsidiary nor a joint venture, but over which the Group has significant influence.
|
|
2024
|
2023
|
||||||
|
Associates
£m
|
Joint
ventures
£m
|
Total
£m
|
Associates
£m
|
Joint
ventures
£m
|
Total
£m
|
||
|
Share of net assets at 1 April
|
|
|
|
|
|
|
|
|
Exchange adjustments
|
(
|
(
|
(
|
|
|
|
|
|
Additions
|
|
|
|
|
|
|
|
|
Share of post-tax results for the year
|
|
|
|
|
|
|
|
|
Share of other comprehensive income of associates, net of tax
|
|
|
|
|
|
|
|
|
Dividends received
|
(
|
(
|
(
|
(
|
(
|
(
|
|
|
Disposals¹
|
(
|
|
(
|
(
|
|
(
|
|
|
Other movements²
|
|
(
|
(
|
|
(
|
(
|
|
|
Share of net assets at 31 March
|
|
|
|
|
|
|
|
|
Joint venture
1
|
% stake
|
||
|
BritNed Development Limited
|
|
BritNed is a joint venture with the Dutch transmission system operator, TenneT, and operates the subsea electricity
interconnector between Great Britain and the Netherlands, commissioned in 2011.
|
|
|
Nemo Link Limited
|
|
Nemo is a joint venture with the Belgian transmission operator, Elia, and is a subsea electricity interconnector between
Great Britain and Belgium, which became operational on 31 January 2019.
|
|
|
Emerald Energy Venture, LLC
|
|
Emerald is a joint venture with Washington State Investment Board which builds and operates wind and solar assets.
Emerald was acquired on 11 July 2019.
|
|
|
Community Offshore Wind, LLC
|
|
Community Offshore Wind is a joint venture with RWE Renewables. The joint venture owns
northeastern US and is developing an offshore wind project which will play a key role in supplying clean energy to
customers in New York.
|
|
168
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
BritNed Development
Limited
|
Nemo Link
Limited
|
Emerald Energy
Venture LLC
|
Community Offshore
Wind LLC
|
||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||
|
Statement of financial position
|
|||||||||||
|
Non-current assets
|
|
|
|
|
|
|
|
|
|||
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|||
|
All other current assets
|
|
|
|
|
|
|
|
|
|||
|
Non-current liabilities
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Non-current financial liabilities
|
(
|
(
|
(
|
(
|
(
|
(
|
|
|
|||
|
Current liabilities
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Current financial liabilities
|
|
|
|
|
(
|
(
|
|
|
|||
|
Net assets
|
|
|
|
|
|
|
|
|
|||
|
Group’s ownership interest
in joint venture/associate
|
|
|
|
|
|
|
|
|
|||
|
Group adjustment: elimination
of profits on sales to joint venture
|
|
|
|
|
(
|
(
|
|
|
|||
|
Carrying amount of the Group’s investment
|
|
|
|
|
|
|
|
|
|||
|
BritNed Development
Limited
|
Nemo Link
Limited
|
Emerald Energy
Venture LLC
|
Community Offshore
Wind LLC
|
||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||
|
Income statement
|
|||||||||||
|
Revenue
|
|
|
|
|
|
|
|
|
|||
|
Depreciation and amortisation
|
(
|
(
|
(
|
(
|
(
|
(
|
|
|
|||
|
Other (costs)/income
|
(
|
|
(
|
(
|
(
|
(
|
|
|
|||
|
Operating profit/(loss)
|
|
|
|
|
(
|
|
|
|
|||
|
Net interest expense
|
(
|
(
|
|
(
|
(
|
(
|
|
|
|||
|
Profit/(loss) before tax
|
|
|
|
|
(
|
(
|
|
|
|||
|
Income tax expense
|
(
|
(
|
(
|
(
|
|
|
|
|
|||
|
Profit/(loss) for the year
|
|
|
|
|
(
|
(
|
|
|
|||
|
Group’s share of profit/(loss)
|
|
|
|
|
(
|
(
|
|
|
|||
|
Group adjustment: tax credit
|
|
|
|
|
|
|
|
|
|||
|
Group’s share of post-tax results
for the year
|
|
|
|
|
(
|
(
|
|
|
|||
|
|
|
Financial Statements
|
|
169
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Derivatives are financial instruments that derive their value from the price of an underlying item such as interest rates, foreign exchange rates,
credit spreads, commodities, equities or other indices. In accordance with policies approved by the Board, derivatives are transacted generally
to manage exposures to fluctuations in interest rates, foreign exchange rates and commodity prices. Our derivatives balances comprise two
broad categories:
•
financing derivatives – these are used to manage our exposure to interest rates and foreign exchange rates. Specifically, we use these
derivatives to manage our financing portfolio, holdings in foreign operations and contractual operational cash flows; and
•
commodity contract derivatives – these are used to manage our US customers’ exposure to price and supply risks. Some forward contracts
for the purchase of commodities meet the definition of derivatives. We also enter into derivative financial instruments linked to commodity
prices, including options and swaps, which are used to manage market price volatility.
|
|
2024
|
2023
|
||||||
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
||
|
Current
|
|
(
|
(
|
|
(
|
(
|
|
|
Non-current
|
|
(
|
(
|
|
(
|
(
|
|
|
|
(
|
(
|
|
(
|
(
|
||
|
Financing derivatives
|
|
(
|
(
|
|
(
|
(
|
|
|
Commodity contract derivatives
|
|
(
|
(
|
|
(
|
(
|
|
|
|
(
|
(
|
|
(
|
(
|
||
|
2024
|
2023
|
||||||
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
||
|
Interest rate swaps
|
|
(
|
(
|
|
(
|
(
|
|
|
Cross-currency interest rate swaps
|
|
(
|
(
|
|
(
|
(
|
|
|
Foreign exchange forward contracts¹
|
|
(
|
(
|
|
(
|
|
|
|
Inflation-linked swaps
|
|
(
|
(
|
|
(
|
(
|
|
|
|
(
|
(
|
|
(
|
(
|
||
|
170
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||||
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
||
|
Current
|
|||||||
|
Less than 1 year
|
|
(
|
(
|
|
(
|
|
|
|
|
(
|
(
|
|
(
|
|
||
|
Non-current
|
|||||||
|
In 1 to 2 years
|
|
(
|
(
|
|
(
|
(
|
|
|
In 2 to 3 years
|
|
(
|
(
|
|
(
|
(
|
|
|
In 3 to 4 years
|
|
(
|
(
|
|
(
|
|
|
|
In 4 to 5 years
|
|
(
|
(
|
|
(
|
(
|
|
|
More than 5 years
|
|
(
|
(
|
|
(
|
(
|
|
|
|
(
|
(
|
|
(
|
(
|
||
|
|
(
|
(
|
|
(
|
(
|
||
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Interest rate swaps
|
(
|
(
|
|
Cross-currency interest rate swaps
|
(
|
(
|
|
Foreign exchange forward contracts
|
(
|
(
|
|
Inflation-linked swaps
|
(
|
(
|
|
(
|
(
|
|
2024
|
2023
|
||||||
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
||
|
Commodity purchase contracts accounted for as derivative contracts
|
|||||||
|
Forward purchases of gas
|
|
(
|
(
|
|
(
|
(
|
|
|
Derivative financial instruments linked to commodity prices
|
|||||||
|
Electricity capacity
|
|
|
|
|
|
|
|
|
Electricity swaps
|
|
(
|
(
|
|
(
|
(
|
|
|
Electricity options
|
|
(
|
(
|
|
(
|
(
|
|
|
Gas swaps
|
|
(
|
(
|
|
(
|
(
|
|
|
Gas options
|
|
(
|
(
|
|
(
|
(
|
|
|
|
(
|
(
|
|
(
|
(
|
||
|
|
|
Financial Statements
|
|
171
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||||
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
||
|
Current
|
|||||||
|
Less than one year
|
|
(
|
(
|
|
(
|
(
|
|
|
|
(
|
(
|
|
(
|
(
|
||
|
Non-current
|
|||||||
|
In 1 to 2 years
|
|
(
|
(
|
|
(
|
(
|
|
|
In 2 to 3 years
|
|
(
|
|
|
(
|
(
|
|
|
In 3 to 4 years
|
|
|
|
|
(
|
(
|
|
|
|
(
|
(
|
|
(
|
(
|
||
|
|
(
|
(
|
|
(
|
(
|
||
|
2024
|
2023
|
|
|
Forward purchases of gas
1
|
|
|
|
Electricity swaps
|
|
|
|
Gas swaps
|
|
|
|
Gas options
|
|
|
|
Inventories represent assets that we intend to use in order to generate revenue in the short term, either by selling the asset itself (for example fuel
stocks) or by using it to fulfil a service to a customer or to maintain our network (consumables).
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Fuel stocks
|
|
|
|
Raw materials and consumables
|
|
|
|
Current intangible assets – emission allowances
|
|
|
|
|
|
|
172
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Trade and other receivables include amounts which are due from our customers for services we have provided, accrued income which has not
yet been billed, prepayments, contract assets where certain milestones are required to be fulfilled and other receivables that are expected to be
settled within 12 months.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Trade receivables
|
|
|
|
Accrued income
|
|
|
|
Provision for impairment of receivables and accrued income
|
(
|
(
|
|
Trade receivables and accrued income, net
|
|
|
|
Prepayments¹
|
|
|
|
Contract assets
|
|
|
|
Other receivables
|
|
|
|
|
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
At 1 April
|
|
|
|
Exchange adjustments
|
(
|
|
|
Charge for the year, net of recoveries
|
|
|
|
Uncollectible amounts written off
|
(
|
(
|
|
Reclassification to held for sale (note 10)
|
(
|
|
|
At 31 March
|
|
|
|
As at 31 March 2024
|
As at 31 March 2023
|
||||||
|
UK
|
US
|
Total
|
UK
|
US
|
Total
|
||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Trade receivables
|
|
|
|
|
|
|
|
|
Accrued income
|
|
|
|
|
|
|
|
|
Provision for impairment of receivables and accrued income
|
(
|
(
|
(
|
(
|
(
|
(
|
|
|
|
|
|
|
|
|
||
|
|
|
Financial Statements
|
|
173
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||
|
%
|
£m
|
%
|
£m
|
||
|
Accrued income
|
|
|
|
|
|
|
0 – 30 days past due
|
|
|
|
|
|
|
30 – 60 days past due
|
|
|
|
|
|
|
60 – 90 days past due
|
|
|
|
|
|
|
3 – 6 months past due
|
|
|
|
|
|
|
6 – 12 months past due
|
|
|
|
|
|
|
Over 12 months past due
|
|
|
|
|
|
|
|
|
||||
|
Cash and cash equivalents include cash balances, together with short-term investments with an original maturity of less than three months that
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Cash at bank
|
|
|
|
Short-term deposits
|
|
|
|
Cash and cash equivalents
|
|
|
|
174
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
We borrow money primarily in the form of bonds and bank loans. These are for a fixed term and may have fixed or floating interest rates or are
linked to inflation indices. We use derivatives to manage risks associated with interest rates, inflation rates and foreign exchange. Lease liabilities
are also included within borrowings.
Our price controls and rate plans lead us to fund our networks within a certain ratio of debt to equity or regulatory asset value and, as a result,
we have issued a significant amount of debt. As we continue to invest in our networks, the value of debt is expected to increase over time.
To maintain a strong balance sheet and to allow us to access capital markets at commercially acceptable interest rates, we balance the amount
of debt we issue with the value of our assets, and we take account of certain other metrics used by credit rating agencies.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Current
|
||
|
Bank loans
|
|
|
|
Bonds
|
|
|
|
Commercial paper
|
|
|
|
Lease liabilities
|
|
|
|
|
|
|
|
Non-current
|
||
|
Bank loans
|
|
|
|
Bonds
|
|
|
|
Lease liabilities
|
|
|
|
|
|
|
|
Total borrowings
|
|
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Less than 1 year
|
|
|
|
In 1 to 2 years
|
|
|
|
In 2 to 3 years
|
|
|
|
In 3 to 4 years
|
|
|
|
In 4 to 5 years
|
|
|
|
More than 5 years:
|
||
|
By instalments
|
|
|
|
Other than by instalments
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
175
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Gross lease liabilities are repayable as follows:
|
||
|
Less than 1 year
|
|
|
|
1 to 5 years
|
|
|
|
More than 5 years
|
|
|
|
|
|
|
|
Less: finance charges allocated to future periods
|
(
|
(
|
|
|
|
|
|
The present value of lease liabilities are as follows:
|
||
|
Less than 1 year
|
|
|
|
1 to 5 years
|
|
|
|
More than 5 years
|
|
|
|
|
|
|
Trade and other payables include amounts owed to suppliers, tax authorities and other parties which are due to be settled within 12 months.
The total also includes deferred amounts, some of which represent monies received from customers but for which we have not yet delivered
the associated service. These amounts are recognised as revenue when the service is provided.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Trade payables
|
|
|
|
Deferred payables
|
|
|
|
Customer contributions
1
|
|
|
|
Social security and other taxes
|
|
|
|
Contingent consideration
|
|
|
|
Other payables²
|
|
|
|
|
|
|
176
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Contract liabilities primarily relate to the advance consideration received from customers for construction contracts, mainly in relation to
connections, for which revenue is recognised over the life of the asset.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Current
|
|
|
|
Non-current
|
|
|
|
|
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
As at 1 April
|
|
|
|
Exchange adjustments
|
(
|
|
|
Revenue recognised that was included in the contract liability balance at the beginning of the period
|
(
|
(
|
|
Increases due to cash received, excluding amounts recognised as revenue during the period
|
|
|
|
At 31 March
|
|
|
|
Other non-current liabilities include deferred income and customer contributions which will not be recognised as income until after 31 March
2025
. It also includes contingent consideration and other payables that are not due until after that date.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Deferred income
|
|
|
|
Customer contributions
1
|
|
|
|
Other payables²
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
177
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
All of our employees are eligible to participate in a pension plan. We have defined contribution (DC) and defined benefit (DB) pension plans in
the UK and the US. In the US, we also provide healthcare and life insurance benefits to eligible employees, post-retirement. The fair value of
associated plan assets and present value of DB obligations are updated annually in accordance with IAS 19 ‘Employee Benefits’. We separately
present our UK and US pension plans to show the geographical split. Below we provide a more detailed analysis of the amounts recorded in the
primary financial statements and the actuarial assumptions used to value the DB obligations.
|
|
178
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
UK pensions
|
US pensions
|
US other post-retirement benefits
|
|||||||||
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
|||
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|||
|
Discount rate – past service
|
|
|
|
|
|
|
|
|
|
||
|
Discount rate – future service
|
|
|
|
|
|
|
|
|
|
||
|
Rate of increase in RPI – past service
|
|
|
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||
|
Rate of increase in RPI – future service
|
|
|
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||
|
Salary increases
|
|
|
|
|
|
|
|
|
|
||
|
Initial healthcare cost trend rate
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
|
|
|
||
|
Ultimate healthcare cost trend rate
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
|
|
|
||
|
|
|
Financial Statements
|
|
179
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
UK pensions
|
US pensions
|
||||||
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
||
|
years
|
years
|
years
|
years
|
years
|
years
|
||
|
Assumed life expectations for a retiree age 65
|
|||||||
|
Males
|
|
|
|
|
|
|
|
|
Females
|
|
|
|
|
|
|
|
|
In 20 years:
|
|||||||
|
Males
|
|
|
|
|
|
|
|
|
Females
|
|
|
|
|
|
|
|
|
UK pensions
|
US pensions
|
US other
post-retirement benefits
|
||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
|||
|
%
|
%
|
%
|
%
|
%
|
%
|
|||
|
Active members
|
|
|
|
|
|
|
||
|
Deferred members
|
|
|
|
|
—
|
—
|
||
|
Pensioner members
|
|
|
|
|
|
|
||
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Present value of funded obligations
|
(
|
(
|
|
Fair value of plan assets
|
|
|
|
|
|
|
|
Present value of unfunded obligations
|
(
|
(
|
|
Other post-employment liabilities
|
(
|
(
|
|
Net defined benefit asset
|
|
|
|
Represented by:
|
||
|
Liabilities
|
(
|
(
|
|
Assets
|
|
|
|
|
|
|
UK pensions
|
US pensions
|
US other
post-retirement benefits
|
Total
|
||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||
|
Present value of funded obligations
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Fair value of plan assets
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||
|
Present value of unfunded obligations
|
(
|
(
|
(
|
(
|
|
|
(
|
(
|
|||
|
Other post-employment liabilities
|
|
|
|
|
(
|
(
|
(
|
(
|
|||
|
Net defined benefit asset
|
|
|
|
|
|
|
|
|
|||
|
Represented by:
|
|||||||||||
|
Liabilities
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Assets
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||
|
180
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Included within operating costs
|
|||
|
Administration costs
|
|
|
|
|
Included within payroll costs
|
|||
|
Defined benefit plan costs:
|
|||
|
Current service cost
|
|
|
|
|
Past service cost – augmentations and redundancies
|
|
|
|
|
Gains on settlement
|
(
|
(
|
|
|
|
|
|
|
|
Included within finance income and costs
|
|||
|
Net interest income
|
(
|
(
|
(
|
|
Total included in income statement
1
|
|
|
|
|
Remeasurement (losses)/gains of pension assets and post-retirement benefit obligations
|
(
|
(
|
|
|
Exchange adjustments
|
(
|
|
|
|
Total included in the statement of other comprehensive income²
|
(
|
(
|
|
|
UK pensions
|
US pensions
|
US other post-retirement benefits
|
|||||||||
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
2024
|
2023
|
2022
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Included within operating costs
|
|||||||||||
|
Administration costs
|
|
|
|
|
|
|
|
|
|
||
|
Included within payroll costs
|
|||||||||||
|
Defined benefit plan costs:
|
|||||||||||
|
Current service cost
|
|
|
|
|
|
|
|
|
|
||
|
Past service cost – augmentations
and redundancies
|
|
|
|
|
|
|
|
|
|
||
|
Gains on settlement
|
|
|
|
(
|
(
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|||
|
Included within finance income and costs
|
|||||||||||
|
Net interest (income)/cost
|
(
|
(
|
(
|
(
|
(
|
|
(
|
|
|
||
|
Total included in income statement
|
(
|
|
|
|
|
|
|
|
|
||
|
Remeasurement (losses)/gains of pension assets
and post-retirement benefit obligations
|
(
|
(
|
|
|
(
|
|
|
|
|
||
|
Exchange adjustments
|
|
|
|
(
|
|
|
(
|
|
(
|
||
|
Total included in the statement of other
comprehensive income
|
(
|
(
|
|
|
(
|
|
|
|
|
||
|
|
|
Financial Statements
|
|
181
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
UK pensions
|
US pensions
|
US other
post-retirement benefits
|
Total
|
||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||
|
Opening net defined benefit asset
|
|
|
|
|
|
|
|
|
|||
|
Income/(cost) recognised in the income statement
(including discontinued operations)
|
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Remeasurement and foreign exchange effects recognised
in the statement of other comprehensive income
|
(
|
(
|
|
(
|
|
|
(
|
(
|
|||
|
Employer contributions
|
|
|
|
|
|
|
|
|
|||
|
Other movements
|
|
|
|
|
(
|
(
|
(
|
(
|
|||
|
Reclassification to held for sale (note 10)
|
(
|
|
|
|
|
|
(
|
|
|||
|
Closing net defined benefit asset
|
|
|
|
|
|
|
|
|
|||
|
UK pensions
|
US pensions
|
US other
post-retirement benefits
|
Total
|
||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||
|
Opening defined benefit obligations
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Current service cost
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Interest cost
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Actuarial (losses)/gains – experience
|
(
|
(
|
(
|
(
|
|
|
|
(
|
|||
|
Actuarial gains/(losses) – demographic assumptions
|
|
|
|
|
(
|
|
|
|
|||
|
Actuarial gains/(losses) – financial assumptions
|
|
|
|
|
(
|
|
|
|
|||
|
Past service cost – augmentations and redundancies
|
(
|
(
|
|
|
|
|
(
|
(
|
|||
|
Liabilities extinguished on settlements
|
|
|
|
|
|
|
|
|
|||
|
Medicare subsidy received
|
|
|
|
|
(
|
(
|
(
|
(
|
|||
|
Employee contributions
|
(
|
(
|
|
|
|
|
(
|
(
|
|||
|
Benefits paid
|
|
|
|
|
|
|
|
|
|||
|
Exchange adjustments
|
|
|
|
(
|
|
(
|
|
(
|
|||
|
Reclassification from other post-employment liabilities
|
|
|
|
|
(
|
|
(
|
|
|||
|
Reclassification to held for sale (note 10)
|
|
(
|
|
|
|
|
|
(
|
|||
|
Closing defined benefit obligations
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
UK pensions
|
US pensions
|
US other
post-retirement benefits
|
Total
|
||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||
|
Opening fair value of plan assets
|
|
|
|
|
|
|
|
|
|||
|
Interest income
|
|
|
|
|
|
|
|
|
|||
|
Return on plan assets (less than)/in excess of interest
|
(
|
(
|
(
|
(
|
|
(
|
(
|
(
|
|||
|
Administration costs
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Assets distributed on settlements
|
|
|
(
|
(
|
|
|
(
|
(
|
|||
|
Employer contributions
|
|
|
|
|
|
|
|
|
|||
|
Employee contributions
|
|
|
|
|
|
|
|
|
|||
|
Benefits paid
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|||
|
Exchange adjustments
|
|
|
(
|
|
(
|
|
(
|
|
|||
|
Reclassification to held for sale (note 10)
|
(
|
|
|
|
|
|
(
|
|
|||
|
Closing fair value of plan assets
|
|
|
|
|
|
|
|
|
|||
|
Actual return on plan assets
|
(
|
(
|
|
(
|
|
(
|
|
(
|
|||
|
Expected contributions to plans
in the following year
|
|
|
|
|
|
|
|
|
|||
|
182
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023¹
|
2022¹
|
|||||||||
|
Quoted
|
Unquoted
|
Total
|
Quoted
|
Unquoted
|
Total
|
Quoted
|
Unquoted
|
Total
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Equities
|
|
|
|
|
|
|
|
|
|
||
|
Corporate bonds
|
|
|
|
|
|
|
|
|
|
||
|
Government securities and liability-
driven investments
|
|
|
|
|
|
|
|
|
|
||
|
Property
|
|
|
|
|
|
|
|
|
|
||
|
Diversified alternatives
|
|
|
|
|
|
|
|
|
|
||
|
Buy-in/bulk annuity policies
|
|
|
|
|
|
|
|
|
|
||
|
Longevity swap
|
|
(
|
(
|
|
(
|
(
|
|
(
|
(
|
||
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||
|
Other (including net current assets and liabilities)
|
|
(
|
(
|
|
(
|
|
|
(
|
|
||
|
|
|
|
|
|
|
|
|
|
|||
|
2024
|
2023¹
|
2022¹
|
|||||||||
|
Quoted
|
Unquoted
|
Total
|
Quoted
|
Unquoted
|
Total
|
Quoted
|
Unquoted
|
Total
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Equities
|
|
|
|
|
|
|
|
|
|
||
|
Corporate bonds
|
|
|
|
|
|
|
|
|
|
||
|
Government securities
|
|
|
|
|
|
|
|
|
|
||
|
Property
|
|
|
|
|
|
|
|
|
|
||
|
Diversified alternatives
|
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
||
|
Other (including net current assets and liabilities)
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|||
|
2024
|
2023
|
2022
|
|||||||||
|
Quoted
|
Unquoted
|
Total
|
Quoted
|
Unquoted
|
Total
|
Quoted
|
Unquoted
|
Total
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Equities
|
|
|
|
|
|
|
|
|
|
||
|
Corporate bonds
|
|
|
|
|
|
|
|
|
|
||
|
Government securities
|
|
|
|
|
|
|
|
|
|
||
|
Diversified alternatives
|
|
|
|
|
|
|
|
|
|
||
|
Other
1
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Financial Statements
|
|
183
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Main risks
|
Description and mitigation
|
|
Investment risk
|
The plans invest in a variety of asset classes, with actual returns likely to differ from the underlying discount rate adopted,
impacting on the funding position of the plan through the net balance sheet asset or liability. Each plan seeks to balance the
level of investment return required with the risk that it can afford to take, to design the most appropriate investment portfolio.
|
|
Changes in bond yields
|
Liabilities will fluctuate as yields change. Volatility of the net balance sheet asset or liability is controlled through liability-
matching strategies. The investment strategies allow for the use of synthetic as well as physical assets to be used to hedge
interest rate risk.
|
|
Inflation risk
|
Changes in inflation will affect current and future pensions but are partially mitigated through investing in inflation-matching
assets and hedging instruments as well as bulk annuity buy-in policies. The investment strategies allow for the use of
synthetic as well as physical assets to be used to hedge inflation risk.
|
|
Member longevity
|
Improvements in life expectancy will lead to pension payments being paid for longer than expected and benefits ultimately
being more expensive. This risk has been partly mitigated by scheme investment transactions including a longevity insurance
contract (longevity swap) for NGEG of ESPS and two buy-in policies for Section A of NGUKPS.
|
|
Counterparty risk
|
This is managed by having a diverse range of counterparties and through having a strong collateralisation process (including
for the longevity swap held by NGEG of ESPS). Measurement and management of counterparty risk is delegated to the
relevant investment managers. For our bulk annuity policies, various termination provisions were introduced in the contracts,
managing our exposure to counterparty risk. The insurers’ operational performance and financial strength are monitored on
a regular basis.
|
|
Default risk
|
Debt investments are predominantly made in regulated markets in assets considered to be of investment grade. Where
investments are made either in non-investment grade assets or outside of regulated markets, investment levels are kept
to prudent levels and subject to agreed ranges, to control the risk.
|
|
Liquidity risk
|
The pension plans hold sufficient cash to meet benefit requirements, with other investments being held in liquid or realisable
assets to meet unexpected cash flow requirements. These could include collateral calls relating to the plans’ liability-
matching assets which could result from extreme market movements. Should the plans not have sufficient liquidity to meet
cash flow requirements, they could be forced to take sub-optimal investment decisions such as selling assets at a reduced
price. The plans do not borrow money, or act as guarantor, to provide liquidity to other parties (unless it is temporary).
|
|
Currency risk
|
Fluctuations in the value of foreign denominated assets due to exposure to currency exchange rates are managed through
currency hedging overlay and currency hedging carried out by some of the investment managers.
|
|
UK pensions
|
US pensions
|
US other post-
retirement benefits
|
|
|
%
|
%
|
%
|
|
|
Return-seeking assets
|
|
|
|
|
Liability-matching assets
|
|
|
|
|
184
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Provisions are recognised where a legal or constructive obligation exists at the reporting date, as a result of a past event, where the outflow
|
|
Environmental
£m
|
Decommissioning
£m
|
Other
£m
|
Total
provisions
£m
|
|
|
At 1 April 2022
|
|
|
|
|
|
Exchange adjustments
|
|
|
|
|
|
Additions
|
|
|
|
|
|
Unused amounts reversed
|
(
|
(
|
(
|
(
|
|
Adjustment for change in discount rate¹
|
(
|
(
|
|
(
|
|
Unwinding of discount
|
|
|
|
|
|
Utilised
|
(
|
(
|
(
|
(
|
|
At 31 March 2023
|
|
|
|
|
|
Exchange adjustments
|
(
|
(
|
(
|
(
|
|
Additions²
|
|
|
|
|
|
Unused amounts reversed
|
(
|
(
|
(
|
(
|
|
Adjustment for change in discount rate
|
|
|
|
|
|
Unwinding of discount
|
|
|
|
|
|
Utilised
|
(
|
(
|
(
|
(
|
|
Reclassification to held for sale (note 10)
|
|
|
(
|
(
|
|
At 31 March 2024
|
|
|
|
|
|
2024
|
2023
|
||
|
£m
|
£m
|
||
|
Current
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
185
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||||||||
|
Discounted
£m
|
Real
undiscounted
£m
|
Real
discount
rate
|
Discounted
£m
|
Real
undiscounted
£m
|
Real
discount
rate
|
||||||
|
UK sites
|
|
|
|
|
|
|
|||||
|
US sites
|
|
|
|
|
|
|
|||||
|
|
|
|
|
||||||||
|
186
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Ordinary share capital represents the total number of shares issued which are publicly traded. We also disclose the number of treasury shares
the Company holds, which are shares that the Company has bought itself, predominantly to actively manage scrip issuances and settle employee
share option and reward plan liabilities.
|
|
Allotted, called-up and fully paid
|
||
|
Shares
million
|
Nominal value
£m
|
|
|
At 1 April 2022
|
|
|
|
Issued during the year in lieu of dividends
1
|
|
|
|
At 31 March 2023
|
|
|
|
Issued during the year in lieu of dividends
1
|
|
|
|
At 31 March 2024
|
|
|
|
|
|
Financial Statements
|
|
187
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Other equity reserves are different categories of equity as required by accounting standards and represent the impact of a number of our historical
transactions or fair value movements on certain financial instruments that the Company holds.
|
|
Translation
£m
|
Cash flow
hedge
£m
|
Cost of
hedging
£m
|
FVOCI
equity
£m
|
FVOCI
debt
£m
|
Own
credit
£m
|
Capital
redemption
£m
|
Merger
£m
|
Total
£m
|
|
|
At 1 April 2021
|
(
|
(
|
(
|
|
|
|
|
(
|
(
|
|
Exchange adjustments
1
|
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
Net losses taken to equity
2
|
—
|
(
|
(
|
(
|
(
|
(
|
—
|
—
|
(
|
|
Share of net gains of associates taken to equity
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
Transferred to profit or loss
|
—
|
|
(
|
—
|
—
|
—
|
—
|
—
|
|
|
Net losses in respect of cash flow hedging
of capital expenditure
|
—
|
(
|
—
|
—
|
—
|
—
|
—
|
—
|
(
|
|
Tax
|
—
|
|
|
|
|
—
|
—
|
—
|
|
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
At 1 April 2022
|
|
(
|
(
|
|
|
|
|
(
|
(
|
|
Exchange adjustments
1
|
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
Exchange differences reclassified to the consolidated
income statement on disposal
|
(
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(
|
|
Net gains/(losses) taken to equity
|
—
|
|
(
|
—
|
(
|
—
|
—
|
—
|
|
|
Share of net gains of associates taken to equity
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
Transferred to profit or loss
|
—
|
(
|
—
|
—
|
—
|
—
|
—
|
—
|
(
|
|
Net gains in respect of cash flow hedging
of capital expenditure
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
Tax
|
—
|
|
|
—
|
|
—
|
—
|
—
|
|
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
At 1 April 2023
|
|
(
|
(
|
|
|
|
|
(
|
(
|
|
Exchange adjustments¹
|
(
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(
|
|
Net gains/(losses) taken to equity
|
—
|
|
|
—
|
|
—
|
—
|
—
|
|
|
Transferred to profit or loss
|
—
|
|
(
|
—
|
—
|
—
|
—
|
—
|
|
|
Net losses in respect of cash flow hedging
of capital expenditure
|
—
|
(
|
—
|
—
|
—
|
—
|
—
|
—
|
(
|
|
Tax
|
—
|
(
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
Cash flow hedges transferred to the statement
of financial position, net of tax
|
—
|
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
At 31 March 2024
|
|
|
(
|
|
|
|
|
(
|
(
|
|
188
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
We define net debt as the amount of borrowings and financing derivatives less cash and current financial investments.
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Cash and cash equivalents (see note 20)
|
|
|
|
|
Current financial investments (see note 15)
|
|
|
|
|
Borrowings (see note 21)
|
(
|
(
|
(
|
|
Financing derivatives
1
(see note 17)
|
(
|
(
|
(
|
|
(
|
(
|
(
|
|
Notes
|
Borrowings
£m
|
Financing
derivatives
used to hedge
debt
£m
|
Total liabilities
from financing
activities
£m
|
Cash
and cash
equivalents
£m
|
Financial
investments
£m
|
Other financing
derivatives
£m
|
Total
1
£m
|
|
|
At 1 April 2023
|
(
|
(
|
(
|
|
|
|
(
|
|
|
Net increase in cash and cash equivalents
|
—
|
—
|
—
|
|
—
|
—
|
|
|
|
Included within financing cash flows:
|
||||||||
|
Proceeds received from loans
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Repayment of loans
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Payments of lease liabilities
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Net movements in short-term borrowings
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Cash inflows on derivatives
|
—
|
(
|
(
|
—
|
—
|
—
|
(
|
|
|
Cash outflows on derivatives
|
—
|
|
|
—
|
—
|
—
|
|
|
|
Interest paid
|
|
|
|
—
|
—
|
—
|
|
|
|
Non-net debt financing cash flows
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Included within investing cash flows:
|
||||||||
|
Net movements in short-term financial investments
|
—
|
—
|
—
|
—
|
|
—
|
|
|
|
Cash inflows on derivatives
|
—
|
—
|
—
|
—
|
—
|
(
|
(
|
|
|
Cash outflows on derivatives
|
—
|
—
|
—
|
—
|
—
|
—
|
|
|
|
Derivative cash flows included in capital expenditure
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
Interest received
|
—
|
—
|
—
|
—
|
(
|
—
|
(
|
|
|
Derivative cash flows included in revenue
|
—
|
—
|
—
|
—
|
—
|
(
|
(
|
|
|
Fair value gains and losses
|
(
|
|
(
|
—
|
|
|
|
|
|
Foreign exchange movements
|
|
—
|
|
(
|
(
|
—
|
|
|
|
Interest (charges)/income
|
6
|
(
|
(
|
(
|
—
|
|
|
(
|
|
Other non-cash movements
|
(
|
|
(
|
—
|
—
|
(
|
(
|
|
|
Reclassification to held for sale
2
|
10
|
|
—
|
|
(
|
(
|
—
|
(
|
|
At 31 March 2024
|
(
|
(
|
(
|
|
|
(
|
(
|
|
|
Balances at 31 March 2024 comprise:
|
||||||||
|
Non-current assets
|
—
|
|
|
—
|
—
|
|
|
|
|
Current assets
|
—
|
|
|
|
|
|
|
|
|
Current liabilities
|
(
|
(
|
(
|
—
|
—
|
(
|
(
|
|
|
Non-current liabilities
|
(
|
(
|
(
|
—
|
—
|
(
|
(
|
|
|
(
|
(
|
(
|
|
|
(
|
(
|
|
|
|
Financial Statements
|
|
189
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Notes
|
Borrowings
£m
|
Financing
derivatives
used to hedge
debt
£m
|
Total liabilities
from financing
activities
£m
|
Cash
and cash
equivalents
1
£m
|
Financial
investments
£m
|
Other financing
derivatives
£m
|
Total²
£m
|
|
|
At 1 April 2022
|
(
|
(
|
(
|
|
|
|
(
|
|
|
Net decrease in cash and cash equivalents
|
—
|
—
|
—
|
(
|
—
|
—
|
(
|
|
|
Included within financing cash flows:
|
||||||||
|
Proceeds received from loans
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Repayment of loans
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Payments of lease liabilities
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Net movements in short-term borrowings
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Cash inflows on derivatives
|
—
|
(
|
(
|
—
|
—
|
—
|
(
|
|
|
Cash outflows on derivatives
|
—
|
|
|
—
|
—
|
—
|
|
|
|
Interest paid
|
|
|
|
—
|
—
|
|
||
|
Non-net debt financing cash flows
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Included within investing cash flows:
|
||||||||
|
Net movements in short-term financial investments
|
—
|
—
|
—
|
—
|
(
|
—
|
(
|
|
|
Cash outflows on derivatives
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
Derivative cash outflow in relation to capital
expenditure
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
Interest received
|
—
|
—
|
—
|
—
|
(
|
(
|
||
|
Fair value gains and losses
|
|
|
|
—
|
(
|
(
|
|
|
|
Foreign exchange movements
|
(
|
—
|
(
|
|
|
—
|
(
|
|
|
Interest (charges)/income
|
6
|
(
|
(
|
(
|
—
|
|
—
|
(
|
|
Other non-cash movements
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Reclassification to held for sale
3
|
|
—
|
|
—
|
(
|
—
|
|
|
|
At 31 March 2023
|
(
|
(
|
(
|
|
|
|
(
|
|
Notes
|
Borrowings
£m
|
Financing
derivatives
used to hedge
debt
£m
|
Total liabilities
from financing
activities
£m
|
Cash
and cash
equivalents
1
£m
|
Financial
investments
£m
|
Other financing
derivatives
£m
|
Total²
£m
|
|
|
At 1 April 2021
|
(
|
|
(
|
|
|
|
(
|
|
|
Net increase in cash and cash equivalents
|
—
|
—
|
—
|
|
—
|
—
|
|
|
|
Included within financing cash flows:
|
||||||||
|
Proceeds received from loans
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Repayment of loans
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Payments of lease liabilities
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Net movements in short-term borrowings
|
|
—
|
|
—
|
—
|
—
|
|
|
|
Cash inflows on derivatives
|
—
|
(
|
(
|
—
|
—
|
—
|
(
|
|
|
Cash outflows on derivatives
|
—
|
|
|
—
|
—
|
—
|
|
|
|
Interest paid
|
|
|
|
—
|
—
|
—
|
|
|
|
Non-net debt financing cash flows
|
(
|
—
|
(
|
—
|
—
|
—
|
(
|
|
|
Included within investing cash flows:
|
||||||||
|
Net movements in short-term financial investments
|
—
|
—
|
—
|
—
|
|
—
|
|
|
|
Cash inflows on derivatives
|
—
|
—
|
—
|
—
|
—
|
(
|
(
|
|
|
Cash outflows on derivatives
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
Derivative cash outflow in relation to capital
expenditure
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
Interest received
|
—
|
—
|
—
|
—
|
(
|
—
|
(
|
|
|
Fair value gains and losses
|
|
(
|
(
|
—
|
(
|
(
|
(
|
|
|
Foreign exchange movements
|
(
|
—
|
(
|
|
|
—
|
(
|
|
|
Interest (charges)/income
|
6
|
(
|
(
|
(
|
—
|
|
(
|
(
|
|
Other non-cash movements
|
|
—
|
|
—
|
(
|
—
|
|
|
|
Acquisition of NGED
|
(
|
|
(
|
|
|
—
|
(
|
|
|
Reclassification to held for sale
3
|
|
(
|
|
(
|
(
|
|
|
|
|
At 31 March 2022
|
(
|
(
|
(
|
|
|
|
(
|
|
190
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Commitments are those amounts that we are contractually required to pay in the future as long as the other party meets its obligations. These
commitments primarily relate to energy purchase agreements and contracts for the purchase of assets which, in many cases, extend over a long
period of time. We also disclose any contingencies, which include guarantees that companies have given, where we pledge assets against
current obligations that will remain for a specific period.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Future capital expenditure
|
||
|
Contracted for but not provided
|
|
|
|
Energy purchase commitments
1
|
||
|
Less than 1 year
|
|
|
|
In 1 to 2 years
|
|
|
|
In 2 to 3 years
|
|
|
|
In 3 to 4 years
|
|
|
|
In 4 to 5 years
|
|
|
|
More than 5 years
|
|
|
|
|
|
|
|
Guarantees
|
||
|
Guarantee of subleases for US properties (expire up to 2040)
|
|
|
|
Guarantees of certain obligations of Eastern Green Link Joint Operations (various expiry dates)
|
|
|
|
Guarantees of certain obligations of Grain LNG (expire up to 2025)
|
|
|
|
Guarantees of certain obligations of National Grid North Sea Link Limited (various expiry dates)
|
|
|
|
Guarantees of certain obligations of St William Homes LLP (various expiry dates)
|
|
|
|
Guarantees of certain obligations of National Grid IFA 2 Limited (expected expiry 2024)
|
|
|
|
Guarantees of certain obligations of National Grid Viking Link Limited (expected expiry 2024)
|
|
|
|
Other guarantees and letters of credit (various expiry dates)
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
191
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Related parties include joint ventures, associates, investments and key management personnel.
|
|
2024
|
2023
|
2022
|
|
|
£m
|
£m
|
£m
|
|
|
Sales: Goods and services supplied to a pension plan
|
|
|
|
|
Sales: Goods and services supplied to joint ventures
1
|
|
|
|
|
Sales: Goods and services supplied to associates
|
|
|
|
|
Sales: Goods and services supplied to subsidiary of an associate
1
|
|
|
|
|
Purchases: Goods and services received from joint ventures
2
|
|
|
|
|
Purchases: Goods and services received from associates
2
|
|
|
|
|
Purchases: Goods and services received from subsidiaries of an associate
|
|
|
|
|
Receivables from joint ventures
3
|
|
|
|
|
Receivables from associates
|
|
|
|
|
Receivables from subsidiaries of an associate
|
|
|
|
|
Payables to joint ventures
4
|
|
|
|
|
Payables to associates
|
|
|
|
|
Dividends received from joint ventures
5
|
|
|
|
|
Dividends received from associates
6
|
|
|
|
|
Our activities expose us to a variety of financial risks, including credit risk, liquidity risk, capital risk, currency risk, interest rate risk, inflation risk
and commodity price risk. Our risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential
volatility of financial performance from these risks. We use financial instruments, including derivative financial instruments, to manage these risks.
|
|
192
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Maximum limit
£m
|
Utilisation of
maximum limit
£m
|
Long-term limit
£m
|
Utilisation of
long-term limit
£m
|
|
|
Triple ‘A’ G7 sovereign entities (AAA)
|
|
—
|
|
—
|
|
Triple ‘A’ vehicles (AAA)
|
|
|
—
|
—
|
|
Triple ‘A’ range institutions and non-G7 sovereign entities (AAA)
|
|
—
|
|
—
|
|
Double ‘A+’ G7 sovereign entities (AA+)
|
|
—
|
|
—
|
|
Double ‘A’ range institutions (AA)
|
|
|
|
|
|
Single ‘A’ range institutions (A)
|
|
|
|
|
|
|
|
Financial Statements
|
|
193
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Related amounts
available to be offset but
not offset in statement
of financial position
|
||||||||
|
At 31 March 2024
|
Gross
carrying
amounts
£m
|
Gross
amounts
offset
£m
|
Net amount
presented in
statement of
financial
position
£m
|
Financial
instruments
£m
|
Cash
collateral
received/
pledged
£m
|
Net amount
£m
|
||
|
Assets
|
||||||||
|
Financing derivatives
|
|
|
|
(
|
(
|
|
||
|
Commodity contract derivatives
|
|
|
|
(
|
|
|
||
|
|
|
|
(
|
(
|
|
|||
|
Liabilities
|
||||||||
|
Financing derivatives
|
(
|
|
(
|
|
|
(
|
||
|
Commodity contract derivatives
|
(
|
|
(
|
|
|
(
|
||
|
(
|
|
(
|
|
|
(
|
|||
|
(
|
|
(
|
|
|
(
|
|||
|
Related amounts
available to be offset but
not offset in statement
of financial position
|
||||||||
|
At 31 March 2023
|
Gross
carrying
amounts
£m
|
Gross
amounts
offset
£m
|
Net amount
presented in
statement of
financial
position
£m
|
Financial
instruments
£m
|
Cash
collateral
received/
pledged
£m
|
Net amount
£m
|
||
|
Assets
|
||||||||
|
Financing derivatives
|
|
|
|
(
|
(
|
|
||
|
Commodity contract derivatives
|
|
|
|
(
|
|
|
||
|
|
|
|
(
|
(
|
|
|||
|
Liabilities
|
||||||||
|
Financing derivatives
|
(
|
|
(
|
|
|
(
|
||
|
Commodity contract derivatives
|
(
|
|
(
|
|
|
(
|
||
|
(
|
|
(
|
|
|
(
|
|||
|
(
|
|
(
|
|
|
(
|
|||
|
194
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
At 31 March 2024
|
Less than
1 year
£m
|
1 to 2
years
£m
|
2 to 3
years
£m
|
More than
3 years
£m
|
Total
£m
|
|
Non-derivative financial liabilities
|
|||||
|
Borrowings, excluding lease liabilities
|
(
|
(
|
(
|
(
|
(
|
|
Interest payments on borrowings
1
|
(
|
(
|
(
|
(
|
(
|
|
Lease liabilities
|
(
|
(
|
(
|
(
|
(
|
|
Other non-interest-bearing liabilities
|
(
|
(
|
|
|
(
|
|
Contingent consideration
|
|
|
|
|
|
|
Derivative financial liabilities
|
|||||
|
Financing derivatives – receipts
2
|
|
|
|
|
|
|
Financing derivatives – payments
2
|
(
|
(
|
(
|
(
|
(
|
|
Commodity contract derivatives – receipts
2
|
|
|
|
|
|
|
Commodity contract derivatives – payments
2
|
(
|
(
|
(
|
|
(
|
|
Derivative financial assets
|
|||||
|
Financing derivatives – receipts
2
|
|
|
|
|
|
|
Financing derivatives – payments
2
|
(
|
(
|
(
|
(
|
(
|
|
Commodity contract derivatives – receipts
2
|
|
|
|
|
|
|
Commodity contract derivatives – payments
2
|
(
|
(
|
(
|
|
(
|
|
(
|
(
|
(
|
(
|
(
|
|
At 31 March 2023
|
Less than
1 year
£m
|
1 to 2
years
£m
|
2 to 3
years
£m
|
More than
3 years
£m
|
Total
£m
|
|
Non-derivative financial liabilities
|
|||||
|
Borrowings, excluding lease liabilities
|
(
|
(
|
(
|
(
|
(
|
|
Interest payments on borrowings
1
|
(
|
(
|
(
|
(
|
(
|
|
Lease liabilities
|
(
|
(
|
(
|
(
|
(
|
|
Other non-interest-bearing liabilities
|
(
|
(
|
|
|
(
|
|
Contingent consideration
|
(
|
|
|
|
(
|
|
Derivative financial liabilities
|
|||||
|
Financing derivatives – receipts
2
|
|
|
|
|
|
|
Financing derivatives – payments
2
|
(
|
(
|
(
|
(
|
(
|
|
Commodity contract derivatives – receipts
2
|
|
|
|
|
|
|
Commodity contract derivatives – payments
2
|
(
|
(
|
(
|
(
|
(
|
|
Derivative financial assets
|
|||||
|
Financing derivatives – receipts
2
|
|
|
|
|
|
|
Financing derivatives – payments
2
|
(
|
(
|
(
|
(
|
(
|
|
Commodity contract derivatives – receipts
2
|
|
|
|
|
|
|
Commodity contract derivatives – payments
2
|
(
|
(
|
(
|
|
(
|
|
(
|
(
|
(
|
(
|
(
|
|
|
|
Financial Statements
|
|
195
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||||||||
|
Sterling
£m
|
Euro
£m
|
Dollar
£m
|
Other
£m
|
Total
£m
|
Sterling
£m
|
Euro
£m
|
Dollar
£m
|
Other
£m
|
Total
£m
|
||
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|
|
Pre-derivative position
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
|
|
Derivative effect
|
(
|
|
(
|
|
(
|
(
|
|
(
|
|
(
|
|
|
Net debt position
|
(
|
|
(
|
|
(
|
(
|
(
|
(
|
|
(
|
|
|
2024
|
2023
|
||||||||||
|
Sterling
£m
|
Euro
£m
|
Dollar
£m
|
Other
£m
|
Total
£m
|
Sterling
£m
|
Euro
£m
|
Dollar
£m
|
Other
£m
|
Total
£m
|
||
|
Trade and other receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
(
|
|
(
|
|
(
|
(
|
|
(
|
|
(
|
|
|
Other non-current liabilities
|
(
|
|
(
|
|
(
|
(
|
|
(
|
|
(
|
|
|
196
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||||||||
|
Fixed rate
£m
|
Floating
rate
£m
|
Inflation
linked
£m
|
Other
1
£m
|
Total
£m
|
Fixed rate
£m
|
Floating
rate
£m
|
Inflation
linked
£m
|
Other
1
£m
|
Total
£m
|
||
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
(
|
(
|
(
|
|
(
|
(
|
(
|
(
|
|
(
|
|
|
Pre-derivative position
|
(
|
|
(
|
|
(
|
(
|
|
(
|
|
(
|
|
|
Derivative effect
|
|
(
|
(
|
|
(
|
|
(
|
(
|
|
(
|
|
|
Net debt position
|
(
|
(
|
(
|
|
(
|
(
|
(
|
(
|
|
(
|
|
|
|
|
Financial Statements
|
|
197
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Year ended 31 March 2024
|
Fair value hedges of
foreign currency and/or
interest rate risk
£m
|
Cash flow hedges of
foreign currency and/or
interest rate risk
£m
|
Cash flow hedges of
foreign currency risk
£m
|
Net investment hedges
£m
|
|
Consolidated statement of comprehensive income
|
||||
|
Net gains/(losses) in respect of:
|
||||
|
Cash flow hedges
|
|
|
(
|
|
|
Cost of hedging
|
|
(
|
|
|
|
Net investment hedges
|
|
|
|
|
|
Transferred to profit or loss in respect of:
|
||||
|
Cash flow hedges
|
|
|
|
|
|
Cost of hedging
|
|
(
|
|
(
|
|
Consolidated statement of changes in equity
|
||||
|
Other equity reserves – cost of hedging balances
|
(
|
(
|
|
|
|
Consolidated statement of financial position
|
||||
|
Borrowings – carrying value of hedging instruments
|
||||
|
Liabilities – non-current
|
|
|
|
(
|
|
Derivatives – carrying value of hedging instruments
1
|
||||
|
Assets – current
|
|
|
|
|
|
Assets – non-current
|
|
|
|
|
|
Liabilities – current
|
(
|
(
|
(
|
(
|
|
Liabilities – non-current
|
(
|
(
|
(
|
|
|
Profiles of the significant timing, price and rate
information of hedging instruments
|
||||
|
Maturity range
|
Jul 2024 – Sep 2044
|
Jul 2024 – Nov 2040
|
Apr 2024 – Feb 2030
|
Apr 2024 – Jan 2034
|
|
Spot foreign exchange range:
|
||||
|
GBP:USD
|
n/a
|
|
|
|
|
GBP:EUR
|
|
|
|
|
|
EUR:USD
|
|
|
n/a
|
n/a
|
|
Interest rate range:
|
||||
|
GBP
|
SONIA +
|
|
n/a
|
n/a
|
|
USD
|
SOFR +
|
|
n/a
|
n/a
|
|
198
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Year ended 31 March 2023
|
Fair value hedges of
foreign currency and/or
interest rate risk
£m
|
Cash flow hedges of
foreign currency and/or
interest rate risk
£m
|
Cash flow hedges of
foreign currency risk
£m
|
Net investment hedges
£m
|
|
Consolidated statement of comprehensive income
|
||||
|
Net gains/(losses) in respect of:
|
||||
|
Cash flow hedges
|
|
|
|
|
|
Cost of hedging
|
|
|
|
(
|
|
Net investment hedges
|
|
|
|
(
|
|
Transferred to profit or loss in respect of:
|
||||
|
Cash flow hedges
|
|
(
|
|
|
|
Cost of hedging
|
|
|
|
|
|
Reclassification of foreign currency translation reserve
1
|
|
|
|
|
|
Consolidated statement of changes in equity
|
||||
|
Other equity reserves – cost of hedging balances
|
(
|
(
|
|
(
|
|
Consolidated statement of financial position
|
||||
|
Derivatives – carrying value of hedging instruments
2
|
||||
|
Assets – current
|
|
|
|
|
|
Assets – non-current
|
|
|
|
|
|
Liabilities – current
|
(
|
(
|
(
|
|
|
Liabilities – non-current
|
(
|
(
|
(
|
(
|
|
Profiles of the significant timing, price and rate
information of hedging instruments
|
||||
|
Maturity range
|
Aug 2023 – Sep 2044
|
Jul 2024 – Nov 2040
|
Apr 2023 – May 2029
|
Jun 2023 – Sep 2027
|
|
Spot foreign exchange range:
|
||||
|
GBP:USD
|
n/a
|
|
|
|
|
GBP:EUR
|
|
|
|
|
|
EUR:USD
|
|
|
n/a
|
n/a
|
|
Interest rate range:
|
||||
|
GBP
|
SONIA +
|
|
n/a
|
n/a
|
|
USD
|
LIBOR +
SOFR +
|
|
n/a
|
n/a
|
|
|
|
Financial Statements
|
|
199
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
As at 31 March 2024
|
Balance of fair value hedge
adjustments in borrowings
|
Change in value used for
calculating ineffectiveness
|
|||||||
|
Hedging instrument
notional
|
Continuing
hedges
|
Discontinued
hedges
|
Hedged item
|
Hedging
instrument
|
Hedge
ineffectiveness
|
||||
|
Hedge type
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Foreign currency and interest rate risk on borrowings
1
|
(
|
|
(
|
|
(
|
|
|||
|
As at 31 March 2023
|
Balance of fair value hedge
adjustments in borrowings
|
Change in value used for
calculating ineffectiveness
|
|||||||
|
Hedging instrument
notional
|
Continuing
hedges
|
Discontinued
hedges
|
Hedged item
|
Hedging
instrument
|
Hedge
ineffectiveness
|
||||
|
Hedge type
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Foreign currency and interest rate risk on borrowings
1,2
|
(
|
|
(
|
|
(
|
|
|||
|
As at 31 March 2024
|
Balance in cash flow hedge
reserve
|
Change in value used for
calculating ineffectiveness
|
|||||||
|
Hedging instrument
notional
|
Continuing
hedges
|
Discontinued
hedges
|
Hedged item
|
Hedging
instrument
|
Hedge
ineffectiveness
|
||||
|
Hedge type
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Foreign currency and interest rate risk on borrowings
and forecast cash flows
|
(
|
|
|
(
|
|
(
|
|||
|
Foreign currency risk on forecast cash flows
|
(
|
(
|
|
|
(
|
|
|||
|
As at 31 March 2023
|
Balance in cash flow hedge reserve
|
Change in value used for
calculating ineffectiveness
|
|||||||
|
Hedging instrument
notional
|
Continuing
hedges
|
Discontinued
hedges
|
Hedged item
|
Hedging
instrument
|
Hedge
ineffectiveness
|
||||
|
Hedge type
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Foreign currency and interest rate risk on borrowings
|
(
|
(
|
|
|
(
|
(
|
|||
|
Foreign currency risk on forecast cash flows
|
(
|
(
|
|
(
|
|
|
|||
|
As at 31 March 2024
|
Balance in translation reserve
|
Change in value used for
calculating ineffectiveness
|
|||||||
|
Hedging instrument
notional
|
Continuing
hedges
|
Discontinued
hedges
|
Hedged item
|
Hedging
instrument
|
Hedge
ineffectiveness
|
||||
|
Hedge type
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Currency risk on foreign operations
|
(
|
|
(
|
(
|
|
|
|||
|
As at 31 March 2023
|
Balance in translation reserve
|
Change in value used for
calculating ineffectiveness
|
|||||||
|
Hedging instrument
notional
|
Continuing
hedges
|
Discontinued
hedges
|
Hedged item
|
Hedging
instrument
|
Hedge
ineffectiveness
|
||||
|
Hedge type
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Currency risk on foreign operations
|
(
|
(
|
(
|
|
(
|
|
|||
|
200
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
|
|
Financial Statements
|
|
201
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||||||
|
Level 1
£m
|
Level 2
£m
|
Level 3
£m
|
Total
£m
|
Level 1
£m
|
Level 2
£m
|
Level 3
£m
|
Total
£m
|
||
|
Assets
|
|||||||||
|
Investments held at FVTPL
|
|
|
|
|
|
|
|
|
|
|
Investments held at FVOCI
1
|
|
|
|
|
|
|
|
|
|
|
Financing derivatives
|
|
|
|
|
|
|
|
|
|
|
Commodity contract derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Liabilities
|
|||||||||
|
Financing derivatives
|
|
(
|
(
|
(
|
|
(
|
(
|
(
|
|
|
Commodity contract derivatives
|
|
(
|
(
|
(
|
|
(
|
(
|
(
|
|
|
Contingent consideration
2
|
|
|
|
|
|
|
(
|
(
|
|
|
|
(
|
(
|
(
|
|
(
|
(
|
(
|
||
|
|
(
|
|
|
|
(
|
|
|
||
|
Level 1:
|
Financial instruments with quoted prices for identical instruments in active markets.
|
|
Level 2:
|
Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments
in inactive markets, and financial instruments valued using models where all significant inputs are based directly or indirectly on
observable market data.
|
|
Level 3:
|
Financial instruments valued using valuation techniques where one or more significant inputs are based on unobservable market data.
|
|
202
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Financing derivatives
|
Commodity contract
derivatives
|
Other
3
|
Total
|
||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||||
|
At 1 April
|
(
|
(
|
(
|
|
|
|
|
|
|||
|
Net gains/(losses) for the year
1,2
|
|
|
|
(
|
|
(
|
|
|
|||
|
Purchases
|
|
|
(
|
(
|
|
|
|
|
|||
|
Settlements
|
|
|
|
(
|
|
|
|
(
|
|||
|
At 31 March
|
(
|
(
|
(
|
(
|
|
|
|
|
|||
|
Financing derivatives
|
Commodity contract
derivatives
|
Other
3
|
||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
10% increase in commodity prices
1
|
—
|
—
|
|
|
—
|
—
|
||
|
10% decrease in commodity prices
1
|
—
|
—
|
(
|
(
|
—
|
—
|
||
|
+20 basis points change in Limited Price Inflation (LPI) market curve²
|
(
|
(
|
—
|
—
|
—
|
—
|
||
|
-20 basis points change in LPI market curve²
|
|
|
—
|
—
|
—
|
—
|
||
|
+20 basis points increase between RPI and Consumer Price Index (CPI)
|
|
|
—
|
—
|
—
|
—
|
||
|
-20 basis points decrease between RPI and CPI
|
(
|
(
|
—
|
—
|
—
|
—
|
||
|
+100 basis points change in discount rate
|
—
|
—
|
—
|
—
|
(
|
(
|
||
|
-100 basis points change in discount rate
|
—
|
—
|
—
|
—
|
|
|
||
|
+10% change in venture capital price
|
—
|
—
|
—
|
—
|
|
|
||
|
-10% change in venture capital price
|
—
|
—
|
—
|
—
|
(
|
(
|
||
|
|
|
Financial Statements
|
|
203
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
204
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
To support our liquidity requirements and provide backup to commercial paper and other borrowings, we agree committed credit facilities with
financial institutions over and above the value of borrowings that may be required. These committed credit facilities are undrawn.
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Undrawn committed borrowing facilities expiring:
|
||
|
Less than 1 year
|
|
|
|
In 1 to 2 years
|
|
|
|
In 2 to 3 years
|
|
|
|
In 3 to 4 years
|
|
|
|
In 4 to 5 years
|
|
|
|
More than 5 years
|
|
|
|
|
|
|
|
|
Financial Statements
|
|
205
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
While we present consolidated results in these financial statements as if we were one company, our legal structure is such that there are a
number of different operating and holding companies that contribute to the overall result. This structure has evolved through acquisitions as
well as regulatory requirements to have certain activities within separate legal entities.
|
|
Birch Sites Limited
|
|
Carbon Sentinel Limited
|
|
Central Networks Trustees Limited
1
|
|
Hyder Profit Sharing Trustees Limited
1
|
|
Icelink Interconnector Limited
|
|
Kelston Properties 2 Limited
1
|
|
Lattice Group Employee Benefit Trust Limited
|
|
Lattice Group Limited
|
|
Lattice Group Trustees Limited
|
|
NatGrid One Limited
2
*
|
|
NatgridTW1 Limited
|
|
National Energy System Operator Limited
|
|
National Grid (US) Holdings Limited
3
|
|
National Grid (US) Investments 2 Limited
2
*
|
|
National Grid (US) Investments 4 Limited
3
|
|
National Grid (US) Partner 1 Limited
3
|
|
National Grid Carbon Limited
|
|
National Grid Commercial Holdings Limited
|
|
National Grid Continental Limited
|
|
National Grid Distributed Energy Limited
|
|
National Grid Electricity Distribution (East Midlands) plc
1
|
|
National Grid Electricity Distribution (South Wales) plc
1
|
|
National Grid Electricity Distribution (South West) plc
1
|
|
National Grid Electricity Distribution (West Midlands) plc
1
|
|
National Grid Electricity Distribution Generation Limited
1
|
|
National Grid Electricity Distribution Holdings Limited
1
|
|
National Grid Electricity Distribution Investments Limited
1
|
|
National Grid Electricity Distribution Midlands Limited
1
|
|
National Grid Electricity Distribution Network Holdings Limited
1
|
|
National Grid Electricity Distribution plc
1
|
|
National Grid Electricity Distribution Property Investments Limited
1
|
|
National Grid Electricity Group Trustee Limited
|
|
National Grid Electricity System Operator Limited
|
|
National Grid Electricity Transmission plc
|
|
National Grid Energy Metering Limited
|
|
National Grid Grain LNG Limited
|
|
National Grid Helicopters Limited
1
|
|
National Grid Holdings Limited
3
|
|
National Grid Holdings One plc
|
|
National Grid Hydrogen Limited
|
|
National Grid IFA 2 Limited
|
|
National Grid Interconnector Holdings Limited
|
|
National Grid Interconnectors Limited
|
|
National Grid International Limited
3
|
|
National Grid Lion Link Limited
|
|
National Grid Nautilus Limited
|
|
National Grid North Sea Link Limited
|
|
National Grid Partners Limited
|
|
National Grid Plus Limited
|
|
National Grid Property Holdings Limited
|
|
National Grid Telecoms Limited
1
|
|
National Grid Twelve Limited
|
|
National Grid Twenty Eight Limited
|
|
National Grid Twenty Seven Limited
|
|
National Grid Twenty Three Limited
2
*
|
|
National Grid UK Limited
|
|
National Grid UK Pension Services Limited
2
*
|
|
National Grid Ventures Limited
|
|
National Grid Viking Link Limited
|
|
National Grid William Limited
|
|
NG Nominees Limited
3
|
|
NGC Employee Shares Trustee Limited
|
|
NGG Finance plc
|
|
Ngrid Intellectual Property Limited
|
|
Port Greenwich Limited
|
|
Sheet Road Management Company Limited (
|
|
South Wales Electricity Share Scheme Trustees Limited
1
|
|
Thamesport Interchange Limited
|
|
The National Grid Group Quest Trustee Company Limited
|
|
Warwick Technology Park Management Company (No 2) Limited (
|
|
Western Power Pension Trustee Limited
1
|
|
WPD Share Scheme Trustees Limited
1
|
|
WPD WEM Holdings Limited
1
|
|
WPD WEM Limited
1
|
|
WW Share Scheme Trustees Limited
1
|
|
206
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Apple River Solar, LLC
|
|
Armenia Solar, LLC
|
|
Ashland Solar, LLC
|
|
Athens Solar, LLC
|
|
Autauga Solar, LLC
|
|
Bazile Creek Wind Farm, LLC
|
|
Bee Hollow Solar, LLC
|
|
Belle Plaine Solar, LLC
|
|
Benevolent Solar, LLC
|
|
Blaze Solar, LLC
|
|
Blevins Storage, LLC
|
|
Blue Ridge Wind, LLC
|
|
Blue Spring Solar, LLC
|
|
Blues Solar, LLC
|
|
Boone Solar, LLC
|
|
Boston Gas Company
1
|
|
Brock Solar, LLC
|
|
Broken Bridge Corp.
2
|
|
Brook Trout Solar, LLC
|
|
Burley Solar, LLC
|
|
Burr Ridge Wind, LLC
|
|
Cage Ranch Solar II, LLC
|
|
Cage Ranch Solar III, LLC
|
|
Cage Ranch Solar, LLC
|
|
Caldwell Solar II, LLC
|
|
Caldwell Solar, LLC
|
|
Camp Creek Wind Farm, LLC
|
|
Carnation Solar, LLC
|
|
Cattle Ridge Wind Farm 2, LLC
|
|
Cedar Grove Solar, LLC
|
|
Charter Oak Solar, LLC
|
|
Charter Oak Storage, LLC
|
|
Clay Boswell Solar, LLC
|
|
Clermont Solar, LLC
|
|
Coles Solar, LLC
|
|
Compass Prairie Wind, LLC
|
|
Conestoga Wind, LLC
|
|
Creekview Solar, LLC
|
|
Crocker Wind Farm 2, LLC
|
|
Dakota Hills Wind Farm, LLC
|
|
Deatsville Solar, LLC
|
|
Donnellson Solar, LLC
|
|
Doorstep Community LLC
3
|
|
Elburn Solar, LLC
|
|
Eldena Solar, LLC
|
|
Elk Creek Solar 2, LLC
|
|
Elk Creek Solar, LLC
|
|
EUA Energy Investment Corporation
1
|
|
Exie Solar, LLC
|
|
Falls City Solar, LLC
|
|
Firstview Wind Farm, LLC
|
|
Fort Solar, LLC
|
|
Front Range Wind Farm, LLC
|
|
Galaxy Solar, LLC
|
|
Golden Solar, LLC
|
|
Goldendale Solar, LLC
|
|
Goldenrod Wind Farm, LLC
|
|
Goldfinch Solar, LLC
|
|
Granite State Power Link LLC
3
|
|
Grant Solar 2, LLC
|
|
Grant Solar, LLC
|
|
Grayson Solar, LLC
|
|
Greenbrier Creek Solar, LLC
|
|
Greenwood Solar, LLC
|
|
Grid NY LLC
4
|
|
Grindstone Wind Farm, LLC
5
|
|
Hale County Solar, LLC
|
|
Hansford Energy Storage, LLC
|
|
Harmony Solar ND 2, LLC
|
|
Harmony Solar ND, LLC
|
|
Harrington Solar, LLC
|
|
Hartley Solar, LLC
|
|
Hearth Solar, LLC
|
|
High View Property, LLC
|
|
Honeybee Solar, LLC
|
|
Hoosier Solar, LLC
|
|
Hoskins Solar, LLC
|
|
Illumination Solar, LLC
|
|
Itasca Energy Development, LLC
6
|
|
Itasca Energy Services, LLC
|
|
Jack Rabbit Wind, LLC
|
|
Jackson County Solar, LLC
|
|
KeySpan CI Midstream Limited
3
|
|
KeySpan Energy Corporation
4
|
|
KeySpan Energy Services Inc.
3
|
|
KeySpan Gas East Corporation
4
|
|
KeySpan International Corporation
3
|
|
KeySpan MHK, Inc.
3
|
|
KeySpan Midstream, Inc.
3
|
|
KeySpan Plumbing Solutions, Inc.
4
|
|
Kit Carson Wind, LLC
|
|
Kit Fox Storage, LLC
|
|
Knox Solar, LLC
|
|
Kota Storage, LLC
|
|
KSI Contracting, LLC
3
|
|
KSI Electrical, LLC
3
|
|
KSI Mechanical, LLC
3
|
|
Lake Charlotte Solar, LLC
|
|
Lakeside Solar, LLC
|
|
Land Management & Development, Inc.
4
|
|
Landwest, Inc.
4
|
|
Lansing Solar, LLC
|
|
Las Moras Storage, LLC
|
|
Leola Wind Farm, LLC
|
|
Liberty Solar, LLC
|
|
Livingston County Solar, LLC
|
|
Long Mount Storage, LLC
|
|
Lordsburg Solar, LLC
|
|
Louisa Solar, LLC
|
|
Lowlands Solar, LLC
|
|
Lydia Solar, LLC
|
|
Massachusetts Electric Company
1
|
|
Maverick Wind Farm, LLC
|
|
Meadowlands Solar, LLC
|
|
Mentha Solar, LLC
|
|
Metrowest Realty LLC
3
|
|
Millers Ferry Solar, LLC
|
|
Morgan County Solar, LLC
|
|
Morning Glory Solar, LLC
6
|
|
Muddy Creek Solar, LLC
|
|
Mustang Ridge Wind Farm, LLC
|
|
Mystic Steamship Corporation
7
|
|
Nantucket Electric Company
1
|
|
National Grid Development Holdings Corp.
3
|
|
National Grid Electric Services LLC
4
|
|
National Grid Energy Trading Services LLC
4
|
|
National Grid Engineering & Survey Inc.
4
|
|
National Grid Generation LLC
4
|
|
National Grid Generation Ventures LLC
4
|
|
National Grid Glenwood Energy Center LLC
3
|
|
National Grid IGTS Corp.
4
|
|
National Grid Insurance USA Ltd
8
|
|
National Grid LNG LLC
3
|
|
National Grid NE Holdings 2 LLC
1
|
|
National Grid North America Inc.
3
|
|
National Grid Partners Inc.
4
|
|
National Grid Partners LLC
3
|
|
National Grid Port Jefferson Energy Center LLC
3
|
|
National Grid Renewables Development, LLC
|
|
National Grid Renewables E Wind, LLC
9
|
|
National Grid Renewables Operations, LLC
3
|
|
National Grid Renewables Projects, LLC
6
|
|
National Grid Renewables Stutsman, LLC
|
|
National Grid Renewables, LLC
3
|
|
National Grid Services Inc.
3
|
|
National Grid US LLC
3
|
|
National Grid USA Service Company, Inc.
1
|
|
National Grid USA
3
|
|
NEES Energy, Inc.
1
|
|
New England Electric Transmission Corporation
2
|
|
New England Energy Incorporated
1
|
|
New England Hydro Finance Company, Inc. (
|
|
New England Hydro-Transmission Corporation (
|
|
New England Hydro-Transmission Electric Company, Inc. (
|
|
New England Power Company
1
|
|
Newport America Corporation
10
|
|
Newton Solar, LLC
|
|
NG Renewables Energy Marketing, LLC
3
|
|
NG Renewables Energy Services, LLC
|
|
NG Renewables Remote Operations Center, LLC
|
|
|
|
Financial Statements
|
|
207
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
NGNE LLC
3
|
|
NGV Emerald Energy Venture Holdings, LLC
3
|
|
NGV H2 Holdings LLC
3
|
|
NGV LNG Holdings LLC
3
|
|
NGV OSW Holdings, LLC
3
|
|
NGV US Distributed Energy Inc.
3
|
|
NGV US Transmission Inc.
3
|
|
NGV US, LLC
3
|
|
Niagara Mohawk Energy, Inc.
3
|
|
Niagara Mohawk Holdings, Inc.
4
|
|
Niagara Mohawk Power Corporation
4
|
|
Niobrara Wind, LLC
|
|
NM Properties, Inc.
4
|
|
Noble Solar, LLC
11
|
|
Nordic VOS, LLC
|
|
North East Transmission Co., Inc.
3
|
|
North Fork Wind, LLC
|
|
Northeast Renewable Link LLC
3
|
|
Opinac North America, Inc.
3
|
|
Peony Solar, LLC
|
|
Philadelphia Coke Co., Inc.
3
|
|
Pike County Solar, LLC
|
|
Pipestone Solar, LLC
|
|
Plum Creek Wind Farm 2, LLC
|
|
Plum Creek Wind Farm, LLC
|
|
Port of the Islands North, LLC
4
|
|
Portage Solar, LLC
|
|
Prairie Oasis Solar, LLC
|
|
Prairie Rose Wind 2, LLC
6
|
|
Prosperity Wind Farm 2, LLC
|
|
Prosperity Wind Farm, LLC
|
|
Red Rock Solar SD, LLC
|
|
Regal Solar 2, LLC
|
|
Regal Solar, LLC
|
|
Reunion Solar, LLC
|
|
River North Solar, LLC
|
|
Robertson Solar, LLC
|
|
Rock Ridge Wind Farm, LLC
|
|
Rolling Hills Solar, LLC
|
|
Royal Solar 2, LLC
|
|
Royal Solar, LLC
|
|
Royerton Solar, LLC
|
|
Saginaw Bay Solar, LLC
|
|
Saltillo Storage, LLC
|
|
Sandstone Creek Solar 2, LLC
|
|
Sandstone Creek Solar, LLC
|
|
Sapphire Sky Wind Farm, LLC
|
|
Sherco Solar 2, LLC
6
|
|
Sherco Solar 3, LLC
|
|
Silver City Solar, LLC
|
|
Simpson Solar, LLC
|
|
Spring Brook Solar, LLC
|
|
Spring River Solar, LLC
|
|
Stony Brook Wind, LLC
|
|
Stony Point Solar, LLC
|
|
Stove Creek Solar, LLC
|
|
Summit Lake Solar, LLC
|
|
Sunbeam Solar, LLC
|
|
Sunrise Solar, LLC
|
|
Sycamore Creek Solar, LLC
|
|
Tejano Storage, LLC
|
|
Thacker Solar, LLC
|
|
The Brooklyn Union Gas Company
4
|
|
Torchlight Solar, LLC
6
|
|
Transgas Inc.
1
|
|
Tri-City Solar, LLC
|
|
Uintah Solar, LLC
|
|
Upper Hudson Development, Inc.
4
|
|
Valley Solar, LLC
|
|
Vermont Green Line Devco, LLC (
|
|
Violet Storage, LLC
|
|
Virgo Community Solar Gardens, LLC
6
|
|
Virtue Solar, LLC
|
|
Vivid Solar, LLC
|
|
Wallowa Solar, LLC
|
|
Wayfinder Group, Inc.
1
|
|
White Elm Wind Farm, LLC
|
|
Wildcat Ridge Wind Farm, LLC
|
|
Wilder Solar, LLC
|
|
Wildhorse Creek Solar, LLC
|
|
Willard Solar, LLC
|
|
Williams County Solar, LLC
|
|
Wiregrass Solar, LLC
|
|
Woodlands Solar, LLC
|
|
Worthington Solar, LLC
|
|
Young County Solar, LLC
|
|
208
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Company name
|
Company number
|
|
National Grid Holdings Limited
|
3096772
|
|
National Grid International Limited
|
2537092
|
|
National Grid (US) Holdings Limited
|
2630496
|
|
National Grid (US) Investments 4 Limited
|
3867128
|
|
National Grid (US) Partner 1 Limited
|
4314432
|
|
NG Nominees Limited
|
2489329
|
|
|
|
Financial Statements
|
|
209
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
In order to give a clearer picture of the impact on our results or financial position of potential changes in significant estimates and assumptions,
the following sensitivities are presented. These sensitivities are based on assumptions and conditions prevailing at the year end and should
be used with caution. The effects provided are not necessarily indicative of the actual effects that would be experienced because our actual
exposures are constantly changing.
|
|
2024
|
2023
|
||||||
|
Assumptions
used
|
Income
statement
£m
|
Net
assets
£m
|
Assumptions
used
|
Income
statement
£m
|
Net
assets
£m
|
||
|
Pensions and other post-retirement benefit liabilities (pre-tax):
|
|||||||
|
UK discount rate change¹
|
|
|
|
|
|
|
|
|
US discount rate change¹
|
|
|
|
|
|
|
|
|
UK inflation rate change²
|
|
|
|
|
|
|
|
|
UK long-term rate of increase in salaries change
|
|
|
|
|
|
|
|
|
US long-term rate of increase in salaries change
|
|
|
|
|
|
|
|
|
UK change to life expectancy at age 65
3
|
|
|
|
|
|
|
|
|
US change to life expectancy at age 65
|
|
|
|
|
|
|
|
|
Assumed US healthcare cost trend rates change
|
|
|
|
|
|
|
|
|
US environmental provision
4
:
|
|||||||
|
Change in the real discount rate
|
|
|
|
|
|
|
|
|
Change in estimated future cash flows
|
|
|
|
|
|
|
|
|
210
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
||||||
|
Assumptions
used
|
Income
statement
£m
|
Other equity
reserves
£m
|
Assumptions
used
|
Income
statement
£m
|
Other equity
reserves
£m
|
||
|
Financial risk (post tax):
|
|||||||
|
UK inflation change¹
|
|
|
|
|
|
|
|
|
UK interest rates change
|
|
|
|
|
|
|
|
|
US interest rates change
|
|
|
|
|
|
|
|
|
US dollar exchange rate change²
|
|
|
|
|
|
|
|
|
2024
|
2023
|
||||||
|
Assumptions
used
|
Income
statement
£m
|
Net
assets
£m
|
Assumptions
used
|
Income
statement
£m
|
Net
assets
£m
|
||
|
Commodity price risk (post tax):
|
|||||||
|
Increase in commodity prices
|
|
|
|
|
|
|
|
|
Decrease in commodity prices
|
|
(
|
(
|
|
(
|
(
|
|
|
Assets and liabilities carried at fair value (post tax):
|
|||||||
|
Fair value change in derivative financial instruments¹
|
|
(
|
(
|
|
(
|
(
|
|
|
Fair value change in commodity contract derivative liabilities
|
|
(
|
(
|
|
(
|
(
|
|
|
|
|
Financial Statements
|
|
211
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
We are required to include the standalone balance sheet of our ultimate Parent Company, National Grid plc, under the Companies Act 2006.
This is because the publicly traded shares are actually those of National Grid plc and the following disclosures provide additional information
to shareholders.
|
|
212
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
|
|
Financial Statements
|
|
213
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
|||
|
Notes
|
£m
|
£m
|
||
|
Fixed assets
|
||||
|
Investments
|
1
|
14,517
|
14,480
|
|
|
Current assets
|
||||
|
Debtors (amounts falling due within one year)
|
2
|
14,628
|
15,369
|
|
|
Debtors (amounts falling due after more than one year)
|
2
|
79
|
201
|
|
|
Investments
|
5
|
1,746
|
599
|
|
|
Cash at bank and in hand
|
366
|
55
|
||
|
Total current assets
|
16,819
|
16,224
|
||
|
Creditors (amounts falling due within one year)
|
3
|
(7,264)
|
(6,701)
|
|
|
Net current assets
|
9,555
|
9,523
|
||
|
Total assets less current liabilities
|
24,072
|
24,003
|
||
|
Creditors (amounts falling due after more than one year)
|
3
|
(9,053)
|
(7,755)
|
|
|
Net assets
|
15,019
|
16,248
|
||
|
Equity
|
||||
|
Share capital
|
7
|
493
|
488
|
|
|
Share premium account
|
1,298
|
1,302
|
||
|
Cash flow hedge reserve
|
50
|
(53)
|
||
|
Cost of hedging reserve
|
(7)
|
2
|
||
|
Other equity reserves
|
554
|
517
|
||
|
Profit and loss account
|
8
|
12,631
|
13,992
|
|
|
Total shareholders’ equity
|
15,019
|
16,248
|
|
214
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Share
capital
£m
|
Share
premium
account
£m
|
Cash flow
hedge
reserve
£m
|
Cost of
hedging
reserve
£m
|
Other
equity
reserves
£m
|
Profit
and loss
account
£m
|
Total
shareholders’
equity
£m
|
|
|
At 1 April 2022
|
485
|
1,300
|
(15)
|
(3)
|
469
|
13,943
|
16,179
|
|
Profit for the year
1
|
—
|
—
|
—
|
—
|
—
|
1,644
|
1,644
|
|
Other comprehensive profit/(loss) for the year
|
|||||||
|
Transferred (from)/to equity (net of tax)
|
—
|
—
|
(38)
|
5
|
—
|
—
|
(33)
|
|
Total comprehensive (loss)/profit for the year
|
—
|
—
|
(38)
|
5
|
—
|
1,644
|
1,611
|
|
Other equity movements
|
|||||||
|
Scrip dividend-related share issue
2
|
3
|
(3)
|
—
|
—
|
—
|
—
|
—
|
|
Issue of treasury shares
|
—
|
—
|
—
|
—
|
—
|
16
|
16
|
|
Transactions in own shares
|
—
|
5
|
—
|
—
|
—
|
(4)
|
1
|
|
Share awards to employees of subsidiary undertakings
|
—
|
—
|
—
|
—
|
48
|
—
|
48
|
|
Equity dividends
|
—
|
—
|
—
|
—
|
—
|
(1,607)
|
(1,607)
|
|
At 31 March 2023
|
488
|
1,302
|
(53)
|
2
|
517
|
13,992
|
16,248
|
|
Profit for the year
1
|
—
|
—
|
—
|
—
|
—
|
342
|
342
|
|
Other comprehensive profit/(loss) for the year
|
|||||||
|
Transferred to/(from) equity (net of tax)
|
—
|
—
|
103
|
(9)
|
—
|
—
|
94
|
|
Total comprehensive profit/(loss) for the year
|
—
|
—
|
103
|
(9)
|
—
|
342
|
436
|
|
Other equity movements
|
|||||||
|
Scrip dividend-related share issue
2
|
5
|
(6)
|
—
|
—
|
—
|
—
|
(1)
|
|
Issue of treasury shares
|
—
|
—
|
—
|
—
|
—
|
21
|
21
|
|
Transactions in own shares
|
—
|
2
|
—
|
—
|
—
|
(6)
|
(4)
|
|
Share awards to employees of subsidiary undertakings
|
—
|
—
|
—
|
—
|
37
|
—
|
37
|
|
Equity dividends
|
—
|
—
|
—
|
—
|
—
|
(1,718)
|
(1,718)
|
|
At 31 March 2024
|
493
|
1,298
|
50
|
(7)
|
554
|
12,631
|
15,019
|
|
|
|
Financial Statements
|
|
215
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
Shares in
subsidiary
undertakings
£m
|
|
|
Cost at 1 April 2022
|
16,852
|
|
Additions
|
48
|
|
Cost at 31 March 2023
|
16,900
|
|
Additions
|
37
|
|
Cost at 31 March 2024
|
16,937
|
|
Provision at
1 April 2022
|
(2,420)
|
|
Charge for the year
|
—
|
|
Provision at
1 April 2023
|
(2,420)
|
|
Charge for the year
|
—
|
|
Provision at 31 March 2024
|
(2,420)
|
|
Net book value at 31 March 2024
|
14,517
|
|
Net book value at 31 March 2023
|
14,480
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Amounts falling due within one year
|
||
|
Derivative financial instruments (note 4)
|
68
|
82
|
|
Amounts owed by subsidiary undertakings
|
14,550
|
15,285
|
|
Other debtors
|
10
|
2
|
|
14,628
|
15,369
|
|
|
Amounts falling due after more than one year
|
||
|
Derivative financial instruments (note 4)
|
79
|
60
|
|
Amounts owed by subsidiary undertakings
|
—
|
124
|
|
Deferred tax
|
—
|
17
|
|
79
|
201
|
|
Deferred tax
£m
|
|
|
At 1 April 2022
|
6
|
|
Charged to equity
|
11
|
|
At 31 March 2023
|
17
|
|
Charged to equity
|
(31)
|
|
At 31 March 2024¹
|
(14)
|
|
216
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Amounts falling due within one year
|
||
|
Borrowings (note 6)
|
118
|
402
|
|
Derivative financial instruments (note 4)
|
96
|
131
|
|
Amounts owed to subsidiary undertakings
|
7,017
|
6,138
|
|
Other creditors
|
33
|
30
|
|
7,264
|
6,701
|
|
|
Amounts falling due after more than one year
|
||
|
Borrowings (note 6)
|
7,153
|
5,344
|
|
Derivative financial instruments (note 4)
|
245
|
315
|
|
Amounts owed to subsidiary undertakings
|
1,641
|
2,096
|
|
Deferred tax
|
14
|
—
|
|
9,053
|
7,755
|
|
|
Amounts owed to subsidiary undertakings falling due after more than one year are repayable as follows:
|
||
|
In 1 to 2 years
|
999
|
439
|
|
In 2 to 3 years
|
—
|
999
|
|
In 3 to 4 years
|
642
|
—
|
|
In 4 to 5 years
|
—
|
658
|
|
1,641
|
2,096
|
|
2024
|
2023
|
||||||
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
Assets
£m
|
Liabilities
£m
|
Total
£m
|
||
|
Amounts falling due within one year
|
68
|
(96)
|
(28)
|
82
|
(131)
|
(49)
|
|
|
Amounts falling due after more than one year
|
79
|
(245)
|
(166)
|
60
|
(315)
|
(255)
|
|
|
147
|
(341)
|
(194)
|
142
|
(446)
|
(304)
|
||
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Interest rate swaps
|
(541)
|
—
|
|
Cross-currency interest rate swaps
|
(8,154)
|
(8,232)
|
|
Foreign exchange forward contracts
|
(11,026)
|
(10,213)
|
|
(19,721)
|
(18,445)
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Investments in short-term money funds
|
1,696
|
492
|
|
Restricted balances – collateral
|
50
|
107
|
|
1,746
|
599
|
|
|
|
Financial Statements
|
|
217
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Amounts falling due within one year
|
||
|
Bank loans
|
31
|
66
|
|
Bonds
|
87
|
28
|
|
Commercial paper
|
—
|
308
|
|
118
|
402
|
|
|
Amounts falling due after more than one year
|
||
|
Bank loans
|
256
|
106
|
|
Bonds
|
6,897
|
5,238
|
|
7,153
|
5,344
|
|
|
Total borrowings
|
7,271
|
5,746
|
|
2024
|
2023
|
|
|
£m
|
£m
|
|
|
Total borrowings are repayable as follows:
|
||
|
Less than 1 year
|
118
|
402
|
|
In 2 to 3 years
|
549
|
—
|
|
In 3 to 4 years
|
388
|
563
|
|
In 4 to 5 years
|
2,067
|
387
|
|
More than 5 years
|
4,149
|
4,394
|
|
7,271
|
5,746
|
|
218
|
National Grid plc
|
Annual Report and Accounts 2023/24
|
| Description | |||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
Amended and Restated Trust Deed dated 22 February 2012 among National Grid Gas plc, National Grid Gas Finance (No 1) plc and the Law Debenture Trust Corporation p.l.c. relating to a €10,000,000,000 Euro Medium Term Note Programme.
(Exhibit 2(b).3 to National Grid plc Form 20-F dated 12 June 2012 File No. 1-14958)
|
|
Incorporated by reference
|
|||||||||
|
|
|
||||||||||
|
Amended and Restated Trust Deed dated 2 August 2011 among National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to a €15,000,000,000 Euro Medium Term Note Programme.
(Exhibit 2(b).5 to National Grid plc Form 20-F dated 12 June 2012 File No. 1-14958)
|
|
Incorporated by reference
|
|||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
| Incorporated by reference | |||||||||||
| Incorporated by reference | |||||||||||
| Incorporated by reference | |||||||||||
| Incorporated by reference | |||||||||||
| Incorporated by reference | |||||||||||
| Incorporated by reference | |||||||||||
| 2(b).18 | Filed herewith | ||||||||||
| 2(b).19 | Filed herewith | ||||||||||
| 2(c) |
|
Filed herewith
|
|||||||||
|
|
|
||||||||||
| 4(a).1* | Filed herewith | ||||||||||
| 4(b).1* | Filed herewith | ||||||||||
| 4(b).2* | Filed herewith | ||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
| 4(c).6 |
|
Filed herewith
|
|||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
| Incorporated by reference | |||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
|
|
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
| 8 |
List of subsidiaries - The list of the Company’s significant subsidiaries as of 31 March 2024 is incorporated by reference to “Financial Statements—Notes to the consolidated financial statements—34. Subsidiary undertakings, joint venture and associates—Subsidiary undertakings” on pages 206-208 included in the Annual Report on Form 20-F for the financial year ended 31 March 2024. This list excludes subsidiaries that do not, in aggregate, constitute a “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X as at 31 March 2024.
|
|
Filed herewith
|
||||||||
| 11(b) |
|
Filed herewith
|
|||||||||
|
|
|
||||||||||
| 12.1 |
|
Filed herewith
|
|||||||||
|
|
|
||||||||||
| 12.2 |
|
Filed herewith
|
|||||||||
|
|
|
||||||||||
| 13.1 |
|
Filed herewith
|
|||||||||
|
|
|
||||||||||
| 15.1 |
|
Filed herewith
|
|||||||||
| 17.1 |
Incorporated by reference
|
||||||||||
|
|
|
||||||||||
| 97.1 |
|
Filed herewith
|
|||||||||
|
* Portions of this exhibit have been
redacted
in compliance with
Regulation S-K
Item
601(b)(10).
|
|||||||||||
|
|
|
||||||||||
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|