National Grid has criticised Ofgem’s plans to curb its profits, arguing that the regulator has failed to take account of the risks involved in running Britain’s electricity and gas networks. John Pettigrew, its chief executive, claimed that the proposal for a reduced return on equity for network companies was not “appropriate”. National Grid derives about 45 per cent of its operating profits from running high-voltage electricity transmission cables in England and Wales and high-pressure gas networks around Britain. The FTSE 100 group also has a significant business running distribution networks in North America and has commercial ventures building subsea power links between Britain and the Continent. Ofgem has said that it will curb the returns available to companies in response to criticism from consumer gr oups such as Citizens Advice who have accused it of allowing “excessive profits”. Mr Pettigrew responded yesterday as National Grid reported a 6 per cent drop in “headline” pre-tax profits to £2.7 billion in the year to March. The figure strips out accounting adjustments such as swings in the value of financial instruments.
Times 18th May 2018 read more »