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The Markets
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Power & Utilities

National Grid warns of 1p earnings impact from US regulation and storms

National Grid PLC (LSE:NG.) flagged a small hit to expected earnings per share for the year to March 2026, with trading mostly in line with expectations.

The FTSE 100-listed electricity and gas network operator said performance was consistent with guidance given at its half-year results.

However, it now expects a net impact of around 1p on underlying EPS, reflecting customer refund charges linked to a 19 March 2026 ruling by US regulator FERC on its New England transmission business, alongside higher than expected storm costs in its US operations.

These pressures have been partly offset by slightly lower finance costs.

At the start of March, National Grid had upgraded its profit targets alongside a new five-year investment plan, after accepting the UK regulator’s new price controls for its UK electricity transmission arm.

Chief executive Zoë Yujnovich said the company is expanding levels of investment to at least £70 billion by the 2031 financial year, driving around 10% asset growth and an upgraded underlying EPS compound annual growth rate of between 8 and 10%.

For the new financial year to March 2027, it guided to underlying earnings growth of 13-15%.

Full-year results for the past year are due on 14 May.

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