NG.L - Earnings call transcript Q2 2023

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Nick Ashworth

Good morning and welcome to National Grid's Half Year Results Presentation. I'm Nick Ashworth, Head of Investor Relations and it's great to have so many of you on the call today.

Firstly, please, can I draw your attention to the cautionary statement at the front of the pack.

As usual, a Q&A with John and Andy will follow the presentation.

So please, can you join via the conference call to ask a question.

one are after our free the out me materials any and to today's team. to queries IR further call, or of available website on for reach All the of do feel

So with hand to CEO, our like Pettigrew. you John? over John I'd that, now to

John Pettigrew

the you, Thank to Good everyone morning, Nick. welcome and call.

upgraded billion, As our questions. very our be take economic your financial presentations, The years. £XX underlying drive billion £XX XXXX, today growth deliver XXXX in here strong this, our X% to results the X-year happy during Andy invest of of announced X% the Between Of expected. will the seen to up billion most our Agg, the and March annum, share balance our attractive with originally I'm billion energy turbulent XX% now reflect we'll up to annum, and usual, we CFO. and following average will we've strong maintaining resilience challenging £XX support And frame whilst business we've asset earnings per April of sheet to conditions alongside of X% of our some expect per decarbonization dividend. to £XX growth from This we systems. to per

customers our front infrastructure the need we continued is deliver today by understandably affordability announced families in our right And long near and help we've term, us focus Despite for the consortium We've support of provide At in now. the to the the our additional in on years in on complete during coming to program, efficiency Our we've the the our drive calendar million to year. help parts successful of to higher back XX%. of of This of on most May. in backdrop, of million taken £XXX head £XX further interconnected the whilst of £XX of this we'll delivery make them is progress to for as also We're customers. significant we mind. who around vulnerable as priorities May, U.K. addition keep growth bill million is of a Macquarie-led U.S. energy the X% and into last winter, possible will most business of U.K. revenues critical same the completed fundamental opportunities announced delivering top into their savings sale needs million investment of X we in In with the to X-year supply bills key that our the Island first the strategic over continued first the these accelerated return is support half. winters. a affordability of to our track as progress to We've decarbonization, In low Transmission on greater in over is this sale excellent our to to future. business. Gas £XXX us Rhode stake the time, This asset X that end year. improved security and a creating the helping our growth areas delivering half steps the cost

on an of remaining clearance, its regulatory end this of consortium XX% the part The at the is broadly November. option As the terms. on similar complete to has CMA review expected also

our renamed greater group over gives portfolio and long Western trajectory and good year, into have June the electricity of Power pivot Distribution the the wider in Grid towards to made of progress our acquisition term. Electricity Distribution. the strategic our National conclusion even business integrating Following The visibility it last of in we repositions growth

changes is are I'm which classified half performance impact of X billion. to U.K. of elevated £X.X business, our our our profit our performance the This basis, venture So performance. as really to excluding with sale of both is operating formed and Gas in given the in and timing, well regulated property the NSL pleased improved to reported reflects results items was months & underlying On of first as contribution of structural of Barclay full Group the March our business. planned that a joint financial the William which an networks. Metering St portfolio, across interconnected part all discontinued half a exceptional Whilst Norway, turning as Distribution the in Electricity Transmission operational to the the from first from the sales contribution

the operations compared of and Excluding Distribution per was EPS the our has investment interim National and of Distribution, £X.X above dividend. dividend investment share, York the Electricity X% full middle Ventures, be our per share prior last Viking XX% across U.K. the XX.XX earnings Grain Grid interconnector was currency. XX% now we year's in of reflecting the operating months X and XX.Xp was year And year, continued expansion reflecting and new longer sales, timing our higher impact full line a billion, on year of Sellindge to the proposed New for profit prior New X% higher X% the expect up constant station both England the half Isle U.K. with Underlying underlying policy, in of of at growth for rebuild, project. year of range. first expenditure Board property our to Capital converter our to full underlying Electricity and an owning in

X.XX as and safety we the saw Turning In our months, across critical to X Safety, behind first a still in performance. of million. a improvement frequency but injury slight target rate next our the business. to always, focus our reliability remains X.

a reduce group. through event redoubled we've to implemented incidents strategy employee Following May, efforts safety this rolled out the across tragic Massachusetts an and his U.S. further lost in where our in safety life, learnings updated

U.S. year. well volatility The only across last the of the than is we've in have had fewer which our and demonstrates we've markets. operator of U.K., customers month. the both a of today. the reliability we've number summer reconnected within last through which using I'm small of remained In sure seen energy XX despite few the has the support new reliability everyone networks. and hours. And tools managed seen to the impacted the of winter would Moving storms our networks transition with electricity U.S., system the U.K. excellent In effectiveness published energy outlook you many This

cases. We're system demand uncertain forecasting the a is million. its of electricity vigilant to ahead gas through up within similar networks XXX base additional our compared standard X-in-XX-years the of standards. capacity the a move required base as of The U.S. the X.X%, the forecasting not gas engine electricity usual Given regards peak system Europe, and have of available we both in both winter over for operator capacity day set our remain and the system winter high scenarios reliability With and peak across per scenario operators delivering million XXX meters confident months U.K. cubic to across the to in recent operator, winters electricity only also provided outlook reliability downside gas this and level the margin but

in gap proposed X key incentives, the Ofgem's driven service and I'm to delivering we're with our of improvements so customer seen we Moving a pleased the of narrowing Electricity to we on passion mechanisms reduction now firsthand to across determination its connections approach significant efficient the having in the number starting is EDX; control. these with to June half, us increase for first, uncertainty business we need and EDX, more in macroeconomic convinced and year. deliver to the investment; and to investment brings the package, on and agree to I'm Distribution. reached the knowledge Ofgem performance working expenditure the third, U.K. symmetrical XX% our cost following EDX benefits reduce the for; streamlining which complexity a with businesses. seen market. second, debt allow priority performance the customer XX% drive operating areas: June, last really in can sensible capital across the that business, draft our of received key seeing At team equity on acquired we're outcome all the the allowed Capital and now cost situation will financing our since particular, And technologies. reach the last, of investment, further a I've fair performance critical customers £XXX have by end settlement reach new of the help end for it as of asked we a of reflects to outcomes we in million in higher for low-carbon must price given the the the on the customers

half. in on £X of over program, December work progress under Branford to and XXXX. complete our due business. We Transmission investing Electricity first project to our was now This full increased make projects track with full XX% with on principally to investment as on boring as reinforcement capital our continued on million London initial good starting our tunnel project first also program, our spend connection part £XXX circuit. Coast higher our our Hinkley by year overhead Moving U.K. East the is of we Tunnels undertake made Norwich Power progress line the which We've completion for C billion to good

out months published ESO a holistic ambitious network for front, a and regulatory network coordinated which in the the targets offshore plan meet On to design come government of lays the decisions the onshore gigawatts first the government's next X needed back to efficiently August, later the to in its aims. wind. about talk I'll allow us the XX key support for in offshore and

reported RIIO-TX with the of operation allowances. to announced reflecting investment has be health up sale. to discontinued the U.K., our regulatory continued transmission XX%, perform million, business higher gas spend The in asset on well and a line continue with Finally, in £XXX following capital as

the before the businesses half, I earlier Now a want Clean in year. our moving first to spend to on U.S. Vision the this performance launched moment we of Energy on

supply and we've choice, vision. communities investor such to know, you clean than a a approach that a electric response event all-electric policymakers, all local a pleased regulators utilize alternative. that who allow lower in had this gas future We're we I'm networks gas customer to envisage customers for Brooklyn have keeping security and an continued networks, the whilst from and fossil-free As our our will XXXX. those by provide targeting positive hybrid of attended bills

focusing on So York. New first

driven the was connection York. storm XX% Our at Connect currency. billion program at capital £X.X renewable where well investment largely half spend large-scale XXX of such transmission SmartPath constant This lines projects over as as New the during was and Upstate upgrading we're project, as miles by resilience increased higher in hardening

continued replacement track program with miles XXX pipe replaced. leak-prone pipeline Our on of

under projects and X XXX front, we with July including of of approval or represents Act, $XXX This projects the On such Protection in Phase state's CLCPA. rebuild regulatory as Climate around in XXXX, to our the Leadership received circuit the before proceed the support to we area million X includes which miles service CLCPA end incremental investment investment renewable gigawatts a Phase Mohawk also in generation on over $X of And generation year, order Niagara Upstate response anticipate to a further renewable this billion New enable York. by capacity. II the of of the Community

select progress approved Moving Massachusetts pumps of rate became grid a million. £XXX and our $XXX October, modernization to In of due X-year in over million grew New DPU finally, Grid National where October. for the reflects York offshore XXX our just the program at Also rebuild, our further Link investments of over as And of by of currency to solar with in year. X% now adjustment been network and LNG and to our regulatory integration European period, part £XXX first capital Elsewhere, plan. XXX up the megawatts September, of constant Sellindge we investment the busy the million million DPU the the the U.S. we to laid condition $XX developing for beginning investment approved miles asset annual electricity their work heat of venture to capital by that of on sale for was submit replacement transmission, the with It's expansion to million, May. PPL work our wind This growth to moving for This with in of cable make ground XX% These And approved converter New effective our in U.S. through gas And Island expect of solicitation Grain Rhode wind. pipe station as in to renewables the and or the at we lower XX a in continued in in end community investment countries prior to completed the projects third reached farms. demonstration with for as offshore in the on investment and across progress Viking of Ventures, leak-prone partially half. £XXX offset we increased electric increased distribution of construction continued delivered offshore joint the part facility, In site construction Massachusetts regulator by $XX the period in aim end the million period. kilometers multipurpose of wind for January us. case continue the to source a has England. interconnectors in been on State rates RWE at Isle September, proposals

about the talk financials half, our me for first I now So to year. of Andy? the to back through of take rest Andy priorities come over hand with operational and you this before that let overview the

Andy Agg

good as metering exceptional report results gas usual, Thank presenting discontinued underlying highlight you, rates. stake timing, we to as items complete the dual exchange including we John like a Transmission Gas our our that, constant legacy operation sale. at I'd whilst reminder, U.K. excluding and And are and the provided XX% morning, business, continue our to as we're a results business everyone.

this from earnings all the continuing group. such, from As underlying the of excluded have segment been earnings

earnings it for regulatory It's in has expanding This by year, I'd made comments to resilient model. but delivery goes rates have why strategies this. ratings reduce order place. the Before results in place from partly changes consistently start and able exposure plus in exchange a of yield to our hedge assets In thumb U.S. business our interest expect in FX, or John long-term turning we annualized of This year attractive see strong businesses our $X.XX with of growth metrics we're in rate and manage exchange of on by move we dollar-denominated that is an half we U.S. to changes the exchange on balance deliver dollar after about means an of debt. the perspective, to rate, Together, from we driven frameworks an volatility financial like move our minus for these to rates, the the and basis. year. our reduce the to we and general financing than the enable our and the put further much to XX% around every EPS is efficient us inflation it's to rule sterling drive in U.S. and Xp that impact

May, from course broadly This Moving index-linked benefit moderates, into and costs translate higher in profit offset to base. operating in said reduce. inflation; index-linked profit inflation inflation debt U.K. a higher we due asset near regulated our level real the assuming costs. is higher as as of returns improved will In to term, U.K. neutral then as should the earnings on operating interest underlying back is by EPS

higher, we as moving forward. expect we look to interest rise do costs Finally, rates with our funding

frameworks our efficient recover enables leverage us debt operating costs. regulated to businesses broadly which regulatory Our match to

£XX higher at the also early XXXXs. just the under factored our expected has this refinancing X-year debt cost have with holdco frame. of billion level maturities out We been interest of into to updated financial The

updated model. And so together, strength of our X-year putting all business the frame our this demonstrates

the guidance to for March to For investment of group to our capital see £XX 'XX, the billion. now from period 'XX £XX we April billion from prior million up of £XX

dollar the now transition. to As drive to we period asset taking increased level investment X% by CAGR 'XX prior This in a the with the top and growth expected line of This of been to stronger the our for further to May, a higher the of EPS range. investment energy over And higher XX% to grow CAGR incremental X% will CPIH. inflationary confirmed in aim continue from X% increase FY baseline. we said were our U.S. and end impacts our dividend has average to CapEx

into EPS for are about our and now of well taking Importantly, Indeed, for high to updating the the in whilst with our after around winter metrics new our middle We even the our assumption of to higher 'XX delivered within package remain also complete, account investment, support of on underlying this upgrading as of dollar our CAGR RAV credit XX%. the strong FY term, X% John levels EPS growing average X.X% required Nearer the we're earlier. can financial new rate rating. guidance. growth investment-grade see an we of talked transactions year X% net range exchange levels year that investment U.S. be based debt these X-year to frame, expect as once bands credit and of maintain

we and As of improvement fuel in Isle higher division. also Grain interconnected income our well across as from FX, Grid as as across have our some capitalized improvement from are higher the increased at Ventures as interest well move seeing rates National an portfolio gas the

NSL, Distribution markedly So as million the in XX% a well regulated was following prior billion, higher in in underlying turning per following half to months in performance increased this on by again offering June costs, X York Electricity stake the increase at will to full the by on Barclay last higher William partially total. as be operating up rise of full the to earnings than its New dividend investment a per driven of billion. interconnector of has representing of line sale across the October XX% year's year. has year. England. Scrip the profit, to the performance. XXXX St. Group, as period a from an summer investment full Underlying lease Board XX.XXp and operating Higher the of mainly inclusion as contribution to joint XX% our option in property sales proposed acquisition additions our venture of by commissioning interim operations businesses. and higher our well with our U.K. following X This the scrip XXXX, of Norwegian in X% the share profit Distribution continuing noncash reflects interest £XXX from New In good increasing £X.X was the underlying interconnector, policy, the offset Capital share, Electricity basis months capital was by continuing dividend in in earnings operating year our This in completion U.K. resulted uptake a period XX.Xp, year half £X.X profit

Now let me of million each our compared with disposal business. Distribution. metering on this the million period. earnings to of increased gain of higher year, small to This months through across achieved for of XX of million out and half the £XXX you XX.XXX% revenues and was U.K. Electricity X.X take operating profit alongside segments, £XXX performance year. have the from the measure business investment million, up customers. Underlying its by year an million prior starting largely driven a customer was index X.XX prior of our smart Capital additional of of score the industry-leading satisfaction the network reliability X We've increase £XXX broad £XXX

Link Whilst on operating announced making new Tunnels up million first the Transmission, good resilience, and Connection Moving a underlying of progress in system good with £XX installation to significant was at last the back we investment the half and May, project. our delivering year. tunnel Hinkley our capital breakthroughs million as health £XXX profit settlement connections. compared at Power related performance, the projects million with London million, to in we And £XX [indiscernible] asset new X Capital period, we've we're half in Western where returned the Electricity £XXX seen was period.

operator Finally, period up £XX in in operating electricity the million. underlying £X profit saw U.K., the to system the million

lease operating the U.S., costs than recover Moving where was case to £XX This prior higher prior Capital for half. repeated £XXX prior which additions higher was higher by million provisions. than are offset expected million, rate this year. our from constant and the in noncash to was at by year the COVID reflects environmental million driven of profit through New partially periods, successful £XXX second our £XXX be now York £X.X not billion, to investment underlying efforts settlements currency. million higher revenues increase

principally million £XXX disposal was electric gas performance-based in New the than National higher driven at the the William million, reset This for million in million regulatory levels in to for driven million, period. £XXX or year. well up the constant Operating £XXX its in This offset half completing property activities other £XXX the £XXX our by million sales commissioned ventures, IFA Sellindge. XXX year income; the around rate to England. Rhode Rhode £XXX profit of than to at last million shrinkage interconnector higher and million converter £XXX Massachusetts resulting continue year back lower rates half was million new increased track year. higher increased National with by joint million £XXX in of year; currency. service our fire prior our Grid last station month million, half XXXX X is £XXX higher in prior period. in to on given the Grain investment lower additional megawatts the the Massachusetts asset business X and this offset Ventures under Norwegian across in adverse rebuild £XX higher reflects perform flat the of December Underlying Island in including profit of results partly X-gigawatt in Partners Grid Turning in by megawatts about market in £XX profit National the the was winter. due return driven period. million expected months sale is Isle into reflects Capital as was primarily contribution. value insurance This partially offset proceeds Massachusetts, with by its gigawatts million, contribution losses in available half the investment This the XXX Capital of The profit, fair £XX Capital by part expected business, following received settlements conditions. given investment May annual operating transaction, our on was Island a operating than prior this Ventures and to fuel £XX of by to XXXX. of This investment which in off-line first from remaining underlying at the year. the going the Grid capacity St second at broadly

the we of said, Gas to expect John in the segment report We complete continue sale a to year. Transmission stake business of As XX% our Metering as the calendar end discontinued. by therefore & this

million, profit the prior million. investment For operating than was largely for depreciation excluding was the year, of This is than XX timing as of million, £XXX points as This driven higher debt XX.X%, £XXX U.K. the additional tax period cost the period, joint Capital was £XX Electricity rate sale. facility an Net driven index-linked £XXX business by period. million effective included finance of higher primarily Distribution and higher also the levels year. basis treated before prior higher given inflation costs. than million cessation the in bridge prior million, held was was £XX by the months ventures The X.X up £XXX underlying year. financing

of tax billion on Underlying with underlying the XX% were tax to at excluding year. the earnings XX.Xp, be the year, full the share For is profits around XX%. EPS venture post rate, expected £X.X prior effective up joint

of and cash Distribution net cash billion, higher year. accounting in remaining to and lower the given proceeds continuing billion, the the half capital with sites levels billion by high Cash reflects of of months up the Island. increased was Moving the of billion now billion uptake. of U.S. cash £X.X dividend from Barclay given Net XX% from for This the debt a prior outflow property U.K. in levels sale scrip contribution sale was to outflow offset stronger flow. cash year. £XX.X by to The generated dollar Net Electricity Group £X.X full £X.X to £X.X from the amounted broadly this. Rhode period compared operations investment to the X

rate For Millennium as assuming expected in this year, exchange proceeds of the as sales Pipeline. net of September level, reduce full & by US$X.X from from £X to interest expected debt sale the billion the driven Metering by Transmission well our Gas a the receipt is

to touch Finally, I structure. want debt on our

debt fixed, split index-linked. XX% September, net of of is XX% floating As our XX% and

pre rate comfortable close would requirements of our and floating around to that per we of £X with the bridge annum. XX%. transactions loan half, pay the of acquisition refinance expect between at £X bond line Transmission continue more and which in already funding sale since As debt the had on the financing. We to to be down the level we've And levels we in Western Gas place Power, remain are in with billion billion we've completed billion average £X first of

upgrading So With the I'll to you financial upgrading hand environment. for to have shown We've economic and against back well our that, well FY that and first model 'XX. John. strong Demonstrating outlook volatile we this, a as half. performed business earnings a summarize resilient we're our X-year framework as

John Pettigrew

clean, next are met the up it, next ambitious goals be you, could and with where the the climate speed energy shaping made delivering Thank which cost decade. lasting have months affordable period and around via whether repercussions secure and X is will defining The Andy. over decisions of

of and net safety resilience in one to our biggest of delivering whilst we zero, the As investors the energy are enabling continued networks vital of the tomorrow. today, clean

for to wind network to In and the into we with XXXX. the needed settlement offshore to deliver agree that Our we've Transmission, in end clear government decade expect through and for come of on on April Ofgem over distribution the effect foremost the plans reinforcements this Electricity a decisions priority will EDX electricity is presented coming months.

any of by the potential has deliver to network offshore projects our wind transmission of It transmission territory. billion. as published gigawatts connect letter the system price engagement capacity challenges investment framework of Alongside built of Ofgem It's As decarbonized on now electricity I by with design XX holistic its a in XXXX. of target this, an Ofgem have U.K. appropriate the projects to our energy that industry, the industry service is ahead BEIS of our identified last focus enormous. a and test need ever to clear to has a X the that needed requires meet and you a process plans with in set RIIO the delivering. of Delivering of referred gigawatts. it's facing in whether next over deliver right XXXX collaboration years Ofgem is major the hitting The earlier between targets, lays to ambitious U.K.'s in all regulatory recently Xx urgent would initial challenge is fully We've amount been relentless onshore the know, progress time strategic this XX. to that part X government the open next systems. these is the We XX the period. infrastructure The and But we electricity agree areas. current greater clear mean hope £XX to been this that XX control government scale

be so industry First, the that pace. up the needed delivered to has on deliver requires chain commitment certainty infrastructure scale to needs and supply it the at

investment. connection that regulatory continue will a significant to and queues constrained framework long allows for need Without industry this, we anticipatory Second, face costs.

Ofgem discussions the final regulatory Coast engaged of East And the government looks as actively the is economic the on is zero net in reflect risk needed. end proportionate when framework reform the U.K.'s ambition for financial And that about with of the and communities of is year. needed Fourth, We're scale planning long-term required. work as framework Third, infrastructure benefit which we think needed decisions the finally, reward regulator make agreement of projects is by on to fairly for clear new the to the and investment calendar and RIIO-TX. represents the parameters in urgency urgent an key built.

Now here or regulatory to for the U.K. failure Any is transition place appropriate energy targets cost the put the its EDX in delay and run. or the increase of frameworks by time decision-making action. the in increase in Ofgem risk with long ultimately the will missing could of

So in relationship her to with moving forward the very constructive with U.S. Governor look collaborative We've and following to earlier our reelection work now developed to New continuing York. this week. [ph] priorities. Hoch a We

in energy election Governor our also regulatory to a develop Massachusetts. regulatory second in Northeast. affordable to we focus base. a And will the and smart be remains to up energy full-scale to metering deliver advanced rollout while are year. with and for as a as look perspective, million our Our for pathways lot From Healy reliable similar the safe, her future the we needed priority that develop to frameworks $XXX relationship the on this customers a look will meters be the to customer delivering and beyond, for infrastructure following U.S. approval Massachusetts, clean of working achieve going winter funding coming there's across our of In of a to half

over the on of regulatory year, end Massachusetts legislation act be issue vision. by in also engaged fossil-free support By over like debate. targets. lends next package role on clean DPU distribution more And customer the this for networks energy energy the cost the U.S. an the companies are the energy next stakeholders the the approval followed proposal And In decarbonization vocal investment and of spring. electrification the centered the future U.S. technologies the is addition, production, actively deliver working history. We'd investment U.S. and The Massachusetts expect incentivizing workplace and targets. engaging XX,XXX to with gas, ports. renewable the of expected the the At of recently act December, we're targeted where which II energy filing $X views Inflation its to and billion, a lowering of Climate our our these of vehicle Jobs to gas in filings others solution of DPU see hydrogen Act which goals. Island. progressing $XXX the Infrastructure DPU and policy with been natural we're a by KEDNY in affordability XXXX York largest our in includes and closely decade. Council the on clean consultations, $XXX Phase recommendations the working up our will file expected of approval working on domestic we hub achieving hydrogen our in at in actively end and working benefits state's The is residential around funding the In processes level, on we're EV already will year across manufacturing to our gas in rate make [ph], meeting of energy hybrid act increasing with announced federal the in million Ventures around And These Northeast, with supporting the of to clean by the stakeholders Act supports Reduction all we're we're XXXX. order to transition and full net priorities our Action The XXXX York, energy latter recommendations of trillion Investment In Northeast the advocating are all Nashco a New we're role is electric Long in the and the by on New KEDLI zero for vision public to assets reality. make cases State

as just sharing I we've with our in we before with years as made, want further. via quarter. X Since the responsible release, next to charter, progress Now business number we In first this me go CEO Whilst X iteration Grid. our our a progress the Delivering of to our want strengthening Charter to where finish, publication business Business I launching I ambitions is we've touch the the pleased ago. National and important I'm on of revising Responsible our which the a of we'll that look forward updated targets you reports. incredibly you be appropriate. responsible of XXXX, its launched on to

performance. a progress period been has strong significant alongside financial this of summary, in So

our in and the challenging both Our to conditions financial earnings near-term demonstrated we've underlying economic made by upgrades X-year framework. is our resilience outlook today

As determining and of we'd the the increased long-term transition of X net clean scale COPXX be achieving at crisis. front course, and, zero leaders energy in opportunities in the key to consumer this is bring out the energy resilience investment this of current scale week, will pace bills at hear security in of world from will way down And half energy and Connecting clean at why the as reinforce vital goals. will National update decade. next the over The and first speed making of gain happen. year. role exciting transition to and we the clarity, next the we'll Grid investment we so in the network pivotal the that next plans energy be you months are on have That's

your Andy and be that, happy take with I So questions. to will

John Pettigrew

Okay.

So let's start make on a questions.

going to Young Credit go Suisse So from from start then Martin after and that. Mark I'll Investec I'm to Freshney with

to ask Martin, question? So you like your would

Martin Young

of questions. A couple

first alluding of to been one is pick by The on X picture. up sort of what you've to long-term your

if transmission of number to put You come ongoing. a there's But review those they onshore what in CapEx on obviously, offshore network all entail projects the might terms that's fruition.

to if the If ballpark a the about on. given we some on of out together of I number we the to be what revenue a at that disposal conscious at recharging given that that to from the onwards? muddied is of say the in try British over it's taxes? possibly with winter. consumers we're I'm then the we talked you of sure the if brought gets tools the They wires, could actually be investment per a it's has. to sort continent our the friends unfair about U.S. landscape which stitch You of whole the are to And talked early the this should to need that days, value and about of are be range make It billion charges a of about believe reciprocity sort putting could help we obviously £X looking on seems in have things impediment neighbors bit were XXXX just hear about their stay face scenarios. higher know out not of the terms all redistribution renewables the second really politicians windfall that little and/or and from I that somewhat Europe. question What investments our caps to lights helping about or speed of But them else it's happens bit chain, of by balancing what winter. a number an else that at if year situation ESO do And costs facing being I market somebody

So any sort comments you have please? of high-level might on that, that

John Pettigrew

Thank big Martin. Two Okay. questions. you,

deal -- with me those. Let have let both me of

view the reiterating. by in start first, of Well, investment. terms just longer on let just term So just me

is the expected increase £XX So billion. first thing to from billion done set an billion today, to to which we've is the £XX XXXX our investment until £XX

substantial increase in a that we're that's So investment making.

in sure that we're that. number that a for we I KEDNY, U.S. for we've we've the understand as I got XXXX onshore sure what consulting In transmission year-by-year obviously, work investment, a got be to look the next to we a said bit and basis. landing of KEDLI projects we as I regulatory the in of it's you of think months, get levels in to XX outcome related beyond well. develop that more the to would through able CapEx We've seen I the update over like got gigawatts. to currently big rate said we'll U.K., we've the little longer are that have targets of make expect we so and set that. and -- As term the the looks filing are bit start exactly determine got early high EDX that U.S., to in framework mean, to that And a we historically, that on starting continued making the a pretty on X we need have a my that transmission seeing once on and market. which And we'll the to speech what and the see get think we Ofgem clarity

than have there's be going that's we lot clearer we're doubt So continue investment to today. term. X that no between to a now seeing long of is a but into XXXX going lot information time and the that we've got months’ in the

that be again, impediments, I over said out the are think In some I terms speech X to there next in need made. of that key months, my decisions

a that Ofgem make of work calendar onshore consulting support and the clear a have XX transmission framework the this regulatory the lot And to is of One obviously the on key for end the will moment at That's gigawatts. target are set being of important. year decision. the ones a

process doing things that, whether to mentioned is going the of we're Scots. finally, the as in On responding We're it's government then to planning supportive accelerate going I've well if process well. the to going transition as planning the be important And to reduce half. ourselves, of it. is be target whether the whether who know the that the is top on benefit competition, going set it's Again, and consultation anticipatory community like to we to very it's investment work, the energy a important by fact that. really that. So on are U.K. We're

behalf U.K. So many hosting infrastructure to out on be communities are there's the consultation and of that. on going a

we're what being key some asked more that asked to months and decisions the clarity in exactly made give need in we're X there's frames to which lot next be what investments a So do us to will being about time do them.

the me electricity from gas and terms of published system the In winter ago. so the operator hasn't we that winter, outlook report system month the or just operator reiterate, let changed our a position so by

this So XXX previous winters. in will generation similar side, to close view day a a that about meters is there's we've million expected is about that's demand. cubic seen Those XX-year know sufficient there is against in X.X%. million. to to of what the meet And demand on for peak gas our are very Plant electricity, X margin about available XXX that

expect, what of system not to downside and you'd meet be with is set rightly expecting they're scenarios. to the clear, they're they're with on sufficient that's Europe generation operator, Russian-Ukraine Quite plenty as as available. and What there situation, they've again, a gas out everything So But in expecting. going demand. prudent

both and does winters. interconnectors they in therefore, And they as In that one the is will flow it winter the interconnectors, Europe terms ways. mean, do of Europe versa. this support when other things to I support vice provide about suspect needs continue fantastic I of

to they system therefore, of provide thing export good and really import systems different. the and on the flexibility day part And is the So to the parts the other the are about the operator. peaks day them is ability valuable of

remembering valuable winter. think, that and benefits to us exporting exporting I this when them it's us tool, think and benefits we to they're really for a I get they So worth that's get when just

Okay. then I Why to go Freshney And at Suisse. to don't I'll at go Mark Dominic Nash Barclays. Credit

Mark Freshney

John, can you hear me?

John Pettigrew

Yes, Mark.

Mark Freshney

I've got X questions.

on for for all borrowing yield been first highest things talking they've utilities years. regulated are costs like some Andy. question Clearly, XX the about at call The And you're first to X%. in hybrids

through You've And -- point going alternative other given bond measures you a when it's but that can works cost into mean, in another CapEx us and equity or increase a got But of in basis asset guidance. of for sources secondly, both I'm I've XX about terms And balance the returns you equity favor comfort of you talk on you you an lot what's finance some the talking in take. on share of your returns question there's prices. indexation happened can see to of EDX. increase XX yields we're I thinking or could disposals sheet. in take if could of that on

debt? how is, on and would for something XXth And the give going you? question indeed you Ofgem top why indexation of to are what confident equity the my into of getting equity the on So November -- of message cost standard and

John Pettigrew

a question of the terms I this don't why and discussing been Grid mean, as as you'd are costs. one let there Well, Mark. that National of borrowing EDX, always I huge between second the decision Okay, that's then important acceptable. a first in said in is, take on morning as determination, and Ofgem, take filing parameters to and key I expect, the amount Andy get draft all dialogue the the since there's to

equity and for and rates market seen as what's total around Clearly, happened with the happened returns is moment with Ofgem working external market, risk-free challenge So to market at the be the on part cost as on having as cost debt. I as with allowed in appropriate well. the what's might said, efficiency the of of then well we're mechanisms, incentives. what's we're of We've conversation uncertainty an what the implications

much determination market. couldn't response ongoing the to to happened from in Ofgem. I more So in at with other expect what's We're determination see given see November. we're the some dialogue the say a final we'd of Andy? draft And expecting than end

Andy Agg

But moment. just Thanks, revised again, quickly assumption debt of that. £XX to morning, of remind mean, on of within Yes. to Clearly, we higher of are takes CapEx pricing And we with referenced we 'XX. and in much hybrid our this -- to within to our use have FY we will through what forth. That right [ph] Yes. be a today. or issuance. clear the they book that's up thing I level that as X-year Mark. those just set call hybrids further out there just no so the X-year rates couple Obviously, look that no of at out with there's as now frame the you to a interest approach curves intention very we do today, of first the hybrid see with have forward so higher account and within through aligned feeding that expectations billion frame further

So to available that remains us.

aligned is X metrics through in quick -- be the operating million we'll we're where -- And you noncore well. assumed sale remind assets to program ones. X it year. are have value the also, very to FY we're is that. the like remains our conditions there if That maintain. we've announced very appropriate But last is and 'XX cost there's year track. very there we comfortable One already nothing and shareholder efficiency of Millenium this that on as and a just the that other the You frame potentially the £XXX need we that that much years with from that set out seen are driving clear, with to That's with perspective,

finally, a John's tracker the higher So levels We're obviously, higher point going to and, the takes interest I'd also look appropriately are that echo costs. price just mechanism we forward of mitigant to some controls. working around of expected interest is clearly that, And CapEx then EDX of debt as that ensure higher to around rate the hard the and forward. in that environment with account Ofgem the U.K. tracker future

point will look a forward we final be key to determinations. So that as

John Pettigrew

Thank Mark. you,

we'll that. let's to at go Jefferies So Ahmed then at to and Dominic go Barclays after Nash

your ask question. Dominic, So

Dominic Nash

you're sort And to from intrigued the But in didn't. A question with couple of change to was looks of report. March pension you X.X% following So of it that I is your from of questions September. putting Mark's your a position, me rate from kind your now a kind inflation -- back discount X.XX% of me, huge on of and by answered which quite of that

assets number. single that because item that sort considerably if I going with then And for increase you so doesn't we've EDX you the your think saw issue did the you to still -- And fallen think is Ofgem certainly, the around determination? on pension. issues like of a just of asked draft seen bps have questions can the of couple again And quite that's just of what risk-free? into that you that July you since do the really returns need? a is us LDI on kind determination reflective it's liquidity is, you the it the in the back CMA Could a X-ish potentially second, meet which going this change pension And remind you in confirm have what hundred referral

John Pettigrew

Let the terms what was our think, first on X.XX%. part the I And the think with Andy return I I'll then rightly. pick Why business mean in was don't Dominic? it in in back of up I I remember X.XX%, part. of came second take I terms determination draft often, plan, if equity,

because to package final overall I is a going you In I'm determination, the terms which have acceptability look say of when what of the comes ultimately to determination. final always say what to it that it's a we believe at

need to Also So we to incentives need is. look and well. overall of as to as uncertainty the as the well we at allowed look cost like at things equity things the look at cash, debt mechanisms the speed like of we need what and

that determine asked our deliver and customers So, can its have it's whether package the overall what will us. acceptability for we

ultimately, determination. CMA As the have in go able to package that determination that part proposing. the you to know, we the item until we we is Ofgem electricity and and on ability did a be see single But of we final the that decision overall to fund as the won't do sector, transmission make the Andy?

Andy Agg

X on Dominic, in just Yes. the turn. pensions, points

yes, terms you're in absolutely right. of So rate, discount the

So to is we've accounting this accounting a X.XX. that's consistent up -- That's we've from of U.S. to remind U.K. that time September which just rate an and discount on the probably points That's adopt. XXX to in around at moved from actually perspective, IFRS we're basis to XX, the required you, March U.K.

seen rates. to higher discount recent reduction XX, a significant no seen because September the liability value impact we've in reduction of we've been be funding as it's volatility of clear, Just the very our assets offset from reported of of the in the by perspective, a although because a

morning, asset. relatively you'll overall seen numbers have the So pension this consistent

right. you're LDIs, statement. in of the terms And it's In again, reported income

issue. one short-term exposure that appropriately. scheme with weeks managed see the across couple We it the that valuation you'll and over few don't was it. we to us. that LDI spread relatively to We just a amount It was the obviously through schemes. defined the from closely expect every next impact be a any for of over to scheme, expect months. And certainly much pretty flow have to we repaid manage the our ensure loan schemes like did next manageable cash U.K., extended significant in was worked the benefit trustees So different with have It

but us. So for we supported significant no issue the trustees

John Pettigrew

Thanks, Andy.

So go I'll Verity and HSBC. to don't we why Jefferies go then from at to Ahmed

question. Ahmed, to your you'd So like if ask

Ahmed Farman

start breakdown some that and some one the few thought from Could to underlying also a think FX second in the earlier have down questions, in of of of other of of number FFO then debt, just you in granularity terms of to guidance some the provide comments, increase is just to metric. slows I billion, would of, And And offset £X outlook the this there's a net EUR the you -- current combination to RCV case couple CapEx And some debt investments just if of think, a I outline your a end in understand net the on or a of got debt. the least on in billion question there's the X increase side is I billion I I I'm £X net the outlook. top more cash previous Because that the think at the cash CapEx, sort few see not your first, that RCF the between that's so sort to way the slight clear were and the margin upgrade you the sort you trying flow-based on in more if on credit of sort to my I've on debt two? flow in is sort metrics. mentioning -- the projects. Could what's the guidance.

policy. those questions. final X So on my the that's then And one

Your But would thoughts pace with I current how the nonetheless, it coming running that just bill of accelerate I that cost need small Any regulation presentation environment environment of wonder crisis. high for of energy for the at [indiscernible] of relates be in a would to is numbers the the same which is current an in sector right And very is accelerated living really a arguably you're this but all of now. to a now on that context clearly case affordability. also component intensive also is the at capital. where helpful. of higher looking investments transition. is of the the time, appreciate under national outlines cost sort the and see inflation compensated be you The

John Pettigrew

Okay.

Let me do the billion. to second. I do Andy the third the the £XX then terms first and in our update to of capital long-term in ask and mean, program

need work at million macroeconomic £XX range. second £XX billion view, think our about the really the events increased talked then towards we million which around end May, And being the and that rate is the about increase just clarity is to with half we of latest to of top is exchange our in £XX I really inflation. And half do.

example driven So way bit in a there. we've on supporting the doing got got that transmission as in U.K. connections more which visibility of and as and about more technical CLCPA We've projects New the a for in treat the are as clarity have there we early well. we're WPD the some in York, work that wind well offshore the adjustment

half So it's increasing about macroeconomic, work. half

a I'd towards macro to in level, very about climate think first going think, much investment and continue we at I how of terms a future. the that to In resolution the current accelerate say investment the that we're in the of crisis foremost, forward, low-carbon we the see

worth a things needs got is framework long-term people environment. regulatory made carbon think one obviously, decision So a prices, increase commodity an of [ph] just and transmission U.K., the support bills. for is always that the but in in And we've reduce key low stable continue the us for electricity lot said in affordability think, U.K. that prices causing how path sure for in on Clearly, I of it, place the reminding next need we make more and able a lot future. investment months. difficulty. a is terms which to generation will we £X,XXX of from for will currently customers, also X ultimately of of the And customers to networks, over that perspective, the a independence to for are that will enables the low-carbon energy £XX, of I by to right And the be it's the about high we to the be example, investing connect that to bills that's

investment as program, although a as relative keep it's delivering commodity are actually current we £XX possible. that prices sure we're efficiently focus that a So major experiencing, capital to people making that the on

that's that. think So we how Andy? about

Andy Agg

Yes. Ahmed.

transactions we credit of you terms on as to marginally we points, guided We on the basis. those metrics previously In credit what to metric. the unchanged FFO RCF and we as terms both the to our annual land ones XX%. you also debt the noted, inside -- metrics, On to, target rating an leverage debt updated post X% in where expect the metrics around to, of for report referred are view That's and we

those update within So we've got broadly, update change to obviously, But the frame. year-end. the significant we'll X-year actuals come

the that We be CapEx our retain It's impact the CapEx. the continue there's underlying of we within delivering not credit drivers. the but as current maintain need the just number that It's comfortable to Obviously, performance. to FX metrics. metrics to of

to change rating our perspective metrics. on credit overall So no

John Pettigrew

Thank Okay. Andy. you,

to Verity and then I'll to Ping Citi. Jenny go I'll go HSBC at So at

want So ask a question? to Verity, you do

Verity Mitchell

First all U.S. they're actually. is -- in the

this future about bond one be think in go very U.S. you could in partner you is that the short could the looks we've Could filings? I anything then lot The more from you talk that a going auction medium January advantage more in to commentary that. coming thirdly, will It aspirations the a in What out actually at that. But conceptually, as rocketing the investment a you're on project? then and do your a in first talked you specifics ROEs just working that this Reduction the about just also take your ahead. from And in you regulation. see funding bit in term yields on filings, up mean, mean high go secondly, might you're Inflation term that on the Act. level? And just about of all U.K. like

John Pettigrew

take Verity. Yes. and Thanks, the second. and first the third Andy take I'll

in for preparing we're In New then at response terms offshore RWE our to the partnership the the York of our wind busy solicitations. moment point, with

making It to we the that is at submitted the our in be And moment right. sure compelling state is due proposition January. to You're on that. competitive the most folks make and

the of regulated is terms always spend We'll we've always apply be we that of we disciplined to the said very discipline. capital that investment aspirations, our that long-term outside will continue networks. In in

is the view at we pass that to we So returns the to that should response of are we going have do capital clearer to. solicitation, we'll And able And once that the to on investment forward. point need option have a be it's right the on see we'll whether determine investments. the much make what it ultimately, to those

it's as the particularly the a And a think our for opportunities, Reduction vision. in fossil-free our the hydrogen mentioned I think of terms U.K. In Inflation for of mechanism creates it Act, in like areas huge speech, lot I support us, I energy in sector and

sort are into will like action and projects. adequacy that look demonstration vision moving of now describing phase phase the of like of require what which We out the might things

on look of benefits there's terms not think I'm in of very players going hub in And can only again, So certainly the very proposition going the of I like. forward of support National providing, a to is might and put and And act in think that context. similarly, forward. doing it helpful number it's in in we put wind vision like helpful. support is the we're large think, I act hydrogen direction, it's at the but in short-term Grid be to gas immediate Northeast as the the providing the that hydrogen, renewable with that the work be sails a that long-term Ventures, moment natural the to we things what that I sure lot collaboration

Andy Agg

of look actually, actually, few reducing ROEs on U.S. costs, right. Verity, the if level. we returns, is But what over years, a back you're I return sensible long absolutely you seen last we've despite allowed -- a Yes. yes, sustain think at run the interest think

into go If more forward. calculations as too bond U.S., you we you be prescribed to may tends which that to It's what methodology the yields say at not look to those feed would happen. just obviously in may or expect early the rising through

filings got think I KEDLI our in fourth in rate X part KEDNY due electric next John early next the downstate earlier, quarter we've year. the in year, Mass of due third mentioned and of or

whether we're first bond feeding I those get So seeing that, see returns. to the deals be will time think, through into we'll allowed

John Pettigrew

Okay.

and we'll go at should at please. we to Citi So JPMorgan, Jenny Pavan to then go

Jenny Ping

Jenny John, here.

please. X So questions,

about required, parts the those the potential Or you is minority Pipeline. about is how how determination earlier to talked of thinking should different the of Ofgem. on define but about an yet discussion I Secondly, think your assets such see non-core? paper inflation it they if we of various disposal can consultation stage a draft it outline with give business? that are just hinted NGT, just where we update Millennium of part or They you but this? you at as guess us Can them. the -- ventures obviously on of as are about other you Firstly, non-core further aspects that we've in any what from

the the rates is latest just see point, Verity's what your Andy, any fallen. about as declines following then didn't from question we So ROE. ROE on have really there? And dialogue U.S. to

of forward putting be what feed getting higher the the to the ROEs? rates reverse actually see So you that arguments through will to and

John Pettigrew

second and Thank let up you. first a Andy pick X. I'll the up pick then I'll

So me let inflation Ofgem. start with the with

regulatory raised relatively So a and My fund years. Jenny, expected -- to investment whether part around well Also, important X of in U.K., to react and sort made of cost a clear understanding perspective, the they're that yet on obviously, in high inflation, and that -- technical as understood look you when fundamental make saw we on inflation our and I between interaction incredibly inflation that or very think, in X we terms important as can was the inflation dialogue, determination it's actual of infrastructure the massively it draft important determination, part to consultation. needed. is some [ph], of you questions, in you're intending the perspective to not really that a not EDX that's as of addressing debt. do is the it's imagine, Chairman need the and From they've actually, I encouraging to we right, real decision on inflation

inflation you national actually, been to has there periods there material the I issue lower has And where dealt -- been the over there than with. regulatory than actually XX-year period, If lower therefore, actually, isn't expected be have long in cycle, expected. look inflation a been a suspect

the will So back consultation over be reiterating there But feeding regulatory that Ofgem stable and that is to be forward. we the moment, no period of we'll a of time. at framework importance going

as of terms know. state, ROEs, by U.S. it you In varies

look how New mechanistic they the York, it's in So terms in relatively U.S. of ROEs. at

part filing and In of to So will when I ultimately look submissions ultimately, that feed means, as at ultimately are make any they guess, environment we the KEDLI and going determined to PSC KEDNY will the into make it. do we Massachusetts, itself. macro that different approaches. be the What changes the way the that

we what of we'll cases what obviously, Andy, the the do can that's for feeding it sort in noncore? we're we So with and it. returns. ultimately, macro of and in deal seeing that how be means But environment we'll as each our only rate exactly approach

Andy Agg

yes. Jenny, Yes.

I to answer of to comment around the you sort referred one generic questions think of tools. earlier

with consider more if the value right Just if it's it's to to be are pipeline, opportunities, Barclay over the clear, we've St. recent last and seen absolutely XX think likely crystallize appropriately. the attractive Group to -- that we Millennium there as William we process you've months that obviously those

that deliver the plans. presentation, post that's clear, the pivot we're portfolio to very we're continue talked we to take forward be our John and his investment the to about in portfolio Just happy have and planning that about

John Pettigrew

Okay, thank you.

why at JPMorgan, to at Sam Pavan now then So we don't UBS. go go we'll to

James Brand

actual looking follow-up inflation. question risks and expected quick had one Just to Other Ofgem at on please. Jenny's,

place? So guidance inflation potential Or no your make any did given consultation in should in not assumption any you we sharing? there's that assume about

Andy Agg

Yes.

No. -- sort just details, the to through going mean, Yes, of without Just, Pavan, covered John I thanks. has it.

to based no But that place obviously, we we frame we're the we clear, what the we from change curves the under And with and working Just be in inflation current that together. on as what have guidance account take is regulatory the have framework X-year put of today. controls. price

John Pettigrew

Should we go to at then Sam, UBS we SocGen. can and Bartlomiej go to

Sam Arie

of everyone's the to think on that we sort upgrade wanted the that And kind nice I questions a and most results been guidance. through Great cover. of of

And yet. ton Or guidance bit advance, dollar update that. and it And then a -- I'm well, now. your some this dollar future scraping in you something little the be something about to So apologize But the the U.S. of you future? think to half you companies kind you there. indefinitely be become that new somehow in must I scraping of the barrel. was part guess back bit But of debt And to using we mark-to-market debt, of fair I guidance? debt somehow X-year assume am But I an in just the just to CapEx still if but U.S. -- that net of all haven't ask, the there is all rest think of that FX I at of that guess I X.X written this got suppose So, you the kind is won't there check, the will I of the headwind that is that is plan up detail we've the make pound the a because in a assume last valuation exactly for So then do this going So I I of effect could self-funding? I pounds, your that's the reporting U.S. the minor side, and I dollar needing the been part commitments with today. about were in same maybe through at to other CapEx was ask to on you? guess, barrel U.S. debt jump goes FX? that for probably would the important do is bit assumptions CapEx so I the in you're I a is questions. dollar the fund sense example, just for overall know for level the the said what you sure U.S. a out hedged the today the direction wasn't dollar read wanted of materials maybe stable year. P&L like

your help a for thanks on I today think but points. update great have I these

John Pettigrew

Thanks, Sam. those off. I'll ask Andy just to cover

Andy Agg

Yes. Thanks, Sam.

that rate is throughout to Just we've of a the exchange used the clear, X.Xx. frame dollar X-year assumption so be

above where just As are and clear today. we to -- be said, that's we've wanted also that frame that throughout you number But and X-year we slightly the the was in used consistent terms how of we question significant the second move to half. be you to our an in give to around net back debt of the can expect guiding I where example. swings we your mean,

around this annualized basis. a from to presentation I obviously, first earnings direction So average mentioned we've around or is an $X.XX in last had plus versus year half. either in moved X.XX rule is impact minus the in on year. X.X relatively my That's small thumb £X.XX, the But about of

debt, of rate yes, been the terms And strengthening that's rule the FX finally, impact with March of September, net XXth September the -- includes increase from thumb. dollar So about move in sort increase at the the reported billion X.XX. of the to of from closing -- £X.X

assets the long-term strengthened. -- our mark few a U.S. does while just the through. basis. that obviously, that's quick obviously, debt to just a a give dollar the up you we significantly dollar sense in hedge reminder, also dollar, So And how that place a But on keep with feeds purpose whole that of yes,

Sam Arie

John, Sorry, I about one point financing? can sale just the just U.S. maybe,

Andy Agg

all with U.S. currencies, that Sorry, needed. question, level, on is CapEx. see to over very the we I holdco the a it's as is either much But yes. issue of in our as line the pretty swap gearing the that of regulatory with regulators' our reminder, expectations will your we sterling Obviously, much into second range part Yes, you raised changing. which of we expectation funding what dollars, U.S. U.S. them across or within have at That's no opcos, opcos line the depending as where seen the tend a funds that And debt in that then money much very debt. in predominantly is dollar-denominated years.

part funding optimize the our which see strategy we access range based markets I wide look rates to at of access a sensible So markets current and as of a to time. we'll on

John Pettigrew

question I'll which like take come take but that have call after through to last then couple going questions the on looks a which the got I've online that. of I'm Okay.

you'd to if your ask question? like [ph], So Bartek

Unidentified Analyst

to I of would couple get clarification like things on. a A

approved there -- above inflation lag with some pressure years first the or protection the the does your the in U.S. work by increase. whether the on I'm I U.S. or short ROEs coming wonder a debt much what you been until term, say, whether X bad from That question. the has regulator. next potential my in provisioning the let's ROEs can see likelihood ROEs next the the Or fact Firstly, see be is in for do or debt wondering to you decline. that the X, filings, rate increasing of on was may cost you maybe the actual faster

not. 'XX EPS your million, this clarify guidance, the winter of said is included FY cost you thirdly, your debt X-year on this you guidance. included Secondly, to in support, earnings have rising in whether And you mentioned £XX or underlying just underlying whether

the If assuming in you cost are next can of of the what X you debt. maybe increase years us terms tell over

John Pettigrew

All Andy. to you,

Andy Agg

[ph], Bartek fine. It's thanks that. for

that But turn. Let always inside trued entitled our treatment. get issue therefore, key go thing the plans. pass-through me were course, the over market is is, those to rates versus we're U.S. main regulatory take the in thing us we of get those a is we up. do to that with We arrangements time. OpCos us the issuance financing agreement Economically, for held those for economically There when we when then and we're potentially when of timing lags sort

And we've there but and considered a year. might so that guidance X-year months be in the we've out for the phasing frame given this that of few certainly

work about as winter again, we our well. our bad the as make the a efficiently, we the supporting You states to we Again, outturns. asked years customer to ahead. hard with position obviously regulators in. that -- you've as would sure as very number manage the in -- have see expect seen recover long across customers, we operate costs work the through debt of as We'll obviously we debts years, bad to have working worked that we mechanisms But

billion confirm, my we've frame, I the billion And think included 'XX the curves the with terms at the in to billion packages, And support £XX said out year, financing, I £XX with presentation, £X the holdco in £X mentioned FY In level forward feeding I shy the as maturities of assumed through refinancing to the a yes, is guidance. XXXXs. increased then X-year financing -- just of just to early debt of obviously, of of in the book. the million terms mentioned

through assumed go So that's of we terms book in years. refinancing of that the all the as X

John Pettigrew

Okay. [ph]. Thank you, Bartek

I a -- going think I'm go So are got that online. now we've of couple to coming questions

could the please? questions, out Nick, read So you

Nick Ashworth

Thanks, John.

we've yes, Deepa at got one from So Bernstein.

EDX the assets? inflation expect? the are of higher WACC. under existing I we margin So is, Her any your increase changes is, do it explain to question benefit you and frame why under then talked second methodology what can what Particularly And know of you CapEx part debt metrics FX changes, expectations cost of where they're cost a little and equity the about metrics on program? on if going. the bit Is are X-year better credit the credit the

John Pettigrew

Okay.

So risk-free bps of a the XX, the rates, of rule I to XX key let cost mean, just you'd the take take with basis equity increase bps WACC. second in I cost what as said of thumb, for the Andy XXX and points and and we're me that on is discussion mean, debt. of see on around the Ofgem about the let appropriate earlier, One in expect the moment first. things of allowed cost to equity is about give the I XX

said will part as appropriate that overall look So what's views earlier, feeding is process sort at equity. form But of the our that of all I of into cost the information as package. of decision-making we

Andy? credit In metrics, terms of

Andy Agg

Deepa. Yes,

continue the guided with in from investment-grade we But expect be we to what credit ratings what transaction metrics strong I leverage XX%. to perspective, need be metrics was in marginal FFO, in RCF, what clear, earlier our of mentioned to our on. overall the credit the expect But rating. aligned my a moved from that comments expectations Just haven't to terms to around when our improvement close we we previously maintain we've

John Pettigrew

Thanks, Andy.

think is question. the I probably this final

Nick Ashworth

at Deutsche. Brand James From

if Gas So U.K. over to Does further RAV this XX% stake remaining the be you're in could you high targeting you sell now this leverage assumption an debt medium the preferable? Transmission? XXs, the net would term. include And to lower that

Andy Agg

James. Yes,

Just is to be XX% land where expect clear, we've transaction. we said that the to post

long-term of leverage ratings That stay sort in We aspects expect will be question few to impacted, look the you is, largely overall, of haven't medium WACC obviously, a FX as but is by given terms along like aligned guidance few The the credit or leverage curve performance we over ratings. metrics if CapEx, with with years. other the by and things the next basis points, flat. relatively would

I So the get happy lower I like the I'm would with level that transactions implies, the to leverage very question will leverage? think close. No, once we of

Nick Ashworth

XX% does remaining the And include GT... the

Andy Agg

I part. the Sorry. first missed

consortium that of within that our on where assumption entirely be the In just is an has really that closed be decision to we'll no, terms call. Gas XX%. we clear, you'll Transmission, XX% the to Obviously, as remaining the aware, option

assumed that. haven't We

ownership. So that continued we assume we

John Pettigrew

which case, you, joining In today. do us everybody, joining really appreciate We for morning. us thank Okay. this you

As I think a and the said very in time. strong resilience I economic of a results fairly my summary, been set doing demonstrating has what turbulent

for But the As our very, looking significant X you us to there's looking and you But make to CapEx make for we'll on key is decisions that all forward. you program joining and some know, thank focus very over others months. now going see a soon. delivering next we're

National Grid (NGG) 10 Nov 222023 Q2 Earnings call transcript