Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 35

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 35
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 £12 million (4%) higher than the prior year from the impact of workload increases, combined with investment in capability build and inflationary increases, partly offset by efficiencies achieved. Other costs were £22 million higher as a result of the disruption from Storm Darragh (categorised as a 1 in 20 years storm event) and increased engineering recharges.

Depreciation and amortisation increased compared with the prior year due to the increasing asset base.

| UK Electricity Distribution   |       |       |          |
| (£ million)                   |  2025 |  2024 | % change |
| Revenue                       | 2,424 | 1,795 |       35 |
| Operating costs               |  -826 |  -820 |        1 |
| Statutory operating profit    | 1,598 |   975 |       64 |
| Exceptional items             |    12 |    18 |      -33 |
| Adjusted operating profit     | 1,610 |   993 |       62 |
| Timing                        |  -407 |   159 |      n/m |
| Underlying operating profit   | 1,203 | 1,152 |        4 |
| Underlying net revenue        | 1,832 | 1,721 |        6 |
| Regulated controllable costs  |  -281 |  -270 |        4 |
| Pensions                      |   -21 |   -20 |        5 |
| Other operating costs         |   -78 |   -56 |       39 |
| Depreciation and amortisation |  -249 |  -223 |       12 |
| Underlying operating profit   | 1,203 | 1,152 |        4 |
| Timing                        |   407 |  -159 |      n/m |
| Adjusted operating profit     | 1,610 |   993 |       62 |

#### Return on Equity above base levels
In 2024/25, the second year of RIIO-ED2, RoE was 7.9%, including 20bps outperformance, mostly consisting of non-totex performance incentives, partly offset by the adverse impact of Storm Darragh and the impact of the RIIO-ED2 Real Price Effects (RPE) mechanism, where lower than anticipated allowances due to reductions in commodity indices have not tracked actual costs incurred.

We are working hard to mitigate this