Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 30

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 30
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 will run for five years from April 2026. The plan includes up to £35 billion of totex over the five years to March 2031, a 2.5 times increase from the previous control. Amongst other outcomes, it will enable us to nearly double the capacity of the current system to flow electricity, connect new demand customers with the capacity of one third of the current Great Britain peak demand and twice the amount of new generation capacity as in the previous price control, and support a 50% reduction in our scope 1 and 2 emissions from a 2018/19 baseline.

■ We were also pleased to see Ofgem's decision on the Advanced Procurement Mechanism. This will provide funding for transmission owners to secure supply chain capacity covering items, including switchgear and transformers, building on the approach Ofgem adopted under the ASTI regime. We plan to utilise the framework from the middle of this year.

#### Policy developments
■ During the year, we welcomed policy progress across a number of critical areas including publication of the UK Government's Clean Power Action Plan, which reaffirmed the need for our 17 ASTI projects to address current system constraints and enable the connection of Offshore Wind projects.

■ The publication of the Planning and Infrastructure Bill includes proposals that could both reduce the risk of delays and potentially accelerate energy infrastructure projects.

■ We were also pleased to see Ofgem's decision on connections reform published in April which embeds 'ready' and 'needed' criteria into the connections process. This will deliver a rationalised queue of projects aligned with the clean power plan, providing clarity on the specific locations where our connections spend will be deployed.

#### Operating profit in 2024/25
UK Electricity Transmission statutory operating profit was £397 million lower in the year. Timing under-recoveries were £151 million in 2024/25 compared with £363 million ov er-recoveries in 2023/24. This year-on-year swing is mainly the return of prior period balances (primarily tax allowances), a lower inflation true-up and a lower in-year recovery on volumes and pass-through costs than 2023/24 . In the prior year, there were £2 million of exceptional costs related to our cost-efficiency programme and integration costs of £1 million.

UK Electricity Transmission underlying operating profit increased by 9%. Underlying net revenues were £168 million (9%) higher principally from higher totex allowances (including fast money on ASTI spend) and inflationary increases and the non