Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 37

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 37
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 newly created National Energy System Operator (NESO). The following results and commentary relate to the period of the financial year up to the date of transfer.

#### Financial performance
■ Operating profit: Statutory operating loss for the year was £213 million (2024: £382 million profit) principally as a result of the return of prior period timing over-recoveries related to BSUoS revenues. Underlying operating profit increased to £115 million (2024: £80 million ) driven by cessation of depreciation following classification of this business as held for sale, partly offset by a shorter period of ownership in 2024/25.

#### Other key highlights
■ Capital investment: Capital investment has not been recognised in this business following reclassification to held for sale.

■ Regulatory developments: The ESO has continued to work at pace and cross-industry towards long-term reforms to the connections process, to unblock the queue and pave the way for investment, ensuring the grid is ready to help deliver the energy transition.

#### Operating profit in 2024/25
UK Electricity System Operator was purchased by the UK Government on 1 October 2024 and had been classified as 'held for sale' since October 2023. Based on the scale and pass-through nature of the UK Electricity System Operator, it was not considered to be a separate major line of business and hence, did not meet the definition of a discontinued operation under IFRS 5. The year-on-year performance is driven by two significant factors: (i) a net £800 million over-collection of revenues during 2023/24 (and the consequential partial return of these over-recovered balances during 2024/25); and (ii) a shorter ownership period, with only six months' contribution in 2024/25.

UK Electricity System Operator statutory operating profit decreased by £595 million in the year as a result of adverse year-on-year timing swings (net of provisions for regulatory liabilities recognised under IFRS). In 2023/24 a £498 million exceptional provision was made for the return of the estimated remaining balance of over-collected revenues at the expected date of disposal (at that time, expected to be June 2024). This provision was partially reversed in 2024/25 generating an exceptional credit of £151 million in the current year. Under IFRS a regulatory liability is not usually recognised on balance sheet for the return of such over-recoveries, however due to the intended disposal of this business during 2024/25, a