Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 71

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 71
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ulated financial performance - UK
Regulatory financial performance is a pre-interest and tax measure, starting at segmental operating profit and making adjustments (such as the elimination of all pass-through items included in revenue allowances and timing) to approximate regulatory profit for the UK regulated activities. This measure provides a bridge for investors between a well-understood and comparable IFRS starting point and through the key adjustments required to approximate regulatory profit. This measure also provides the foundation to calculate Group RoE.

Under the UK RIIO regulatory arrangements the Company is incentivised to deliver efficiencies against cost targets set by the regulator. In total, these targets are set in terms of a regulatory definition of combined total operating and capital expenditure, also termed 'totex'. The definition of totex differs from the total combined regulated controllable operating costs and regulated capital expenditure as reported in this statement according to IFRS accounting principles. Key differences are capitalised interest, capital contributions, exceptional costs, costs covered by other regulatory arrangements and unregulated costs.

For the reasons noted above, the table below shows the principal differences between the IFRS operating profit and the regulated financial performance, but is not a formal reconciliation to an equivalent IFRS measure.

#### UK Electricity Transmission
| Year ended 31 March                                 |  2025 |  2024 |
|:----------------------------------------------------|------:|------:|
| £m                                                  |    £m |       |
| Adjusted operating profit                           | 1,277 | 1,677 |
| Movement in regulatory 'IOUs'                       |   256 |  -363 |
| UK regulatory notional deferred taxation adjustment |   238 |   219 |
| RAV indexation - 2% CPIH long-run inflation         |   368 |   343 |
| Regulatory vs IFRS depreciation difference          |  -575 |  -553 |
| Fast money/other                                    |  -261 |  -119 |
| Pensions                                            |     - |    -2 |
| Performance RAV created                             |    65 |    68 |
| Regulated financial performance                     | 1,368 | 1,270 |

#### UK Electricity Distribution
| Year ended 31 March                                 |  2025 | 2024 |
|:----------------------------------------------------|------:|-----:|
| £m                                                  |    £m |      |
| Adjusted operating profit                           | 1,610 |  993 |
| Less non-regulated profits                          |    -7 |