Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 77

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 77
---
 2025 
    % | 2024 
 %    |  Base or Allowed 
 Return on Equity |     |
|:----------------------------|:------------------|:-----|----------------:|-----:|:-----|-----------------:|----:|
| UK Electricity Transmission | 55/45             |      |             8.3 |  8.0 |      |              7.3 | 7.0 |
| UK Electricity Distribution | 60/40             |      |             7.9 |  8.5 |      |              7.7 | 7.4 |
| New England                 | Avg. 45/55        |      |             9.1 |  9.2 |      |              9.9 | 9.9 |
| New York                    | Avg. 52/48        |      |             8.7 |  8.5 |      |              9.2 | 8.9 |

#### UK businesses' regulated RoEs
UK regulated businesses' RoEs are a measure of how the businesses are performing against the assumptions used by our UK regulator. These returns are calculated using the assumption that the businesses are financed in line with the regulatory adjudicated capital structure, at the cost of debt assumed by the regulator, and that inflation is equal to a long-run assumption of 3% RPI under RIIO-1 and 2% CPIH under RIIO-2. They are calculated by dividing elements of out/under-performance versus the regulatory contract (i.e. regulated financial performance disclosed above) by the average equity RAV in line with the regulatory assumed capital structure and adding to the base allowed RoE.

These are important measures of UK regulated businesses' performance, and our operational strategy continues to focus on these metrics. These measures can be used to determine how we are performing under the RIIO framework and also help investors to compare our performance with similarly regulated UK entities. Reflecting the importance of these metrics, they are also key components of the APP scheme.

The respective businesses' UK RoEs are underpinned by their RAVs. For the reasons noted above, no reconciliation to IFRS has been presented, as we do not believe it would be practical.

#### US businesses' regulated RoEs
US regulated businesses' RoEs are a measure of how the businesses are performing against the assumptions used by the US regulators. This US operational return measure is calculated using the assumption that the businesses are