Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 78

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 78
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 financed in line with the regulatory adjudicated capital structure and allowed cost of debt. The returns are divided by the average rate base (or where a reported rate base is not available, an estimate based on rate base calculations used in previous rate filings) multiplied by the adjudicated equity portion in the regulatory adjudicated capital structure.

These are important measures of our New England and New York regulated businesses' performance, and our operational strategy continues to focus on these metrics. This measure can be used to determine how we are performing and also helps investors compare our performance with similarly regulated US entities. Reflecting the importance of these metrics, they are also key components of the APP scheme.

The New England and New York businesses' returns are based on a calculation which gives proportionately more weighting to those businesses which have a greater rate base. For the reasons noted above, no reconciliations to IFRS for the RoE measures have been presented, as we do not believe it would be practical to reconcile our IFRS balance sheet to the equity base.

The table below shows the principal differences between the IFRS result of the New England and New York segments, and the 'returns' used to derive their respective US jurisdictional RoEs. In outlining these differences, we also include the aggregated business results under US GAAP for New England and New York jurisdictions.

In respect of 2023/24, this measure is the aggregate operating profit of our US OpCo entities' publicly available financial statements prepared under US GAAP for the New England and New York jurisdictions respectively. For 2024/25, this measure represents our current estimate, since local financial statements have yet to be prepared.

|                                                       |   2025 |   2024 |
|                                                       |     £m |     £m |
| Underlying IFRS operating profit for New England      
 segment                                               |    924 |    802 |
| Underlying IFRS operating profit for New York segment |  1,450 |  1,016 |
| Weighted average £/$ exchange rate                    | $1.266 | $1.262 |

|                                                                | New England |       |     | New York |       |
|                                                                |        2025 |  2024 |     |     2025 |  2024 |
|                                                                |          $m |    $m |     |       $m |    $m |
| Underlying IFRS operating profit for US segments               |       1,170 | 1,013