Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 34

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 34
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 customers with over £22 million of benefits delivered in support of 21,000 fuel poverty customers, and maintained a high level of customer satisfaction with a score of 9/10.

#### Regulatory highlights
■ Following the publication of our first DSO report and panel assessment as part of the new DSO Incentive for RIIO-ED2, Ofgem announced that UK ED scored 8.24/10, the second highest score of all UK DNOs. This places UK ED in reward for the first year of the DSO Incentive.

■ In April 2025, we welcomed Ofgem's decision on the framework for the ED3 price control, which will run for five years from April 2028. Ofgem has been clear on the critical role electricity distribution networks, like UK ED, will play in achieving regional growth, resilient networks, and a clean power system. We agree with Ofgem that there is need for a longer-term, proactive approach to network planning whilst balancing resilience and capacity with affordability. We will continue to work closely with Ofgem and engage meaningfully with our customers and stakeholders as we develop our ED3 plan.

#### Policy developments
■ Our Connections team has been a leading voice in connections reform, forming strategic partnerships with customers, including Octopus Energy, GTC and RWE. We held our first ever 'Connections Hackathon' event (in partnership with Octopus Energy), to facilitate collaboration in the development of solutions to enhance the overall connections process. We championed the phrase "first ready, first needed, first connected" which has been adopted by NESO and now used widely in industry materials.

#### Operating profit in 2024/25
UK Electricity Distribution statutory operating profit was £623 million higher in the year, reflecting the impact of £566 million favourable year-on-year timing movements. Timing over-recoveries of £407 million in 2024/25 were mainly due to inflation true-ups and the recovery of prior period balances. This compares with a timing under-recovery of £159 million in the prior year.

I n 2024/25 there were £12 million of exceptional costs related to our major transformation programme compared with £18 million of exceptional integration costs in 2023/24.

UK Electricity Distribution underlying operating profit increased by £51 million (4%). Underlying net revenues were £111 million higher than the prior year due to the impact of higher inflation and higher engineering recharges and incentive revenues.

Regulated controllable costs including pensions were