Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 72

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 72
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 |   860 |
| Provision for bad and doubtful debts (COVID-19), net of 
 recoveries1                                             |   -47 |   -34 |
| Major storm costs                                       |    84 |   136 |
| Timing                                                  |   343 |    20 |
| US GAAP pension adjustment                              |    48 |    42 |
| Regulated financial performance                         | 1,451 | 1,024 |

1. New York financial performance includes an adjustment reflecting our expectation for future recovery of COVID-19 related provisions for bad and doubtful debts.

#### Total regulated financial performance
| Year ended 31 March                   |  2025 |  2024 |
|:--------------------------------------|------:|------:|
| £m                                    |    £m |       |
| UK Electricity Transmission           | 1,368 | 1,270 |
| UK Electricity Distribution           |   837 |   856 |
| UK Electricity System Operator        |    33 |    41 |
| New England                           |   984 |   831 |
| New York                              | 1,451 | 1,024 |
| Total regulated financial performance | 4,673 | 4,022 |

New England and New York timing, major storms costs and movement in UK regulatory 'IOUs' - Revenue related to performance in one year may be recovered in later years. Where revenue received or receivable exceeds the maximum amount permitted by our regulatory agreement, adjustments will be made to future prices to reflect this over-recovery. No liability is recognised under IFRS, as such an adjustment to future prices relates to the provision of future services. Similarly, no asset is recognised under IFRS where a regulatory agreement permits adjustments to be made to future prices in respect of an under-recovery. In the UK, this is calculated as the movement in other regulated assets and liabilities.

Performance RAV - UK performance efficiencies are in part remunerated by the creation of additional RAV which is expected to result in future earnings under regulatory arrangements. This is calculated as in-year totex outperformance multiplied by the appropriate regulatory capitalisation ratio and multiplied by the retained company incentive sharing ratio.

Pension adjustment - Cash payments against pension deficits in the UK are recoverable under regulatory contracts. In US regulated operations, US GAAP pension charges are generally recoverable through rates. Revenue recoveries are recognised under IFRS but payments are not charged against IFRS operating profits in the year. In the UK