Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 67

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 67
---
P and contribute to how we reward our employees. As such, we believe that they provide close correlation to the economic value we generate for our shareholders and are therefore important supplemental measures for our shareholders to understand the performance of the business and to ensure a complete understanding of Group performance.

As the starting point for our RPMs is not IFRS, and these measures are not governed by IFRS, we are unable to provide meaningful reconciliations to any directly comparable IFRS measures, as differences between IFRS and the regulatory recognition rules applied have built up over many years. Instead, for each of these we present an explanation of how the measure has been determined and why it is important, and an overview as to why it would not be meaningful to provide a reconciliation to IFRS.

#### Alternative performance measures

#### Net revenue and underlying net revenue
'Net revenue' is revenue less pass-through costs, such as UK system balancing costs and gas and electricity commodity costs in the US. Pass-through costs are fully recoverable from our customers and are recovered through separate charges that are designed to recover those costs with no profit. 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, as such an adjustment to future prices relates to the provision of future services. Similarly, no asset is recognised where a regulatory agreement permits adjustments to be made to future prices in respect of an under-recovery. 'Underlying net revenue' further adjusts net revenue to remove the impact of 'timing', i.e. the in-year difference between allowed and collected revenues, including revenue incentives, as governed by our rate plans in the US or regulatory price controls in the UK (but excluding totex-related allowances and adjustments).

| Year ended 31 March 2025       |   Gross 
 revenue 
      £m |   Pass- 
 through 
   costs 
      £m | Net revenue 
          £m | Timing 
     £m |  Underlying 
 net revenue 
          £m |
|:-------------------------------|--------:|--------:|------------:|-------:|------------:|
| UK Electricity Transmission    |   2,619 |    -455 |       2,164 |    151 |       2,315 |
| UK Electricity Distribution    |   2,424 |    -185 |       2,239 |   -407 |       1,832 |
| UK Electricity System Operator |