# EDGAR Filing Document

**Accession Number:** 0001004315
**File Stem:** 0001004315-26-000006
**Filing Date:** 2026-6
**Character Count:** 1976975
**Document Hash:** 02d836122ec907915112f3e87f36cbd7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001004315-26-000006.hdr.sgml**: 20260603

**ACCESSION NUMBER**: 0001004315-26-000006

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 703

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260603

**DATE AS OF CHANGE**: 20260603

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NATIONAL GRID PLC
- **CENTRAL INDEX KEY:** 0001004315
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS TRANSMISSION [4922]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 980367158
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14958
- **FILM NUMBER:** 261058845

**BUSINESS ADDRESS:**
- **STREET 1:** 1-3 STRAND
- **CITY:** LONDON
- **STATE:** X0
- **ZIP:** WC2N 5EH
- **BUSINESS PHONE:** (44) 207 004 3220

**MAIL ADDRESS:**
- **STREET 1:** 1-3 STRAND
- **CITY:** LONDON
- **STATE:** X0
- **ZIP:** WC2N 5EH

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NATIONAL GRID TRANSCO PLC
- **DATE OF NAME CHANGE:** 20021121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NATIONAL GRID GROUP PLC
- **DATE OF NAME CHANGE:** 19991007

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NATIONAL GRID HOLDING PLC
- **DATE OF NAME CHANGE:** 19991007

?xml version='1.0' encoding='ASCII'? nggtf-20260331

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 20-F**

(Mark One)

---

| | |
|:---|:---|
| ⬜ | **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **OR** | **OR** |
| ☑ | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **For the fiscal year ended 31 March 2026**  |
| **OR** | **OR** |
| ⬜ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **OR** | **OR** |
| ⬜ | **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **Date of event requiring this shell company report&nbsp;&nbsp;&nbsp;&nbsp;** |
|  | **For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> to<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>** |

---

**Commission file number: 001-14958**

**NATIONAL GRID PLC**

*(Exact name of Registrant as specified in its charter)*

*England and Wales*

*(Jurisdiction of incorporation or organization)*

*1-3 Strand, London WC2N 5EH, England*

*(Address of principal executive offices)*

 **Justine Campbell**

**011 44 20 7004 3000**

**Facsimile No. 011 44 20 7004 3004**

**Group General Counsel and Company Secretary**

**National Grid plc**

**1-3 Strand London WC2N 5EH, England**

*(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)*

**Securities registered or to be registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:**

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Ordinary Shares of 12 204/473 pence each | NG | The New York Stock Exchange\* |
| American Depositary Shares, each representing five | NGG | The New York Stock Exchange |
| 5.602% Notes due 2028 | NGG28 | The New York Stock Exchange |
| 5.809% Notes due 2033 | NGG33 | The New York Stock Exchange |
| 5.418% Notes due 2034 | NGG34 | The New York Stock Exchange |

---

____________

\*&nbsp;&nbsp;&nbsp;&nbsp;Not for trading, but only in connection with the registration of American Depositary Shares representing Ordinary Shares pursuant to the requirements of the Securities and Exchange Commission.

**Securities registered or to be registered pursuant to Section 12(g) of the Securities Exchange Act of 1934:** None.

**Securities for which there is a reporting obligation pursuant to Section15(d) of the Securities Exchange Act of 1934:** None.

------

The number of outstanding shares of each of the issuer's classes of capital or common stock as of 31 March 2026 was 5,198,968,690

Ordinary Shares of 12 <sup>204/473</sup> pence each&nbsp;&nbsp;&nbsp;&nbsp;

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act: Yes ☑ No ⬜

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ⬜ No ☑

Note — Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☑ No ⬜

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).: Yes ☑ No ⬜

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of "large accelerated filer" "accelerated filer" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑Non-accelerated filer ⬜ Accelerated filer ⬜Emerging growth company ⬜

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards<sup>†</sup> provided pursuant to Section 13(a) of the Exchange Act. ☐

†The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ⬜

International Financial Reporting Standards as issued by the International Financial Reporting Standards ☑

Other ⬜

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ⬜ Item 18 ⬜

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ⬜ No ☑

This constitutes the annual report on Form 20-F of National Grid plc (the "Company") in accordance with the requirements of the US Securities and Exchange Commission (the "SEC") for the year ended 31 March 2026 and is dated 3 June 2026. Details of events occurring subsequent to the approval of the annual report on 13 May 2026 are summarised in section "Further Information" which forms a part of this Form 20-F. The content of the Group's website (www.nationalgrid.com/uk) should not be considered to form part of this annual report on Form 20-F.

------

**Form 20-F Cross Reference Table**

---

| | | | |
|:---|:---|:---|:---|
| **Item** | **Form 20-F caption** | **Location in the document** | **Pages(s)** |
| **1** | **Identity of directors, senior management and advisors** | Not applicable |  |
| **2** | **Offer statistics and expected timetable** | Not applicable |  |
| **3** | **Key Information** |  |  |
|  | 3A [Reserved] |  |  |
|  | 3B Capitalization and indebtedness | Not applicable |  |
|  | 3C Reasons for the offer and use of proceeds | Not applicable |  |
|  | 3D Risk Factors | "Additional Information—Internal control and risk factors—Risk factors" | 226-232 |
| **4** | **Information on the company** |  |  |
|  | 4A History and development of the company | "Strategic Report—National Grid at a glance" | 4-5 |
|  |  | "Strategic Report—Chief Executive's review" | 8-11 |
|  |  | "Strategic Report—Our business environment" | 14-15 |
|  |  | "Strategic Report—Performance against our strategic priorities " | 16-17 |
|  |  | "Strategic Report—Our key performance indicators" | 26-29 |
|  |  | "Strategic Report—Financial review—Capital Investment and asset growth " | 78 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 2. Segmental analysis—(c) Capital investment" | 148 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 3. Revenue —(g) UK Electricity System Operator" | 150 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 5 Exceptional items and remeasurements —2026;—2025;—2024" | 155-156 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 10. Assets held for sale and discontinued operations" | 164-165 |
|  |  | "Additional Information—The business in detail—UK Regulation" and "—US Regulation" | 220-225 |
|  |  | "Additional Information—Shareholder information—Articles of Association" | 251-252 |
|  |  | "Additional Information—Shareholder Information— Documents on display" | 252 |
|  |  | "Additional Information—Other disclosures—Research, development and innovation activity" | 235 |
|  |  | "Additional Information—Other unaudited financial information—Alternative performance measures/non-IFRS reconciliations—Capital investment at constant currency" | 241 |
|  |  | "Additional Information—Shareholder information" | 250-255 |
|  | 4B Business overview | "Strategic Report—National Grid at a glance —Our businesses" | 4 |
|  |  | "Strategic Report—Our Business Model" | 12-13 |
|  |  | "Strategic Report—Our Business environment" | 14-15 |
|  |  | "Strategic Report—Performance against our strategic priorities " | 16-17 |
|  |  | "Strategic Report—Our business units "—UK Electricity Transmission"; "—UK Electricity Distribution"; —New England"; —New York"; "—National Grid Ventures" | 18-22 |
|  |  | "Strategic Report—Task Force on Climate-related Financial Disclosures (TCFD)" | 53-68 |
|  |  | "Strategic Report—Financial review—Segmental operating profit" | 73-77 |

---

i

------

---

| | | | |
|:---|:---|:---|:---|
| | | "Financial Statements—Notes to the consolidated financial statements—Note 2. Segmental analysis" | 145-148 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 3. Revenue" | 149-152 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 10. Assets held for sale and discontinued operations" | 164-165 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 17. Derivative financial instruments—(b) Commodity contract derivatives" | 175 |
| | | "Additional Information—The business in detail—UK Regulation" and "—US Regulation" | 220-225 |
| | 4C Organizational structure | "Financial Statements—Notes to the consolidated financial statements—Note 34. Subsidiary undertakings, joint arrangements and associates" | 206-209 |
| | 4D Property, plants and equipment | "National Grid at a glance—Our businesses" | 4 |
| | | "Strategic Report—Our business model" | 12-13 |
| | | "Strategic Report—Task Force on Climate-related Financial Disclosures (TCFD)" | 53-68 |
| | | "Strategic Report—Financial review—Capital Investment and asset growth" | 78 |
| | | "Strategic Report—Financial review—Financial Position" | 80 |
| | | "Financial Statements—Consolidated statement of financial position" | 140 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 13. Property, plant and equipment" | 169-171 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 21. Borrowings" | 177-178 |
| | | "Additional Information—Internal control and risk factors—Risk factors—Operational risks" | 229-231 |
| | | "Additional Information—Other disclosures—Property, plant, equipment and borrowings" | 235 |
| **4A** | **Unresolved staff comments** | "Additional Information—Other disclosures—Unresolved SEC staff comments" | 235 |
| **5** | **Operating and financial review and prospects** |  |  |
|  | 5A Operating results | "Strategic Report—Our business environment" | 14-15 |
|  |  | "Strategic Report—Our business units "—UK Electricity Transmission"; "—UK Electricity Distribution"; —New England"; —New York"; "—National Grid Ventures" | 18-22 |
|  |  | "Strategic Report—Task Force on Climate-related Financial Disclosures (TCFD)" | 53-68 |
|  |  | "Strategic Report—Financial review" | 69-84 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 2. Segmental analysis" | 145-48 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 3. Revenue" | 149-152 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 5 Exceptional items and remeasurements " | 154-157 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 32. Financial risk management—(c) Currency risk" | 197-198 |
|  |  | "Additional Information—The business in detail—Other activities";—UK Regulation" and "—US Regulation" | 220-225 |
|  |  | "Additional Information—Internal control and risk factors—Risk factors—Law, regulation and political and economic uncertainty" | 227 |
|  |  | "Additional Information—Commentary on consolidated financial statements" | 248-249 |
|  | 5B Liquidity and capital resources | "Strategic Report—Task Force on Climate-related Financial Disclosures (TCFD)" | 53-68 |
|  |  | "Strategic Report—Financial review" | 69-84 |

---

ii

------

---

| | | | |
|:---|:---|:---|:---|
| | | "Financial Statements—Consolidated cash flow statement" | 141 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 1.A Going concern" | 142 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 17. Derivative financial instruments" | 174-175 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 20. Cash and cash equivalents" | 177 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 21. Borrowings" | 177-178 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 29. Net debt" | 190-193 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 30. Commitments and contingencies" | 194 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 32. Financial risk management" | 195-205 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 33. Borrowing facilities" | 205 |
| | | "Additional Information—The business in detail—UK Regulation"; "—US Regulation" | 220-225 |
| | | "Additional Information—Internal control and risk factors—Risk factors—Financing and liquidity" | 232 |
| | 5C Research and development, patents and licenses, etc. | "Additional Information—Other disclosures—Research, development and innovation activity" | 235 |
| | 5D Trend information | "Strategic Report—Chief Executive's Review " | 8-11 |
| | | "Strategic Report—Our business environment" | 14-15 |
| | | "Strategic Report—Task Force on Climate-related Financial Disclosures (TCFD)" | 53-68 |
| | | "Strategic Report—Financial review" | 69-84 |
| | | "Strategic Report—Our business units "—UK Electricity Transmission"; "—UK Electricity Distribution"; —New England"; —New York"; "—National Grid Ventures" | 18-22 |
| | 5E Critical Accounting Estimates | Not applicable |  |
| **6** | **Directors, senior management and employees** |  |  |
|  | 6A Directors and senior management | "Corporate Governance Report—Our Board" | 91-93 |
|  | 6B Compensation | "Corporate Governance Report—People &' Remuneration Committee report" | 107-126 |
|  |  | "Corporate Governance Report— People & remuneration Committee report —Remuneration at a Glance" | 109-110 |
|  |  | "Corporate Governance Report—People & Remuneration Committee report—Statement of implementation of policy in 2025/26 " | 111-124 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 4. Other operating costs—(c) Key management compensation" | 153 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 25. Pensions and other post-retirement benefits" | 179-186 |
|  | 6C Board practices | "Corporate Governance Report—Our Board" | 91-93 |
|  |  | "Corporate Governance Report—Corporate Governance overview" | 89-90 |
|  |  | "Corporate Governance Report—Audit & Risk Committee report" | 100-104 |
|  |  | "Corporate Governance Report—People & Remuneration Committee report" | 107-126 |
|  |  | "Corporate Governance Report—People & Remuneration Committee report—Statement of implementation of policy in 2025/26 " | 111-124 |
|  |  | "Additional Information—Shareholder Information—Articles of Association—Directors"  | 251 |
|  | 6D Employees | "Strategic Report—Our business model" | 12-13 |

---

iii

------

---

| | | | |
|:---|:---|:---|:---|
| | | "Strategic Report—Our People" | 47-48, 234 |
| | | "Financial Statements—Notes to the consolidated financial statements—Note 4. Other operating costs—(b) Number of employees" | 153 |
| | | "Additional Information—Other disclosures —Unions" | 234 |
| | 6E Share ownership | "Corporate Governance Report—People & Remuneration Committee report—Statement of implementation of policy in 2025/26 " | 111-124 |
| | | "Additional Information—Shareholder information—All-employee share plans" | 255 |
| | | "Share ownership" | "Further Information" |
| | 6F Disclosure of a registrant's action to cover erroneously awarded compensation | Not applicable |  |
| **7** | **Major shareholders and related party transactions** |  |  |
|  | 7A Major shareholders | "Additional Information—Shareholder information—Material interests in shares" | 253 |
|  |  | "Material interests in shares"; and "Material interest in American Depositary Shares" | "Further Information" |
|  | 7B Related party transactions | "Financial Statements—Notes to the consolidated financial statements—Note 30. Commitments and contingencies" | 194 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 31. Related party transactions" | 194 |
|  |  | "Material interests in shares" | "Further Information" |
|  | 7C Interests of experts and counsel | Not applicable |  |
| **8** | **Financial information** |  |  |
|  | 8A Consolidated statements and other financial information | "Strategic Report—Chair's statement" | 6-7 |
|  |  | "Strategic Report—Financial review" | 69-84 |
|  |  | "Strategic Report—Corporate governance overview—Key Board Activities " | 94 |
|  |  | "Corporate Governance—Audit & Risk Committee report—Significant issues and judgments relating to the financial statements | 102 |
|  |  | Financial Statements—Consolidated financial statements " | 137-211 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 9. Dividends" | 164 |
|  |  | "Reports of Independent Registered Public Accounting Firm—Audit opinions for Form 20-F" | "Further Information" |
|  | 8B Significant changes | "Strategic Report—Financial Review—Post balance sheet events" | 84 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 36. Post balance sheet events" | 211 |
|  |  | "Additional Information—Shareholder Information—Events after the reporting period" | 252 |
|  |  | "Subsequent Events" | "Further Information" |
| **9** | **The offer and listing** |  |  |
|  | 9A Offer and listing details | "Additional Information—Shareholder Information—Share information" | 252 |
|  | 9B Plan of distribution | Not applicable |  |
|  | 9C Markets | "Additional Information—Shareholder information—Share Information" | 252 |
|  | 9D Selling shareholders | Not applicable |  |
|  | 9E Dilution | Not applicable |  |
|  | 9F Expenses of the issue | Not applicable |  |
| **10** | **Additional information** |  |  |

---

iv

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---

| | | | |
|:---|:---|:---|:---|
| | 10A Share capital | Not applicable |  |
| | 10B Memorandum and articles of association | "Additional Information—Shareholder information—Articles of Association"  | 251-252 |
| | | "Additional Information—Shareholder information—Articles of Association; — Dividend Rights" | 251 |
| | | "Additional Information—Other disclosures—Change of control provisions" | 233 |
| | | "Additional Information—Other disclosures—Corporate governance practices: differences from NYSE listing standards" | 233-234 |
| | 10C Material contracts | "Additional Information—Other disclosures—Material contracts" | 235 |
| | 10D Exchange controls | "Additional Information—Shareholder information—Exchange controls"  | 252 |
| | 10E Taxation | "Additional Information——Shareholder information—Taxation" | 253-255 |
| | 10F Dividends and paying agents | Not applicable |  |
| | 10G Statement by experts | Not applicable |  |
| | 10H Documents on display | "Additional Information—Shareholder information—Documents on display" | 252 |
| | 10I Subsidiary information | Not applicable | |
| | 10J Annual Report to Security holders | Not applicable | |
| **11** | **Quantitative and qualitative disclosures about market risk** |  |  |
|  | 11(a) Quantitative information about market risk | "Financial Statements—Notes to the consolidated financial statements—Note 17. Derivative financial instruments" | 174-175 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 32. Financial risk management" | 195-205 |
|  |  | "Additional Information—Internal Control and Risk factors—Risk Factors" | 226-232 |
|  | 11(b) Qualitative information about market risk | "Financial Statements—Notes to the consolidated financial statements—Note 35. Sensitivities" | 210-211 |
|  | 11(c) Interim Periods | Not Applicable |  |
|  | 11(d) Forward looking statement safe harbor | "Additional Information—Cautionary statement" | 262 |
| **12** | **Description of securities other than equity securities** |  |  |
|  | 12A Debt securities | Not applicable |  |
|  | 12B Warrants and rights | Not applicable |  |
|  | 12C Other securities | Not applicable | —– |
|  | 12D American depositary shares | "Additional Information—Shareholder information—Depositary payments to the Company" | 252 |
|  |  | "Additional Information—Definitions and glossary of terms" | 256-261 |
|  |  | "Material interest in American Depositary Shares" | "Further Information" |
| **13** | **Defaults, dividend arrearages and delinquencies** | Not applicable |  |
| **14** | **Material modifications to the rights of security holders and use of proceeds** | Not applicable |  |
| **15** | **Controls and procedures** |  |  |
|  | 15(a) Disclosure controls and procedures | "Additional information —Internal control and risk factors—Disclosure controls" | 226 |
|  | 15(b) Management's annual report on internal control over financial reporting | "Additional Information—Internal control and risk factors——Internal control over financial reporting" | 226 |
|  |  | "Corporate Governance Report—Audit & Risk Committee report" | 100-104 |
|  | 15(c) Attestation report of the registered public accounting firm | "Report of Independent Registered Public Accounting Firm—Audit opinions for Form 20-F" | "Further Information" |

---

v

------

---

| | | | |
|:---|:---|:---|:---|
| | 15(d) Changes in internal control over financial reporting | None | 226 |
| **16** | **16A Audit committee financial expert** | "Corporate Governance Report—Our Board" | 91-93 |
|  |  | "Corporate Governance—Audit & Risk Committee report—Committee financial experience" | 100 |
|  | **16B Code of ethics** | "Additional Information—Other disclosures—Code of Ethics" | 233 |
|  | **16C Principal accountant fees and services** | "Corporate Governance Report—Audit & Risk Committee report—External audit—External auditors' fees" | 104 |
|  |  | "Corporate Governance Report—Audit & Risk Committee report—External audit—Non-audit services" | 104 |
|  |  | "Financial Statements—Notes to the consolidated financial statements—Note 4. Other operating costs—(d) Auditors' remuneration" | 153 |
|  | **16D Exemptions from the listing standards for audit committees** | Not applicable |  |
|  | **16E Purchases of equity securities by the issuer and affiliated purchasers** | "Additional Information—Shareholder information—Material interests in shares—Authority to purchase shares" | 253 |
|  | **16F Change in registrant's certifying accountant** | Not applicable |  |
|  | **16G Corporate governance** | "Additional Information—Other disclosures—Corporate governance practices: differences from NYSE listing standards" | 233-234 |
|  | **16H Mine safety disclosure** | Not applicable |  |
|  | **16I Disclosure Regarding Foreign Jurisdictions that Prevent Inspections** | Not applicable |  |
|  | **16J Insider Trading Policies** | "Insider Trading Policy" | "Further Information" and Exhibit 11(b) |
|  | **16K Cybersecurity Disclosures** |  |  |
|  | 16K(b) Risk management and strategy | "Additional Information—Internal control and risk factors—Risk factors—Cyber or physical security breaches" | 229 |
|  | 16K(c) Governance | "Strategic Report—Our principal risks and uncertainties—Catastrophic security incident" | 32 |
|  |  | "Strategic Report—Cybersecurity governance" | 37 |
| **17** | **Financial statements** | Not applicable |  |
| **18** | **Financial statements** |  |  |
|  |  | Financial Statements—"Consolidated financial statements" | 137-211 |
|  |  | "Financial Statements—Reports of Independent Registered Public Accounting Firm—Audit opinions for Form 20-F" | "Further Information" |
| **19** | **Exhibits** | Filed with the SEC |  |

---

vi

![cover+logo v5.jpg](nggtf-20260331_g1.jpg)

We Bring Energy to

Power Possibilities

![](nggtf-20260331_g2.gif)

Annual Report and Accounts 2025/26

![NG_ARA25_Welcompe IFC BG.jpg](nggtf-20260331_g3.jpg)

**Welcome to National Grid**<br>

We Bring

Energy to Power

Possibilities

We are driven by our mission, safely and reliably

connecting millions of people to the energy they

use, while investing at scale to meet rising

demand, power economic growth and deliver

system resilience and energy security.

---

| | |
|:---|:---|
| ![Read-more-arrow-white.gif](nggtf-20260331_g4.gif) | **Read more on page [10](#i7949c222dedd4c34a3e1678a41d5c989_8305)** |

---

![](nggtf-20260331_g5.gif)

---

| | |
|:---|:---|
| **Strategic Report** | **Strategic Report** |
| **[1](#i6f250a91cd464a04873e5851a20d0163_10)** | 2025/26 performance highlights |
| **[4](#i6f250a91cd464a04873e5851a20d0163_16)** | National Grid at a glance |
| **[6](#i6f250a91cd464a04873e5851a20d0163_25)** | Chair's statement |
| **[8](#i6f250a91cd464a04873e5851a20d0163_28)** | Chief Executive's review |
| **[12](#i6f250a91cd464a04873e5851a20d0163_31)** | Our business model |
| **[14](#i6f250a91cd464a04873e5851a20d0163_37)** | Our business environment |
| **[16](#i6f250a91cd464a04873e5851a20d0163_40)** | Performance against our strategic priorities |
| **[18](#i6f250a91cd464a04873e5851a20d0163_43)** | Our business units |
| **[23](#i6f250a91cd464a04873e5851a20d0163_46)** | Our stakeholders |
| **[26](#i6f250a91cd464a04873e5851a20d0163_49)** | Our key performance indicators |
| **[30](#i6f250a91cd464a04873e5851a20d0163_52)** | Internal control and risk management |
| **[31](#ice727abade1c466db3e1bae9b17c9ddd_886)** | Our Group Principal Risks |
| **[38](#i6f250a91cd464a04873e5851a20d0163_61)** | Responsible Business review |
| **[53](#i6f250a91cd464a04873e5851a20d0163_79)** | TCFD |
| **[69](#i6f250a91cd464a04873e5851a20d0163_97)** | Financial review |
| **[85](#i6f250a91cd464a04873e5851a20d0163_100)** | Section 172 and NSIS statement |
| **[86](#i6f250a91cd464a04873e5851a20d0163_103)** | Viability statement |

---

---

| | |
|:---|:---|
| **Corporate Governance** | **Corporate Governance** |
| **[88](#i6f250a91cd464a04873e5851a20d0163_109)** | Chair's statement |
| **[89](#i6f250a91cd464a04873e5851a20d0163_112)** | Governance overview |
| **[91](#i6f250a91cd464a04873e5851a20d0163_115)** | Our Board |
| **[94](#i6f250a91cd464a04873e5851a20d0163_118)** | Key Board activities |
| **[95](#i6f250a91cd464a04873e5851a20d0163_121)** | Culture and workforce engagement |
| **[96](#i6f250a91cd464a04873e5851a20d0163_124)** | Board evaluation |
| **[97](#i6f250a91cd464a04873e5851a20d0163_127)** | Directors' induction,<br>development and training<br>|
| **[98](#i6f250a91cd464a04873e5851a20d0163_130)** | Nomination Committee report |
| **[100](#i6f250a91cd464a04873e5851a20d0163_133)** | Audit & Risk Committee report |
| **[105](#i6f250a91cd464a04873e5851a20d0163_136)** | Safety & Operations Committee report |
| **[106](#i6f250a91cd464a04873e5851a20d0163_139)** | Responsible Business Committee report |
| **[107](#i6f250a91cd464a04873e5851a20d0163_142)** | Directors' Remuneration report |

---

---

| | |
|:---|:---|
| **Financial Statements** | **Financial Statements** |
| **[128](#i6f250a91cd464a04873e5851a20d0163_160)** | Statement of Directors' responsibilities |
| **129** | Independent Auditor's report |
| **137** | Consolidated financial statements |
| **212** | Company financial statements |
| **Additional Information** | **Additional Information** |
| **220** | The business in detail |
| **226** | Internal control and risk factors |
| **233** | Other disclosures |
| **236** | Other unaudited financial information |
| **248** | Commentary on consolidated financial <br>statements<br>|
| **250** | Shareholder information |
| **256** | Definitions and glossary of terms |
| **262** | Cautionary statement |

---

![](nggtf-20260331_g6.gif)

---

| |
|:---|
| **Our reporting** |
| **Online content**<br>In this report there are QR codes you can scan to view <br>further content online. Simply open the camera app on <br>your smartphone to scan the code. |
| **Further reading**<br>Throughout this report you can find links to further detail <br>within this document. |
| **Online report and other web content**<br>The PDF of our Annual Report and Accounts 2025/26 <br>includes a full search facility. You can find the document <br>by visiting our website nationalgrid.com/investors/<br>resources/reports-plc or by scanning the QR code below. |
| **Read this report online** |

---

![](nggtf-20260331_g7.gif)

![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif)

![](nggtf-20260331_g7.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

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![read this report ifc.jpg](nggtf-20260331_g11.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>1</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **2025/26 performance highlights** |  |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Statutory** <br>**operating profit**<br>2024/25: £4,934m<br>+10% y-on-y | **Statutory** <br>**operating profit**<br>2024/25: £4,934m<br>+10% y-on-y | £5,431m | £5,431m |
| **Statutory** <br>**earnings per share**<br>2024/25: 60.0p<br>+9% y-on-y | **Statutory** <br>**earnings per share**<br>2024/25: 60.0p<br>+9% y-on-y | **Statutory** <br>**earnings per share**<br>2024/25: 60.0p<br>+9% y-on-y | 65.5p |
| **Capital** <br>**investment**<br>2024/25: <br>£9.85bn<br>+18% y-on-y<br>| £11.58bn | £11.58bn | £11.58bn |
| **Dividend per share**<br>2024/25: 46.72p<br>+3.8% y-on-y | **Dividend per share**<br>2024/25: 46.72p<br>+3.8% y-on-y | **Dividend per share**<br>2024/25: 46.72p<br>+3.8% y-on-y | 48.49p |

---

---

| | | |
|:---|:---|:---|
| **Underlying** <br>**operating profit**<br>2024/25: £5,357m<br>+6% y-on-y<br>| £5,680m | £5,680m |
| **Underlying** <br>**earnings per share**<br>2024/25: 73.3p<br>+6% y-on-y<br>| 78.0p | 78.0p |
| **Asset growth**<br>2024/25: 9.0%<br>+190bps y-on-y<br>| 10.9% | 10.9% |
| **Alternative performance measure**<br>In addition to International Financial Reporting Standards (IFRS) <br>figures, management also uses a number of alternative measures <br>to assess performance. Definitions and reconciliations to <br>statutory financial information can be found on pages 236 – 247. <br>These measures are highlighted with the symbol above.  | **Alternative performance measure**<br>In addition to International Financial Reporting Standards (IFRS) <br>figures, management also uses a number of alternative measures <br>to assess performance. Definitions and reconciliations to <br>statutory financial information can be found on pages 236 – 247. <br>These measures are highlighted with the symbol above.  | **Reporting currency**<br>Our financial results are reported in sterling. We convert our US <br>business results at the weighted average exchange rate during the <br>year, which for 2025/26 was $1.34 to £1 (2024/25: $1.27 to £1). |

---

![APM-arrow_Clear-BG.gif](nggtf-20260331_g12.gif)

![](nggtf-20260331_g13.gif)

![APM-arrow_Clear-BG.gif](nggtf-20260331_g12.gif)

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![APM-arrow_Clear-BG.gif](nggtf-20260331_g12.gif)

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![APM-arrow_Clear-BG.gif](nggtf-20260331_g12.gif)

![](nggtf-20260331_g13.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>2</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **2025/26 performance highlights cont.** |  |  |  |  |

---

![NG_Sellindge_170425-182_pp2 new.jpg](nggtf-20260331_g14.jpg)

---

| | | |
|:---|:---|:---|
| **Network reliability**<br>2024/25: 99.9%<br>in line with prior year<br>| 99.9% | 99.9% |
| **Lost time injury frequency rate** <br>**per 100,000 hours worked**<br>2024/25: 0.10<br>+10% y-on-y | **Lost time injury frequency rate** <br>**per 100,000 hours worked**<br>2024/25: 0.10<br>+10% y-on-y | 0.11 |
| **Scope 1 and 2 GHG** <br>**emissions in mtCO2e**<br>2024/25: 7.4<br>+1.2% y-on-y | **Scope 1 and 2 GHG** <br>**emissions in mtCO2e**<br>2024/25: 7.4<br>+1.2% y-on-y | 7.5 |
| **Employee engagement in our** <br>**twice annual Grid:Voice survey**<br>2024/25: 80%<br>+100bps | **Employee engagement in our** <br>**twice annual Grid:Voice survey**<br>2024/25: 80%<br>+100bps | 81% |

---

![Feature page NYC from above v3.jpg](nggtf-20260331_g15.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>3</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |

---

We Bring Energy <br>to Power Possibilities<br>

![](nggtf-20260331_g16.gif)

Chair's statement

page [6](#i6f250a91cd464a04873e5851a20d0163_25)

**Technology changes our existence –**

**and is inextricably linked to energy**

National Grid is in the right place at the right time to take part

in the evolving energy landscape, with extensive grids in the

UK and US primed for expansion. We have announced our

intention to invest at least £70 billion over the next five years

to enhance our networks. This is an ambitious effort and

demands that we increase our agility, our productivity, and

our speed of technology adoption.

![](nggtf-20260331_g16.gif)

Chief Executive's review

page [8](#i6f250a91cd464a04873e5851a20d0163_28)

**Energy is the foundation of modern economies and the** 

**grid is the platform that makes energy usable at scale**

The networks we plan, build and operate today will serve

customers for decades. The choices we make now,

on sequencing, design, capital discipline and system

architecture, will shape investment, resilience and

economic growth for a generation.

![](nggtf-20260331_g17.gif)

Responsible Business review

page [38](#i6f250a91cd464a04873e5851a20d0163_61)

**Responsible business is important to us and** 

**our stakeholders**

Over the past year, we have navigated a complex landscape

characterised by significant economic and political uncertainty.

In this environment, energy security and affordability remain

priorities. Part of being a responsible business is taking account

of, and responding to, the expectations of our customers,

communities, colleagues and other stakeholders.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>4</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **National Grid at a glance** |  |  |  |  |

---

![Main image NEW.jpg](nggtf-20260331_g18.jpg)

---

| |
|:---|
| Infrastructure <br>at the heart of <br>energy systems |
| National Grid businesses play a vital role in energy <br>systems in the UK and US, connecting sources of <br>power to the customers that use them and shaping <br>the future of our critical energy networks. <br>|

---

![At_A_Glance_UK_ET_7May.jpg](nggtf-20260331_g19.jpg)

**See our business model on page [12](#i6f250a91cd464a04873e5851a20d0163_31) – [13](#i5110d61af8504a579b53a7d2b36e7655_126)**<br>

![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif)

![](nggtf-20260331_g13.gif)

---

| | | | |
|:---|:---|:---|:---|
| Our businesses | Our businesses |  |  |
| UK | UK |  |  |
| **UK Electricity Transmission**<br>**(UK ET/NGET)**<br>We own and operate the high-voltage electricity <br>transmission network in England and Wales. This <br>connects and transmits electricity between <br>generators, storage, large customers and distribution <br>networks while delivering the major strategic <br>infrastructure for a resilient and clean power grid. | **UK Electricity Transmission**<br>**(UK ET/NGET)**<br>We own and operate the high-voltage electricity <br>transmission network in England and Wales. This <br>connects and transmits electricity between <br>generators, storage, large customers and distribution <br>networks while delivering the major strategic <br>infrastructure for a resilient and clean power grid. | **UK Electricity Distribution**<br>**(UK ED/NGED)**<br>We own and operate the UK's largest electricity <br>distribution network, serving a population of 20 <br>million people across the East Midlands, West <br>Midlands, South West and South Wales. This <br>includes a Distribution System Operator overseen <br>by an independent panel. | **UK Electricity Distribution**<br>**(UK ED/NGED)**<br>We own and operate the UK's largest electricity <br>distribution network, serving a population of 20 <br>million people across the East Midlands, West <br>Midlands, South West and South Wales. This <br>includes a Distribution System Operator overseen <br>by an independent panel. |
| **UK Electricity Transmission**<br>**(UK ET/NGET)**<br>We own and operate the high-voltage electricity <br>transmission network in England and Wales. This <br>connects and transmits electricity between <br>generators, storage, large customers and distribution <br>networks while delivering the major strategic <br>infrastructure for a resilient and clean power grid. | **UK Electricity Transmission**<br>**(UK ET/NGET)**<br>We own and operate the high-voltage electricity <br>transmission network in England and Wales. This <br>connects and transmits electricity between <br>generators, storage, large customers and distribution <br>networks while delivering the major strategic <br>infrastructure for a resilient and clean power grid. | **UK Electricity Distribution**<br>**(UK ED/NGED)**<br>We own and operate the UK's largest electricity <br>distribution network, serving a population of 20 <br>million people across the East Midlands, West <br>Midlands, South West and South Wales. This <br>includes a Distribution System Operator overseen <br>by an independent panel. | **UK Electricity Distribution**<br>**(UK ED/NGED)**<br>We own and operate the UK's largest electricity <br>distribution network, serving a population of 20 <br>million people across the East Midlands, West <br>Midlands, South West and South Wales. This <br>includes a Distribution System Operator overseen <br>by an independent panel. |
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [18](#i14c0bbea913d44f7b46ab4efa269e40c_25161)** | ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [19](#i14c0bbea913d44f7b46ab4efa269e40c_25158)** |

---

![At_A_Glance_UK_ED_7May.jpg](nggtf-20260331_g21.jpg)

Our values

---

| | | |
|:---|:---|:---|
| **Do the right thing** | **Find a better way** | **Make it happen** |
| –Stand up for safety every day<br>–Put our customers first<br>–Be inclusive, supporting and <br>caring for each other<br>–Speak up, challenge and act <br>where something doesn't <br>feel right<br>| –Embrace the power and <br>opportunity of diversity <br>–Increase efficiency to help <br>with customer affordability<br>–Work with others to find <br>solutions for customers<br>–Commit to learning and <br>new ideas<br>| –Take personal ownership for <br>delivering results<br>–Be bold and act with passion <br>and purpose<br>–Focus on progress over <br>perfection<br>–Follow the problem through <br>to the end<br>|

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>5</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **National Grid at a glance cont.** |  |  |  |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Our businesses | Our businesses |  |  |  |  |  |  |
| US | US |  |  | International | International | International | International |
| **New York (NY)**<br>We own and operate electricity transmission, <br>electricity distribution and gas distribution <br>networks in Upstate and Downstate New York, <br>delivering energy to 4.2 million customers <br>(1.7 million electric and 2.5 million gas). | **New York (NY)**<br>We own and operate electricity transmission, <br>electricity distribution and gas distribution <br>networks in Upstate and Downstate New York, <br>delivering energy to 4.2 million customers <br>(1.7 million electric and 2.5 million gas). | **New England (NE)**<br>We own and operate electricity and gas <br>distribution networks in Massachusetts, serving <br>2.3 million customers. We also own and operate <br>electricity transmission networks across <br>Massachusetts, New Hampshire and Vermont. | **New England (NE)**<br>We own and operate electricity and gas <br>distribution networks in Massachusetts, serving <br>2.3 million customers. We also own and operate <br>electricity transmission networks across <br>Massachusetts, New Hampshire and Vermont. | **National Grid Ventures (NGV)**<br>We develop and operate large-scale energy <br>projects across the UK and US. They represent a <br>broad mix of energy assets and businesses, <br>including six electricity interconnectors between <br>the UK and Europe, US competitive transmission, <br>power generation and battery storage. | **National Grid Ventures (NGV)**<br>We develop and operate large-scale energy <br>projects across the UK and US. They represent a <br>broad mix of energy assets and businesses, <br>including six electricity interconnectors between <br>the UK and Europe, US competitive transmission, <br>power generation and battery storage. | **Other activities**<br>Primarily National Grid Partners, the corporate <br>venture capital and innovation arm of National <br>Grid, plus UK property, insurance and corporate <br>activities. | **Other activities**<br>Primarily National Grid Partners, the corporate <br>venture capital and innovation arm of National <br>Grid, plus UK property, insurance and corporate <br>activities. |
| **New York (NY)**<br>We own and operate electricity transmission, <br>electricity distribution and gas distribution <br>networks in Upstate and Downstate New York, <br>delivering energy to 4.2 million customers <br>(1.7 million electric and 2.5 million gas). | **New York (NY)**<br>We own and operate electricity transmission, <br>electricity distribution and gas distribution <br>networks in Upstate and Downstate New York, <br>delivering energy to 4.2 million customers <br>(1.7 million electric and 2.5 million gas). | **New England (NE)**<br>We own and operate electricity and gas <br>distribution networks in Massachusetts, serving <br>2.3 million customers. We also own and operate <br>electricity transmission networks across <br>Massachusetts, New Hampshire and Vermont. | **New England (NE)**<br>We own and operate electricity and gas <br>distribution networks in Massachusetts, serving <br>2.3 million customers. We also own and operate <br>electricity transmission networks across <br>Massachusetts, New Hampshire and Vermont. | **National Grid Ventures (NGV)**<br>We develop and operate large-scale energy <br>projects across the UK and US. They represent a <br>broad mix of energy assets and businesses, <br>including six electricity interconnectors between <br>the UK and Europe, US competitive transmission, <br>power generation and battery storage. | **National Grid Ventures (NGV)**<br>We develop and operate large-scale energy <br>projects across the UK and US. They represent a <br>broad mix of energy assets and businesses, <br>including six electricity interconnectors between <br>the UK and Europe, US competitive transmission, <br>power generation and battery storage. | **Other activities**<br>Primarily National Grid Partners, the corporate <br>venture capital and innovation arm of National <br>Grid, plus UK property, insurance and corporate <br>activities. | **Other activities**<br>Primarily National Grid Partners, the corporate <br>venture capital and innovation arm of National <br>Grid, plus UK property, insurance and corporate <br>activities. |
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [20](#i14c0bbea913d44f7b46ab4efa269e40c_25159)** | ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [21](#i14c0bbea913d44f7b46ab4efa269e40c_25156)** | ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [22](#i14c0bbea913d44f7b46ab4efa269e40c_25160)** | ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [22](#i14c0bbea913d44f7b46ab4efa269e40c_25160)** |

---

![At_A_Glance_US_NY_7May.jpg](nggtf-20260331_g22.jpg)

![At_A_Glance_US_NE_21 May.jpg](nggtf-20260331_g23.jpg)

![NGV_Sellinge_130924_JA-41 pp5.jpg](nggtf-20260331_g24.jpg)

![Inter_Other_020.jpg](nggtf-20260331_g25.jpg)

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![APM-arrow.gif](nggtf-20260331_g26.gif) |  |  |  |  |  |  |  |  |  |  |  |  |
| ![APM-arrow.gif](nggtf-20260331_g26.gif) | **2025/26 Regulatory asset value (RAV), rate base** <br>**and other assets (% of Group)** | **2025/26 Regulatory asset value (RAV), rate base** <br>**and other assets (% of Group)** | **2025/26 Regulatory asset value (RAV), rate base** <br>**and other assets (% of Group)** | **2025/26 Regulatory asset value (RAV), rate base** <br>**and other assets (% of Group)** | **2025/26 Underlying operating profit (% of Group)** | **2025/26 Underlying operating profit (% of Group)** | **2025/26 Underlying operating profit (% of Group)** | **2025/26 Underlying operating profit (% of Group)** | **2025/26 Capital investment (% of Group)** | **2025/26 Capital investment (% of Group)** | **2025/26 Capital investment (% of Group)** | **2025/26 Capital investment (% of Group)** |
|  | ⚫ | UK Electricity <br>Transmission <br>34%<br>| ⚫ | New <br>England<br>14%<br>| ⚫ | UK Electricity <br>Transmission <br>30%<br>| ⚫ | New <br>England<br>15%<br>| ⚫ | UK Electricity <br>Transmission <br>38%<br>| ⚫ | New <br>England<br>17%<br>|
|  | ⚫ | UK Electricity <br>Distribution <br>18%<br>| ⚫ | National Grid <br>Ventures<br>4%<br>| ⚫ | UK Electricity <br>Distribution <br>22%<br>| ⚫ | National Grid <br>Ventures<br>6%<br>| ⚫ | UK Electricity <br>Distribution <br>14%<br>| ⚫ | National Grid <br>Ventures<br>1%<br>|
|  | ⚫ | New York<br>27%<br>| ⚫ | Other activities<br>3%<br>| ⚫ | New York<br>30%<br>| ⚫ | Other activities<br>(3)%<br>| ⚫ | New York<br>30%<br>|  |  |
| ![APM-arrow.gif](nggtf-20260331_g26.gif) | Alternative performance measure | Alternative performance measure | Alternative performance measure | Alternative performance measure |  |  |  |  |  |  |  |  |

---

![1](nggtf-20260331_g27.gif)

![13](nggtf-20260331_g28.gif)

![25](nggtf-20260331_g29.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>6</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Chair's statement** |  |  |  |  |

---

![Chair's statement.jpg](nggtf-20260331_g30.jpg)

![](nggtf-20260331_g31.gif)

**Paula Rosput Reynolds**

Technology

changes our

existence –

and is inextricably

linked to energy

National Grid is in the right place at <br>the right time in this evolving landscape.<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>7</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Chair's statement cont.** |  |  |  |  |

---

"National Grid is a guardian <br>of the integrity and capability <br>of the energy system. It's our <br>job to ensure that energy <br>grids in our regions – both <br>electricity and natural gas – <br>have the capability to <br>move energy to where it is <br>needed, when it is needed." <br>

**Dear fellow shareholder,**

At the very moment you are reading this letter,

more than five billion people around the world are

using the internet. In fact, three-quarters of the

global population are internet users. Yet there are

still two billion people, primarily in Central and

Eastern Africa and South Asia, who have yet to

experience what most of us take for granted. But

whether you are in New York or London, or in rural

Myanmar or on a remote island in Indonesia,

progress only moves one way. Technology

changes our existence – and is inextricably linked

to energy.

Technology saves energy, but it also creates the

need for energy. Artificial intelligence (AI) is the

classic example of both. AI has been years in

development, and it already operates within every

domain of the digital world. But it relies on

increasingly sophisticated microchips, which

consume more energy than early generations of

chips. Concerns about the proliferation of data

centres and how existing utility customers' bills

might be affected are among the issues yet to be

fully resolved.

Against this backdrop, National Grid is a guardian

of the integrity and capability of the energy system.

We design, build and operate long lead-time,

capital-intensive infrastructure. It's our job to

ensure that energy grids in our regions – both

electricity and natural gas – have the capability to

move energy to where it is needed, when it is

needed. Whether it's connecting a wind farm in the

North Sea or providing natural gas to a new chip

fabricator in central New York, it's our job to plan

for the future.

National Grid is in the right place at the right time in

---

| |
|:---|
| At least <br>**£70bn**<br>|
| **capital investment over the**<br>**next five years**<br>|

---

this evolving landscape. We have extensive land-

based electric power and natural gas grids in the

UK and US. With years of planning well underway,

these grids are primed for expansion. In addition,

we operate the most extensive subsea network of

high-voltage direct current (HVDC) interconnectors

in the world, linking the UK with Europe, with

further expansions planned. Given the complexity

of our networks, we are an early adopter of

technologies to make our grids more efficient.

Through sensors, automated controls, unmanned

surveillance, and AI, we are changing how

infrastructure operates. We both support the

energy requirements of AI and are a major user of

its capabilities.

National Grid has announced its intention to invest

at least £70 billion over the next five years to

enhance our networks. This is an ambitious effort

but, rest assured, our focus on safety and reliability

does not waver. The enormity of the challenge

demands that we increase our agility, our

productivity, and our speed of adoption. To this

end, in November 2025, National Grid welcomed a

new Chief Executive, Zoë Yujnovich, who

succeeded our long-serving leader, John

Pettigrew.

In this report, you'll hear Zoë's voice on how she is

bringing new perspectives, discipline, and energy

to National Grid.

No annual report issued by an energy company in

May 2026 would be complete without some

commentary on the situation in the Middle East.

The global disruption in the movement of

hydrocarbons through the Strait of Hormuz affects

all participants in the energy value chain.

Affordability for our customers remains a concern.

Efficiency – like the kind that Zoë is driving – is the

most powerful tool that we have to deploy.

Though we can debate the merits of how much AI,

and how quickly it is adopted, technology will

create opportunities we can only begin to imagine.

The geopolitics of the moment are troubling, but

the future is still bright.

Your ownership in National Grid underpins our

ability to deliver critical new transmission and

distribution infrastructure on two continents. On

behalf of the Board, I thank you for your continued

support of our company and our mission.

**Paula Rosput Reynolds**

Chair

13 May 2026

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>8</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Chief Executive's review** |  |  |  |  |

---

![CEO statement Image 1_NEW v3.jpg](nggtf-20260331_g32.jpg)

![](nggtf-20260331_g33.gif)

**Zoë Yujnovich**

Energy is

the foundation

of modern

economies and

the grid is the

platform that

makes energy

usable at scale

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>9</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Chief Executive's review cont.** |  |  |  |  |

---

Energy is the foundation of modern economies,

and the grid is the platform that makes energy

usable at scale. For decades, it operated largely

out of sight. Today, it sits firmly at the centre of

national economic strategy, and it is not

moving back.

Across the UK and the north-eastern United

States, there has been a fundamental shift.

Electricity demand is rising again after years of low

or negative growth. The large-scale build-out of

low-carbon generation and storage, the

electrification of transport and industry, advanced

manufacturing and the rapid growth of artificial

intelligence are reshaping how and where energy is

produced and consumed. These shifts are also

influencing natural gas demand, particularly as

systems balance resilience with transition.

What has not changed is our responsibility: to

move energy safely, reliably, at scale and in real

time, from where it is produced to where it is

needed. What has changed is the urgency, and the

recognition that networks can either be an

essential catalyst for growth or a constraint.

The connection between supply and demand

depends on networks, that's why National Grid sits

at the centre of national economic strategy.

National Grid is well positioned for this moment.

We operate extensive electricity and natural gas

networks across the UK and the north-eastern US,

regions where demand is growing and the pace of

change is accelerating. Our networks are ready to

support expansion and modernisation. The

essential nature of what we do defines both our

responsibility and our opportunity.

Our value proposition is clear. We build, own and

operate high-quality, regulated infrastructure that

supports economic growth, strengthens energy

security and delivers tangible benefits to the

communities we serve.

![](nggtf-20260331_g34.gif)

Our model offers investors exposure to sustained

long-term growth in energy demand, without the

day-to-day volatility that can characterise other

sectors. The strategic nature of our assets is well

understood in investment circles, often described

as HALO: heavy assets, low obsolescence.

We are investing at unprecedented scale to

expand and modernise the networks that will

underpin this next phase of economic growth. At

the same time, we are determined to make better

use of the networks we already have and connect

customers faster.

As Chief Executive, I am clear about what this

moment demands: disciplined capital allocation,

excellence in execution and a culture that values

accountability as much as ambition. Growth

matters, but never at the expense of safety,

reliability, affordability or trust.

---

| |
|:---|
| 2025/26 financial <br>performance highlights<br>|
| **Capital investment**<sup>1</sup> |
| **£11.58bn** |
| 2025: £9.54bn +21%  |
| **Asset growth** |
| **10.9%** |
| 2025: 9.0% +190bps |
| **Return on Equity** |
| **9.8%** |
| 2024/25: 9.0% +80bps |
| **Underlying operating profit** |
| **£5.7bn** |
| 2024/25: 5.2bn +9%  |
| **Underlying EPS**<sup>1</sup> |
| **78.0p** |
| 2024/25: 72.0p +8% |
| **Dividend growth in line with policy** |
| **48.49p** |
| 2024/25: 46.72p +3.8% |
| 1. Underlying results from continuing operations excluding <br>exceptional items, remeasurements, deferrable major <br>storm costs (when greater than $100m), timing, and the <br>impact of deferred tax in the UK regulated businesses <br>(NGET and NGED). Underlying EPS and <br>capital investment calculated at constant currency.<br>|

---

**National Grid offers growth and resilience**

---

| | | |
|:---|:---|:---|
|  | **c.8-10%** <br>**underlying EPS CAGR**<br>|  |
| **High visibility growth**<br>–Unmatched visibility of investment and <br>earnings<br>–Multiple growth drivers<br>–Critical infrastructure assets<br>–Long-duration cash flows and low-risk <br>returns | + | **Resilient business model**<br>–Strong regulatory capabilities <br>–Clear delivery track record <br>–Strong balance sheet<br>–Resilient to macro-economic volatility |
| **High visibility growth**<br>–Unmatched visibility of investment and <br>earnings<br>–Multiple growth drivers<br>–Critical infrastructure assets<br>–Long-duration cash flows and low-risk <br>returns | **Progressive dividend** | **Resilient business model**<br>–Strong regulatory capabilities <br>–Clear delivery track record <br>–Strong balance sheet<br>–Resilient to macro-economic volatility |
| **High visibility growth**<br>–Unmatched visibility of investment and <br>earnings<br>–Multiple growth drivers<br>–Critical infrastructure assets<br>–Long-duration cash flows and low-risk <br>returns | = | **Resilient business model**<br>–Strong regulatory capabilities <br>–Clear delivery track record <br>–Strong balance sheet<br>–Resilient to macro-economic volatility |
| **High visibility growth**<br>–Unmatched visibility of investment and <br>earnings<br>–Multiple growth drivers<br>–Critical infrastructure assets<br>–Long-duration cash flows and low-risk <br>returns | **Aiming to deliver double-digit**<br>**investor returns**<br>| **Resilient business model**<br>–Strong regulatory capabilities <br>–Clear delivery track record <br>–Strong balance sheet<br>–Resilient to macro-economic volatility |
| **High visibility growth**<br>–Unmatched visibility of investment and <br>earnings<br>–Multiple growth drivers<br>–Critical infrastructure assets<br>–Long-duration cash flows and low-risk <br>returns |  | **Resilient business model**<br>–Strong regulatory capabilities <br>–Clear delivery track record <br>–Strong balance sheet<br>–Resilient to macro-economic volatility |

---

![CEO_groth and resiliance.jpg](nggtf-20260331_g35.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>10</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Chief Executive's review cont.** |  |  |  |  |

---

Over the past six months, I have mobilised our

senior leaders in a rigorous review of the business,

testing our ambition against industry-leading peers

and customers' rising expectations of us. This

culminated in a refreshed strategic framework – not

a change in direction, but a clearer and more

effective way of translating strategy into delivery

across a complex organisation.

At its core is our mission:

**we bring energy to power possibilities.** 

First, we are focusing on the operational

fundamentals: delivering our capital programme on

time and on budget; maximising asset

performance and reliability; providing a consistently

strong customer experience; and functions that

support the businesses effectively. We call these

the "brilliant basics" – where credibility is earned

and trust is built, because execution is what turns

investment into impact.

Second, we are driving three "big shifts" that will

improve performance and enhance delivery

capacity: strengthening leadership, capability and

performance management; scaling technology,

data and AI to unlock productivity and faster

connections; and stepping up our external

positioning and policy engagement to help

shape outcomes that work for our customers

and investors.

As system needs evolve, regulatory and policy

frameworks must evolve too. We are being more

focused and deliberate in shaping outcomes that

support affordability, resilience and growth for

customers, communities and investors, building

coalitions and taking clearer positions.

Affordability is central to everything we do. We

recognise the pressure that energy bills place on

households and businesses, and we take seriously

our responsibility to deliver our part of the system

as efficiently as possible. How we invest and

operate has a direct impact on what customers

pay, both today and over the long term. History

shows that under-investment does not remove

cost; it merely defers and ultimately increases it,

through connection delays leading to lost

economic opportunity and higher system operating

and constraint costs.

**Our refreshed strategic framework focuses our organisation**

Our focus is therefore on getting more from the

networks we have, investing efficiently, making

trade-offs transparent and maintaining discipline as

we grow.

Achieving this transformation at pace also depends

on effective policy and the right regulatory

frameworks. Strategic planning, efficient permitting

and fair cost allocation are essential. Rate impacts

perceived as unfair, or new loads that compromise

reliability, cannot be the outcome of this growth

cycle. We work closely with our regulators, who

challenge our thinking and help ensure we deliver

for customers. We are working towards a shared

objective: networks that are affordable, resilient

and support economic growth.

Delivering new infrastructure also means earning the

trust of the communities that host it. These are

long-lived assets that create lasting national and local

benefits, but we are candid that construction and

maintenance can bring disruption and visual impact.

Engagement therefore matters as much as

engineering. We are raising our ambition by being

clearer about the benefits projects bring, innovating

to reduce impacts wherever possible, enhancing the

natural environment and ensuring communities share

in the value created, including through skills

development, apprenticeships and local employment.

Our people sit at the heart of this effort. Each year,

we bring hundreds of new colleagues into National

Grid. For many, this is not just a job, but the start

of a long-term career. The next generation of

colleagues will operate networks that are more

flexible and intelligent than ever before. Data,

sensors, automation, advanced system design and

digital tools, including artificial intelligence, are

already changing how we plan, operate and deliver

work. These technologies help us unlock capacity

from existing networks, connect customers faster

and improve decision-making, while maintaining

the safety and reliability on which our

reputation depends.

![Resp_Business_Intro BG v6.jpg](nggtf-20260331_g36.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>11</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Chief Executive's review cont.** |  |  |  |  |

---

"I am deeply grateful for the

opportunity to lead National Grid

through a period of profound

change. The networks we plan,

build and operate today will

serve customers for decades."

In 2025/26, we increased capital investment by more

than 20% to £11.6 billion, driving asset growth of

10.9%. Higher operating profit, combined with lower

financing costs, increased underlying operating profit

to £5.7 billion, delivering 8% growth in underlying

earnings per share at constant currency, in line with

our guidance. And we grew our dividend by 3.8%, in

line CPIH inflation.

These results give me confidence in the quality of

our assets and the strength of the business. The

professionalism and dedication of my colleagues

make all of this possible, and I thank them for

another year of keeping energy flowing safely

and reliably.

I also want to thank our shareholders. In my first

months as Chief Executive, I have met with many

of you and listened carefully to your perspectives.

I have taken that guidance seriously, and I hope

you will see it reflected in this report and in the way

we are positioning National Grid for the future.

---

| | |
|:---|:---|
| Five-year financial framework<br>2026/27 – 2030/31<br>**announced 2 March 2026** | Five-year financial framework<br>2026/27 – 2030/31<br>**announced 2 March 2026** |
| **Capital investment** |  |
|  | at least<br> **£70bn**<br>**to meet decarbonisation and energy security** <br>**goals and accelerating demand growth from** <br>**data centres and industrial electrification**  |
| **Group asset growth** | **Underlying EPS** |
| **c.10%**<br>**CAGR**<sup>1</sup><br>| **8-10%**<br>**CAGR**<sup>2</sup> |
| 1.Group asset compound annual growth rate from a 2025/26 baseline. Forward years based on assumed USD FX rate of <br>$1.35:£1 and long run UK CPIH and US CPI assumptions.<br>2.EPS compound annual growth rate from a 2025/26 baseline. Forward years based on assumed USD FX rate of <br>$1.35:£1, long run UK CPIH, US CPI and interest rate assumptions and scrip uptake of 25%.  | 1.Group asset compound annual growth rate from a 2025/26 baseline. Forward years based on assumed USD FX rate of <br>$1.35:£1 and long run UK CPIH and US CPI assumptions.<br>2.EPS compound annual growth rate from a 2025/26 baseline. Forward years based on assumed USD FX rate of <br>$1.35:£1, long run UK CPIH, US CPI and interest rate assumptions and scrip uptake of 25%.  |

---

![](nggtf-20260331_g37.gif)

![65](nggtf-20260331_g38.gif)

---

| | |
|:---|:---|
| UK ET | **c.£31bn** |
| UK ED | **c.£9bn** |
| New York | **c.£17bn** |
| New England | **c.£12bn** |
| NGV | **c.£1bn** |

---

I am deeply grateful for the opportunity to lead

![](nggtf-20260331_g39.gif)

National Grid through a period of profound change.

![](nggtf-20260331_g40.gif)

The networks we plan, build and operate today will

serve customers for decades. The choices we

![](nggtf-20260331_g41.gif)

make now, on sequencing, design, capital

discipline and system architecture, will shape

![](nggtf-20260331_g42.gif)

investment, resilience and economic growth for

![](nggtf-20260331_g43.gif)

a generation.

Energy will power the next economy. Networks will

carry it.

Our task is to build those networks safely,

efficiently and at the pace required, so that energy

can unlock the growth, innovation and resilience on

which modern economies depend.

**Zoë Yujnovich**

Chief Executive

13 May 2026

![Bus Mod pp12 BG new v2.jpg](nggtf-20260331_g44.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>12</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business model** |  |  |  |  |

---

Delivering today,

We operate and invest in regulated infrastructure

that supports economic growth while delivering

resilient returns for shareholders and benefits for

the communities we serve.

building for tomorrow

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| We deploy our resources effectively… | We deploy our resources effectively… | We deploy our resources effectively… | We deploy our resources effectively… | We deploy our resources effectively… | We deploy our resources effectively… | We deploy our resources effectively… | We deploy our resources effectively… |
| **Physical** <br>**assets** | **Physical** <br>**assets** | **Efficient**<br>**financial capital** | **Efficient**<br>**financial capital** | **Strategic and** <br>**responsible leadership** | **Strategic and** <br>**responsible leadership** | **Expert** <br>**colleagues** | **Expert** <br>**colleagues** |
| Our network assets are critical infrastructure. <br>They are large and built to last. We <br>continuously invest to maintain and upgrade <br>them to ensure safe and reliable service, <br>integrate new sources of energy, and meet <br>new demand. | Our network assets are critical infrastructure. <br>They are large and built to last. We <br>continuously invest to maintain and upgrade <br>them to ensure safe and reliable service, <br>integrate new sources of energy, and meet <br>new demand. | We fund our business through a combination <br>of equity and debt. We maintain an <br>appropriate mix of the two and manage <br>financial risks prudently, committing to a <br>strong overall investment grade credit rating. | We fund our business through a combination <br>of equity and debt. We maintain an <br>appropriate mix of the two and manage <br>financial risks prudently, committing to a <br>strong overall investment grade credit rating. | Our strategy positions our business to <br>support growth, long-term economic <br>benefits, and a cleaner future in the places <br>we operate. We have well-established <br>governance structures and controls in place <br>to manage risk. | Our strategy positions our business to <br>support growth, long-term economic <br>benefits, and a cleaner future in the places <br>we operate. We have well-established <br>governance structures and controls in place <br>to manage risk. | We are immensely proud of our people. <br>Together we have spent decades installing <br>and managing critical networks and systems, <br>forging relationships, and building a culture of <br>ambitious, diligent and passionate service. | We are immensely proud of our people. <br>Together we have spent decades installing <br>and managing critical networks and systems, <br>forging relationships, and building a culture of <br>ambitious, diligent and passionate service. |
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [18](#i6f250a91cd464a04873e5851a20d0163_43)** | ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [69](#i6f250a91cd464a04873e5851a20d0163_97)** | ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [8](#i6f250a91cd464a04873e5851a20d0163_28)** | ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [47](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7138)** |

---

---

| | | | |
|:---|:---|:---|:---|
| …and nurture our partner relationships… | …and nurture our partner relationships… | …and nurture our partner relationships… | …and nurture our partner relationships… |
| With our **customers**, including the electricity <br>generators that own the energy that flows <br>through our networks. | With our **contractors** who have complementary <br>skills, experience and resources to help us get <br>the job done.<br>| With national and regional **governments and** <br>**local communities** who support us to deliver <br>infrastructure that meets their needs.<br>| With the **regulators and agencies** that agree <br>the prices we can charge and the amounts we <br>can invest, as well as the health, safety and <br>environment standards we must meet. <br>|

---

![Bus Mod pp13 BG graphic new v5.jpg](nggtf-20260331_g45.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>13</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business model cont.** |  |  |  |  |

---

…to shape the future of energy systems…

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Generation and storage**<br>In the US, we own and operate fossil <br>fuel electricity generation facilities on <br>Long Island. We also operate modern <br>solar and battery storage projects <br>with NextEra Energy Resources on <br>Long Island.<br>| **Integrating cleaner energy**<br>Renewables and zero carbon sources <br>play a critical and fast-growing role in <br>our energy systems. Facilitating <br>connections to a wide range of clean <br>energy sources – including large-scale <br>generation to local, customer-led <br>generation and storage – is a <br>fundamental part of our work. We earn <br>a regulated return on the assets we <br>build when extending our network to <br>connect new energy sources.<br>| **Interconnectors**<br>Interconnectors are high-voltage <br>cables used to connect the electricity <br>systems of neighbouring countries to <br>allow the trading of excess energy and <br>balance supply and demand to <br>maintain security of supply. We <br>operate six interconnectors linking the <br>UK to France, Belgium, Norway, the <br>Netherlands and Denmark. We sell <br>capacity on our interconnectors to <br>facilitate cross-border flow. <br>| **Transmission**<br>Our transmission networks transport <br>energy over long distances, safely and <br>efficiently from where it is produced to <br>distribution networks. We facilitate the <br>connection of energy generation <br>assets and large loads to our <br>transmission systems and we charge <br>generators and distributors for putting <br>energy through our networks, based <br>on prices set by regulators. <br>| **Distribution and supply**<br>In the UK and US, we deliver <br>electricity. In the US, we also deliver <br>gas and act as a supplier. Our <br>distribution networks take high-voltage <br>electricity and high-pressure gas from <br>the transmission networks, and deliver <br>it at lower voltages and reduced <br>pressures to homes and businesses. <br>They also enable two-way flows as <br>customers generate, store and export <br>electricity locally. Through our UK <br>Electricity Distribution System <br>Operator (DSO) we ensure that supply <br>and demand are coordinated and that <br>local generation, storage and flexibility <br>can be used to support the network. <br>|

---

![](nggtf-20260331_g46.gif)

**Sources of energy**

![](nggtf-20260331_g47.gif)

**Networks and infrastructure**

![](nggtf-20260331_g48.gif)

**Delivering for customers**

…to create lasting value and deliver positive outcomes for our stakeholders.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Customers**<br>Delivery of safe and reliable <br>energy to customers in the <br>communities we serve and <br>provision of essential assets that <br>connect energy generators to our <br>transmission networks.  | **Investors**<br>A low-risk and dependable <br>investment proposition, focused <br>on generating shareholder value <br>through dividends and asset <br>growth.  | **Colleagues**<br>An inclusive and safe environment <br>where colleagues can develop <br>their skills and careers to reach <br>their full potential. | **Supply chain and** <br>**delivery partners**<br>Responsible and efficient supply <br>and delivery chains with aligned <br>interests. | **Communities** <br>Creation of jobs, skills and <br>employability pathways, alongside <br>charitable community work and <br>the long-term benefits of reliable <br>supply through infrastructure <br>investment. | **Political and regulatory**<br>Trusted relationships at national <br>and regional levels to ensure <br>alignment and delivery of our <br>shared energy, growth and <br>environmental objectives. |
| **Customers**<br>Delivery of safe and reliable <br>energy to customers in the <br>communities we serve and <br>provision of essential assets that <br>connect energy generators to our <br>transmission networks.  | **Investors**<br>A low-risk and dependable <br>investment proposition, focused <br>on generating shareholder value <br>through dividends and asset <br>growth.  | **Colleagues**<br>An inclusive and safe environment <br>where colleagues can develop <br>their skills and careers to reach <br>their full potential. | **Supply chain and** <br>**delivery partners**<br>Responsible and efficient supply <br>and delivery chains with aligned <br>interests. | **Communities** <br>Creation of jobs, skills and <br>employability pathways, alongside <br>charitable community work and <br>the long-term benefits of reliable <br>supply through infrastructure <br>investment. | **Political and regulatory**<br>Trusted relationships at national <br>and regional levels to ensure <br>alignment and delivery of our <br>shared energy, growth and <br>environmental objectives. |
| **99.9%** | **78.0p** | **33017** | **c.£8bn** | **52620** | **£9,834m** |
| **Network reliability**<br>2024/25: 99.9% | **Underlying EPS**<br>2024/25: 73.3p  | **Employees**<br>2024/25: 31,645 | **Electricity Transmission** <br>**Partnership launched in UK** | **Colleague volunteering hours**<br>292,611 hours since 2021 | **Green capital expenditure**<sup>1</sup><br>2024/25: £7,667m |
| **Network reliability**<br>2024/25: 99.9% | **Underlying EPS**<br>2024/25: 73.3p  | **Employees**<br>2024/25: 31,645 | **Electricity Transmission** <br>**Partnership launched in UK** | **Colleague volunteering hours**<br>292,611 hours since 2021 | **Green capital expenditure**<sup>1</sup><br>2024/25: £7,667m |

---

1. See definition on page [26](#i6f250a91cd464a04873e5851a20d0163_49).

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on our Principal Risks on page [31](#ice727abade1c466db3e1bae9b17c9ddd_886) — [36](#i8ebe50234db3417ba33cc3b26f4858d7_24401)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26<sub>14</sub> | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business environment** |  |  |  |  |

---

Our business environment is being shaped by rising electricity demand, an evolving supply mix, and major

reforms which are changing how energy systems are planned, built and operated. Against a backdrop of

geopolitical uncertainty and rapid technological change, we are delivering the adaptive and reliable

infrastructure needed to support economic growth for customers and communities.

![Energy supply.jpg](nggtf-20260331_g49.jpg)

---

| |
|:---|
| ![Bus_Environ_Energy_Icon.gif](nggtf-20260331_g50.gif) |
| Energy supply <br>and demand<br>|
| Shifts in energy supply and <br>demand are accelerating the need <br>for larger and smarter electricity <br>and gas networks. This is driven by <br>low-carbon generation, storage, <br>electric vehicles, electrification of <br>heating and industry, and <br>increasingly from data centres to <br>power AI. This is creating new <br>opportunities and reshaping where <br>and how capacity is needed. |

---

**Impact on our industry**

![](nggtf-20260331_g51.gif)

–New generation continues to shift towards low-

carbon sources. In 2025, renewables generated

a record 52.5% of UK electricity and accounted

for nearly 88% of new generation capacity in the

US. The UK's Contracts for Difference auction in

early 2026 secured 8.4GW of future offshore

wind capacity.

–Natural gas is expected to remain a key part of

the energy mix in the UK and US, playing a

critical role in managing renewable intermittency

and peak demand, as well as home heating.

–Electricity demand continues to rise in the UK

and US, driven by electrification of transport and

heat, and more recently, by the rapid growth in

data centres and advanced manufacturing.

These trends are reshaping long-term network

planning and connection requirements.

–Battery storage capacity and other flexible

assets are reaching commercial scale, becoming

increasingly important for system balancing and

to avoid excess power going unused.

**How we are responding**

–National Grid is expanding and upgrading its

networks to keep pace with rising demand and

the shift to cleaner generation. In 2025/26, we

connected 1.8GW of new capacity across our

electricity networks.

–We are increasing the capacity of our electricity

and gas networks where demand is growing

fastest. In the UK, we are constructing a new

substation at Uxbridge Moor which is expected

to connect more than a dozen new data centres

to the grid from 2029.

–We are enabling our customers to connect and

operate flexible assets including solar, storage

and other technologies. In New England, we are

piloting new technology to help customer assets

come online faster and adjust output at times of

grid stress.

![Techno pp14.jpg](nggtf-20260331_g52.jpg)

---

| |
|:---|
| ![Bus_Environ_Tech_Icon.gif](nggtf-20260331_g53.gif) |
| Technology <br>and innovation<br>|
| Technology and innovation are <br>unlocking new ways to plan, build, <br>operate and maintain our <br>networks. They are transforming <br>the customer experience with <br>smart meters, flexible services and <br>better billing. AI is reshaping every <br>aspect of our business, <br>accelerating our ability to plan, <br>respond and deliver across our <br>electricity and gas networks. |

---

**Impact on our industry**

![](nggtf-20260331_g51.gif)

–AI is creating opportunities to improve

operational efficiency across the value chain,

through enhanced grid intelligence, predictive

and autonomous maintenance, and customer

service. Across our operating areas, AI adoption

continues to accelerate, with increasing agentic

and autonomous applications.

–Grid-enhancing technologies, such as smart

sensors, are unlocking capacity on the existing

network by allowing optimisation of how much

electricity can be safely carried on power lines at

any moment.

–Customer-facing digital platforms are enabling

customers to manage their energy, lower bills

and track real-time outages. Utility companies

are responding with better apps and smart

software.

**How we are responding**

–We are upgrading and operating our

infrastructure with state-of-the-art technology

including dynamic line rating, digital twins and

drones. These technologies are transforming

how we plan and operate the network, easing

constraints and supporting faster connections.

–In the UK, we have installed dynamic line rating

technology on more than 600 km of electricity

transmission infrastructure, which has saved

£21m in constraint costs over the last five years.

–We are leveraging AI technology across our

businesses. Our collaborations with Emerald.AI

and GridCARE are helping to unlock additional

grid capacity and supporting our large load

customers, including data centres, to connect

faster. Our partnership with Rhizome helps us

identify and prevent wildfire risks across our

networks in the US and UK.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **15** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business environment cont.** |  |  |  |  |  |

---

![Global pp15.jpg](nggtf-20260331_g54.jpg)

---

| |
|:---|
| ![Bus_Environ_Global_Icon.gif](nggtf-20260331_g55.gif) |
| Global <br>uncertainty<br>|
| Economic and political uncertainty <br>continues to impact energy supply <br>around the world, making it more <br>important to focus on resilience <br>and security. |

---

![](nggtf-20260331_g51.gif)

**Impact on our industry**

–Global conflicts are increasing uncertainty across

the energy landscape and countries are

refocusing on domestic energy security.

–Oil and gas markets remain volatile, as the UK

and Europe phase out Russian gas imports and

supply from the Middle East becomes

unpredictable.

–Trade disputes are increasingly unpredictable

with new tariffs impacting global trade and

supply chains and creating challenges for major

energy infrastructure projects.

–Transmission and distribution systems are under

pressure from physical and cyber security

threats.

**How we are responding**

–We remain focused on delivering resilient and

secure infrastructure – helping to reduce the risk

of disruption for the communities we serve.

–We participate in key working groups including

the Energy Networks Association in the UK and

the Edison Electric Institute and American Gas

Association in the US, to advocate for policies

that deliver a smooth energy transition.

–We are building resilience in our supply chains.

In the UK, our new supply chain partnership

model is propelling a c.£8 billion programme of

substation upgrades by providing exclusive long-

term contracts to regional suppliers.

–We are supporting the Northeast Supply

Enhancement (NESE) project to expand natural

gas capacity in Downstate New York,

strengthening energy reliability and supporting

economic growth for homes and businesses.

–We build resilience against the increase in

physical and cyber threats into our networks and

operations.

![Affordability NEW pp15.jpg](nggtf-20260331_g56.jpg)

---

| |
|:---|
| ![Bus_Environ_Afford_Icon.gif](nggtf-20260331_g57.gif) |
| Affordability <br>and reliability<br>|
| Affordability and reliability are <br>shaping customer and regulator <br>expectations of energy networks. <br>Households feel pressure from <br>persistently higher bills, while <br>business and industry navigate <br>increasing costs which impact <br>growth. Meanwhile, regulators are <br>strengthening their focus on <br>resilience and reliability of supply <br>as electricity demand grows, <br>extreme weather events intensify, <br>and systems become more <br>dependent on variable renewables. |

---

![](nggtf-20260331_g58.gif)

**Impact on our industry**

–Customers are facing sustained pressure from

higher energy costs and inflation across many

consumer goods. Affordability remains at the

forefront of public expectations and policy debates.

–Grid reliability faces a dual challenge of ageing

infrastructure which requires accelerated

replacement while simultaneously absorbing

rapid growth in intermittent generation, large

demand loads, and flexible assets. The scale of

investment required to maintain and expand the

network is increasing, and customers expect

services that can withstand extreme weather

and rising peak demand.

**How we are responding**

–Since 2023, NGV's subsea interconnectors have

saved UK customers more than £1.65 billion by

importing electricity from Europe, compared to

generating the same power from gas in the UK.

–In Upstate New York, we are offering $290

million in bill discounts and energy efficiency

improvements for income-eligible electric

customers. In New England, we provide eligible

low-income customers up to 70% off their bills.

–Our UK transmission network had a reliability

rate of 99.99999%. Since 2024, we have

replaced or refurbished over 1,000 assets

including transformers, switchgear and cables.

–On Long Island, New York, we provide reliable,

affordable electricity and critical support to the

tightening electric system. National Grid

Generation (operated by NGV) owns and

operates 3.8GW of power generation – about

65% of the island's total generating capacity.

–We prevented over 19 million minutes of

customer outages in Massachusetts and

13.5 million minutes in Upstate New York by

deploying fault location, isolation and service

restoration technology on our networks.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **16** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Performance against our strategic priorities** |  |  |  |  |  |

---

![](nggtf-20260331_g59.gif)

We have been

guided by five

strategic priorities

in 2025/26

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **See our key performance indicators on page [26](#i6f250a91cd464a04873e5851a20d0163_49) — [29](#i03890296f02f458fae1796993c269a45_683)** |
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **See our business units on page [18](#i6f250a91cd464a04873e5851a20d0163_43) — [22](#i71ace38f0e3843ce88c0574de3a0e8d2_1-1-1-2-954736)** |

---

---

| | |
|:---|:---|
| **Business environment links** | **Business environment links** |
| ![Bus_Environ_Energy_Icon.gif](nggtf-20260331_g50.gif) | **Energy supply and demand** |
| ![Bus_Environ_Tech_Icon.gif](nggtf-20260331_g53.gif) | **Technology and innovation** |
| ![Bus_Environ_Global_Icon.gif](nggtf-20260331_g55.gif) | **Global uncertainty** |
| ![Bus_Environ_Afford_Icon.gif](nggtf-20260331_g57.gif) | **Affordability and reliability** |

---

![](nggtf-20260331_g60.gif)

---

| | |
|:---|:---|
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif) |  |
| Enable the <br>energy transition  | Enable the <br>energy transition  |
| Our networks play an important role in the energy transition. <br>We work with policymakers, regulators and the wider industry <br>to shape policy and regulatory frameworks needed to reach <br>shared energy objectives. | Our networks play an important role in the energy transition. <br>We work with policymakers, regulators and the wider industry <br>to shape policy and regulatory frameworks needed to reach <br>shared energy objectives. |
| **1.8GW**<br>**of new energised capacity** <br>**connected across our power** <br>**networks in 2025/26** | **Business environment:**<br>![Bus_Environ_Energy_Icon.gif](nggtf-20260331_g50.gif)<br>![Bus_Environ_Tech_Icon.gif](nggtf-20260331_g53.gif)<br>![Bus_Environ_Afford_Icon.gif](nggtf-20260331_g57.gif) |
| **1.8GW**<br>**of new energised capacity** <br>**connected across our power** <br>**networks in 2025/26** |  |
| **1.8GW**<br>**of new energised capacity** <br>**connected across our power** <br>**networks in 2025/26** |  |
| **1.8GW**<br>**of new energised capacity** <br>**connected across our power** <br>**networks in 2025/26** | **KPIs**<br>**–Green capital expenditure**<br>**–Climate change** <br>**–Scope 1, 2 and 3 emissions** |
| **2025/26 achievements**<br>–We connected 1.1GW of energised renewable capacity to <br>our networks across the UK and US.<br>–In UK ET, we accepted Ofgem's RIIO-T3 Final <br>Determination, locking in a 2026–31 framework that enables <br>major expansion of our network and supports plans to <br>nearly double capacity. The T3 contract incentivises timely <br>completion of strategic projects and innovation.<br>–In UK ED, we responded to Ofgem's ED3 Sector Specific <br>Methodology Consultation, highlighting that transforming the <br>UK's energy system will require investment at an <br>unprecedented scale, supported by a regulatory framework <br>that enables economic growth, decarbonisation and strong <br>customer outcomes.<br>–In New England, we secured Massachusetts Department of <br>Public Utilities approval for the cost recovery of Electric <br>Sector Modernization Plan projects, balancing customer <br>affordability with the state's clean energy objectives.<br>–In New York, we gained approval from our regulators for <br>new rates at Niagara Mohawk and our Long-Term Gas Plan, <br>supporting greater renewable integration and planning for <br>the Northeast Supply Enhancement pipeline.<br>–NGV announced the world's first 100% hydrogen-fuelled <br>commercial linear generator at Northport power plant. | **2025/26 achievements**<br>–We connected 1.1GW of energised renewable capacity to <br>our networks across the UK and US.<br>–In UK ET, we accepted Ofgem's RIIO-T3 Final <br>Determination, locking in a 2026–31 framework that enables <br>major expansion of our network and supports plans to <br>nearly double capacity. The T3 contract incentivises timely <br>completion of strategic projects and innovation.<br>–In UK ED, we responded to Ofgem's ED3 Sector Specific <br>Methodology Consultation, highlighting that transforming the <br>UK's energy system will require investment at an <br>unprecedented scale, supported by a regulatory framework <br>that enables economic growth, decarbonisation and strong <br>customer outcomes.<br>–In New England, we secured Massachusetts Department of <br>Public Utilities approval for the cost recovery of Electric <br>Sector Modernization Plan projects, balancing customer <br>affordability with the state's clean energy objectives.<br>–In New York, we gained approval from our regulators for <br>new rates at Niagara Mohawk and our Long-Term Gas Plan, <br>supporting greater renewable integration and planning for <br>the Northeast Supply Enhancement pipeline.<br>–NGV announced the world's first 100% hydrogen-fuelled <br>commercial linear generator at Northport power plant. |

---

---

| | |
|:---|:---|
| ![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif) |  |
| Build the networks <br>of the future now | Build the networks <br>of the future now |
| We are scaling a once-in-a-generation increase in network <br>capacity to connect and transport electricity. We are <br>modernising our electricity networks to improve capacity, <br>visibility, security and reliability, and drive economic growth. <br>We will ensure the safety and reliability of our gas networks. | We are scaling a once-in-a-generation increase in network <br>capacity to connect and transport electricity. We are <br>modernising our electricity networks to improve capacity, <br>visibility, security and reliability, and drive economic growth. <br>We will ensure the safety and reliability of our gas networks. |
| **at least £70bn**<br>**cumulative capital investment** <br>**over our five-year financial** <br>**framework to 2030/31** | **Business environment:**<br>![Bus_Environ_Energy_Icon.gif](nggtf-20260331_g50.gif)<br>![Bus_Environ_Tech_Icon.gif](nggtf-20260331_g53.gif)<br>![Bus_Environ_Afford_Icon.gif](nggtf-20260331_g57.gif)<br>![Bus_Environ_Global_Icon.gif](nggtf-20260331_g55.gif) |
| **at least £70bn**<br>**cumulative capital investment** <br>**over our five-year financial** <br>**framework to 2030/31** |  |
| **at least £70bn**<br>**cumulative capital investment** <br>**over our five-year financial** <br>**framework to 2030/31** |  |
| **at least £70bn**<br>**cumulative capital investment** <br>**over our five-year financial** <br>**framework to 2030/31** | **KPIs**<br>**–Group capital investment**<br>**–Asset growth** |
| **2025/26 achievements**<br>–In UK ET, we advanced major construction activity across <br>our portfolio, progressing delivery of the transmission <br>infrastructure required to connect new generation capacity <br>at pace. <br>–In UK ED, we added 250MVA of capacity to our distribution <br>network and are on track to deliver an increase in capital <br>investment of over £100 million versus prior year. <br>–In New England, we established strategic contractor <br>partnerships to accelerate timelines, reduce risk, and lower <br>costs across more than $3 billion of planned capital work <br>over the next five years.<br>–In the US, we have cumulatively installed over 2 million smart <br>meters – covering 68% of customers in Upstate New York <br>and 35% of customers in New England. <br>–NGV is developing projects in the UK and US which will <br>contribute to future capital investment. In the UK, NGV <br>recently gained agreement on a regulatory framework for its <br>LionLink hybrid interconnector project, which is planned to <br>be delivered in partnership with TenneT. In the US, in <br>conjunction with partners NY Transco and NY Power <br>Authority, NGV are engaged with communities to gain <br>support for NY Propel, a high-voltage enhancement to New <br>York's electricity grid. | **2025/26 achievements**<br>–In UK ET, we advanced major construction activity across <br>our portfolio, progressing delivery of the transmission <br>infrastructure required to connect new generation capacity <br>at pace. <br>–In UK ED, we added 250MVA of capacity to our distribution <br>network and are on track to deliver an increase in capital <br>investment of over £100 million versus prior year. <br>–In New England, we established strategic contractor <br>partnerships to accelerate timelines, reduce risk, and lower <br>costs across more than $3 billion of planned capital work <br>over the next five years.<br>–In the US, we have cumulatively installed over 2 million smart <br>meters – covering 68% of customers in Upstate New York <br>and 35% of customers in New England. <br>–NGV is developing projects in the UK and US which will <br>contribute to future capital investment. In the UK, NGV <br>recently gained agreement on a regulatory framework for its <br>LionLink hybrid interconnector project, which is planned to <br>be delivered in partnership with TenneT. In the US, in <br>conjunction with partners NY Transco and NY Power <br>Authority, NGV are engaged with communities to gain <br>support for NY Propel, a high-voltage enhancement to New <br>York's electricity grid. |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **17** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Performance against our strategic priorities cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g60.gif)

![](nggtf-20260331_g60.gif)

---

| | |
|:---|:---|
| ![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif) |  |
| Deliver for <br>customers | Deliver for <br>customers |
| We aspire to provide excellent service to all our customers, <br>ensuring they can connect to the network in a timely fashion, <br>that their energy provision is reliable, and that we are easy to <br>do business with. | We aspire to provide excellent service to all our customers, <br>ensuring they can connect to the network in a timely fashion, <br>that their energy provision is reliable, and that we are easy to <br>do business with. |
| **99.9%**<br>**reliability across** <br>**our UK and US** <br>**electricity networks** | **Business environment:**<br>![Bus_Environ_Energy_Icon.gif](nggtf-20260331_g50.gif)<br>![Bus_Environ_Tech_Icon.gif](nggtf-20260331_g53.gif)<br>![Bus_Environ_Afford_Icon.gif](nggtf-20260331_g57.gif)<br>![Bus_Environ_Global_Icon.gif](nggtf-20260331_g55.gif) |
| **99.9%**<br>**reliability across** <br>**our UK and US** <br>**electricity networks** |  |
| **99.9%**<br>**reliability across** <br>**our UK and US** <br>**electricity networks** |  |
| **99.9%**<br>**reliability across** <br>**our UK and US** <br>**electricity networks** | **KPIs**<br>**–Network reliability**<br>**–Customer satisfaction** |
| **2025/26 achievements**<br>–Our UK and US networks maintained a high level of service <br>reliability. Our UK transmission network had just one loss of <br>supply event, the lowest number in ten years.<br>–In UK ED, we are connecting new sources of renewable <br>low-carbon generation to our network, increasing the total <br>amount across our region to over 14GW. Our Vulnerability <br>Strategy has supported over 21,000 customers to save <br>£22m on their bills in 2024/25.<br>–In UK ET, we drove Connections Reform with NESO, <br>establishing a new delivery pipeline and prioritisation <br>framework intended to speed up connections and to enable <br>more efficient delivery of the transmission capacity required <br>for Clean Power 2030.<br>–In the UK, we modernised our contact centre by deploying <br>Amazon Connect, improving service speed and <br>management of service restoration after unplanned outages.<br>–Across New York and New England, we replaced 315 miles <br>of leak prone gas pipe.<br>–In the US, we expanded access to emergency bill <br>assistance, home weatherisation and energy usage <br>education by partnering with more than 10 local <br>organisations in New York and Massachusetts. | **2025/26 achievements**<br>–Our UK and US networks maintained a high level of service <br>reliability. Our UK transmission network had just one loss of <br>supply event, the lowest number in ten years.<br>–In UK ED, we are connecting new sources of renewable <br>low-carbon generation to our network, increasing the total <br>amount across our region to over 14GW. Our Vulnerability <br>Strategy has supported over 21,000 customers to save <br>£22m on their bills in 2024/25.<br>–In UK ET, we drove Connections Reform with NESO, <br>establishing a new delivery pipeline and prioritisation <br>framework intended to speed up connections and to enable <br>more efficient delivery of the transmission capacity required <br>for Clean Power 2030.<br>–In the UK, we modernised our contact centre by deploying <br>Amazon Connect, improving service speed and <br>management of service restoration after unplanned outages.<br>–Across New York and New England, we replaced 315 miles <br>of leak prone gas pipe.<br>–In the US, we expanded access to emergency bill <br>assistance, home weatherisation and energy usage <br>education by partnering with more than 10 local <br>organisations in New York and Massachusetts. |

---

![](nggtf-20260331_g60.gif)

![](nggtf-20260331_g64.gif)

---

| | |
|:---|:---|
| ![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif) |  |
| Operate safely<br>and efficiently | Operate safely<br>and efficiently |
| To deliver our part in a changing energy system, we are <br>transforming our internal processes, strengthening our <br>customer focus and sharpening our commercial edge. We are <br>investing in the capabilities we will need in the future and our <br>ability to operate safely remains our top priority. | To deliver our part in a changing energy system, we are <br>transforming our internal processes, strengthening our <br>customer focus and sharpening our commercial edge. We are <br>investing in the capabilities we will need in the future and our <br>ability to operate safely remains our top priority. |
| **0.11**<br>**lost time injury** <br>**frequency rate** <br>**LTIFR)** | **Business environment:**<br>![Bus_Environ_Tech_Icon.gif](nggtf-20260331_g53.gif)<br>![Bus_Environ_Afford_Icon.gif](nggtf-20260331_g57.gif) |
| **0.11**<br>**lost time injury** <br>**frequency rate** <br>**LTIFR)** |  |
| **0.11**<br>**lost time injury** <br>**frequency rate** <br>**LTIFR)** |  |
| **0.11**<br>**lost time injury** <br>**frequency rate** <br>**LTIFR)** | **KPIs**<br>**–Group LTIFR**<br>**–Underlying EPS**<br>**–Group RoE** |
| **2025/26 achievements**<br>–In UK ET, we improved operational efficiency by <br>modernising how the network is controlled, including <br>upgrades to our transmission control centre, alongside <br>innovations including drones, use of AI, and dynamic line <br>rating, the latter of which has saved £21m in constraint <br>costs over the last five years.<br>–During Storm Goretti, our UK ED business dealt with over <br>1,300 incidents and restored approximately 246,000 <br>customers across the region. We also made over 97,000 <br>proactive calls to the Priority Service Register (PSR). <br>–Our New York and New England gas systems performed <br>well during the extended winter storm season, keeping our <br>customers warm during heavy snow and hurricane-force <br>winds. Our power restoration efforts were recognised with <br>Edison Electric Institute (EEI) Emergency Response Awards.<br>–In NGV, our UK interconnectors delivered 90% availability <br>across the fleet (up from 86% in 2024/25) and provide a <br>total import capacity of 7.8GW.<br>–Our LTIFR stood at 0.11, compared with 0.10 in 2024/25 <br>and against our Group target of 0.10. In response, we have <br>implemented targeted Group and business unit initiatives to <br>strengthen risk awareness, leadership engagement and <br>control effectiveness. | **2025/26 achievements**<br>–In UK ET, we improved operational efficiency by <br>modernising how the network is controlled, including <br>upgrades to our transmission control centre, alongside <br>innovations including drones, use of AI, and dynamic line <br>rating, the latter of which has saved £21m in constraint <br>costs over the last five years.<br>–During Storm Goretti, our UK ED business dealt with over <br>1,300 incidents and restored approximately 246,000 <br>customers across the region. We also made over 97,000 <br>proactive calls to the Priority Service Register (PSR). <br>–Our New York and New England gas systems performed <br>well during the extended winter storm season, keeping our <br>customers warm during heavy snow and hurricane-force <br>winds. Our power restoration efforts were recognised with <br>Edison Electric Institute (EEI) Emergency Response Awards.<br>–In NGV, our UK interconnectors delivered 90% availability <br>across the fleet (up from 86% in 2024/25) and provide a <br>total import capacity of 7.8GW.<br>–Our LTIFR stood at 0.11, compared with 0.10 in 2024/25 <br>and against our Group target of 0.10. In response, we have <br>implemented targeted Group and business unit initiatives to <br>strengthen risk awareness, leadership engagement and <br>control effectiveness. |

---

---

| | |
|:---|:---|
| ![Strat-Link-No5_blue.gif](nggtf-20260331_g66.gif) |  |
| Build tomorrow's<br>workforce today | Build tomorrow's<br>workforce today |
| Delivering on our ambitions requires one big team. We're <br>developing and recruiting for the skills and roles we need so <br>we can build tomorrow's workforce today. From apprentices <br>to leaders, we're creating the place to develop a career that <br>positively impacts energy infrastructure and the planet. | Delivering on our ambitions requires one big team. We're <br>developing and recruiting for the skills and roles we need so <br>we can build tomorrow's workforce today. From apprentices <br>to leaders, we're creating the place to develop a career that <br>positively impacts energy infrastructure and the planet. |
| **703**<br>**graduates, apprentices** <br>**and interns welcomed** <br>**in the UK and US** | **Business environment:**<br>![Bus_Environ_Energy_Icon.gif](nggtf-20260331_g50.gif)<br>![Bus_Environ_Afford_Icon.gif](nggtf-20260331_g57.gif) |
| **703**<br>**graduates, apprentices** <br>**and interns welcomed** <br>**in the UK and US** |  |
| **703**<br>**graduates, apprentices** <br>**and interns welcomed** <br>**in the UK and US** |  |
| **703**<br>**graduates, apprentices** <br>**and interns welcomed** <br>**in the UK and US** | **KPIs**<br>**–Employee engagement index** |
| **2025/26 achievements**<br>–Across the UK and US, we welcomed 3,790 new employees <br>during the year.<br>–All new starters receive training on our mission, values and <br>standards, supported by role-appropriate technical and <br>leadership development.<br>–Over half of vacancies continue to be filled through internal <br>moves and promotions, reflecting our strong focus on <br>developing and retaining talent. <br>–In response to the scale and complexity of our capital <br>program, we are working with the University of Oxford <br>and the Saïd Business School to strengthen project <br>management capability, improve delivery at scale and <br>reduce risk across our major infrastructure programmes. <br>–Employee feedback matters and all permanent staff are <br>invited annually to share their views on working at National <br>Grid. Our employee engagement score remains strong <br>at 81%.  | **2025/26 achievements**<br>–Across the UK and US, we welcomed 3,790 new employees <br>during the year.<br>–All new starters receive training on our mission, values and <br>standards, supported by role-appropriate technical and <br>leadership development.<br>–Over half of vacancies continue to be filled through internal <br>moves and promotions, reflecting our strong focus on <br>developing and retaining talent. <br>–In response to the scale and complexity of our capital <br>program, we are working with the University of Oxford <br>and the Saïd Business School to strengthen project <br>management capability, improve delivery at scale and <br>reduce risk across our major infrastructure programmes. <br>–Employee feedback matters and all permanent staff are <br>invited annually to share their views on working at National <br>Grid. Our employee engagement score remains strong <br>at 81%.  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **18** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business units** |  |  |  |  |  |

---

![Business_Units_UK_ET_NEW.jpg](nggtf-20260331_g67.jpg)

![](nggtf-20260331_g68.gif)

---

| |
|:---|
| **UK** |
| UK Electricity <br>Transmission |
| **Highlights** |
| –Agreed the RIIO T3 price control, securing the regulatory <br>framework for April 2026–March 2031 and enabling up to <br>£31bn of capital investment.<br>–Delivered 2025/26 financial results in line or ahead of <br>expectations, with underlying operating profit up 18% year <br>on year and capital investment up 46%.<br>–Started construction of three new or significantly expanded <br>substations, including Uxbridge Moor, which is supporting <br>multiple data centre connections and is expected to be the <br>largest capacity substation in the UK.<br>–Launched the Electricity Transmission Partnership (ETP) to <br>strengthen supply chain relationships, capacity and <br>productivity, with c.£1.7bn already allocated to partners <br>under the framework. |
| **Looking ahead** |
| –Make submissions to Ofgem across the various stages of <br>the reopeners process for up to £14bn of additional funding <br>to deliver new connections and system reinforcements.<br>–Work closely with customers and industry partners to deliver <br>Connections Reform.<br>–Connect up to 35 GW of generation and 19 GVA of demand <br>through RIIO T3, supporting economic growth and <br>decarbonisation.<br>–Deliver the ASTI portfolio, enabling power flows from 50GW <br>of offshore wind across our network.<br>–Go live with our next generation Electricity Control Centre <br>and SCADA system. |

---

**Investment**![](nggtf-20260331_g69.gif)

Over the course of 2025/26, we have delivered £4.37bn of capital

investment. We are working to deliver up to £31bn capital investment

in our RIIO-T3 investment plan, acting as an engine for growth and

powering the country through the shift to a cleaner economy.

The volume of investment planned over RIIO-T3 will stretch our

supply chain, with transmission owners around the world upgrading

their grids. In July, we launched our Electricity Transmission

Partnership (ETP) to help power Britain's clean energy future. This is

designed to unlock long-term supply chain capacity and skills across

England and Wales. The ETP remodels how we engage with

suppliers, moving to a longer-term collaborative approach that builds

strong regional partnerships and rewards partners for high-quality

performance over time. It will accelerate the delivery of vital

substation infrastructure across England and Wales and support the

UK's clean energy transition, with c.£8bn of substation construction

work to be awarded over the RIIO-T3 period across c.130 projects.

Work on our Accelerated Strategic Transmission Investment (ASTI)

projects continues at pace and the primary supply chain is now in

place for all 17 ASTI projects. We have made good progress on the

six ASTI projects where construction commenced in 2024/25. Our

ASTI portfolio is crucial to a lower carbon energy future and we are

working to minimise the carbon emissions from construction while

balancing that with the cost to the customer and delivery at speed.

We now model future emissions so that we can take action to reduce

our impact on the environment without delaying programmes.

**Innovation** 

We are building a brand new, state-of-the art control centre to

manage the transmission network of tomorrow. This will reinforce

network resilience, uphold our world-class reliability standards and

power the clean energy transition. The control centre will use our new

SCADA (Supervisory Control and Data Acquisition) system, expected

to go-live in June 2027, providing real-time visibility and control of our

assets and allowing us to respond quickly to changing network

conditions and customer needs.

We are systematically testing new technologies and ways of working.

Over the course of 2025/26, we have worked with Hyperion Robotics

and the University of Sheffield on a UK-first trial of low-carbon

3D-printed concrete substation foundations. If deployed across all

substations, this technology could save over 700 tons of concrete

and over 300 tons of CO₂ over ten years. In addition, we energised

over 300 km of Dynamic Line Rating (DLR) technology in 2025/26

and installed a further 300 km to enable the flow of more renewable

generation. Digital (weather-based) and sensor-based DLR has saved

consumers over £23.4m over the year and £230m over RIIO-T2. We

plan to install a further 260 km of DLR in 2026/27.

**Customers** 

We are connecting new energy users as well as new sources of

renewable and flexible power to deliver secure, reliable and

increasingly decarbonised energy. Over the course of 2025/26, we

connected Britain's largest solar array in Kent and the nation's

biggest battery energy storage system at Tilbury substation.

We have long advocated for reform as critical to achieving the UK

Government's Clean Power 2030 ambition. However, there are key

dependencies outside ET's direct control. This year Ofgem has

approved proposals from the National Energy System Operator

(NESO) to reform Britain's connection arrangements and prioritise the

energy projects that are most ready and most needed to meet the

country's clean power targets. In addition, NESO has now published

the new connections pipeline, including details of the strategic

alignment of generation technologies to the UK Government's Clean

Power 2030 capacity targets. We continue to work closely with

NESO to support the implementation of Connections Reform and are

now taking major steps towards having a better view of the future

needs of the transmission network.

**Reliability and safety**

The reliability of our network remains world-class. Network reliability was

99.99999%, with just one Energy Not Supplied event, the lowest number

in ten years. This is underpinned by delivery of asset health interventions

and maintenance compliance. Our new Enterprise Asset Management

(EAM) platform will support the transformation of our asset management

capabilities and management of an intelligent network with granular asset

data and a shared view of risk and total cost of ownership.

As we grow, maintaining a strong safety culture and ensuring

everyone is competent and confident in their roles is essential. We

narrowly missed our LTIFR target (0.11 vs a 0.10 target) but have

worked with our supply chain to enable growth and delivery while

embedding safety compliance, best practice and innovation.

**People** 

Delivery of the energy network of tomorrow will require a significant

expansion of our workforce. We've made great progress in attracting

new talent. Our permanent headcount is now 4,718, with 712

experienced hires and 261 graduates and trainees joining over the

year. We're investing in the future and expanding our training and

authorisation programmes. This year we have created new pathways

for colleagues to build critical skills, gain the right authorisations, and

take on work that matches their experience.

---

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| **National Grid plc** Annual Report and Accounts 2025/26 | **19** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business units cont.** |  |  |  |  |  |

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![ResponsibleBus_UK_ED 7May.jpg](nggtf-20260331_g70.jpg)

![](nggtf-20260331_g68.gif)

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| |
|:---|
| **UK** |
| UK Electricity <br>Distribution |
| **Highlights** |
| –Maintained high Broad Measure Customer Satisfaction <br>score of 9/10.<br>–Our Vulnerability Strategy has supported over 21,000 <br>customers to save £22m on their bills in 2025, and our <br>Winter Campaign drove a 71% increase on Priority <br>Services Register impact.<br>–Increased the total amount of generation connected to <br>our network to over 14GW. <br>–Enabled 120,000 low-carbon technology (LCT) <br>connections, including a 30% increase in EV chargers. <br>–Delivered a material increase in our Distribution System <br>Operator's (DSO) flexibility market offerings – registering <br>309,514 of flexibility assets and securing 3,064MW of <br>flexibility capacity available to dispatch.<br>–The EQUINOX trial, one of the UK's largest domestic <br>heat pump flexibility programme, delivered 8,000+ heat <br>pumps into business-as-usual flexibility markets <br>alongside Octopus Energy and Scottish Power. |
| **Looking ahead** |
| We remain focused on developing a strong, region-led ED3 <br>business plan for the period out to 2033 that delivers for <br>customers, supports growth, and enables the region's net <br>zero transition in an efficient and affordable way. We will <br>continue our engagement with customers, communities <br>and stakeholders as we refine our proposals, ahead of <br>submitting our final ED3 business plan to Ofgem in <br>December 2026. |

---

**Investment**

![](nggtf-20260331_g71.gif)

Every day, we work to provide safe, reliable electricity, connect

customers to the energy they need, and create the network capacity

required for a cleaner, more flexible energy system in an evolving

climate and market.

In 2025/26, we remained focused on investing at pace to expand

capacity and enable the region's growth and net zero ambitions. We

delivered record capital investment, up 13% year-on-year. We are

connecting new sources of renewable low-carbon generation to our

network, increasing the total amount across our region to over 14GW

and increased capacity in our secondary network by 250MVA (a 39%

increase on the previous year). We also continued to shape the

evolving regulatory framework, responding to Ofgem's ED3 Sector

Specific Methodology Consultation and submitting Early Proposals

that emphasised the need for focusing on customers' needs and the

role of the DSO as we deliver unprecedented investment levels to

support the UK's clean power transition. We are pleased that seven

of these early proposals have been taken forward by Ofgem.

**Innovation**

Innovation is at the heart of our strategy to deliver greater value to

customers. Through initiatives such as the deployment of monitors

across the low-voltage network, we are enhancing network

management and swiftly locating faults. Our adoption of AI

technologies is specifically targeted at improving customer

experiences, with predictive analytics forecasting scores for customer

service, automated curtailment reporting that will streamline project

lifecycles, and an AI-powered chatbot making data on our public data

portal more accessible and understandable. Our use of AI is also

supporting improvements in our DSO, ensuring the final outputs

better meet customer expectations, which include visibility and

access to our flexibility markets and products that have grown

significantly this year. These advancements collectively demonstrate

our ongoing commitment to utilising innovation to unlock customer

benefit.

**Customers**

UKED plays a vital role in keeping over 8 million homes and

businesses powered and supporting the region's growth. In 2025/26,

we placed a strong emphasis on enhancing customer service and

engagement. We achieved a Broad Measure Customer Satisfaction

score of 9/10, thanks in part to the modernisation of our contact

centre through the roll-out of Amazon Connect and the complete

digitisation of agent knowledge with a new knowledge management

platform. We also improved customer journeys for unplanned

outages and connections, making it simpler for customers to access

information and support whenever they need it.

During the year, we responded proactively to a number of severe

weather events, mobilising teams to restore supplies safely and

keeping customers informed throughout. Notably, we acted quickly

during Storm Goretti, one of the worst storms on record to

specifically hit the South West. The South West saw winds of over

90mph, the biggest storm in the region for two decades. We

recorded over 1,300 incidents related to Goretti, with approximately

246,000 customers impacted; impressively, 73% had their supply

restored within 24 hours.

Our commitment to customer engagement extended beyond

immediate service improvements. Ahead of ED3, we launched our

BIG Conversation initiative, engaging directly with customers and

stakeholders, and established our Independent Stakeholder Group to

ensure our business plan is customer led and reflects regional

priorities. Furthermore, our largest ever winter campaign achieved

record engagement, driving a 71% increase on Priority Services

Register impact and in 2025, we earned the accolade of Campaign

of the Year at the Energy Awards 2025.

**Reliability and safety**

Maintaining a safe, resilient and reliable network remains central to

our 2025/26 performance. We delivered network reliability of

99.98795%. We strengthened our safety culture and learning,

training operational leaders and safety professionals in incident

investigation and root cause analysis to enhance the quality of

investigations and the actions that follow. We also made progress on

safety performance, with our LTIFR decreasing year-on-year as we

continue to work towards our strong safety target of less than 0.10.

**People**

We continued to invest in our workforce, building the capability and

capacity needed to deliver a safe, reliable and growing regional

network. We strengthened our teams through targeted recruitment

and development, supporting colleagues to build the skills required

for an increasingly complex energy system and the delivery of our

ambitious investment programme.

---

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| **National Grid plc** Annual Report and Accounts 2025/26 | **20** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business units cont.** |  |  |  |  |  |

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![ResponsibleBus_US_NY 7May.jpg](nggtf-20260331_g72.jpg)

![](nggtf-20260331_g68.gif)

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| |
|:---|
| **US** |
| New York |
| **Highlights** |
| –New York delivered strong performance across its 26,400 <br>square mile service territory. We met or exceeded key reliability <br>targets, delivered record gas throughput during extremely cold <br>temperatures, and continued to invest in a smarter and more <br>reliable energy system for our customers.<br>–The Public Service Commission (PSC) unanimously approved <br>Niagara Mohawk's joint proposal, establishing a three-year <br>electric and gas rate plan. The agreement authorises <br>approximately $5.5 billion in capital investment, delivers more <br>than $290 million in bill discounts for income eligible customers, <br>and strengthens Climate Leadership and Community <br>Protection Act (CLCPA) aligned grid modernisation and storm <br>resilience. <br>–In September, the PSC affirmed that the proposed Northeast <br>Supply Enhancement (NESE) project is necessary to enhance <br>reliability and resilience of the downstate gas system. We also <br>helped shape the New York State Energy Plan, which <br>recommended a diversified approach that expands renewables <br>and invests in electric and gas infrastructure. |
| **Looking ahead** |
| Our priorities are clear: delivering safe, reliable, affordable <br>energy to the millions of customers who depend on us every <br>day; raising the bar on customer satisfaction; executing our <br>capital programme efficiently and safely; accelerating the pace <br>of connecting new customers to our networks; and advancing <br>regulatory and policy outcomes that serve the long-term <br>interests of both our customers and business – all the while <br>maintaining disciplined investment and continuing to <br>modernise how we operate. |

---

**Investment**![](nggtf-20260331_g73.gif)

We delivered approximately $4.6bn in capital investment, up $440m

year-over-year, and remain on track against our $23bn five-year

capital framework. Under the approved KEDNY and KEDLI rate

plans, we replaced over 220 miles of leak prone pipe to modernise

gas infrastructure. The Upstate Upgrade progressed, with Smart Path

Connect energised, enabling large-scale renewable interconnections

and strengthening transmission resilience. Climate Leadership and

Community Protection Act (CLCPA) Phase 1 and 2 are progressing,

with major construction and material contracts awarded, ready to

support renewable growth and improved reliability for our 1.7 million

upstate customers.

**Innovation** 

Innovation centred on modernising operations for our workforce. We

launched Gas Business Enablement in Downstate New York,

streamlining daily work, improving field execution, and elevating

customer interactions by embedding digital innovation across gas

operations. We successfully deployed horizontal directional drilling at

Greenpoint LNG facility using a laser guided boring machine to

complete a fully trenchless installation of foundation heating elements

beneath an active LNG tank. This approach minimised disruption,

maintained operational integrity, and enhanced long-term reliability.

In our electric business, we exceeded deployment targets for fault

location, isolation and service restoration (FLISR), reducing customer

minutes interrupted by more than 13.5 million and supporting over

290,000 customers. We reduced interconnection times for electric

vehicles and distributed energy resources (DERs) by 10% and

advanced remote sensing, including drones for data capture and light

detection and ranging (LiDAR) for vegetation management.

The gas business leveraged advanced technologies to enhance

pipeline inspection. With the use of robotic internal inspection tools,

we can assess pipelines in previously inaccessible locations, reducing

inspection costs while strengthening reliability and system integrity. In

response to recent federal rulemaking, we have also been an early

adopter of non-destructive technologies that determine pipeline

material properties without physical sampling, conserving resources

and supporting compliance with evolving regulatory requirements.

We have made strong progress in advancing our approach to large

load growth where demand from data centres and advanced

manufacturing continues to increase. We are focused on accelerating

speed to power through a combination of interconnection process

improvements, digitising the customer connection journey, and

flexible connections.

This year we also launched the Kraken programme, a cutting-edge

customer information and relationship management platform. This

innovative step forward will transform the way we interact with and

serve all of our US customers, driving significant advances in

operational efficiency and service quality.

**Customers**

We earned three Edison Electric Institute (EEI) Emergency Response

Awards for restoration efforts following severe storms in Upstate New

York. We responded to twelve major storms, restoring service for

95% of impacted customers within 7.94 hours.

We launched an after-call survey via text message to capture real-time

customer feedback and improve digital experience. We continue to

install Advanced Metering Infrastructure (AMI), with over 1.5 million

meters now completed, reaching 67% of Upstate customers. AMI will

improve outage response, customer insights, and operational efficiency.

Our Grid for Good Initiative delivers community benefits and during

the Annual Day of Service, 1,167 volunteers served at 38 events

across New York.

**Reliability and safety**

We delivered exceptional reliability performance, achieving Customer

Average Interruption Duration Index (CAIDI) and System Average

Interruption Frequency Index (SAIFI) targets for the 18th consecutive

year, the only New York utility in the state to do so. During the

extended historic cold winter in 2026, the downstate network

recorded six of the ten highest gas throughput days in KEDLI's

history, underscoring resilience during peak demand.

Safety performance remained a core strength. The New York Electric

team achieved zero switching errors across nearly 110,000 switching

steps. We advanced proactive safety practices through Digital Job

Briefs, improving hazard recognition and consistency in field

execution. We deployed telematics across nearly 10,000 vehicles,

giving more than 1,500 daily users improved fleet visibility and safety

performance that outpaces peers. We ended the year with an LTIFR

of 0.11.

**People**

We continued to strengthen our workforce through meaningful labour

engagement and investments in our employees and workforce

pipeline. We reached a four-year collective bargaining agreement with

members of IBEW Local 1049, a labour union, providing stability and

reinforcing our commitment to collaboration and safety. We were

awarded the Bell Seal for Workplace Mental Health, the highest level

of recognition with Platinum status from Mental Health America.

---

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| **National Grid plc** Annual Report and Accounts 2025/26 | **21** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our business units cont.** |  |  |  |  |  |

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![Business_Units_US_NewEngland RET.jpg](nggtf-20260331_g74.jpg)

![](nggtf-20260331_g68.gif)

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| |
|:---|
| **US** |
| New England |
| **Highlights** |
| –Improved customer satisfaction (CSAT) significantly while <br>reducing complex connections cycle time by <br>approximately 10%.<br>–Announced partnership with Kraken to replace customer <br>platform.<br>–Replaced 95 miles of leak prone pipe.<br>–Completed construction of the VT-NH portion of the <br>A1B2 project, upgrading a transmission line in service <br>since 1909. |
| **Looking ahead** |
| Moving forward, our priorities remain: significantly <br>enhancing customer performance, obtaining regulatory and <br>policy results that benefit our customers, fulfilling our capital <br>commitments, and continuing to strengthen our safety <br>plans that support everything we do. |

---

**Investment**

![](nggtf-20260331_g75.gif)

We invested $2.7 billion in 2025/26, $500 million more than last year,

to deliver a smarter, stronger, cleaner electric grid and to ensure the

safety and reliability of our gas system. To deliver projects in our

electric business, we stood-up strategic contractor partnerships for

transmission line, substation and distribution work that will allow us to

build long-term strategic relationships with selected suppliers. We

expanded our FLISR capability to 34% of customers, enabling self-

healing networks and avoiding over 19 million minutes of outages.

Construction was completed on the Vermont-New Hampshire portion

of the A1B2 asset condition replacement transmission project that is

upgrading a line which has been in service since 1909.

Natural gas plays an essential role in the Commonwealth's all-of-the-

above energy strategy, providing a reliable foundation for economic

growth, helping to meet rising demand, and keeping customer bills

affordable. That energy mix requires continued investment to ensure

safety and reliability. We replaced 95 miles of leak prone pipe to

improve network safety and reduce emissions. Additionally, we

awarded the contract for the Tewksbury Vaporizer project, which will

replace ageing LNG vaporisation equipment, and are undertaking a

$283m investment to replace the South Yarmouth LNG storage tank,

both of which are essential to assure peak day reliability on the

natural gas system.

**Innovation**

We are using AI across the business. For example, we implemented

the NICE CX One platform in our contact centres and AI is now

evaluating 100% of calls and directly linking call quality to customer

satisfaction. In our electric business, we partnered with AiDASH to

use satellite imagery and AI to predict and remove vegetation threats,

reducing outages by nearly 30%.

This year we also launched the Kraken programme, a cutting-edge

customer information and relationship management platform. This

innovative step forward will transform the way we interact with and

serve all of our US customers, driving significant advances in

operational efficiency and service quality.

**Customers**

The business made significant gains in customer service and

operations: customer satisfaction (CSAT) increased significantly year

over year to 72% while after-call survey scores increased 22%, and

complex connections cycle time dropped by approximately 10% this

year, following last year's 10% reduction. We also connected over

160MW of distributed energy resources, enabled the installation of

41MW of EV charging infrastructure, and have now installed nearly

500,000 AMI (smart meters). Our management of storms continues

to be recognised for exemplary performance, including an emergency

response award from the EEI. We continue to make day-to-day

operational improvements as we pursue breakthroughs aligned with

our broader strategy to transform the customer experience.

As part of our most recent electric rate case, we developed a first-of-

its-kind tiered income discount rate to better align bill support with

household need. We proposed a similar tiered income discount rate

rate for gas customers as part of our gas rate case, and are now

working with the Massachusetts Department of Public Utilities,

government, community agencies, and other utilities to develop a

standardised tiered low income discount programme for all

Massachusetts customers.

**Reliability and safety**

On our electric network, performance remains strong; our reliability

puts us in the 1st quartile for System Average Interruption Duration

Index (SAIDI) and the top of 2nd quartile for System Average

Interruption Frequency Index (SAIFI) when using Institute of Electrical

and Electronics Engineers national criteria. In the gas business, we

continued our high leak response performance with over 99% of

odour calls responded to within 60 minutes, compared to a statutory

target of 97%. The gas distribution system demonstrated its

importance to the region once again, performing well during a cold

and snowy winter with our LNG assets supporting over 20% of our

supply portfolio during periods of peak demand.

Safety remains fundamental to our operations. Incident rates remain

low overall, with LTIFR at 0.09 and an Occupational Safety and

Health Administration (OSHA) recordable rate of 1.64, approximately

14% below the three-year average. However, there is opportunity to

improve, and we will continue to mature high-energy awareness and

controls, bolster first-and second-line assurance, strengthen

contractor oversight and readiness, and improve learning quality.

**People**

Our Strategic Workforce Development team leverages partnerships

between community-based training providers, colleges and

universities and vocational technical schools to create and develop

short, medium, and long-term talent pipelines to fill critical roles. This

year we welcomed UMass Lowell, a Research 1 public university with

a deliberate strategy to partner with industry, to the cohort. Since

inception in 2023, approximately 150 graduates have joined our

company in critical roles, with 21 promotions in the current year.

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| **Our business units cont.** |  |  |  |  |  |

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![Business_Units_NG Ventures new v2.jpg](nggtf-20260331_g76.jpg)

![](nggtf-20260331_g77.gif)

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|:---|
| **International** |
| National Grid <br>Ventures |
| **Highlights** |
| –National Grid Ventures (NGV) develops, builds, and <br>operates energy assets and businesses in the US and <br>through its interconnectors business in the UK. It drives <br>growth for the organisation through investment in new <br>projects, with earnings underpinned by stable long-term <br>regulated frameworks and contracts.<br>–In 2025/26, NGV sold two of its businesses, National <br>Grid Renewables in the US for approximately $2.1 billion <br>and Grain LNG in the UK. |
| **Looking ahead** |
| NGV looks to continue to grow its businesses on both <br>sides of the Atlantic. This year, NGV signed memoranda of <br>understanding with both TenneT Germany and EirGrid to <br>explore developing hybrid interconnector projects with <br>Germany and Ireland respectively. NGV US continues to <br>progress its competitive transmission strategy with more <br>bids anticipated to be submitted as part of its new <br>partnerships in the coming year. |

---

**Investment**

![](nggtf-20260331_g78.gif)

In addition to its large fleet of operational assets, NGV is actively

developing projects in the high-voltage transmission markets in both

the UK and the US, which will contribute to future capital investment.

NGV operates six HVDC interconnectors with a total capacity of

7.8GW, connecting the UK to France, Belgium, the Netherlands,

Denmark, and Norway. With LionLink, an upcoming major capital

project in partnership with TenneT Netherlands, NGV is planning for

the construction of a first-of-its-kind hybrid interconnector which

would connect the UK and the Netherlands. The project reached a

major milestone this year, gaining agreement for a regulatory

framework with Ofgem.

NGV US operates 3.8GW of conventional generation assets across

its sites in Long Island, New York. In addition, NGV US owns and

operates the Providence Rhode Island LNG peak-shaving plant which

provides approximately 2 billion cubic feet of LNG storage capacity,

along with vaporisation and liquefaction capabilities. NGV US owns

part of the NYTransco joint venture, which oversees $1bn worth of

transmission assets. NGV has a growing competitive transmission

business in the US and has formed its first partnerships to bid for

transmission projects across multiple transmission markets.

**Innovation**

This year, NGV US announced it will install the world's first 100%

hydrogen-fuelled commercial linear generator at Northport power

plant to demonstrate the capability of H2 generation with a small-

scale pilot project. NYTransco is currently progressing Propel NY, a

capital project aimed at strengthening the electric connections

between downstate and upstate New York.

In the wake of rapidly growing energy demand across the UK and

Europe, NGV partnered with RenewableUK in chairing the new

Multipurpose Interconnector (MPI) task force, which published its

report and recommendations on how to enable delivery of MPIs in

![](nggtf-20260331_g79.gif)

January 2026. NGV is now working with industry and regulatory

leaders to progress the recommendations made in the report.

**Customers**

This year showed a strong performance for NGV in terms of

delivering for customers. In the US, the generation business was

required to deliver significant additional capacity as a result of the

seasonal cold weather this winter. From December 2025 through

February 2026, the generation fleet produced 36% higher energy

output than the prior four-year average, including a 260% increase

from 2025 in steam generation during the cold-snap that affected the

US Northeast from 23 January to 9 February 2026.

On 2 March 2026, NGV received a final FERC Order approving the

rate case settlement for the LNG facility in Providence, RI. The rate

case allows the facility to continue to add critical capacity to the

gas system.

February 2026 marked the energisation of the Dover Station

substation in Dutchess County, New York, which was delivered by

NGV's NYTransco joint venture. This upgrade is allowing for

increased power flows and system improvements, demonstrating the

value of modernised energy systems.

**Reliability and safety**

Availability across the interconnector portfolio was 90%, exceeding

the full-year target with a 4% improvement from 2024/25. To further

improve reliability in the future, NGV is working towards modernising

the IFA interconnector in the coming years along with resilience

initiatives spanning the entire fleet.

In the US, Providence LNG is embarking on a modernisation effort to

improve the efficiency and reliability of the plant.

NGV operates with safety always top of mind for all colleagues,

across all business areas. LTIFR was on target this year at 0.10.

Across the organisation, efforts to centre leading indicators at the

heart of safety discussions have been adopted to foster a proactive

safety culture.

**People**

To support the progress of National Grid's growth ambitions, NGV

utilises a broad mix of talent, from business originators to skilled

asset operators. NGV continues to build capability in the competitive

transmission space by bring in new talent and ensuring growth

opportunities for existing talent.

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**Other activities** 

Other activities primarily relate to National Grid Partners, the

corporate venture capital and innovation arm of National Grid, as well

as UK property, insurance and corporate activities. In 2025/26,

National Grid Partners invested in three new portfolio companies and

16 follow on rounds. We exited one company, Urbint, during the year.

We now have 41 active companies in the portfolio investments in five

strategic venture funds. We have invested more than $550 million to

date. Some examples of companies and technologies in our portfolio

include: LineVision (dynamic line rating technology), Sensat (capital

project design software) and Emerald.ai (demand flexibility software

for data centres). Looking ahead, we will continue to innovate and

invest in the latest technologies to support the Group.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **23** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our stakeholders** |  |  |  |  |  |

---

Strong stakeholder engagement

---

| | |
|:---|:---|
| ![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif) | **Read our Section 172 Statement on page [85](#i6f250a91cd464a04873e5851a20d0163_100)** |

---

![](nggtf-20260331_g80.gif)

![](nggtf-20260331_g13.gif)

drives our success

**How we engage** 

Our stakeholder community continues to broaden and evolve, and engaging with them remains fundamental to our daily operations. We focus on timely, effective engagement on the issues and decisions that matter

most to them, with the right colleagues leading each interaction. This spans the full organisation – from our Board of Directors, who maintain regular dialogue with key stakeholders, to the working-level teams who

support engagement on our day-to-day activities. The insights we gain through these interactions directly inform the decisions that shape and deliver our strategy. Structured reporting mechanisms ensure that

information flows seamlessly from stakeholders to the Board and its Committees, helping us understand what we are hearing and enabling us to act on it.

![](nggtf-20260331_g81.gif)

**Customers**

**Why our customers are important to us**

Customers are the heart of our business,

representing a diverse community that includes

residential customers and large and small

businesses. Regular and effective engagement with

them is essential to delivering what they need and

expect from us.

**Interests**

Our customer base, made up of longstanding

customers and an increasing number of new ones,

have wide ranging interests. However, they all

share an expectation that we will deliver efficient,

reliable and affordable service, with transparency

and fairness in how we work with them. We strive

to understand their needs and challenges, along

with how our activities impact their daily lives and

businesses.

**Our engagement**

–The Board and Group Executive Committee

actively engage on customer matters to better

understand their needs and perspectives and

leverage that feedback into improving customer

experience.

–Strategic account teams have gained

momentum in 2025/26, positioning themselves

as trusted advisors who bring innovative

strategic solutions that can deliver at speed to

accelerate customers' expansion opportunities.

–We lead or participate in industry initiatives to

find solutions for: general business planning,

expedited grid connections, and affordability

challenges faced by our customers.

![](nggtf-20260331_g82.gif)

![](nggtf-20260331_g83.gif)

**Investors**

–The Board receives regular updates on customer

matters and undertook two customer deep dives

during the year, including updates on the

implementation of the Kraken programme which will

enhance US customer experience and an

operational visit of the UKED customer call centre.

–Teams across the business engage with

customers on a day-to-day basis – in one-to-one

meetings and community forums – regarding

connections, bill-related matters and social

obligations.

**Outcomes**

–Our customer engagement helps shape what we

do both operationally and strategically.

Understanding our customers means we can

better meet their needs for new connections and

ongoing account management, and informs

longer-term policy.

–As companies increasingly adopt advanced

technologies, resilient, high-quality power and the

ability to timely connect new loads have become

paramount.

–In the US, our work with consumer advocates

continues to make a difference to many of our

customers' ability to meet the rising challenge of

cost of living.

–In 2025 we launched our BIG conversation –

engaging with thousands of customers and

stakeholders on the future of their local electricity

network. This engagement will continue

throughout 2026/27 and is key to shaping our

future business plan.

**Why our investors are important to us**

We engage with equity and debt investors on our

strategy and performance. Their involvement

supports the investment needed for a resilient,

future-ready network and provides important

accountability — ensuring we remain transparent,

disciplined, and aligned with our long-term

commitments.

**Interests**

Investors look to our financial and operational

performance as indicators of our capacity to

generate attractive returns and uphold

creditworthiness. They are also interested in our

Responsible Business commitments and reporting

to ensure their investments are sustainable, ethical

and responsible.

**Our engagement**

–During the year, the Chair, Chief Executive and

CFO met with institutional investors in the UK

and overseas as part of our comprehensive

investor relations programme.

–The Group Treasurer and Deputy Group

Treasurer met with Debt and Fixed Income

investors in the UK and overseas as part of our

debt engagement programme.

–Meetings followed our full and half-year results

and the announcement of our updated five-year

financial framework and acceptance of Ofgem's

RIIO-T3 price control in March 2026.

–The Board engaged with shareholders at our

2025 AGM, which was held as a hybrid meeting

to enable participation both in person and online.

Shareholders were able to put questions to the

Board in advance of, or during, the meeting.

–The Board receives regular monthly updates on

investor relations matters from the Director of

Investor Relations, including the outcome of an

investor sentiment exercise which affirmed our

investor relations approach.

–Debt investors received an overview of our US

regulated businesses from the Group Treasurer

along with the Presidents and CFOs of our US

businesses.

–Held an investor event in May 2025 that shared

full-year results with a focus on major projects in

UK ET and New York.

**Outcomes**

–Through our engagement, investors understand

our investment case and have visibility of our

strategy, performance and financial strength. This

engagement helped us to efficiently access new

debt and equity funding during the period,

including £4.2 billion of newly issued senior debt.

–The Remuneration Committee considered

feedback from its engagement with investors in

relation to the Directors' Remuneration Policy,

with 98.38% of voting investors voting in favour of

the Policy at the AGM.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **24** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our stakeholders cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g84.gif)

**Colleagues**

**Why our colleagues are important to us**

We listen to and engage extensively with our

colleagues and with the bodies that represent them

through several channels and processes. This

enables us to understand their needs and

requirements and build a culture that not only

drives our performance and shapes our plans, but

also empowers colleagues to take ownership for

delivering results. Through fostering an inclusive,

supportive and collaborative environment, we

create the conditions for a skilled and motivated

workforce where everyone feels valued and able to

contribute to our shared success.

**Interests**

Colleague interests are wide-ranging. They have an

interest in company performance and what this

means for them individually, but also want to

understand – and play a part in – shaping our role

in the industry, contributing to our social impact,

and supporting the delivery of our strategic

objectives.

**Our engagement**

We continued our extensive programme of

colleague engagement in 2025/26. This included:

–Twice yearly live webcasts to all employees

hosted by the Chief Executive.

–Regular Chief Executive posts and interaction on

social media platforms.

–Regular all-hands calls hosted by members of

the Group Executive and senior management.

–The Chair visited two training facilities during the

year, one in the UK and one in the US.

–The Chair and members of the Board visited

operational sites in the UK and US, including a

segment of the ASTI transmission facilities under

construction in July and the Long Island Power

plant facilities in March, to observe work

underway and engage in small group

conversations with key team members.

–

![](nggtf-20260331_g85.gif)

![](nggtf-20260331_g84.gif)

**Supply chain and delivery partners**

–A series of colleague engagement events were

hosted by the Chair of the People &

Remuneration Committee to discuss reward

structures and talent development. Please see

page [95](#iaf50f3471a59440d911479cff76cbe18_0-0-1-3-954736) for further information.

–Operational site visits by senior management.

–The Chief Executive and Chief People Officer

provided regular updates on employee matters to

the Board, including the results of our twice-

yearly employee engagement survey, Grid:Voice.

**Outcomes**

–Direct engagement informed Board challenge

and discussion, reinforced the importance of

visible leadership and open dialogue, and fed into

Safety & Operations Committee consideration of

safety reporting, contractor management and on-

site safety behaviours.

–Direct engagement enabled the Board to hear

directly from a broad cross-section of colleagues,

strengthening its understanding of workforce

culture, values and lived experience beyond

formal reporting.

–82% of colleagues took part in our Grid:Voice

survey in February, with an employee

engagement index score of 81% favourable. The

results and feedback helped to identify areas

where we could do more to support employees.

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more in the Responsible Business** <br>**Committee report on page [106](#i6f250a91cd464a04873e5851a20d0163_139)**<br>|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more about Board engagement** <br>**with colleagues on page [95](#i6f250a91cd464a04873e5851a20d0163_121)**<br>|

---

**Why our supply chain and delivery partners** 

**are important to us**

Working closely with our supply chain and delivery

partners is essential to delivering our long-term

ambitions. Through strong partnerships and

consistent engagement, we share insights, drive

innovation, and build the resilience needed to meet

changing expectations. This coordinated,

transparent approach ensures a future-ready

supply chain that supports effective delivery of our

commitments.

**Interests**

Effective communication and strong coordination

are essential to how we work with our supply chain

and delivery partners. Clear forward visibility and

longer-term commitments help us plan and

support partners in building the skills and capacity

they need. Early alignment and consistent dialogue

foster collaboration and innovation, enabling us to

meet evolving needs and deliver successful

outcomes.

**Our engagement**

–Structured and timely engagement takes place

with strategic suppliers and contractors,

complemented by Executive-sponsored senior-

level engagement to foster collaboration and

discuss strategic issues facing the sector.

–Continued collaboration between UK operators

and suppliers through an industry skills and

workforce planning group, consisting of

representatives from key external partners, to

address the industry skills gap challenge

through a focus on critical specialist workforce

roles.

–The Board receives updates on our supplier

engagement programmes via business unit

updates during the year.

–

–We engage in detailed safety forums with

suppliers to drive industry-wide safety

performance.

–In New England, we established strategic

contractor partnerships to accelerate timelines,

reduce risk, and lower costs across more than

$3bn of planned capital work over the next five

years.

–In the UK we entered into a novel long-term

contracting relationship, the Great Grid

Partnership. Members of the Board visited with

the Great Grid Partnership in July 2025, including

presentations from partners to understand

strategic supply chain management.

–The Board considered and approved the Group's

Modern Slavery Statement.

**Outcomes**

–Sharing key priorities with our supply chain and

gaining a better understanding of their needs

allows us to jointly manage continuity of supply

and shape our approach to future challenges,

such as the acceleration of investment required to

connect new sources of energy.

–Working with other energy network operators and

suppliers, we have contributed to the creation of a

comprehensive interim Electricity Networks Sector

Growth Plan published in December 2025 by the

Energy Networks Association (ENA) and BEAMA,

the UK manufacturing trade association for the

electrotechnical sector, setting out a collaborative

roadmap to shape national growth.

–We are signatories to the Prompt Payment Code

and encourage our suppliers to adopt the

principles of this code in their own supply chains.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **25** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our stakeholders cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g86.gif)

**Communities**

**Why our communities are important to us**

We engage extensively with the communities

where we work, and with their representatives, to

understand their needs, enhance our contribution

to their wellbeing, and ensure we support them in

the most meaningful and appropriate ways.

**Interests**

Our communities need us to deliver energy safely

and reliably, while strengthening the positive

contributions our operations bring to their wellbeing

and offering meaningful support to the individuals

and communities who need it most.

**Our engagement**

–We engage extensively with local communities

as part of our major projects planning

consultations, and we use their feedback to

inform the proposals we submit for development

consent.

–During the year, Board members visited

operational sites and received updates on

community matters, including:

–strategic infrastructure projects and the RIIO-

T3 business plan submission

–a dinner with community, civic and policy

leaders in NYC to discuss policy

considerations, community needs, and how

National Grid could support positive

outcomes.

–On an ongoing basis, we develop and

implement safety programmes, and work with

first responders and communities, so that all

parties have a heightened awareness of how our

system operates and what we do to assure the

highest possible reliability and safety of the

public.

–We lead with listening and lived experience

through structured community feedback,

ensuring our approach is responsive and

informed.

![](nggtf-20260331_g87.gif)

![](nggtf-20260331_g84.gif)

**Political and regulatory**

–We build trust-based, inclusive partnerships with

local organisations and under-represented

groups to share ownership and strengthen long-

term outcomes.

–We use data and community insight to target

investments, improve decisions, and measure

social and business value.

**Outcomes**

–Our outreach programmes continue to support

economic growth and help upskill communities,

particularly in the most disadvantaged areas.

–During National Engineers Week, partners

across the US delivered hands-on Energy

Through Engineering activities, reaching more

than 1,500 students.

–In February 2026 we launched BioBus with the

Long Island Children's Museum – a mobile lab

that will reach over 45,000 students annually.

–Consultation with communities and residents

near proposed UK infrastructure projects enables

us to shape proposals and progress projects.

–We've invested heavily in supporting vulnerable

customers and education programmes:

–21,000 customers supported to save £22

million via our fuel poverty programmes in UK

ED.

–5,000 people supported to save £4 million via

our Low Carbon Transition services.

–>100,000 education and STEM outreach

interactions in the UK ED region alone.

**Why our regulators and political** 

**stakeholders are important to us**

We engage with regulators, governments and

other key political stakeholders to support the

regulatory and policy frameworks required to

deliver current and future energy needs. We work

closely with our regulators on rate cases in the US

and price controls in the UK.

**Interests**

The interests of our regulators and political

stakeholders are based around a common theme

– whether UK or US, state or federal – to protect

the interests of customers and to deliver a secure

and reliable energy future.

**Our engagement**

–Our Chief Executive has engaged with key

appointed and elected officials, including

Downing Street, the Federal Energy Regulatory

Commission (FERC), and key US Secretaries to

discuss energy security, infrastructure delivery

and innovation.

–Business unit executives and external affairs

leaders engage with state and local leaders, the

New York Public Service Commission, the MA

Department Public Utilities (MADPU), and

relevant agencies to inform and foster

communication so that rate cases, major

projects, and the regulatory environment are

meeting the needs of customers today and in

the future.

–Our US Federal Government Relations team

engages with Congress, the Trump

Administration, and federal agencies on

affordability, load growth, reliability, tax and

permitting.

–Members of the Board and UK executive and

working-level colleagues engaged with Ofgem

on UK ET's RIIO-T3 business plan and the ED3

regulatory framework, and with the UK

Government on its policy agenda, including

planning, connections, resilience, supply chain

and skills.

**Outcomes** 

In the US:

–Delivered stakeholder engagement plan in line

with the MADPU new public outreach

requirements for Gas Rate Case filing while

addressing heightened affordability concerns.

–Engaged with the MA Administration and

members of the legislature to inform the

development of energy affordability legislation

consistent with company priorities.

–Collaborated on the new State Energy Plan,

supporting our New York business unit strategy

and reinforcing the role of gas in an affordable,

achievable energy transition.

–Through joint advocacy and coalition building,

achieved the approval and permitting of the

Northeast Supply Enhancement (NESE) pipeline

to increase reliability and affordability in New York.

–Engaged with federal lawmakers on One Big

Beautiful Bill Act (OBBBA) to prevent corporate

tax policy that would negatively impact National

Grid.

**In the UK:**

–Supported planning reform, with the Planning and

Infrastructure Act becoming law in

December 2025. Specific to UK ED, the

Government has announced its intent to make

legislation changes following the Electricity

Infrastructure Consents, Land Access and Rights

consultation, which should speed up and reduce

costs of delivery for our customers.

–Delivered an interim Electricity Networks Sector

Growth Plan to boost jobs, supply chain

opportunities, and UK network investment.

–Supported the ongoing implementation of a new

regime for grid connections.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **26** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our key performance indicators** |  |  |  |  |  |

---

![](nggtf-20260331_g88.gif)

---

| |
|:---|
| We use a range of <br>metrics to measure Group <br>performance. In 2025/26, <br>these metrics were aligned <br>to our five strategic priorities. |
| **Link to remuneration**<br>Remuneration of our Executive Directors, and <br>our employees, is aligned to the successful <br>delivery of our strategy. We use a number of <br>our KPIs and alternative performance <br>measures as specific measures in <br>determining the Annual Performance Plan <br>(APP) and Long-Term Performance Plan <br>(LTPP) outcomes for employees and <br>Executive Directors. These measures are <br>either specifically accounted for in <br>remuneration targets or considered as part of <br>a review of wider business performance. |
| **Read more on page [107](#i6f250a91cd464a04873e5851a20d0163_142)** |

---

---

| | | |
|:---|:---|:---|
| **Underlying EPS (p)** | **Group capital investment (£m)** | **Green capital expenditure (£m)** |
| **78.0p** | **£11,576m** | **£9,834m** |
| **2025/26** | **2025/26** | **2025/26** |
| **2024/25** | **2024/25** | **2024/25** |
| **2023/24** | **2023/24** | **2023/24** |
| **Link to strategy** | **Link to strategy** | **Link to strategy** |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| ![No1_grey.gif](nggtf-20260331_g89.gif)<br>![No2_blue.gif](nggtf-20260331_g62.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![No5_grey.gif](nggtf-20260331_g92.gif)<br>| ![No1_blue.gif](nggtf-20260331_g61.gif)<br>![No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![No5_grey.gif](nggtf-20260331_g92.gif)<br>|
| **Description**<br>A measure of the Group's profitability for the year <br>attributable to equity shareholders of the Group. It <br>excludes exceptional items, remeasurements, timing, <br>impact of deferred tax in UK regulated businesses <br>(NGET and NGED) and US major deferrable storms <br>(net of in-year allowances and deductibles) if these <br>exceed $100 million threshold in a year.<br>**We expect underlying earnings per share** <br>**CAGR to be 8-10% from the 2025/26 baseline,** <br>**aligned with our asset growth.** | **Description**<br>Measures our annual investment into property, <br>plant and equipment, including capital <br>prepayments, intangible assets and equity <br>contributions to joint ventures and associates.<br>Investing in our assets helps to increase our future <br>revenue allowances.<br>**We expect to invest at least £70 billion** <br>**between April 2026 and March 2031.** | **Description**<br>Measures the amount of capital expenditure <br>invested in decarbonisation of energy systems and <br>considered to be aligned with the principles of the <br>EU Taxonomy for climate change mitigation and <br>adaptation activities. Green capital expenditure <br>excludes any capital prepayments and equity <br>investments in joint ventures and associates.<br>**We expect around 85% of our £70 billion** <br>**capital investment between April 2026 and** <br>**March 2031 to be aligned with the principles of** <br>**the EU Taxonomy legislation.** |
| **Progress in 2025/26**<br>Underlying EPS increased by 4.7p (6%) year-on-year <br>driven by strong performance across our regulated <br>businesses including new rate agreements in the <br>US, higher revenues from totex allowances driven <br>by investments in the UK and disciplined cost <br>efficiency across the Group. These more than offset <br>the impact of divestments, the increased number of <br>shares after the Rights Issue and the adverse <br>impact of the change in FX rates. | **Progress in 2025/26**<br>We delivered a record year of capital investment <br>driven by the ramp up of spend on Wave 1 ASTI <br>projects in UK ET and increased electricity distribution <br>and transmission investment in both New York and <br>New England (including CLCPA and Smart Path <br>Connect in New York and system capacity, asset <br>condition and programme spend in New England). <br>These were partially offset by lower investment in <br>NGV following the impact of divestments. | **Progress in 2025/26**<br>Green capital expenditure increased by £2.2 billion <br>to £9.8 billion, driven by investment in key <br>infrastructure projects. Green alignment for capital <br>expenditure increased to 88.5%, up from 81.1% in <br>2024/25, demonstrating continued progress in <br>aligning investment with the clean energy <br>transition. The share of green capital expenditure <br>as a proportion of group capital investment, which <br>includes capital prepayments and equity <br>contributions, was 85.0%. |

---

![](nggtf-20260331_g94.gif)

**Financial measures**

![APM-arrow_Dk-blue.gif](nggtf-20260331_g95.gif)

![1](nggtf-20260331_g96.gif)

![25](nggtf-20260331_g97.gif)

![](nggtf-20260331_g13.gif)

![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif) | ![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif) | ![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif) | ![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif) | ![Strat-Link-No5_blue.gif](nggtf-20260331_g66.gif) |
| **Enable the energy transition** | **Build the networks of the future**  | **Deliver for customers** | **Operate safely and efficiently** | **Build tomorrow's workforce today** |
| ![APM-arrow_Dk-blue.gif](nggtf-20260331_g95.gif) |  |  |  |  |
| **Indicates an alternative performance measure** | **Indicates an alternative performance measure** |  |  |  |

---

![13](nggtf-20260331_g98.gif)

![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **27** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our key performance indicators cont.** |  |  |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Group RoE (%)** | **Asset growth (%)\*** | **Scope 1 and 2 GHG emissions (mtCO2e)** | **Scope 3 GHG emissions (mtCO2e)** |
| **9.8%** | **10.9%** | **7.5** | **29.5** |
| **2025/26** | **2025/26** | **2025/26** | **2025/26** |
| **2024/25** | **2024/25** | **2024/25** | **2024/25** |
| **2023/24** | **2023/24** | **2023/24** | **2023/24** |
| **Link to strategy** | **Link to strategy** | **Link to strategy** | **Link to strategy** |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![No2_blue.gif](nggtf-20260331_g62.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| ![No1_blue.gif](nggtf-20260331_g61.gif)<br>![No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![No5_grey.gif](nggtf-20260331_g92.gif)<br>| ![No1_blue.gif](nggtf-20260331_g61.gif)<br>![No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![No5_grey.gif](nggtf-20260331_g92.gif)<br>|
| **Description**<br>Group RoE measures our performance in <br>generating value for shareholders by dividing our <br>regulated and non-regulated financial performance, <br>after interest and tax, by our measure of equity <br>investment in all our businesses, including our <br>regulated businesses, NGV and other activities and <br>joint ventures.<br>**We aim to optimise Group RoE through driving** <br>**performance across our operating companies.** | **Description**<br>Maintaining efficient growth in our regulated and <br>non-regulated assets ensures we are well <br>positioned to provide consistently high levels of <br>service to our customers and increases our future <br>revenue allowances. This includes critical <br>investment on network safety and resilience and to <br>meet increased demand.<br>**We aim to achieve Group asset growth CAGR** <br>**of around 10% to March 2031.** | **Description**<br>We are delivering new infrastructure to enable the digital, electrified economies of the future. Our biggest <br>contribution to reducing greenhouse gas (GHG) emissions, both across society and in terms of our own <br>emissions, is what we do to enable the transportation and distribution of clean energy in the regions where <br>we operate. We understand the importance of partnership and are actively engaging with governments, <br>regulators, and the energy industry to help ensure the policy and regulatory frameworks required for future <br>investments in decarbonising the energy sector, and reducing our emissions, are in place.<br>**We will continue to work towards our ambitious climate targets.** | **Description**<br>We are delivering new infrastructure to enable the digital, electrified economies of the future. Our biggest <br>contribution to reducing greenhouse gas (GHG) emissions, both across society and in terms of our own <br>emissions, is what we do to enable the transportation and distribution of clean energy in the regions where <br>we operate. We understand the importance of partnership and are actively engaging with governments, <br>regulators, and the energy industry to help ensure the policy and regulatory frameworks required for future <br>investments in decarbonising the energy sector, and reducing our emissions, are in place.<br>**We will continue to work towards our ambitious climate targets.** |
| **Progress in 2025/26**<br>Group RoE has increased by 80bps year-on-year <br>due to increased regulated performance including <br>new rate agreements in the US, higher revenues <br>supported by increased allowances in the UK and <br>disciplined cost efficiency. This is partially offset by <br>reduced performance in our non-regulated <br>business following the divestments and increased <br>financing costs due to our increased capital spend.  | **Progress in 2025/26**<br>Asset growth has increased by 190bps year-on-year <br>driven by growth across our regulated businesses <br>including ASTI investment and connections work in <br>UK ET, CLCPA investment in New York and GSEP <br>investment in New England.  | **Progress in 2025/26**<br>Scope 1 and 2 emissions for 2025/26 were 7,511 ktCO2e, an increase of 1% from 2024/25. While this is a <br>decrease of 3% against our 2018/19 baseline it is outside of the range set out in our Climate Transition <br>Plan. The year-on-year increase is primarily due to increased Scope 1 emissions from our Power Generation <br>assets in New York, which provide critical system reliability. Scope 2 emissions have decreased year-on-<br>year, attributable to lower grid carbon intensity. Our Scope 3 emissions (excluding sold electricity) for <br>2025/26 as per our Science Based Targets initiative (SBTi) target were 26,833 KTCO2e, representing an <br>11% increase against our 2018/19 baseline. This increase is primarily due to increased capital investment in <br>constructing new energy infrastructure. You can read more about our GHG emissions and environmental <br>performance on pages [40](#i6f250a91cd464a04873e5851a20d0163_67) — [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751). You can read more about the Task Force for Climate-related Financial <br>Disclosure (TCFD) and our wider sustainability activities on pages [53](#i6f250a91cd464a04873e5851a20d0163_79) — [68](#i04acc15a45a7420086e6933b916efcba_9297). | **Progress in 2025/26**<br>Scope 1 and 2 emissions for 2025/26 were 7,511 ktCO2e, an increase of 1% from 2024/25. While this is a <br>decrease of 3% against our 2018/19 baseline it is outside of the range set out in our Climate Transition <br>Plan. The year-on-year increase is primarily due to increased Scope 1 emissions from our Power Generation <br>assets in New York, which provide critical system reliability. Scope 2 emissions have decreased year-on-<br>year, attributable to lower grid carbon intensity. Our Scope 3 emissions (excluding sold electricity) for <br>2025/26 as per our Science Based Targets initiative (SBTi) target were 26,833 KTCO2e, representing an <br>11% increase against our 2018/19 baseline. This increase is primarily due to increased capital investment in <br>constructing new energy infrastructure. You can read more about our GHG emissions and environmental <br>performance on pages [40](#i6f250a91cd464a04873e5851a20d0163_67) — [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751). You can read more about the Task Force for Climate-related Financial <br>Disclosure (TCFD) and our wider sustainability activities on pages [53](#i6f250a91cd464a04873e5851a20d0163_79) — [68](#i04acc15a45a7420086e6933b916efcba_9297). |

---

![](nggtf-20260331_g99.gif)

**Financial measures**

![APM-arrow_Dk-blue.gif](nggtf-20260331_g95.gif)

![88](nggtf-20260331_g100.gif)

![74](nggtf-20260331_g101.gif)

![](nggtf-20260331_g102.gif)

**Non-financial measures**

![62](nggtf-20260331_g103.gif)

![50](nggtf-20260331_g104.gif)

\* Normalised for the sales of NG Renewables and Grain LNG in the year.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **28** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our key performance indicators cont.** |  |  |  |  |  |

---

---

| | |
|:---|:---|
| **Group lost time injury frequency rate (LTIFR)**<br>**(LTIs per 100,000 hours worked)** | **Employee engagement index (%)** |
| **0.11** | **81%** |
| **2025/26** | **2025/26** |
| **2024/25** | **2024/25** |
| **2023/24** | **2023/24** |
| **Link to strategy** | **Link to strategy** |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| ![No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![No5_blue.gif](nggtf-20260331_g66.gif)<br>|
| **Description**<br>Every day we strive to do the right thing, find a <br>better way, and make it happen. Safety is our <br>highest priority for our employees and the public. <br>One of our main safety indicators is LTIFR. This is <br>the number of worker LTIs per 100,000 hours <br>worked in a 12-month period (including fatalities) <br>and includes our employee and contractor <br>population. <br>**Our aim is to achieve 0.1 or below lost time** <br>**injuries per 100,000 hours worked per year.** | **Description**<br>Measures how engaged our employees feel, based <br>on the percentage of favourable responses to <br>questions repeated annually in our employee <br>engagement survey. <br>**Our aim is for our employee engagement** <br>**metrics to remain at or above the high-**<br>**performing norm.** |
| **Progress in 2025/26**<br>Safety is an important factor within decision <br>making, therefore tied to our Executive Directors' <br>remuneration, reflecting the expectation that safety <br>is an integral part of how we work at National Grid. <br>Our LTIFR stood at 0.11, compared with 0.10 in <br>2024/25 and against our Group target of 0.10. We <br>are disappointed in this result and in response, we <br>have implemented targeted Group and business <br>unit initiatives to strengthen risk awareness, <br>leadership engagement and control effectiveness. <br>You can read more about our LTIFR performance in <br>the Responsible Business section (pages [38](#i6f250a91cd464a04873e5851a20d0163_61) — [52](#i021c40488e4146b08af7159ea13a8831_18353)). | **Progress in 2025/26**<br>We run an employee engagement survey, <br>Grid:Voice, twice-yearly, to understand and act on <br>colleague feedback. This allows us to build a <br>culture that is purpose-led and results-driven, with a <br>great colleague experience. As a result, we <br>experience high engagement and strong advocacy, <br>above external benchmarks. <br>This year, 26,000 employees completed the survey, <br>which resulted in the highest response rate in six <br>years. Engagement scores remain strong and <br>leadership will continue to monitor to increase by <br>1% in line with the high-performing norm. |

---

![](nggtf-20260331_g105.gif)

**Non-financial measures**

---

| | | | |
|:---|:---|:---|:---|
| **Network reliability and interconnector availability** | **Network reliability and interconnector availability** | **Network reliability and interconnector availability** | **Network reliability and interconnector availability** |
| **99.9%** | **90%** | **90%** | **90%** |
| **2025/26** | **2025/26** |  |  |
| **2024/25** | **2024/25** |  |  |
| **2023/24** | **2023/24** |  |  |
| **Network reliability %** | **2025/26** | **2024/25** | **2023/24** |
| UK ET | 99.99999 | 99.99983 | 99.999998 |
| UK ED | 99.98795 | 99.98294 | 99.99261 |
| NE ET | 99.96594 | 99.98544 | 99.97549 |
| NY ET | 99.92740 | 99.84345 | 99.97168 |
| NE ED | 99.96434 | 99.97724 | 99.94327 |
| NY ED | 99.95060 | 99.94077 | 99.92823 |
| **Interconnector availability %** |  |  |  |
| IFA interconnector | 74.81 | 79.42 | 82.01 |
| IFA2 interconnector | 87.55 | 74.87 | 71.19 |
| BritNed interconnector | 99.97 | 75.60 | 98.00 |
| Viking interconnector | 95.96 | 91.75 | N/A |
| NSL interconnector | 95.22 | 94.96 | 95.87 |
| Nemo Link interconnector | 98.72 | 98.75 | 96.80 |
| **Link to strategy** | **Link to strategy** | **Link to strategy** | **Link to strategy** |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![No2_grey.gif](nggtf-20260331_g90.gif)<br>![No3_blue.gif](nggtf-20260331_g63.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>|  |  |  |
| **Description**<br>Delivering network reliability is critical to our licence to operate. We achieve this through disciplined <br>capital investment aligned to demand and supply risks, robust network design and construction, targeted <br>maintenance and asset replacement, and well-tested incident response plans. Reliability is measured <br>separately across each business area. | **Description**<br>Delivering network reliability is critical to our licence to operate. We achieve this through disciplined <br>capital investment aligned to demand and supply risks, robust network design and construction, targeted <br>maintenance and asset replacement, and well-tested incident response plans. Reliability is measured <br>separately across each business area. | **Description**<br>Delivering network reliability is critical to our licence to operate. We achieve this through disciplined <br>capital investment aligned to demand and supply risks, robust network design and construction, targeted <br>maintenance and asset replacement, and well-tested incident response plans. Reliability is measured <br>separately across each business area. | **Description**<br>Delivering network reliability is critical to our licence to operate. We achieve this through disciplined <br>capital investment aligned to demand and supply risks, robust network design and construction, targeted <br>maintenance and asset replacement, and well-tested incident response plans. Reliability is measured <br>separately across each business area. |
| **Progress in 2025/26**<br>We continued our track record of delivering consistent network reliability for our customers, <br>demonstrating our continued investment in asset health and resilience. Overall Group network reliability <br>was 99.9%, consistent with both 2024/25 and 2023/24. Interconnector availability improved by 4% year-<br>on-year, closing at 90%, the maximum available for the year. This was driven by improved availability for <br>both IFA2 and BritNed, driven by decreased unplanned outages.  | **Progress in 2025/26**<br>We continued our track record of delivering consistent network reliability for our customers, <br>demonstrating our continued investment in asset health and resilience. Overall Group network reliability <br>was 99.9%, consistent with both 2024/25 and 2023/24. Interconnector availability improved by 4% year-<br>on-year, closing at 90%, the maximum available for the year. This was driven by improved availability for <br>both IFA2 and BritNed, driven by decreased unplanned outages.  | **Progress in 2025/26**<br>We continued our track record of delivering consistent network reliability for our customers, <br>demonstrating our continued investment in asset health and resilience. Overall Group network reliability <br>was 99.9%, consistent with both 2024/25 and 2023/24. Interconnector availability improved by 4% year-<br>on-year, closing at 90%, the maximum available for the year. This was driven by improved availability for <br>both IFA2 and BritNed, driven by decreased unplanned outages.  | **Progress in 2025/26**<br>We continued our track record of delivering consistent network reliability for our customers, <br>demonstrating our continued investment in asset health and resilience. Overall Group network reliability <br>was 99.9%, consistent with both 2024/25 and 2023/24. Interconnector availability improved by 4% year-<br>on-year, closing at 90%, the maximum available for the year. This was driven by improved availability for <br>both IFA2 and BritNed, driven by decreased unplanned outages.  |

---

![114](nggtf-20260331_g106.gif)

![102](nggtf-20260331_g107.gif)

![413](nggtf-20260331_g108.gif)

![380](nggtf-20260331_g109.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **29** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our key performance indicators cont.** |  |  |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Customer satisfaction** | **Customer satisfaction** | **Customer satisfaction** | **Customer satisfaction** | **Customer satisfaction** |
|  | **2025/26** | 2024/25 | 2023/24 | Target |
| UK ET (/10)<sup>1</sup> | 7.0 | 6.5 | 7.2 | 7.7 |
| UK ED (/10<sup>)1</sup> | 9.01 | 8.98 | 8.97 | 9.12 |
| NE – (%)<sup>2</sup> | 72.2 | 53.9 | 57.5 | 67.33 <sup>3</sup> |
| NY – (%)<sup>2</sup> | 72.8 | 61.1 | 64.5 | 73.23 <sup>3</sup> |
| **Link to strategy** |  |  |  |  |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![No2_grey.gif](nggtf-20260331_g90.gif)<br>![No3_blue.gif](nggtf-20260331_g63.gif)<br>![No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>|  |  |  |  |
| **Description**<br>We measure customer and stakeholder satisfaction, while also maintaining engagement with these groups <br>and improving service levels.  | **Description**<br>We measure customer and stakeholder satisfaction, while also maintaining engagement with these groups <br>and improving service levels.  | **Description**<br>We measure customer and stakeholder satisfaction, while also maintaining engagement with these groups <br>and improving service levels.  | **Description**<br>We measure customer and stakeholder satisfaction, while also maintaining engagement with these groups <br>and improving service levels.  | **Description**<br>We measure customer and stakeholder satisfaction, while also maintaining engagement with these groups <br>and improving service levels.  |
| **Progress in 2025/26**<br>In UK ET, we follow the Quality of Connections Incentive and our score demonstrates a positive shift <br>compared to last financial year, marked by significant industry reform and rapid change. We have <br>strengthened and developed our workforce, invested in digital transformation capabilities and upheld <br>customer-centric principles in a dynamic and unpredictable environment. NESO initiated reforms to the <br>existing connections queue that will aim to help UK ET deliver faster, fairer and more strategic grid <br>connections for existing and future customers. <br>In UK ED, we continue to deliver year-on-year improvements as we strive to achieve our target with <br>several connection initiatives driving benefits for customers during the year.<br>In the US, satisfaction levels improved over the course of the year, reflecting continued progress in how <br>we serve and support our customers. At the same time, colder weather and increased energy use <br>contributed to higher bills, creating affordability pressures.<br>Read more about our customer satisfaction scores in the Responsible Business review on pages [38](#i6f250a91cd464a04873e5851a20d0163_61) — [52](#i021c40488e4146b08af7159ea13a8831_18353).  | **Progress in 2025/26**<br>In UK ET, we follow the Quality of Connections Incentive and our score demonstrates a positive shift <br>compared to last financial year, marked by significant industry reform and rapid change. We have <br>strengthened and developed our workforce, invested in digital transformation capabilities and upheld <br>customer-centric principles in a dynamic and unpredictable environment. NESO initiated reforms to the <br>existing connections queue that will aim to help UK ET deliver faster, fairer and more strategic grid <br>connections for existing and future customers. <br>In UK ED, we continue to deliver year-on-year improvements as we strive to achieve our target with <br>several connection initiatives driving benefits for customers during the year.<br>In the US, satisfaction levels improved over the course of the year, reflecting continued progress in how <br>we serve and support our customers. At the same time, colder weather and increased energy use <br>contributed to higher bills, creating affordability pressures.<br>Read more about our customer satisfaction scores in the Responsible Business review on pages [38](#i6f250a91cd464a04873e5851a20d0163_61) — [52](#i021c40488e4146b08af7159ea13a8831_18353).  | **Progress in 2025/26**<br>In UK ET, we follow the Quality of Connections Incentive and our score demonstrates a positive shift <br>compared to last financial year, marked by significant industry reform and rapid change. We have <br>strengthened and developed our workforce, invested in digital transformation capabilities and upheld <br>customer-centric principles in a dynamic and unpredictable environment. NESO initiated reforms to the <br>existing connections queue that will aim to help UK ET deliver faster, fairer and more strategic grid <br>connections for existing and future customers. <br>In UK ED, we continue to deliver year-on-year improvements as we strive to achieve our target with <br>several connection initiatives driving benefits for customers during the year.<br>In the US, satisfaction levels improved over the course of the year, reflecting continued progress in how <br>we serve and support our customers. At the same time, colder weather and increased energy use <br>contributed to higher bills, creating affordability pressures.<br>Read more about our customer satisfaction scores in the Responsible Business review on pages [38](#i6f250a91cd464a04873e5851a20d0163_61) — [52](#i021c40488e4146b08af7159ea13a8831_18353).  | **Progress in 2025/26**<br>In UK ET, we follow the Quality of Connections Incentive and our score demonstrates a positive shift <br>compared to last financial year, marked by significant industry reform and rapid change. We have <br>strengthened and developed our workforce, invested in digital transformation capabilities and upheld <br>customer-centric principles in a dynamic and unpredictable environment. NESO initiated reforms to the <br>existing connections queue that will aim to help UK ET deliver faster, fairer and more strategic grid <br>connections for existing and future customers. <br>In UK ED, we continue to deliver year-on-year improvements as we strive to achieve our target with <br>several connection initiatives driving benefits for customers during the year.<br>In the US, satisfaction levels improved over the course of the year, reflecting continued progress in how <br>we serve and support our customers. At the same time, colder weather and increased energy use <br>contributed to higher bills, creating affordability pressures.<br>Read more about our customer satisfaction scores in the Responsible Business review on pages [38](#i6f250a91cd464a04873e5851a20d0163_61) — [52](#i021c40488e4146b08af7159ea13a8831_18353).  | **Progress in 2025/26**<br>In UK ET, we follow the Quality of Connections Incentive and our score demonstrates a positive shift <br>compared to last financial year, marked by significant industry reform and rapid change. We have <br>strengthened and developed our workforce, invested in digital transformation capabilities and upheld <br>customer-centric principles in a dynamic and unpredictable environment. NESO initiated reforms to the <br>existing connections queue that will aim to help UK ET deliver faster, fairer and more strategic grid <br>connections for existing and future customers. <br>In UK ED, we continue to deliver year-on-year improvements as we strive to achieve our target with <br>several connection initiatives driving benefits for customers during the year.<br>In the US, satisfaction levels improved over the course of the year, reflecting continued progress in how <br>we serve and support our customers. At the same time, colder weather and increased energy use <br>contributed to higher bills, creating affordability pressures.<br>Read more about our customer satisfaction scores in the Responsible Business review on pages [38](#i6f250a91cd464a04873e5851a20d0163_61) — [52](#i021c40488e4146b08af7159ea13a8831_18353).  |

---

![](nggtf-20260331_g110.gif)

**Non-financial measures**

1. The UK ET and UK ED scores are included as part of the regulatory framework.

2. Customer trust metrics are based on survey questions that differ year-on-year, with the current year reflecting overall experience and the

prior years focusing on trust of advice provided. The current year score is a weighted average from four survey inputs that run

continuously across both residential and commercial customers throughout the year. Please see our reporting methodology on the

Responsibility section of our website for details.

3.2025/26 New York and New England targets for the newly introduced Customer Satisfaction metric.

![Risk management p2 v6.jpg](nggtf-20260331_g111.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **30** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Internal control and risk management** |  |  |  |  |  |

---

---

| |
|:---|
| The Board is committed to effective risk management to <br>deliver our strategy, protect our people, reputation <br>and assets, and safeguard the interests of our stakeholders.<br>|
| **Our Enterprise Risk Management (ERM) Framework**<br>National Grid is exposed to a variety of uncertainties (threats and opportunities) that could have a <br>material effect on the Group's financial position, our operations, our reputation and stakeholder <br>interests; represented by our Group Principal Risks. These uncertainties are managed through our <br>ERM Framework and system of internal control. We maintain and monitor the application of the <br>Framework throughout the year and formally assess its effectiveness annually. This ongoing <br>oversight, alongside continuous improvement, enables us to respond effectively to changes in the <br>internal and external environment and to inform our Group Principal Risks and related risk <br>management activities.<br>|

---

Our risk management and internal control activities are delivered via a "Three Lines" model:<br>

---

| | |
|:---|:---|
| **Risk, Controls and Assurance Governance:** | **Risk, Controls and Assurance Governance:** |
| –Identify and monitor the Group Principal Risks and emerging risks across the Group | –Identify and monitor the Group Principal Risks and emerging risks across the Group |
| **First Line:**<br>**Business units**<br>| **Second Line:** <br>**Risk and Compliance functions**<br>|
| –Identify and assess risks <br>–Manage day-to-day operational risks<br>–Apply risk appetite, delegated authorities, <br>policies, procedures and codes of conduct<br>–Design and operate internal controls and <br>other mitigation measures<br>–Monitor and report risks through relevant <br>reporting and escalation processes<br>| –Risk and compliance oversight <br>–Design and/or enable risk management <br>processes across the Group and <br>responsible for continuous improvement<br>–Provide risk expertise, advice and support<br>–Monitor and assure compliance with <br>policies, standards and the ERM process<br>–Report to the Board and Group Executive<br>|
| **Third Line:**<br>**Internal Audit** | **Third Line:**<br>**Internal Audit** |
| –Internal audit (supported by outsourcing or co-sourcing with external assurance providers)<br>–Review and evaluate risk management activity and provide assurance over the effectiveness of the <br>control environment<br>–Report to the Board and the Group Executive | –Internal audit (supported by outsourcing or co-sourcing with external assurance providers)<br>–Review and evaluate risk management activity and provide assurance over the effectiveness of the <br>control environment<br>–Report to the Board and the Group Executive |

---

**Governance and oversight**

The Board is accountable for the Group's system of risk management and internal control, including the

amount of risk the Group is prepared to accept in delivering our strategic priorities (our risk appetite).

The Group Principal Risks are monitored throughout the year. Each Group Principal Risk is also subject to

a detailed review annually by the Group Ethics, Risk and Compliance Committee and the relevant Board

committees. A consolidated summary of the Group Principal Risks and how they are being managed is

then reviewed bi-annually by the Audit & Risk Committee. Reporting includes consideration of changes in

the internal and external context, a review of the effectiveness of mitigations and internal controls, and an

assessment of whether risks are being managed within risk appetite, together with any additional

actions required.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **31** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our Group Principal Risks** |  |  |  |  |  |

---

**Business context**

The external context in which we operate has changed significantly in recent years, particularly in relation to the political

and regulatory environment, technological developments, affordability considerations, and how we deliver for customers.

We adapt our business and risk management activities and mitigations accordingly.

**Group Principal Risks**

![](nggtf-20260331_g112.gif)

![](nggtf-20260331_g113.gif)

![](nggtf-20260331_g114.gif)

![](nggtf-20260331_g115.gif)

---

| | | | |
|:---|:---|:---|:---|
| Operational risks arise from our core <br>business practices, which rely on our <br>systems, equipment, processes and people. <br>–Catastrophic security incident<br>–Significant safety or environmental event<br>–Loss of supply\*<br>–Major capital projects | Strategic risks, both internal and external, <br>are associated with the business model, <br>corporate strategy and long-term planning.<br>–Satisfactory regulatory outcomes<br>–Climate change mitigation<br>–Political and societal expectations<br>–People capability and capacity | Financial risks are risks associated with <br>National Grid's ability to raise capital, <br>maintain access to capital, and deliver <br>profitable growth.<br>–Financing our business | Compliance risks relate to compliance with <br>laws and regulations, industry standards, <br>contract requirements and internal policy.<br>–Legal and regulatory compliance <br>frameworks operate at a jurisdictional level <br>(i.e. UK, US federal, New York and <br>Massachusetts) and therefore apply <br>across all relevant National Grid <br>businesses rather than being <br>amalgamated at Group. |
| Operational risks arise from our core <br>business practices, which rely on our <br>systems, equipment, processes and people. <br>–Catastrophic security incident<br>–Significant safety or environmental event<br>–Loss of supply\*<br>–Major capital projects | Strategic risks, both internal and external, <br>are associated with the business model, <br>corporate strategy and long-term planning.<br>–Satisfactory regulatory outcomes<br>–Climate change mitigation<br>–Political and societal expectations<br>–People capability and capacity | Financial risks are risks associated with <br>National Grid's ability to raise capital, <br>maintain access to capital, and deliver <br>profitable growth.<br>–Financing our business | Compliance risks relate to compliance with <br>laws and regulations, industry standards, <br>contract requirements and internal policy.<br>–Legal and regulatory compliance <br>frameworks operate at a jurisdictional level <br>(i.e. UK, US federal, New York and <br>Massachusetts) and therefore apply <br>across all relevant National Grid <br>businesses rather than being <br>amalgamated at Group. |

---

![](nggtf-20260331_g116.gif)

**Strategic Group Principal Risks**

![](nggtf-20260331_g117.gif)

**Operational Group Principal Risks**

![](nggtf-20260331_g118.gif)

**Financial Group Principal Risks**

![](nggtf-20260331_g119.gif)

**Compliance Group Principal Risks**

\*Significant disruption of energy was renamed to Loss of supply during 2025/26 to better reflect the nature of the risk. Upstream supply considerations are included as a key cause.

A summary of actions taken by management to manage our Group Principal Risks is provided on pages [32](#i8ebe50234db3417ba33cc3b26f4858d7_24391) — [36](#i8ebe50234db3417ba33cc3b26f4858d7_24401). The Board reviewed these risks as part of the bi-annual

Group Principal Risk review, which incorporates feedback and recommendations from relevant Board Committees. Further information can be found on pages [100](#ie2bace0f98aa4e9fb46620ee1881b26c_29966) — [104](#ie2bace0f98aa4e9fb46620ee1881b26c_29974).

![](nggtf-20260331_g120.gif)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Strategic priorities** | **Strategic priorities** | **Strategic priorities** |  |  | **Risk trend** |  |  |
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif) | ![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif) | ![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif) | ![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif) | ![Strat-Link-No5_blue.gif](nggtf-20260331_g66.gif) | ![Risk-arrow-increasing.gif](nggtf-20260331_g121.gif) | ![Risk-arrow-decreasing.gif](nggtf-20260331_g122.gif) | ![Risk-no-change.gif](nggtf-20260331_g123.gif) |
| **Enable the energy** <br>**transition**<br>| **Build the networks** <br>**of the future now**<br>| **Deliver for** <br>**customers**<br>| **Operate safely and** <br>**efficiently**<br>| **Build tomorrow's** <br>**workforce today**<br>| **Increasing** | **Decreasing** | **No change** |

---

![](nggtf-20260331_g124.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **32** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our Group Principal Risks cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g125.gif)

**Operational Group Principal Risks**

![](nggtf-20260331_g126.gif)

![](nggtf-20260331_g127.gif)

---

| | | |
|:---|:---|:---|
| Catastrophic security incident | Catastrophic security incident | Catastrophic security incident |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Board and** <br>**Audit & Risk Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk that we are unable to adequately anticipate and

manage disruptive forces on our critical systems, facilities and

personnel, because of cyber attacks, physical attacks, malicious

internal or external actors, or inadequate recovery capabilities,

resulting in disruption of business operations, tampering or abuse of

assets, safety hazards, or loss of confidentiality, integrity, and/or

availability of systems and data.

**Developments during 2025/26**

The Board recognises that the risk of a catastrophic security

incident is being driven by an increasingly hostile and complex

threat environment, with potential for severe operational, financial,

and reputational consequences for critical national infrastructure

providers. Against these drivers, the Board's focus is on whether

the Group has robust, layered defences and recovery capability to

prevent, detect and respond to catastrophic security events.

**Actions taken by management** 

Management actions are focused on preparedness and rapid

recovery, recognising that the threat landscape is constantly

evolving. These actions include:

–Expansion of the risk to incorporate physical security incidents,

recognising the hybrid nature of threat, and reducing visibility

gaps to physical security controls and management.

–Employing technical, administrative, and physical/cyber security

controls for both IT and operational technology aligned to the

National Institute of Standards, and Technology Cybersecurity

Framework (NIST CSF) v2.0, as well as all applicable laws and

regulations.

–We consistently verify and validate our risk management through

internal and external audits and risk assessments, penetration

tests, adversary simulation, incident response exercises,

compromise assessments, continuous control measurements

and other assessment methods.

---

| | | |
|:---|:---|:---|
| Significant safety or environmental event | Significant safety or environmental event | Significant safety or environmental event |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Safety &** <br>**Operations Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk of a significant safety or environmental event because

of network asset failures or operability issues, extreme weather,

third-party damage or security attacks, resulting in a major public or

employee safety impact, or environmental damage.

**Developments during 2025/26**

The Board recognises that the risk of a significant safety or

environmental event is influenced by a combination of asset-related

factors, operating environment pressures, and heightened

stakeholder expectations. The Board's focus is on whether the

Group has robust, consistently applied controls and culture to

prevent serious safety or environmental incidents, and to respond

effectively if they occur. National Grid takes a holistic approach

focusing on proactive preventative measures including inspection

and maintenance of assets as well as appropriate recovery and

response procedures.

**Actions taken by management** 

Management actions are focused on prevention, preparedness,

and continuous improvement, recognising that the consequences

of a significant safety or environmental event could be severe,

including:

–Reduction in risk exposure following the sale of Grain LNG.

–Updates to Group-wide Process Safety Business Management

System to further strengthen prevention of process safety events

through tighter control of safety-critical maintenance.

–Delivering proactive inspection, maintenance and integrity

management programmes to reduce the likelihood of asset

failures that could lead to safety or environmental harm.

–Maintaining and testing emergency response arrangements to

ensure rapid, coordinated action to protect people, communities,

and the environment if an incident occurs.

–Using incident investigations, near miss reporting, assurance

activity, and leadership engagement to embed learning and

reinforce a strong safety and environmental culture across the

organisation.

–Responding to new regulatory requirements in the US which

provide opportunities to strengthen process safety management.

–Although primarily related to the Loss of supply Group Principal

Risk, the proposed New York Northeast Supply Enhancement

(NESE) pipeline project would not only mitigate some gas supply

constraints, it could also reduce the potential risks relating to

major hazard assets that are caused by extensive manual

relighting efforts when service disruptions occur, and will reduce

the number of Compressed Natural Gas (CNG) sites required in

Downstate New York.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **33** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our Group Principal Risks cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g125.gif)

**Operational Group Principal Risks**

![](nggtf-20260331_g128.gif)

---

| | | |
|:---|:---|:---|
| Loss of supply | Loss of supply | Loss of supply |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![No2_grey.gif](nggtf-20260331_g90.gif)<br>![No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Safety &** <br>**Operations Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk of a loss of supply event because of network asset

failures or operability issues, upstream supply issues, extreme

weather, third-party damage or security attacks, resulting in

disruption of energy to our customers.

**Developments during 2025/26**

Increasing system complexities, system demand and network

stress, coupled with legacy assets, are of key focus to ensure the

Group continues to concentrate on proactive prevention and

efficient recovery from loss of supply events to reduce the risk of

significant disruption of energy to our customers. The UK

Government's new Energy Resilience Strategy and associated

taskforce will provide enhanced sector-wide coordination, and new

regulatory requirements in the US have created further opportunities

to strengthen asset management and resilience practices.

In response to the North Hyde substation fire in March 2025, we

have undertaken extensive, multi-stakeholder engagement to

understand the root causes, including comprehensive internal and

independent investigations and close collaboration with regulators,

government bodies and industry partners to ensure all lessons are

identified and issues addressed.

![](nggtf-20260331_g129.gif)

**Actions taken by management**

Management actions are focused on reducing the likelihood of

supply interruptions and minimising customer impact when events

occur, including:

–Acceptance of Ofgem's RIIO-T3 final determinations which

recognise the need for significant investment in the electricity

transmission sector to continue to deliver world-leading reliability

while nearly doubling the amount of power we can transfer

around the country.

–Reduction in risk exposure following the sale of Grain LNG.

–Alleviated supply conditions are expected with the proposed

New York NESE pipeline project.

–Preparing our UK ED3 submission to Ofgem which will seek to

evidence the need for greater investment in climate resilience.

–Updating our risk assessments to incorporate upstream supply

failure scenarios.

–Continued collaboration with energy suppliers, regulators, and

government departments to explore industry wide mitigation

strategies aimed at maximising supply, managing demand and

enhancing storage.

–Gas main replacement programmes and a storm-hardening

programme, along with main outage planning to ensure swift

response and recovery.

–Reviewing and updating Group-wide assessments of climate

vulnerabilities and monitoring progress against multi-decade

climate adaptation plans, complemented by existing resilience

investments to ensure long-term preparedness.

–Further development of emergency response plans covering

wildfire and cyber scenarios, along with asset risk assessment

and integrity management plans.

–We continue to monitor wildfire risk and have engaged a third

party to carry out specialist wildfire risk assessments.

–Ongoing flood contingency plans and robust preparedness for

winter and summer, including scenario planning, and testing

response plans with proactive communication strategies.

–Acceleration of proactive maintenance and asset checks ahead

of winter to maximise network availability, with an emphasis on

system reliability assets, sub-sea cable monitoring and ongoing

year-round maintenance.

---

| | | |
|:---|:---|:---|
| Major capital projects | Major capital projects | Major capital projects |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Safety &** <br>**Operations Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk that we are unable to deliver on our major capital

project programme within the required timeframes because of

misalignment or lack of clarity with regulatory expectations, unclear

financial frameworks to incentivise investment, complex planning

requirements, external impacts on supply chain, or a failure to

demonstrate clear, long-term economic benefits to communities,

leading to increased costs, compromised quality, reputational

damage and detrimentally impacting our ability to deliver our clean

energy transition strategy.

**Developments during 2025/26**

Delivery of the Group's major capital projects remains a central

strategic priority, with the scale of our cumulative capital investment

reaching at least £70bn over the next five years to modernise

energy networks, support growing demand, and enable the energy

transition. The focus on execution is being shaped by numerous

external developments such as supply chain constraints, and

regulatory complexities which influence project cost, schedule,

planning, and stakeholder expectations.

**Actions taken by management** 

Management actions are focused on strengthening delivery

discipline and resilience, including:

–implementing more consistent, Group-wide frameworks, to clarify

decision gates, strengthen and schedule controls and improve

transparency over delivery performance;

–enacting earlier engagement strategies with regulators, planning

authorities, and communities to reduce late stage changes or

delays; and

–strengthening procurement strategies, supplier relationships, and

commercial disciplines to mitigate supply chain risk. We are also

actively monitoring the current geopolitical landscape and

considering impact on our risks, including Catastrophic security

incident and Loss of supply in particular.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **34** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our Group Principal Risks cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g130.gif)

**Strategic Group Principal Risks**

![](nggtf-20260331_g127.gif)

![](nggtf-20260331_g131.gif)

---

| | | |
|:---|:---|:---|
| **Strategic priorities** | **Strategic priorities** | **Strategic priorities** |
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif) | ![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif) | ![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif) |
| **Enable the energy** <br>**transition**<br>| **Build the networks** <br>**of the future now**<br>| **Deliver for** <br>**customers**<br>|
| ![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif) | ![Strat-Link-No5_blue.gif](nggtf-20260331_g66.gif) |  |
| **Operate safely and** <br>**efficiently**<br>| **Build tomorrow's** <br>**workforce today**<br>|  |
| **Risk trend** |  |  |
| ![Risk-arrow-increasing.gif](nggtf-20260331_g121.gif) | ![Risk-arrow-decreasing.gif](nggtf-20260331_g122.gif) | ![Risk-no-change.gif](nggtf-20260331_g123.gif) |
| **Increasing** | **Decreasing** | **No change** |

---

---

| | | |
|:---|:---|:---|
| Satisfactory regulatory outcomes | Satisfactory regulatory outcomes | Satisfactory regulatory outcomes |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif)<br>![No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Responsible** <br>**Business Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk that we fail to influence future energy policies and

secure satisfactory regulatory agreements because of lack of insight

or unsuccessful negotiations given the scale of investment needed

to meet load growth and clean energy requirements, while

balancing affordability and reliable concerns. This will lead to poor

regulatory outcomes, energy policies that negatively impact our

operations, reduced financial performance, fines/penalties,

increased costs to remain compliant and/or reputational damage.

**Developments during 2025/26**

The scale of change required to enable the energy transition is

unprecedented, driving our focus on whether the Group has the

insight, engagement, and capability to secure satisfactory regulatory

outcomes. Specifically ensuring the Group is proactively shaping

price controls and rate case filings with clear positions and

engagement/advocacy to support economic growth, affordability,

reliability and a cleaner energy system. Affordability remains a

prominent theme, influencing public sentiment and regulatory

scrutiny. Customers are seeking to understand what steps utilities

are taking to manage costs that end up on customer bills. The

impact on customers has always been a concern in utility

infrastructure planning and the costs on the bill beyond delivery

service are growing, leaving less room for necessary grid

investment.

**Actions taken by management** 

Management actions are focused on proactive engagement, robust

regulatory frameworks and disciplined delivery, specifically including

the following:

–Ensuring well-evidenced submissions that clearly articulate

investment need, customer impact, and long-term value, with a

focus on achieving fair and sustainable outcomes.

–Demonstrating cost discipline, delivery efficiency, and value for

customers, including consideration of incentives, reopeners, and

performance mechanisms within regulatory frameworks.

–Continuously monitoring regulatory developments, decisions and

emerging risks across jurisdictions to inform strategy with

escalation where necessary.

–We have accepted the RIIO-T3 price control, achieving a

satisfactory outcome. We are now focused on delivering against

our commitments with continued focus on capital delivery

efficiency and responding to the highly incentivising framework

that aligns outperformance with outcomes customers value (for

example, faster connections and reduced constraint costs).

–We are actively engaging on the ED3 price control (price control

2028-33), focusing on well-evidenced submissions that balance

investment requirements with delivering value for customers and

affordability.

–We are focusing on core regulatory principles in ongoing gas

base rate cases and engaging constructively with regulators to

support balanced and sustainable outcomes, having successfully

agreed our 2025/26 US rate cases.

–We are participating in affordability and rate design dockets in the

US to educate on the regulatory compact.

–Our interconnector structures continue to deliver net benefits to

customers, including supporting system efficiency and enabling

funding for energy assistance programmes.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **35** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our Group Principal Risks cont.** |  |  |  |  |  |

---

–

![](nggtf-20260331_g132.gif)

**Strategic Group Principal Risks**

![](nggtf-20260331_g126.gif)

![](nggtf-20260331_g126.gif)

---

| | | |
|:---|:---|:---|
| Climate change mitigation | Climate change mitigation | Climate change mitigation |
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Responsible** <br>**Business Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk that we fail to identify and/or deliver upon the

actions necessary to meet our climate change targets and enable

the wider energy transition because of poor monitoring and

response to external developments associated with mitigating

climate change, leading to legal risks or reputational impacts of

not meeting our climate change targets and, in the longer term,

reaching net zero by 2050.

**Developments during 2025/26**

Achieving climate change targets remains a central long-term

objective. The strategic focus on delivery is increasingly shaped by

external developments that influence the pace, cost, and feasibility

of the energy transition. These developments continue to evolve

across policy, markets, technology and stakeholder expectations,

and are actively monitored as part of the Group's risk and strategic

planning processes. Against these drivers, the Board's focus is on

whether the Group has appropriate governance, controls and

flexibility to manage climate change targets within appetite.

**Actions taken by management** 

Management actions are focused on credible target management,

governance and transparency, recognising the importance of

adapting to a changing external environment. These actions include:

–implementing a revised US operating model with sustainability

teams embedded within business units, and integrating

Environment, Social, Governance and Risk teams to strengthen

oversight and coordination;

–undertaking an internal review of the Group's climate targets and

maintaining current targets while keeping alternative pathways

under active consideration, reflecting evolving external

dependencies;

–updating greenhouse gas emissions analysis to reflect changes

in policy, regulation and market conditions, and using peer

benchmarking to inform ongoing risk assessment; and

–improving our sustainability narrative to better reflect our wider

societal contribution to emissions reduction.

![](nggtf-20260331_g126.gif)

---

| | | |
|:---|:---|:---|
| Political and societal expectations | Political and societal expectations | Political and societal expectations |
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif)<br>![Strat-Link-No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Responsible** <br>**Business Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk that we do not position ourselves appropriately to

navigate political and societal expectations because of a failure to

proactively monitor the landscape or anticipate and respond to

changes, leading to political intervention, an inability to meet our

core energy objectives, uncovered costs or pressure on returns or

the inability to gain necessary regulatory approvals.

**Developments during 2025/26**

The Board recognises that the risk associated with political and

societal expectations arises from a rapidly evolving external

environment, where energy affordability, climate policy and public

trust are increasingly intertwined with political decision making.

Against these drivers, the Board's focus is on whether the Group is

appropriately positioned to navigate political and societal

expectations, while continuing to deliver its strategic priorities.

**Actions taken by management**

Management actions are focused on anticipation, engagement and

alignment with policymakers, recognising that many external drivers

are outside the Group's direct control:

–Implementing a more regionally focused external affairs operating

model to improve engagement with governments, regulators,

communities and other stakeholders in key markets.

–Monitoring political, regulatory, media and societal trends across

jurisdictions to identify emerging issues early and inform decision

making.

–Defining policy priorities aligned to the Group's strategic

objectives and engaging constructively with policymakers to

support stable, investable regulatory frameworks.

–Conducting scenario analyses to ensure the Group can adapt its

response to changes in the external environment.

---

| | | |
|:---|:---|:---|
| People capability and capacity | People capability and capacity | People capability and capacity |
| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_blue.gif](nggtf-20260331_g66.gif)<br>| **Oversight: People &** <br>**Remuneration Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk that we do not have, across our workforce and within

our leadership, the capability or capacity necessary to deliver on

existing or future commitments because of ineffective planning for

future people needs, insufficient development of people, and failure

to attract and retain people in a competitive market for skills and

talent, leading to failure to deliver on our business goals, strategic

priorities and mission.

**Developments during 2025/26**

We continue to focus on future workforce needs, recognising that

the ability to deliver the Group's strategic priorities, including the

energy transition and major capital projects, is fundamentally

dependent on having sufficient workforce capacity, capability and

leadership depth, now and in the future.

**Actions taken by management**

Management actions are focused on building resilience, flexibility,

and future ready capability, while balancing near-term delivery

needs with longer-term workforce sustainability. These actions

include:

–maintaining a consistent, forward looking, Group-wide approach

to strategic workforce planning to have visibility on future

capacity and capability requirements;

–expanding our early careers programmes to build sustainable

talent pipelines for critical roles and support diversity of talent

pools; and

–monitoring recruitment and retention metrics closely to ensure

capacity is stable and delivery risk is reduced.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **36** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Our Group Principal Risks cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g133.gif)

**Financial Group Principal Risks**

![](nggtf-20260331_g134.gif)

![](nggtf-20260331_g135.gif)

---

| | | |
|:---|:---|:---|
| **Strategic priorities** | **Strategic priorities** | **Strategic priorities** |
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif) | ![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif) | ![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif) |
| **Enable the energy** <br>**transition**<br>| **Build the networks** <br>**of the future now**<br>| **Deliver for** <br>**customers**<br>|
| ![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif) | ![Strat-Link-No5_blue.gif](nggtf-20260331_g66.gif) |  |
| **Operate safely and** <br>**efficiently**<br>| **Build tomorrow's** <br>**workforce today**<br>|  |
| **Risk trend** |  |  |
| ![Risk-arrow-increasing.gif](nggtf-20260331_g121.gif) | ![Risk-arrow-decreasing.gif](nggtf-20260331_g122.gif) | ![Risk-no-change.gif](nggtf-20260331_g123.gif) |
| **Increasing** | **Decreasing** | **No change** |

---

---

| | | |
|:---|:---|:---|
| Financing our business | Financing our business | Financing our business |
| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>| **Oversight: Audit & Risk** <br>**Committee**<br>| ![Risk-no-change.gif](nggtf-20260331_g123.gif) |

---

**Description**

There is a risk that we are unable to fund our business efficiently as

a result of lack of access to a wide pool of equity and debt

investors, market volatility, unsatisfactory regulatory outcomes or

unsatisfactory financial or operational performance of the business,

leading to a lack of access to capital, impacting our ability to

achieve our strategic objectives, including our proposed capital

investment programme.

**Developments during 2025/26**

The Board recognises that the ability to finance the Group's

strategy is increasingly influenced by a combination of

macroeconomic conditions, capital market dynamics, and

regulatory outcomes, alongside the scale and duration of the

investment programme. The Group is undertaking a multi-year

investment programme of unprecedented scale to modernise

networks, meet rising demand and enable the energy transition.

The duration and magnitude of this investment mean that continued

access to debt and equity markets on acceptable terms is

essential. The Board considers the long-term nature of these

funding needs to be a key structural driver of financing risk.

**Actions taken by management** 

Management actions are focused on maintaining financial resilience,

flexibility and market access, recognising that many financing

drivers are external and cyclical. Key actions and developments

include:

–We have agreed an updated five-year financial framework to

2030/31, including cumulative capital investment of at least

£70bn over the next five years.

–Delivered positive regulatory outcomes, including approval of

NIMO Niagara Mohawk (National Grid's electric and gas

distribution business in Upstate New York) rate agreement joint

proposal and acceptance of the RIIO-T3 final determinations.

–Ensured maintenance of appropriate headroom against key

credit metrics, supporting confidence in the Group's ability to

access debt capital markets.

–Maintained strong engagement with current and potential

investors through both the Group's equity and debt investor

relations programmes.

–Maintaining strong liquidity, a robust credit rating and access to a

diversified range of funding sources to raise debt efficiency to

fund our investment programme.

–Completion of portfolio actions, including the disposals of

National Grid Renewables and Grain LNG in 2025/26, with

proceeds retained for reinvestment in the regulated business.

–Frequent engagement with credit rating agencies, with no

changes to credit ratings or outlooks expected.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **37** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Cyber security and emerging risks** |  |  |  |  |  |

---

**Cyber security risk management and strategy**

Cyber security risk is overseen and continuously monitored by the

Group Executive and the Board. We apply the NIST cyber security

framework to identify, assess, monitor and respond to cyber security

risks, supported by a risk management process aligned to the

Group's ERM Framework and covering all IT and operational

technology assets including systems and data, legacy technology risk

and those operated by third parties. Our cyber security risks are

managed via the "Three Lines" model, supplemented by external

specialist support including cyber security firms, providing

independent validation of our approach and specialist expertise for

specific regulatory requirements and technologies. Further assurance

is obtained through risk assessments, penetration testing, adversary

simulation, incident response exercises and compromise

assessments. An independent Supply Chain Risk Management

(SCRM) function identifies and oversees cyber risks arising from

third-party service providers, with controls implemented by SCRM

that are proportionate to the supplier's access to Group systems and

the sensitivity of data processed.

There have been no cyber security incidents to date that have

materially impacted the Group's business strategy, results of

operations or financial condition. Notwithstanding this, we recognise

that the cyber threat environment for critical infrastructure providers

remains highly challenging and dynamic. We recognise that digital

transformation blurs the boundary between physical and cyber

security. Modern hybrid threats can combine common cyber attacks

with physical dimensions such as intrusion or sabotage. We have

emphasised a converged model that strengthens our ability to detect,

prevent and respond to these complex, multi-vector threats,

providing a more robust and resilient security framework.

**Cyber security governance**

The Board is responsible for oversight of cyber security. The Audit &

Risk Committee regularly reviews reporting on our approach to cyber

security risk management and developments throughout the year.

National Grid's Chief Information and Digital Officer (CIDO) and Chief

Information Security Officer (CISO) regularly attend the Audit & Risk

Committee and hold additional briefings to the Board at least once

per year. The Audit & Risk Committee and Board work collaboratively

to ensure oversight with the proper focus of each respective

Board committee.

Cyber risk reporting includes, among other things, current and

emerging cyber security threats to National Grid and relevant sectors,

the status of key risk indicators and controls, the results of any

relevant internal or external assessments, key incidents escalated to

management during the prior and current reporting period and the

status of cyber security improvement programmes. At the executive

and management level, the CIDO is the owner of the cyber security

risk and the CISO has primary responsibility for the development,

operation and maintenance of National Grid's cyber security

programme. Under the CISO's oversight, National Grid's cyber

security team implements and provides governance and functional

oversight for cyber security services, controls and processes.

In line with our ERM Framework, cyber security processes include the

escalation of material risks and incidents, including those that

originate or occur from third parties, through the organisation to the

Group Executive Committee, Audit & Risk Committee and Board as

appropriate, based on an assessment of likelihood and severity

of impact.

![](nggtf-20260331_g136.gif)

Emerging risks

We consider emerging risks and trends

throughout the year to assess potential future

material impacts on our risk profile. Each risk is

assigned an appropriate owner or subject matter

expert, who monitors developments and is

responsible for implementing relevant mitigations

as necessary. Emerging risk reviews are reported

at least bi-annually to the Group Ethics, Risk &

Compliance Committee, the Audit & Risk

Committee, and the Board, for review and input.

Our top three emerging risks at the date of this report are:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Emerging risk** | **Impact on strategy** | **Velocity** | **Velocity** | **Velocity** |
| **Emerging risk** | **Impact on strategy** | Immediate < 3 years | Short term 3–5 years\* | Medium term 5–10 years |
| **Geopolitical tensions**<br>(business or supply chain disruption)<br>| ![Strat-Link-No1_grey.gif](nggtf-20260331_g89.gif)<br>![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif)<br>![Strat-Link-No3_grey.gif](nggtf-20260331_g91.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>|  |  |  |
| **Artificial intelligence**<br>(strategic opportunities or disruption)<br>| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif)<br>![Strat-Link-No2_blue.gif](nggtf-20260331_g62.gif)<br>![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif)<br>![Strat-Link-No4_blue.gif](nggtf-20260331_g65.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>|  |  |  |
| **Affordability**<br>(customer affordability issues)<br>| ![Strat-Link-No1_blue.gif](nggtf-20260331_g61.gif)<br>![Strat-Link-No2_grey.gif](nggtf-20260331_g90.gif)<br>![Strat-Link-No3_blue.gif](nggtf-20260331_g63.gif)<br>![Strat-Link-No4_grey.gif](nggtf-20260331_g93.gif)<br>![Strat-Link-No5_grey.gif](nggtf-20260331_g92.gif)<br>|  |  |  |

---

![](nggtf-20260331_g137.gif)

![](nggtf-20260331_g137.gif)

![](nggtf-20260331_g138.gif)

\* We continuously monitor our short-term emerging risks to ensure we respond to changes in our risk assessments appropriately.

![Resp_Business_Intro BG v5.jpg](nggtf-20260331_g139.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **38** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review** |  |  |  |  |  |

---

Delivering our Responsible

Business Charter

**Our Responsible Business Pillars and UN Sustainable Development Goals where we have the most material impact:**

We aim to act as a responsible business and play our part in

delivering an affordable, secure and clean energy system. Our

Responsible Business Charter (RBC) details our approach to being

a responsible business and the commitments we have made. It

focuses on three core pillars: Our environment, Our customers and

communities, and Our people, supported by our Responsible

Business Fundamentals.

Further details on our Responsible Business activities and metrics

can be found on our website. See links below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Our <br>environment | Our <br>environment | Our customers <br>and communities | Our customers <br>and communities | Our people | Our people |
| By building out the network of the future, we are <br>continuing to connect low-carbon generation and <br>storage and use our networks to support the <br>electrification of heat and transport. We are also <br>working hard to manage the impact of energy <br>infrastructure on the natural environment. | By building out the network of the future, we are <br>continuing to connect low-carbon generation and <br>storage and use our networks to support the <br>electrification of heat and transport. We are also <br>working hard to manage the impact of energy <br>infrastructure on the natural environment. | As we help to build out the network of the future, we <br>aim to create social value for our customers and <br>communities. We work to support economic growth in <br>the communities we serve, support affordability as a key <br>part of the energy transition, and engage in volunteering <br>and community skills development.  | As we help to build out the network of the future, we <br>aim to create social value for our customers and <br>communities. We work to support economic growth in <br>the communities we serve, support affordability as a key <br>part of the energy transition, and engage in volunteering <br>and community skills development.  | We are focused on providing development <br>opportunities to all our colleagues, creating an <br>inclusive culture, and enhancing the health and <br>wellbeing of our employees. | We are focused on providing development <br>opportunities to all our colleagues, creating an <br>inclusive culture, and enhancing the health and <br>wellbeing of our employees. |
| **2025/26 progress** | **Looking forward** | **2025/26 progress** | **Looking forward** | **2025/26 progress** | **Looking forward** |
| –Replaced 315 miles of leak <br>prone pipe<br>–Reduced SF6 emissions by <br>43% through leak repairs and <br>investing in alternatives | –Continuing to connect low-<br>carbon generation to our <br>networks<br>–Collaborating with suppliers <br>to reduce their own <br>emissions<br>| –Assisted over 20,000 <br>households through our <br>UK Grid for Good Energy <br>Affordability Fund<br>–Exceeded our Skills <br>Development  | –Continuing to listen to and <br>address customer feedback<br>–Expanding new and existing <br>community partnerships<br>| –81% Group-wide <br>employee engagement <br>score<br>–A Glassdoor 2026 Best <br>Place to Work | –Expanding recruitment and <br>development programmes<br>–Continuing to promote healthy <br>practices and wellbeing <br>resources<br>|
| **Read more on page [40](#i9e6cd58f418241358d44ca7dfb3e65ca_1416)** |  | **Read more on page [45](#ic17d58fe0c944cdd81782ccf311e247f_8418)** |  | **Read more on page [47](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7138)** |  |

---

![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif)

![](nggtf-20260331_g13.gif)

![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif)

![](nggtf-20260331_g13.gif)

![Read-more-arrow-clear.gif](nggtf-20260331_g8.gif)

![](nggtf-20260331_g13.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Our Responsible Business Fundamentals | Our Responsible Business Fundamentals | Our Responsible Business Fundamentals |  |  |  |
| At National Grid, it is a priority to run our business and <br>engage with our supply chains in a responsible way. <br>Our Fundamentals include governance and activities <br>that are essential to day-to-day business. <br>| **2025/26 progress**<br>–Transitioned supply chain sustainability <br>risk assessments and data to EcoVadis <br>to support supplier assessments<br>–Invested in new innovations, such as AI <br>demand response in data centres and <br>enhanced pipeline imaging<br>| **Looking forward**<br>–Continuing to improve our safety <br>programme with insights from our new <br>reporting system<br>–Increasing our workforce AI and data <br>capabilities<br>–Further embedding sustainability into <br>supplier sourcing<br>| **To view our** <br>**Responsible** <br>**Business data** <br>**tables, scan or** <br>**click the QR** <br>**code**<br>| **To explore our** <br>**Responsible** <br>**Business** <br>**website, scan** <br>**or click the QR** <br>**code**<br>| **To read more** <br>**about our** <br>**Responsible** <br>**Business** <br>**Charter, scan** <br>**or click the QR** <br>**code**<br>|

---

![RB Data tables pp38.jpg](nggtf-20260331_g140.jpg)

![RB Website pp38.jpg](nggtf-20260331_g141.jpg)

![RB Charter pp38.jpg](nggtf-20260331_g142.jpg)

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [49](#i021c40488e4146b08af7159ea13a8831_18354)** |

---

**All 2025/26 Responsible Business metrics can be found in the Responsible Business data tables on our website.**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **39** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.** |  |  |  |  |  |

---

Our progress in 2025/26

Responsible business is important to us and our

stakeholders. Over the past year, we have

navigated a complex landscape characterised by

significant economic and political uncertainty. In

this environment, energy security and affordability

remain priorities. Part of being a responsible

business is taking account of, and responding to,

these expectations to deliver for our customers,

communities, colleagues and other stakeholders.

While clean power retains support from the UK

Government, energy costs remain a significant

challenge and energy resilience has emerged as a

key issue. In the US, both New York and

Massachusetts have acknowledged affordability

concerns related to the energy transition.

We, alongside other network companies, have a

unique role to play in supporting the energy system

transition. While we remain focused on reducing

our own carbon emissions, by building out the

network of the future, we are supporting

the deployment of renewable energy supply to meet

society's growing electricity needs and bringing

down overall emissions. We are also innovating

through new technologies and approaches to

maximise the pace and scale of system-wide

decarbonisation. We are therefore looking beyond

our own emissions at the emissions reductions we

influence through our delivered and future

business activities.

In 2025/26, we connected 1,125 MW of energised

renewable generation to our transmission and

distribution networks and saw further uptake of

heat pumps and electric vehicles across our

jurisdictions. We expect these new assets to

deliver emissions savings year-on-year and

estimate they will help avoid 5 MtCO2e from

2026/27 to 2030/31 as renewable electricity

generation replaces carbon intensive generation,

heat pumps replace gas and oil boilers, and EVs

replace internal combustion engines<sup>1</sup>.

Looking forward, a significant uptick in National

Grid activity, underpinned by at least £70 billion of

capital investment in the next five years, will deliver

infrastructure that is expected to support reliable,

cleaner and affordable energy. We expect to

support further avoided emissions through our

continued role in connecting renewable generation

and facilitating the uptake of heat pumps and

electric vehicles in our jurisdictions.

We also have a wider enabling role in the energy

transition. Our infrastructure helps deliver clean

power generated by assets connected to other

networks, to both existing and new sources of

demand served by our network or in other

locations. For example, in the UK we are delivering

transmission projects to increase power flows

between Scotland and England and developing

new links to mainland Europe, better connecting

clean power to demand. In the residential,

commercial and industrial sectors, electrification

can be a key driver of emissions reductions,

including through fuel switching to electricity

supplied through our networks for heating and

transport. In collaboration with others, we therefore

expect our infrastructure to enable significant

emissions reductions across a range of sectors.

A range of activities will contribute, including:

–our Great Grid Upgrade, the largest overhaul of

the UK electricity grid in generations;

–the Upstate Upgrade, a collection of complex,

multi-year high-value transmission line projects in

support of New York's Climate Leadership and

Community Protection Act; and

–innovation through regulatory funded projects,

working with our supply chain partners and

through our venture capital arm National Grid

Partners.

Our Scope 1 and 2 emissions are down 3% vs our

2018/19 baseline. This is outside of the range set

out in our second Climate Transition Plan (CTP),

published in May 2024. We stated in our CTP that

progress is unlikely to be linear. Scope 2 emissions

were lower than last year, but Scope 1 emissions

were higher than expected due to increased

generation from our Long Island facilities that burn

oil and gas. These units are crucial to reliability and

are contracted to the Long Island Power Authority

(LIPA), which controls when and how much they

run to maintain reliable energy supply in the region.

Our Scope 3 emissions increased by 11% in

2025/26, primarily due to an increase in supply

chain emissions, as anticipated in our CTP, as we

build out new infrastructure. We continue to identify

opportunities to reduce supply chain emissions

and aim to decouple spend growth from

emissions growth.

Affordability continues to be a concern for

households and businesses. In the US, we've

continued to raise awareness of financial

assistance and support available and, in the UK,

we've seen reforms to the connection queue that

will help us to prioritise connection-ready low-

carbon generation projects to expand availability

and maximise capacity.

We also support our local communities through

volunteering and skills development programmes.

We maintain partnerships with charities, non profits

and educators to create skills and employability

pathways for everyone in our communities and to

provide opportunities for colleagues to volunteer.

We are committed to creating a work environment

where people are treated fairly and where everyone

feels respected, valued, and empowered to reach

their full potential. For our colleagues, safety

remains our top priority as project work is scaled

up to meet our commitments, and we have a range

of initiatives underway in our business units to

ensure we meet our safety targets.

The following sections highlight the progress made

in the last year against our RBC and where there is

more to do. Working with our stakeholders, we will

continue to make progress on all of our

commitments.

1. Avoided emissions represent the difference between baseline

(counterfactual) emissions and emissions after the

implementation of the low-carbon alternative. We have estimated

cumulative avoided emissions to 2030/2031 from low-carbon

solutions delivered in 2025/26, specifically 1) Renewable

electricity connections (direct connections to our transmission

and distribution networks) 2) Electric heat pumps replacing fossil-

fuel boilers (in our distribution/customer regions) and 3) Electric

vehicles replacing internal combustion engine vehicles (in our

distribution/customer regions). Renewable electricity connections

are sourced from our Responsible Business data tables. Heat

pump and electric vehicle data is sourced at the NY, MA and UK

level on a calendar year basis, and National Grid's share is

estimated by using NGED's share of electricity distribution

network customers in the UK and our delivered electricity load in

our US jurisdictions. Grid carbon intensity and marginal plant

intensity are calculated on a calendar year basis.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **40** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our environment**<br>|  |  |  |  |  |

---

![ResponsibleBus-Environment.jpg](nggtf-20260331_g143.jpg)

We have always viewed our targets as ambitious.

Achieving them relies on a combination of actions

we take ourselves, as well as technological

dependencies, policy and regulatory frameworks in

the regions we operate, and actions by others

including businesses and energy consumers. Our

ability to achieve our climate targets is driven by

the policies put in place by the jurisdictions where

we operate that support decarbonising their energy

systems at a rapid pace. Political and economic

headwinds have intensified in the past year.

Governments face multiple pressures, including

budget constraints and customer affordability

concerns, which may impact the pace of

## Our environment
**By building out the network of the future, we enable the** 

**deployment of low-carbon energy supply and support the** 

**electrification of heat and transport. We are also working** 

**hard to manage the impact of energy infrastructure on the** 

**natural environment.**

Our second Climate Transition Plan (CTP), published in May 2024, outlines our

roadmap to achieve net zero by 2050. As part of this, we have set near-term science-

based GHG emissions reduction targets at a Group level. These have been approved

by the Science-Based Targets initiative (SBTi) as aligned with limiting global warming

to a 1.5°C pathway and the ambition of the Paris Agreement, and have been developed

using an SBTi sectoral decarbonisation approach where available. SBTi is currently

developing the Corporate Net Zero Standard Version 2, and we have been actively

engaged in their consultation to shape the new standard.

Actions by our stakeholders are crucial to us being able to deliver our emissions

reductions targets. We engage with policymakers and regulators aiming to achieve

the required planning and permitting changes in the UK and US, and in the US where

we are an energy supplier, policies that promote energy efficiency and the use of low-

carbon fuels. We also work with customers to promote efficient solutions, industry

groups to advance new technologies, and our suppliers to help decarbonise the

value chain.

decarbonisation. While the costs of some

technologies continue to fall, the costs of other

renewable technologies have risen, which is also

impacting policy and the pace of the transition.

We've made good progress across multiple areas

of our emissions inventory, including where we

have direct control. Where we don't have direct

control, achieving our near-term targets looks

increasingly challenging as we are reliant on policy

and regulatory dependencies. Below, we provide

an update on progress against some of our

targets, including some of the most material

dependencies that could impact our progress.

Moving forward, we will continue to prioritise

reductions where we have operational control and

influence areas where we do not, refining our

approach based on our results. More detail on our

targets, key dependencies and challenges can be

found in our CTP, available on our website.

![](nggtf-20260331_g144.gif)

**We committed to**

Achieve net zero by 2050

for Scope 1, 2 and 3 GHG

emissions

We continue to work towards our ambitious

targets. However, we are reliant on external

dependencies such as policy and regulatory

support and wider sectoral decarbonisation.

**Scope 1 and 2 GHG emissions for** 

**2025/26 were 7,511 ktCO2e, outside of** 

**our range set out in the CTP, and down** 

**3% from our 2018/19 baseline.**

---

| | |
|:---|:---|
| **Progress to target**<sup>1,2</sup> **%** | **Target 2030/31** |
| **3%** | **60%** |

---

![66](nggtf-20260331_g145.gif)

Scope 1 GHG emissions in areas where we have

greater direct control have fallen from the baseline

year. Gas operational emissions from fugitives and

venting comprise about 10% of our Scope 1 and 2

emissions and have decreased 4.2% from the prior

year. These emissions are largely driven by the

volume of gas travelling through our pipes and are

being addressed through investments in cross

compression, pipeline coatings, vacuum purging,

and rehabilitation of leak-prone piping.

In 2025, we replaced 315 miles of leak-prone pipe

in New York and Massachusetts. This long-

standing programme delivers emissions reductions

each year. This programme is progressing within

the projected ranges of our CTP. We are also

evaluating advanced leak detection technologies,

including stationary, satellite, aerial and ground

based solutions to quickly identify and mitigate

emissions sources.

Scope 1 GHG emissions where we have less direct

control are outside of the range that we set out in

our CTP. The most challenging area is emissions

from our Long Island generation facilities, where

emissions increased by 19% from the previous

year. These units burn oil and gas and are

contracted to the Long Island Power Authority

(LIPA), which controls when and how much they

run to maintain reliable energy supply in the region.

1. Includes Scope 2 location-based emissions only.

2. Near-term targets approved by Science-Based Targets initiative

(SBTi) and aligned to the Paris Agreement and a 1.5ºC pathway.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **41** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our environment**<br>|  |  |  |  |  |

---

**Our 2025/26 GHG emissions footprint across direct and indirect sources was 37,015 ktCO2e**

Our Long Island generation assets are currently

expected to be materially depreciated by 2040,

![supply chain dia_pp41_NEW v2.jpg](nggtf-20260331_g146.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Upstream Scope 3** | **Supply chain and other upstream emissions** | **Supply chain and other upstream emissions** |  |
| **Upstream Scope 3** | **7,012kt** |  |  |
| **Upstream Scope 3** | **18.9% of total footprint** |  |  |
| **Upstream Scope 3** | –Construction and maintenance of energy infrastructure<br>–Equipment and components<br>–Well-to-tank emissions for generation <br>and transportation of electricity | –Construction and maintenance of energy infrastructure<br>–Equipment and components<br>–Well-to-tank emissions for generation <br>and transportation of electricity |  |
| **Upstream Scope 3** |  |  |  |
| **Scope 1 and 2** | **Power generation** | **Operation** | **Administration** |
| **Scope 1 and 2** | **3,929kt** | **3,356kt** | **226kt** |
| **Scope 1 and 2** | **10.8% of total footprint** | **9.1% of total footprint** | **0.6% of total footprint** |
| **Scope 1 and 2** | –Electricity generation from <br>fossil fuels<br>| –Line losses from our electricity <br>transmission and distribution <br>networks<br>–SF6 leaks from electrical <br>equipment<br>–Leaks and venting from <br>our gas network<br>–LNG venting and fuel<br>| –Building energy consumption<br>–Company cars<br>–Commercial fleet<br>|
| **Scope 1 and 2** |  |  |  |
| **Downstream Scope 3** | **Administration** | **Retail energy:** <br>**Sold Gas**<sup>1</sup><br>| **Retail energy:** <br>**Sold Electricity**<sup>1</sup><br>|
| **Downstream Scope 3** | **86kt** | **19,736kt** | **2,670kt** |
| **Downstream Scope 3** | **0.2% of total footprint** | **53.4% of total footprint** | **7.2% of total footprint** |
| **Downstream Scope 3** | –Business travel<br>–Employee commuting<br>–Waste<br>| –Emissions from the gas that we <br>sell to our customers<br>| –Emissions from the electricity <br>that we sell to our customers<br>|

---

aligning with New York State's zero-emissions

electricity targets. However, given delays to

offshore wind and anticipated load growth,

achieving a sufficient reduction in operating hours

in the timeframe required to hit our near-term

targets will be challenging, and fossil-fuel

generation assets may continue to operate beyond

2040 to support grid resilience.

Our Scope 2 emissions decreased by 15% during

2025/26. These are almost entirely comprised of

electricity network line losses and are broadly in

line with the trajectory set out in our CTP.

Electricity network line loss emissions are primarily

influenced by the location and carbon intensity of

generation and the location and magnitude of

demand, which are outside of our control. If our

jurisdictions see a slowdown in the pace of

decarbonisation, this will slow the pace of emissions

reductions from line losses. We indirectly reduce the

emissions from electricity line losses by connecting

low-carbon generation to our networks. We calculate

emissions from losses using the average carbon

intensity of electricity in the regions where we

operate, as published by the UK Government and

the US Environmental Protection Agency (EPA).

In the UK, there has been significant progress in

decarbonising the grid. The continued

implementation of various policy reforms, including

connections and planning, is required to support

ongoing progress. For US line loss emissions to

decrease in line with our wider targets, we would

need to see a wider societal increase in the pace of

clean energy development. This would require

addressing wider challenges around permitting,

interconnection, and customer affordability in

addition to current state government activities related

to renewable generation.

Regarding specific sub-targets for Scope 1 and 2,

from a 2018/19 baseline:

–The carbon intensity of our power generation

(Scope 1 GHG emissions) has increased by 3%

per MWh against a target of reducing by 90% by

1. Retail energy emissions are primarily driven by the gas and electricity we sell to our customers. Reducing these emissions depends on a

combination of actions we take, customer choices, wider energy system decarbonisation, and policy and regulatory frameworks.

2030/31 and 92% by 2033/34.

–We've reduced absolute Scope 1 and 2 GHG

emissions (excluding generation) by 26% against

a target of 50% by 2030/31.

We report on our power generation emissions

intensity as part of our SBTi targets. Since we

completed the sale of National Grid Renewables in

2025, our generation portfolio is made up solely of

gas and oil generation assets, which are operated

by LIPA. With this change, achieving this target is

very challenging, requiring fuel switching or carbon

capture technologies which are not yet

commercially viable.

**20% of our light-duty vehicles are** 

**electric vehicles.**

---

| | |
|:---|:---|
| **Progress to target %** | **Target: 2030/31** |
| **20%** | **100%** |

---

![78](nggtf-20260331_g147.gif)

We are making progress against our target to

move to a 100% electric fleet for our light-duty

vehicles, however, we continue to face challenges

with vehicle cost and availability. This year, we

have added 219 electric vehicles to our

commercial fleets, bringing our total to 1,235 EVs,

20% of our total number of light-duty vehicles.

Achieving this target is dependent on the cost,

availability, and performance of vehicles with the

required characteristics to meet operational needs,

which makes achievement of this target

increasingly challenging.

This year, we also introduced our first heavy duty

electric vehicle to our fleet, a box truck with a 230-

mile range based at our Sutton depot in

Massachusetts.

Moving forward, we will consider strategies to reduce

emissions from transport that are informed by vehicle

availability, use cases and conditions in the regions

where we operate, and cost effectiveness. We will

keep this target under review.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **42** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our environment**<br>|  |  |  |  |  |

---

![Resp Bus_pp40_environ_NEW.jpg](nggtf-20260331_g148.jpg)

**SF6 emissions from our operations are** 

**down 43%.**

---

| | |
|:---|:---|
| **Progress to target**<sup>1</sup>**%** | **Target: 2030/31** |
| **43%** | **50%** |

---

![90](nggtf-20260331_g149.gif)

We continue to reduce SF6 emissions caused by

emerging leaks, resulting in GHG emissions

reductions of 43% against our 2018/19 baseline.

The majority (around 80%) of the SF6 we use on our

networks is in UK ET. Our focus is on SF6 leak

detection and repairs, as well as increasing our

investment in SF6 alternatives, working with other

UK transmission owners.

![300](nggtf-20260331_g150.gif)

**Absolute energy consumption in our** 

**flagship offices is down by 48%,** 

**exceeding our 20% target.**

---

| | |
|:---|:---|
| **Target:** <br>**2030/31**<br>| **Progress to** <br>**target %**<br>|
| **20%** | **48%** |

---

![102](nggtf-20260331_g151.gif)

We have reduced energy consumption in our flagship

offices by 48% against our 2019/20 baseline,

exceeding our 20% target, by optimising heating,

ventilation, air conditioning, and lighting to promote

efficiency while meeting the needs of our colleagues.

We also indirectly contribute to emissions

reductions through the purchase of renewable

certifications. In 2025/26 we achieved 62%

(2024/25: 36%) of renewable electricity purchased

with renewable certification globally, driven by the

UK, where 99.7% (2024/25: 49%) of electricity

purchased for operational purposes was with

renewable Energy Attribute Certification (EACs)

where we have choice over purchasing sources.

For leased and other sites where we do not have

purchasing decision choice, we do not have

control over whether the electricity purchased is

with renewable credentials. The increase

compared with the prior year mainly reflects the

disposal of Grain LNG; as the asset did not hold

EACs, its exit from the Group has led to a

significant increase in the UK percentage.

**Our Scope 3 emissions (excluding sold** 

**electricity) were up 11% from our** 

**2018/19 baseline.**

---

| | |
|:---|:---|
| **Progress to target**<sup>1</sup> **%** | **Target: 2033/34** |
| **(11%)** | **37.5%** |

---

**Our Scope 3 emissions (excluding sold** 

**electricity) for 2025/26 were 26,833** 

**ktCO2e.**

The majority of our Scope 3 emissions result from

the use of sold gas we deliver to our customers in

the US, with these emissions making up about

75% of our Scope 3 emissions target.

Meeting our Scope 3 sold gas target would require

an additional estimated 1.2-1.8 million gas

customers converting to electric heat by 2033/34.

We continue to seek to enable the connection of

low-carbon electricity generation that is necessary to

support customers in switching to electric heat, and

we offer incentive programmes to encourage

customers to adopt heat pumps. However, to further

motivate heat pump adoption, we would need to

see reductions in the upfront cost of heat pumps, as

well as efficiency gains in heat pump technology.

Achieving the emissions reductions required to meet

our Scope 3 target is therefore challenging.

Emissions within our supply chain represent

approximately 18% of our Scope 3 emissions

target, and we have seen emissions increase by

2% during 2025/26. We projected this in our CTP

due to increased spend on goods and services

associated with the construction of new energy

infrastructure.

Regarding specific sub targets for Scope 3, from a

2018/19 baseline:

–The carbon intensity of power generation and

sold electricity (Scope 1 and Scope 3 GHG

emissions) decreased by 1% against a target of

reducing by 86% by 2033/34<sup>1</sup>.

–We've reduced absolute GHG emissions from

gas sold by third parties by 10% against a target

of 37.5% by 2033/34<sup>1,2</sup>.

**62% of our UK supply chain emissions**<sup>3</sup>

**are from suppliers that have formally** 

**committed to setting a science-based** 

**target (SBT). 32% of our US supply chain** 

**emissions**<sup>3</sup>**are from suppliers that have** 

**established a roadmap towards science-**

**based targets.**

---

| | | | |
|:---|:---|:---|:---|
| **Progress to target**<sup>1</sup> **%** | **Progress to target**<sup>1</sup> **%** | **Progress to target**<sup>1</sup> **%** | **Target: 2025/26** |
| ![ResponcE-Bus-UK_Icons.gif](nggtf-20260331_g152.gif) | **UK** | **62%** | **80%** |
| ![ResponcE-Bus-US_Icons.gif](nggtf-20260331_g153.gif) | **US** | **32%** | **50%** |

---

![114](nggtf-20260331_g154.gif)

![263](nggtf-20260331_g155.gif)

We continue to collaborate with key suppliers who

contribute significantly to the emissions associated

with the goods and services we procure. In the UK,

62% of our UK supplier GHG emissions are from

suppliers who are committed to setting an SBT. In

the US, 32% of our supplier GHG emissions are

from suppliers who have established a roadmap

toward SBTs. As our supply chain emissions data

and insights have matured, we have moved from

reporting a percentage of suppliers committed to

SBTs or an SBT roadmap, to the percentage of our

supply chain emissions covered by those suppliers.

Our suppliers have many dependencies that are

outside of their control, including the lack of SBT

pathways for certain sectors. SBTi is currently

consulting on the standards used to set validated

SBTs, with new standards expected to be formally

in place at the start of 2027. Because of this, we are

recommitting to our supply chain engagement,

retaining the target but extending the target date to

2030/31 and reporting a percentage of emissions

rather than a percentage of suppliers. We had

stated that this target was under review in our

2024/25 disclosure.

1. Near-term targets approved by SBTi and aligned to a well below

2°C pathway.

2. Third-party sold gas, a US only emission, are downstream

emissions associated with the combustion of natural gas

delivered through our network but sold by a company other than

National Grid. This differs from Scope 3 Cat. 11 GHG Protocol

guidance, which otherwise advises to consider only the end use

of goods sold by the reporting company itself.

3. Carbon Strategic Supplier Engagement: GHG emissions from

Scope 3 Cat 1 and Cat 2: Purchased Goods and Services and

Capital Goods only.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **43** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our environment**<br>|  |  |  |  |  |

---

We have developed a new responsible supply chain

![](nggtf-20260331_g156.gif)

**We are committed to**

strategy to work toward embedding sustainability

criteria into our strategic sourcing process. This

strategy focuses on the changes we need to make to

our contracting approach, tender strategy, and

engagement to drive change. More detail on this

strategy is available on our website.

Key construction materials such as concrete and

steel have significant carbon footprints and more

sustainable alternatives are difficult to source and

come at a higher cost. To see reductions in supply

chain emissions in line with our Scope 3 target, we

would need to see a significant reduction in the

carbon intensity of construction materials. In UK

ET, as part of our RIIO-T3 business plan, we've set

targets against some of our key carbon hotspot

areas, enabling us to influence how suppliers

respond and make changes to their operations.

**Air travel emissions are down 45% from** 

**our 2019/20 baseline.**

---

| | |
|:---|:---|
| **Progress to target %** | **Target 2025/26** |
| **45%** | **50%** |

---

![126](nggtf-20260331_g157.gif)

This year, absolute emissions from business air

travel are lower than the previous year at 6.1

![163](nggtf-20260331_g158.gif)

ktCO2e, a 45% reduction from our baseline.

Air travel emissions are a very small portion (0.01%) of

our total Scope 3 emissions. While we have not hit our

target, we have made good progress in this area.

We've implemented hybrid working, consolidated

meetings to reduce the number of trips necessary and

embedded sustainability considerations into our travel

policy, discouraging travel where it is not necessary.

As a transatlantic business, we try to balance the

business benefits of in-person meetings with creating

efficiencies by reducing air travel. We remain focused

on reducing emissions in our most material areas and

reinforcing our travel policy to drive ongoing

progress, and we will not renew this target.

Protecting our natural

environment

In the UK we are committed to restoring the land

we manage. We use a natural capital approach to

measure the impact of improvements we make on

the non-operational land at our own sites based on

financial value estimations.

Due to significant differences in the conditions of

habitats and levels of biodiversity present in the

landscape between the UK and US, in the US our

efforts focus on the preservation of the natural

lands that we own. Acreage reported in the US

includes lands we have enrolled in our integrated

vegetation management (IVM) programme, which

aims to preserve biodiversity by optimising

trimming on our rights-of-ways, and other nature-

related projects.

**On the land we manage in the UK, we have**![Restoration.jpg](nggtf-20260331_g159.jpg)

**restored the natural environment by 15%.**

---

| | |
|:---|:---|
| **Target** | **Progress to target %** |
| **10%** | **15%** |

---

A natural capital approach allows us to

demonstrate environmental restoration by

supporting and measuring beneficial changes to

land management and biodiversity. This is only

driven by activities in our UK ET business.

We manage around 1,800 hectares of non-

operational land in the UK, including hedgerows,

ancient woodland, wildflower meadows, wetlands,

grasslands and peat bog. We committed to

improving its environmental value by at least 10%

by 2026. Since 2020/21, we have achieved a 15%

increase. In our final year of the RIIO-T2

Environmental Incentive (2025/26), we delivered a

further uplift by introducing nine new strategic

partnerships and expanding one existing

agreement.

UK ED focuses on improving biodiversity on our

operational sites. We have committed to a six–year

formal partnership with Heart of England Forest to

support woodland management and restoration in

our West Midlands licence area. This past year, we

surveyed 18 sites to establish baseline habitat type

and quality, allowing us to develop habitat

maintenance plans to guide vegetation

management on these sites.

**On the land we manage in the US, we** 

**have enrolled 1,162 acres in our IVM** 

**programme and other nature related** 

**projects.**

This year, we launched a collaborative BioAudit

biodiversity study with scientists and experts from

ACRT Services to help us assess the habitat quality

of our rights-of-ways. These corridors play an

important role in enhancing plant biodiversity and

ensuring that pollinators and wildlife have a place

to call home.

The data from the on-site assessments help us to

proactively plan and take measures to improve

habitat on these sites.

We also completed a nature-based solutions pilot

with Jacobs Engineering, Biomimicry 3.8, and EMX

Industries on a substation rebuild in Massachusetts.

The initiative aimed to solve common project

challenges using nature-inspired solutions. Eight

nature-based interventions were identified and

scoped into the substation rebuild design,

including moss walls, rain gardens and vegetated

filter strips.

**Nature restoration at our Bell Rock** 

**substation expansion project, Fall River, MA**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **44** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our environment**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g160.gif)

**We are**

Investing in the decarbonisation

of the future of energy

**We invested £9.8 billion in green** 

**infrastructure and projects in 2025/26**<sup>1</sup>**.**

We play a key role in enabling and accelerating the

move to a cleaner energy future. Network

investment is vital for connecting new low-carbon

power generation and storage that will be needed

in the coming decade to accommodate the

expected rises in electricity demand and the

connection of renewable energy resources.

Our proportion of green capital expenditure

increased in 2025/26, aligning with EU Taxonomy

principles for climate change adaptation and

mitigation. In 2025/26, around 88.5% (£9.8 billion)

of our Group's capital expenditure was aligned,

compared with 81% (£7.7 billion) in the previous

year. Green capital expenditure share of total

capital investment, which includes capital

prepayments and equity contributions, was 85%.

Our first six projects in Wave 1 of our Great Grid

Upgrade in the UK are now in construction, and in

the US, we continue to progress with permitting

requirements for our Upstate Upgrade projects in

New York. The essential upgrades that we're

delivering in the US and UK will help to create a

modernised, stronger and cleaner energy network

and will generate new jobs.

These infrastructure investments also support

connections of renewable generation to the grid in

our territories. In 2025/26, we connected 1,125

MW of energised renewable capacity to our

networks across the UK and US.

1. Aligned to the principles of EU Taxonomy for sustainable

investment.

![](nggtf-20260331_g156.gif)

**We are committed to**

Using resources responsibly

**We manage our environmental impact** 

**with a focus on pollution, waste and** 

**water use.**

Various aspects of our work create waste,

including cleaning up former gas plant sites, retiring

old fossil fuel assets and leak-prone equipment,

and building grid infrastructure. We work to ensure

that our waste is correctly disposed of with

appropriate environmental permits and in

compliance with regulatory standards in the

applicable regions.

The different categories of waste are summarised

in our data tables, available on our website. Some

waste is classed as hazardous waste. This arises

from the removal of contaminated land during

commercial property activity and the disposal of oil

and polychlorinated biphenyl (PCB) or lead-

contaminated materials.

We recycle, refurbish and reuse materials at asset

refurbishment and investment recovery facilities in

the UK and US, promoting circularity within our

operations. We also work to reduce our waste

through initiatives such as the deployment of

reusable covers to replace plastic bags on units in

our plant centres in the UK. We're also using

recycled materials in our operations, including the

use of copper with recycled content for

transformers in our Eastern Green Link 2 project.

More on our commitments around resource use

and waste management can be found in our

Environmental Operations Policy.

Our water use relates almost entirely to water used

for generation cooling purposes. Abstracted water

is not altered other than being slightly warmed by

the process. Water discharge temperatures are

closely monitored and follow applicable

regulations. This year, 1,234 million cubic metres

were withdrawn. Of this total, 99.6% relates to the

use of seawater for cooling generation assets in the

US and is returned to the sea in accordance with

permitted temperature limits.

![](nggtf-20260331_g161.gif)

**We are**

![](nggtf-20260331_g162.gif)

Adapting to a changing climate

**We take action on our climate change** 

**risks and opportunities and invest in** 

**climate change adaptation activities.**

Climate hazards are projected to increase in

frequency and severity in the future, with high

temperatures and coastal and river flooding of

particular concern in the areas where we operate.

Our approach to climate resilience, and addressing

risks arising from global warming impacts is

outlined in our TCFD report on pages 61-66. In

addition, our EU Taxonomy report details our

climate change adaptation expenditure.

![RB Environment pp44.jpg](nggtf-20260331_g163.jpg)

---

| |
|:---|
| **£9.8bn** |
| **2025/26 Green capital** <br>**expenditure**<br>|
| **Aligned to EU Taxonomy principles for** <br>**climate change adaptation and** <br>**mitigation**<br>|
| **1,125 MW** |
| **Energised renewable capacity** <br>**connected in 2025/26**<br>|

---

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **45** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our customer and communities**<br>|  |  |  |  |  |

---

![ResponsibleBus_CustCom_Family.jpg](nggtf-20260331_g164.jpg)

We acknowledge that there is a need for further

support to our customers. In both the UK and US,

support is needed for customers facing high

energy bills. In the UK, customers face long

connection wait times, negatively impacting

consumer sentiment. However, NESO has initiated

reforms to the connections queue that will help us

to deliver faster, more strategic grid connections

for our customers.

![](nggtf-20260331_g156.gif)

**We are committed to**

Supporting an affordable

energy transition

Our

customers and

communities

**As we help to build out the network of the future, we aim** 

**to create social value for our customers and communities.** 

**We work to create economic growth in the communities** 

**we serve and support affordability as a key part of the** 

**energy transition.** 

We provide assistance to our customers and communities to help manage the

rising costs of energy and necessary infrastructure upgrades, working to

maintain positive relationships with our stakeholders.

Our skills development programmes provide people from disadvantaged

communities with access to training and employment opportunities, helping to

build our potential workforce of the future.

Our colleagues participate in volunteering events and projects to foster positive

relationships with our customers, communities and local regulators.

**We have established the Grid for Good**![](nggtf-20260331_g156.gif)

**We are committed to**

**Energy Affordability Fund to provide** 

**assistance with energy bills.**

National Grid remains committed to ongoing

support for those that cannot meet energy costs

and maintains the Grid for Good Energy

Affordability Fund to provide bill assistance. This

fund assists vulnerable households and businesses

struggling with energy costs via our charity

partners including the Fuel Bank Foundation, the

Centre for Sustainable Energy and the National

Energy Foundation.

We worked with key charity partners in the UK and

US to provide assistance with energy efficiency

upgrades, emergency financial support and

provision of energy advice to low-to-moderate-

income customers. In the last year in the UK, we

supported over 20,000 households through our

programmes.

The current Grid for Good Energy Affordability

Fund will run through 2026/27 to continue financial

support for organisations that assist vulnerable

households. Each year, the fund commits

£3.5 million of support in the UK and £3.3 million in

the US.

---

| | |
|:---|:---|
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **More information on how our funding is** <br>**supporting charities and organisations to provide** <br>**relief to vulnerable households can be found on** <br>**our website.** |

---

In the US, we offer a range of programmes to help

income-eligible families and customers manage

their energy bills. These include tiered discount

rates, bill discounts, energy efficiency programmes,

budget billing structures and payment extensions.

However, we acknowledge that there is more to be

done to support bill assistance to help our

customers manage rising costs.

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **More details on our contributions to UK bills and** <br>**average billing to US households can be found in** <br>**our Responsible Business data tables.** |
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **More information on our affordability initiatives in** <br>**ED, NY and NE can be found on pages [19](#i14c0bbea913d44f7b46ab4efa269e40c_25158) — [21](#i14c0bbea913d44f7b46ab4efa269e40c_25156)** |

---

Accelerating social mobility

We support social mobility in the communities we

serve through partnerships with registered

charities, not-for-profit organisations, social

enterprises, educators, and our supply chain.

With these organisations, we have created skills

and employability pathways that help ensure

everyone has the opportunity to reach their

potential, regardless of background. Our work is

focused on improving awareness of the energy

industry and National Grid as an employer,

providing energy education programmes to

disadvantaged youth and work-ready adults, and

offering coaching for potential future talent.

We've exceeded our goal to upskill 45,000 people

in our communities and we remain dedicated to

actively supporting these programmes.

We ranked 8th out of the top 75 employers in the

2025 UK Social Mobility Index (SMI), rising 34

places from the previous year. This achievement

demonstrates our leadership in building an

inclusive, representative, and successful workplace

that supports upward social mobility.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **46** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our customer and communities**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g166.gif)

**We are**

Engaging directly in our

communities through

volunteering

**Across the UK and US we have delivered** 

**52,620 volunteering hours in 2025/26 to** 

**support our communities.**

---

| | |
|:---|:---|
| **Progress to target (hours)** | **Target: 2030/31** |
|  | **500,000** |

---

![100](nggtf-20260331_g167.gif)

Our volunteering programmes enable our

colleagues across the UK and US to connect with

their communities and have a tangible impact on

the causes that matter. We work with many partner

organisations to provide opportunities for

colleagues to volunteer their time in local

communities. Our volunteer efforts focus on

increasing access to affordable energy, increasing

access to STEM/STEAM education and building

community resilience. Colleagues this year have

logged 52,620 volunteering hours, bringing our

total to 292,611 volunteering hours since 2021.

Case studies on our volunteering engagement can

be found on our website.

![](nggtf-20260331_g166.gif)

**We act**

On the feedback we receive

from our customers on the

service we provide

Across the UK and US, we serve millions of

households and thousands of businesses. We are

committed to delivering secure and reliable energy

as affordably as possible, maximising the capacity

of our assets and ensuring our customers benefit

from an efficient and reliable network.

We recognise that there has been limited progress

across the business, especially in the US, on

customer satisfaction due to bill increases and

delays in connecting to our network. We are

listening to feedback and taking steps to address

these issues.

**US customer satisfaction**

This year, our US businesses refocused their CSAT

metric to better reflect overall customer experience.

The metric is measured through our monthly Brand

Image Relationship study and through post-

interaction customer surveys, and it is designed to

help us improve customer experience and

strengthen customer-centred thinking across our

business.

In 2025/26, New York saw a CSAT score of 72.8%

and New England saw a score of 72.2%.

Customers in both regions faced high fuel prices

and temperature extremes that increased bills,

which negatively affected customer perceptions.

We recognise that we need to do more to improve

customer satisfaction. We are committed to raising

awareness of financial assistance and other

services that help customers manage their energy

bills. In Massachusetts, we launched a new tiered

discount rate programme that expands eligibility

and assistance for our most vulnerable customers.

In New York, our NIMO rate plan, approved by the

Public Service Commission, includes

enhancements to affordability programmes.

We also held in-person customer assistance events

across our US jurisdictions. These events bring our

customer service specialists into community centres,

senior centres and other public gathering places, to

meet directly with customers. Here, our customers

can ask questions, discuss assistance programmes

and get help with our energy efficiency initiatives.

These events are critical to connect our customers to

the support programmes and tools they need.

We are in the process of implementing Kraken, a

groundbreaking, cost-effective platform that will

support end-to-end ownership of the customer

experience. We will be the first major regulated US

utility to adopt Kraken, which will improve the

customer experience by simplifying and

modernising how customers interact with us.

We continue to deploy Advanced Metering

Infrastructure (AMI) technology across New York

and Massachusetts, giving customers greater

visibility of their energy use. We have cumulatively

deployed over 500,000 smart meters in New

England and over 1.5 million in New York.

**UK ED customer satisfaction**

In UK ED, we have delivered a high level of

customer satisfaction for 2025/26 with a score of 9

![](nggtf-20260331_g168.gif)

out of 10.

We identify areas of best practice across our

licence areas to expand those solutions across the

business. We continue to undertake customer

service training, have customer engagement group

forums, and learn from the activities of other

distribution network operators to ensure we are

making the right decisions for our customers and

improve the customer experience.

**UK ET customer satisfaction**

In UK ET, Quality of Connections remains a pivotal

initiative, underpinning our commitment to

capturing valuable customer insights at every stage

of the connection lifecycle by measuring customer

satisfaction and gathering feedback. In UK ET, our

customer satisfaction score for 2025/26 was 7 out

of 10, demonstrating a positive shift compared to

last year, marked by significant industry reform and

rapid change.

NESO initiated reforms to the existing connections

queue that will aim to help UK ET deliver faster,

fairer and more strategic grid connections for

existing and future customers. For more on these

reforms, see page [18](#i6f250a91cd464a04873e5851a20d0163_43).

UK ET also drives broader societal economic

benefits to support customer satisfaction. For

example, we are currently upgrading our Didcot

substation in Oxfordshire to enable the connection

of data centres and battery storage systems to the

electricity transmission network. Located just two

miles from the UK's first AI Growth Zone at

Culham, Didcot substation will boost grid capacity

for future digital projects. It will also connect 300

MW of battery schemes, helping to meet growing

demand for flexible, zero carbon power in the

region. Read more about the Didcot substation

project on our website.

**NGV customer satisfaction**

NGV conducts customer satisfaction surveys

across its business units and achieved good

scores overall in 2025/26.

Our UK subsea electricity interconnectors and US

NGV operations have scored the following:

---

| |
|:---|
| **IFA, IFA2 and Viking** |
| **92%** |
| **Prior year: 86%** |
| **BritNed** |
| **90%** |
| **Prior year: 87%** |
| **Nemo** |
| **91%** |
| **Prior year: 92%** |
| **The US Northeast** |
| **8 out of 10**<br>Prior year: 8 out of 10<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **47** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our people**<br>|  |  |  |  |  |

---

![ResponsibleBus-People_Intro_NEW v2.jpg](nggtf-20260331_g169.jpg)

![](nggtf-20260331_g166.gif)

**We are**

Investing in our people and

building the skills needed to

deliver the clean energy future

Our workforce is increasing and new skills will be

needed to deliver the grid of the future. Attracting,

developing and retaining a qualified and competent

workforce requires training programmes that are

robust, comprehensive, in line with local regulations

and focused on safety and competence.

In the UK, 132 graduates participated in our

## Our people
Our 33,017 colleagues across the UK and US

are central to delivering the grid of the future.

To deliver on our commitments, we need to attract, develop and retain

the skilled workforce needed to respond to changes in our external

environment and within the business.

The physical and mental health of our colleagues is central to everything

we do. We continue to focus on ensuring fair pay for all our people and

providing them with development opportunities.

graduate scheme, which aims to enhance

graduates' capabilities while emphasising

leadership development.

In the US, 98 graduates joined our refreshed

12-month development programme, which

includes a three-week orientation, blended virtual

and in-person skills training, three months of

coaching, and rotational placements for some

roles in months six to twelve.

In the US, we also continue to have a strong

Gridtern internship programme, welcoming

147 interns on summer internships in 2025.

---

| | |
|:---|:---|
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **Further details on our development programmes** <br>**can be found on our careers website.** |

---

Alongside early careers programmes, we provide a

wide range of development opportunities to our

colleagues through external learning providers,

including on-demand digital learning, behavioural

science-based development, team effectiveness

sessions and tailored virtual coaching for leaders

and senior colleagues.

We also run targeted leadership programmes to

identify and develop future senior leaders and to

support new and experienced managers in

becoming effective people leaders.

To achieve our commitments and deliver the grid

of the future, we need to attract, hire, and retain

people from a wide array of backgrounds, who

have different experiences and perspectives. We

take a clear stance against discrimination. Our

Global Recruitment and Hiring Policy ensures that

individuals identifying themselves as having a

disability receive fair consideration for all vacancies,

with reasonable accommodations and additional

resources provided whenever feasible. We are

dedicated to equal opportunities in recruitment,

training, promotion, and career development for all

our colleagues, including those with disabilities.

We aim to drive proactive sourcing, create a

best-in-industry candidate experience, and

maintain recruitment practices that help us build a

strong future workforce. We launched a new global

careers website to provide a single, modern

platform for candidates and a more tailored and

intuitive job searching tool.

In 2025/26, 41% of our vacancies were filled by

internal promotions and moves, demonstrating our

commitment to developing talent. We are also

increasing external hiring to secure the specialist

skills required for the future. Our workforce

---

| | | |
|:---|:---|:---|
| **81%** | **73%** | **77%** |
| **Employee** <br>**engagement** <br>**index in 2025/26**<br>| **'Safe to say' in** <br>**Grid:Voice in** <br>**2025/26**<br>| **Employee** <br>**wellbeing**<br>**index in 2025/26**<br>|

---

planning helps us anticipate capability needs and

shape targeted recruitment strategies, including

engaging with relevant talent pools ahead

of demand.

For more information, see our People Capability

and Capacity Group Principal Risk on page [35](#ic8543a20e14b4821bc9422ac343fb1b7_35).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **48** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our people**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g156.gif)

**We are committed to**

A workplace where all

colleagues can thrive

At National Grid, we believe that diversity of

thought drives innovation, enhances performance,

and strengthens our ability to deliver for our

customers and communities. We are committed to

fostering a workplace that is inclusive, respectful

and empowering, where every individual feels

welcome and supported.

Our focus is on our work environment, ensuring

colleagues are treated fairly, respecting the right to

differing opinions, and maintaining a safe work

environment. We will continue to adapt our

approach to meet the needs of our people, our

industry, and our stakeholders while staying true to

our values of doing the right thing and finding a

better way.

![](nggtf-20260331_g156.gif)

**We are committed to**

Creating an inclusive culture

**Fostering a culture in which colleagues** 

**feel safe to speak up and confident their** 

**voices are heard by the Group Executive** 

**Committee and Board remains a priority.**

Our leaders play a central role in shaping this

culture, supported by a global learning curriculum

that provides inclusive leadership training for

people managers.

Our Employee Resource Groups (ERGs) play a vital

![](nggtf-20260331_g156.gif)

**We are committed to**

role at National Grid. Open to all colleagues, 33%

of our workforce are members of at least one ERG.

ERGs help build awareness of inclusion and

belonging by offering support and development

opportunities, enabling colleagues to bring their

true selves to work and reach their full potential.

We carry out two annual employee engagement

surveys to provide the Group Executive Committee

and Board with further insight and understanding

of our culture and engagement. In our 2025/26

survey, our employee engagement index was 81%

and our Safe-to-Say score was 73%,

demonstrating that our employees feel engaged in

their work and empowered to speak up.

Throughout the year we were recognised for

numerous industry awards, including being named

in Times Top 50 Employers for Gender Equality, a

Glassdoor 2026 Best Place to Work, 8th out of the

top 75 employers in the 2025 UK SMI, and The

Equality 100 Award: Leader in LGBTQ+ Workplace

Equality Distinction by the Human Rights

Campaign Foundation.

In 2025, we participated in the Workforce

Disclosure Initiative for the eighth consecutive year,

achieving a disclosure score of 88% compared to

the sector average of 67%.

![](nggtf-20260331_g156.gif)

**We are committed to**

Leading the industry on

employee health and wellbeing

**Our employee wellbeing index is 77%.**

We aim to empower our colleagues to prioritise

their health and wellbeing by promoting healthy

practices and by offering wellbeing resources

through multiple channels. By focusing on health

and wellbeing, we aim to foster an environment

where everyone can thrive together.

In 2025/26, we continued to deliver our Thriving

Together health and wellness ambition to support

our people in feeling engaged and empowered to

prioritise health, wellbeing, and performance. We

provide our colleagues with educational and

support resources, materials for managers to

promote health and wellbeing on their teams, a full

range of health and wellness benefits, support for

neurodiverse colleagues, and on-site health

professionals. We also provide digital health and

wellbeing apps and access to an Employee

Assistance Programme to our colleagues in the UK

and US.

Ensuring all colleagues receive

fair and equitable pay

**We are continuing to focus on our** 

**gender pay gap.**

In the UK, we remain an accredited Living Wage

Foundation employer, which demonstrates that we

go beyond the Living Wage requirements,

voluntarily paying our trainees the Living Wage. We

undertake a Living Wage review each year to

ensure continued alignment. Our commitment to

the Living Wage for our direct workforce also

extends to our contractors. In the US, colleagues

![](nggtf-20260331_g170.gif)

are paid above the statutory minimums. We also

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Gender demographic as at 31 March 2026**<sup>1</sup> | **Gender demographic as at 31 March 2026**<sup>1</sup> | **Gender demographic as at 31 March 2026**<sup>1</sup> | **Gender demographic as at 31 March 2026**<sup>1</sup> | **Gender demographic as at 31 March 2026**<sup>1</sup> | **Gender demographic as at 31 March 2026**<sup>1</sup> |
| **Our Board**<sup>2</sup> | **Our Board**<sup>2</sup> | **Senior management**<sup>3</sup> | **Senior management**<sup>3</sup> | **Whole company**<sup>3</sup> | **Whole company**<sup>3</sup> |
| **46%** | **46%** | **44%** | **44%** | **25%** | **25%** |
| Male **6** | Female **5** | Male **90** | Female **72** | Male **24,803** | Female **8,214** |
| **Male** |  | **Male** |  | **Male** |  |
| **Female** |  | **Female** |  | **Female** |  |
| 1.Companies Act 2006 disclosure. We have included information relating to subsidiary directors, in accordance with the Companies Act 2006. Senior management is defined as those managers who are <br>at the same level as, or one level below, the Group Executive Committee. It also includes those who are Directors of subsidiaries where we have a majority interest, or who have responsibility for <br>planning, directing or controlling the activities of the Group, or a strategically significant part of the Group, and are employees of the Group.<br>2.Board refers to Directors of National Grid plc as defined on page 256 of this document.<br>3.In scope are active, permanent employees. Out of scope are non-employees, temporary staff and interns. | 1.Companies Act 2006 disclosure. We have included information relating to subsidiary directors, in accordance with the Companies Act 2006. Senior management is defined as those managers who are <br>at the same level as, or one level below, the Group Executive Committee. It also includes those who are Directors of subsidiaries where we have a majority interest, or who have responsibility for <br>planning, directing or controlling the activities of the Group, or a strategically significant part of the Group, and are employees of the Group.<br>2.Board refers to Directors of National Grid plc as defined on page 256 of this document.<br>3.In scope are active, permanent employees. Out of scope are non-employees, temporary staff and interns. | 1.Companies Act 2006 disclosure. We have included information relating to subsidiary directors, in accordance with the Companies Act 2006. Senior management is defined as those managers who are <br>at the same level as, or one level below, the Group Executive Committee. It also includes those who are Directors of subsidiaries where we have a majority interest, or who have responsibility for <br>planning, directing or controlling the activities of the Group, or a strategically significant part of the Group, and are employees of the Group.<br>2.Board refers to Directors of National Grid plc as defined on page 256 of this document.<br>3.In scope are active, permanent employees. Out of scope are non-employees, temporary staff and interns. | 1.Companies Act 2006 disclosure. We have included information relating to subsidiary directors, in accordance with the Companies Act 2006. Senior management is defined as those managers who are <br>at the same level as, or one level below, the Group Executive Committee. It also includes those who are Directors of subsidiaries where we have a majority interest, or who have responsibility for <br>planning, directing or controlling the activities of the Group, or a strategically significant part of the Group, and are employees of the Group.<br>2.Board refers to Directors of National Grid plc as defined on page 256 of this document.<br>3.In scope are active, permanent employees. Out of scope are non-employees, temporary staff and interns. | 1.Companies Act 2006 disclosure. We have included information relating to subsidiary directors, in accordance with the Companies Act 2006. Senior management is defined as those managers who are <br>at the same level as, or one level below, the Group Executive Committee. It also includes those who are Directors of subsidiaries where we have a majority interest, or who have responsibility for <br>planning, directing or controlling the activities of the Group, or a strategically significant part of the Group, and are employees of the Group.<br>2.Board refers to Directors of National Grid plc as defined on page 256 of this document.<br>3.In scope are active, permanent employees. Out of scope are non-employees, temporary staff and interns. | 1.Companies Act 2006 disclosure. We have included information relating to subsidiary directors, in accordance with the Companies Act 2006. Senior management is defined as those managers who are <br>at the same level as, or one level below, the Group Executive Committee. It also includes those who are Directors of subsidiaries where we have a majority interest, or who have responsibility for <br>planning, directing or controlling the activities of the Group, or a strategically significant part of the Group, and are employees of the Group.<br>2.Board refers to Directors of National Grid plc as defined on page 256 of this document.<br>3.In scope are active, permanent employees. Out of scope are non-employees, temporary staff and interns. |

---

provide a range of competitive benefits to our

colleagues that go beyond statutory minimums.

When making remuneration decisions for our

Executive Directors and other senior leaders, our

People & Remuneration Committee takes account

of the remuneration arrangements and outcomes

for the wider workforce.

We review gender and ethnicity pay gaps annually

![151](nggtf-20260331_g171.gif)

![139](nggtf-20260331_g172.gif)

![163](nggtf-20260331_g173.gif)

and our UK gender pay gap is reported one year in

arrears in accordance with UK legal requirements

on gender pay gap reporting. Our UK base gender

pay gap continues to be minimal.

---

| | |
|:---|:---|
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **Our gender pay gap disclosure** <br>**can be found on our website** |

---

---

| | | | |
|:---|:---|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Further information on Board workforce engagement can be found on page [95](#i6f250a91cd464a04873e5851a20d0163_121)** | ![Online-arrow.gif](nggtf-20260331_g165.gif) | **Further details on our culture can be found on our website.** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **49** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our Responsible Business Fundamentals**<br>|  |  |  |  |  |

---

![Resp_Business_Intro BG v6.jpg](nggtf-20260331_g174.jpg)

![](nggtf-20260331_g156.gif)

**We are committed to**

Safely, reliably and efficiently

connecting millions of people

to the energy they use

**Health and safety**

The health and safety of all our colleagues and

contractors is paramount. We require our people

to demonstrate our company-wide safety

principles of:

–Safe to Say: open and honest conversations

–Safe Choices: make smart decisions

Responsible

Business

Fundamentals

Every day, we safely, securely and reliably

connect millions of people to energy,

prioritise resilience and operate responsibly.

Our Responsible Business Fundamentals are the foundation of the pillars of our

Responsible Business Charter. We aim to continue to deliver on what is expected

of us and to be a compliant and ethical business in everything we do. We seek to

do this by ensuring safe and reliable operations and living our values, while

influencing our partners and supply chain and holding them to the same standards.

We invest in technology and governance, monitor security and risks, and advocate

for responsible business practices.

–Safe to Stop: stop the job whenever there is a

safety concern

–Safe to Learn: learn from every experience

We endeavour to mitigate risks and eradicate

injuries to our workforce, supported by our safety

management processes and Group safety

reporting system. To promote safe practices, we

maintain a full range of internal safety policies and

procedures, including our Employee Safety

Handbook and various process specific

procedures. We are also in the process of

implementing Cority, our enhanced safety reporting

system, to drive continuous improvement and

ongoing learning.

There have been no fatalities in 2025/26.

**Lost time injuries (LTIs)**

We have recorded a Group LTIFR of 0.11 this year,

compared to 0.10 in the prior year against our

Group target of 0.10 or less, per 100,000 hours

worked (this includes contractors working on our

behalf). The majority of the injuries were linked to

common and well-known exposures such as slips,

trips and falls, musculoskeletal injuries, and struck-

by incidents.

Various initiatives have been undertaken to

intervene with rising LTIs, including safety stand-

down days, issuance of safety refocus packs, and

various campaigns and intervention groups. We

aim to prevent serious injuries and fatalities through

a focus on our six fatal risk groups, with processes

in place to thoroughly assess and mitigate safety

risks, select and apply appropriate safety controls,

and intentionally monitor changes in the work

environment.

**Injuries to members of the public**

This year, there have been three incidents resulting

in injuries to members of the public which involved

our assets. These events all related to our UK

ET business.

**Reliability and resilience**

We have maintained reliability at 99.9% across our

networks. Details per business unit can be found on

page [28](#iee4806b7ad9c44e2be5eaed98caea4fa_3-0-1-6-954736). We maintain a robust business continuity

programme to ensure we maintain operations in the

event of a disaster or significant disruption.

We are also innovating to use AI and technology to

improve grid resilience. This year, we implemented

solutions to automate crew management during

storm response, piloted x-ray imaging of gas

pipelines, and tested demand response solutions for

data centres.

Further detail on resilience in our strategy can be

found in our TCFD disclosure on page [56](#i6f250a91cd464a04873e5851a20d0163_85).

**Efficiently connecting customers to the** 

**energy they use**

We aim to deliver energy to the homes and

businesses of our customers in an efficient way,

and all our business units are undertaking network

projects to improve efficiency and optimise

connections.

In UK ET, we are modernising how the network is

controlled, including making upgrades to our

control centre, and engaging with NESO on

connections reform. In the US, we've launched the

Kraken programme to drive efficiency in the

customer experience, and New York's Smart Path

Connect programme is enabling large-scale

renewable interconnections.

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Further information on how we operate safely and** <br>**efficiently can be found on page [17](#i7c115db81ed540d98ee024d7bb0af21a_7-1-4-2-954736).** |
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Further details on our initiatives to improve efficiency** <br>**can be found on pages [18](#i6f250a91cd464a04873e5851a20d0163_43) — [22](#i71ace38f0e3843ce88c0574de3a0e8d2_1-1-1-2-954736).** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **50** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our Responsible Business Fundamentals**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g156.gif)

**We are committed to**

Influencing our supply chain

to operate responsibly

**Suppliers must adhere to our Supplier** 

**Code of Conduct which includes**![](nggtf-20260331_g156.gif)

**We are committed to**

**commitments to the real Living Wage,** 

**compliance with the Conflict Minerals** 

**Rule and the development of** 

**environmental strategies and targets.**

This year we transitioned our supply chain

sustainability risk assessments and data to

EcoVadis, a globally recognised platform widely

used in the UK and US utility sectors. EcoVadis

provides us with enhanced visibility, assurance and

insights into our suppliers' sustainability practices.

Our key suppliers are determined by our UK and

US supply chain science-based targets and our

strategic supplier lists. To date, over 50% of our

key suppliers hold EcoVadis scorecards and we

will continue to engage with the remainder to

increase impact and accountability across our

supplier base.

We are a partner of the Supply Chain Sustainability

School in both the UK and US, providing free

education and learning pathways to our key

suppliers.

![](nggtf-20260331_g175.gif)

**We are**

Fair to our suppliers and

committed to paying them

promptly

**We recognise that timely payment is** 

**crucial for the financial health and** 

**operational stability of our suppliers. We** 

**aim to adhere to the agreed payment** 

**terms set out in contracts or purchase** 

**orders and our finance team works** 

**diligently to ensure that all invoices are** 

**processed efficiently.**

In the UK, we are a signatory of the Prompt

Payment Code and we also encourage our

suppliers to adopt the principles of this code. In

2025/26, 91% of our supplier payments in the UK

and 94% in the US were paid to contractual term.

Our Human Rights Policy

**Human Rights are integral to our Code of** 

**Ethics. We aim to be an ethical company** 

**that stakeholders want to do business** 

**with and colleagues want to work for.**

We have a separate Human Rights Policy to hold

ourselves accountable to respect the rights of our

workforce, our value chain and those impacted by

our operations and to provide a safe, secure and

inclusive work environment. We also publish an

annual Human Rights Report and Modern Slavery

Statement, outlining our approach to mitigating the

risk of modern slavery in our business and supply

chain. In our annual Modern Slavery Statement we

summarise the progress we have made, our key

policies, including their scope and focus, and the

key measures we use to assess our progress and

programme effectiveness. Further details of our

human rights and modern slavery disclosures can

be found on page 234. Further information and

copies of our policies can be found in our

Responsible Business reporting centre on our

website.

![](nggtf-20260331_g156.gif)

**We are committed to**

Being a compliant and

ethical business

**We are committed to maintaining high** 

**standards of compliance and ethical** 

**conduct. We have established rigorous** 

**internal incident reporting to drive the** 

**right behaviours, identify and monitor** 

**themes and trends, and facilitate** 

**learning.**

A breach of the Code of Ethics can have different

outcomes depending on the severity and impact

on people and our organisation, including

disciplinary actions, up to and including dismissal.

Sexual harassment prevention and response is

included in our Respect at Work policy, Grievance

policy, Code of Ethics, and Supplier Code of

Conduct. Communications across the business

have taken place to highlight our expectations and

how colleagues can speak up and report

concerns.

We have a communication and training programme

for colleagues which aims to promote a strong

ethical culture and includes mandatory e-learning

for colleagues to understand and apply our Code

of Ethics. We take a zero-tolerance approach to

fraud, bribery and corruption of any kind. We have

established policies and governance that set and

monitor our approach to preventing financial

crimes, fraud, bribery and corruption, including our

Code of Ethics. These are available on our website.

To ensure compliance with relevant anti-fraud and

bribery legislation, including but not limited to the

UK Economic Crime and Corporate Transparency

Act and the US Foreign Corrupt Practices Act, we

conduct a periodic risk assessment and

continuous monitoring of ethical conduct across

our operations and ethics processes. This includes

regular fraud and ethics risk assessments and

dashboard-driven monitoring. These processes

provide systematic verification of ethical behaviour,

detection of potential misconduct, and timely

response to ethics incidents.

Ethics, compliance and business conduct matters

are discussed quarterly at the Group Executive

Audit, Risk & Finance Committee and twice a year

at the Audit & Risk Committee. Serious issues that

meet our escalation criteria are reported in line with

our escalation process to the General Counsel

Litigation and Chief Compliance Officer, Chief Legal

Officer, Chief Executive, Audit & Risk Committee

and the Board, as appropriate. Investigations are

conducted promptly and thoroughly and, where

appropriate, acted upon.

**Whistleblowing**

We operate confidential internal and external

helplines that are always available in all the regions

where we operate for individuals to raise concerns

about breaches of the Code of Ethics. This is

supported by our "Speak-up" policy which sets out

how we protect anonymity and have zero-tolerance

for any form of retaliation.

Whistleblowing is regularly discussed at the Ethics,

Risk & Compliance Committee and the Audit &

Risk Committee.

**Artificial intelligence**

We use AI to solve problems and gain insights for

ourselves, our customers and society. We

recognise the importance of developing and using

AI in a responsible manner. Our use of AI is guided

by the principles of only using AI where

appropriate, using it as a tool to streamline and

accelerate ways of working, and always

maintaining human accountability and intervention.

Our Business Management Data Standard is

reinforced by a dedicated Responsible AI policy

and controls, due diligence assessments of both

ourselves and external partners, and an AI

Governance Council.

We've launched a Data and AI Academy with

training programmes for employees at all levels of

AI competence to develop the skills and

knowledge they need to thrive in a data-driven

future. We continually review and update our

approach to AI in line with regulatory, sustainability,

and technological advancements.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **51** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our Responsible Business Fundamentals**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g156.gif)

**We are committed to**

![](nggtf-20260331_g156.gif)

**We are committed to**

Investing in developing

technologies and innovations

**National Grid Partners (NGP) has** 

**invested c.$30.8 million in Responsible** 

**Business aligned companies since its** 

**creation in 2018.**

This year, investments included:

–training AI models to reliably identify gas pipeline

weaknesses in x-ray imagery, improving

reliability;

–grid simulations to identify areas of underused

capacity, ideal for connecting large-load

customers; and

–AI technology for data centre demand response,

reducing the need for costly network upgrades.

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Further details on technological** <br>**change can be found on page [14](#i1f989ead00774e1ea0cf8a76d35c2d95_2-1-1-1-954736).** |

---

---

| | |
|:---|:---|
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **Find out more about our innovative projects** <br>**and investments on our NGP website.** |

---

![](nggtf-20260331_g175.gif)

**We are**

![](nggtf-20260331_g156.gif)

**We are committed to**

Ensuring we have appropriate

governance in place to deliver

on our Responsible Business

commitments

Through our Board and its five sub-committees,

including the Responsible Business Committee of

the Board, we receive strategic direction and

structure to deliver sustainable shareholder value.

We also maintain an internal Responsible Business

Management Standard that applies to all our

employees and contractors and that sets out how

we will create a positive impact while delivering

excellent customer service.

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **For further information on the Board and** <br>**Committees please refer to pages 88 — 126.** |

---

Ensuring security and risks –

cyber and physical – are

appropriately monitored

We are prioritising physical and cyber security, data

protection, and responsible AI through the

implementation of effective solutions which

manage vulnerabilities, ensure compliance with

regulatory requirements and fulfil reporting

obligations. All our employees undergo mandatory

cyber and physical security training. We enforce

data protection controls to comply with relevant

privacy laws and standards, such as the use of

strong passwords, regular software updates and

colleague training on best practices.

To minimise security incidents, protect customer

data and ensure the ethical use of AI, we keep up

to date with the latest trends and technologies,

collaborate with industry and government, and

share information and best practices.

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Please see our Operational Group Principal Risks** <br>**on pages [32](#ie786b69cd7c04094b0bf479d4c517edf_37) — [33](#i57a73ec3cdcc450d8aa76b19ee6a9397_0-1-1-3-954736) for further information.** |

---

Working with stakeholders and

the wider industry to promote

Responsible Business topics

and advocate for action

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Details on stakeholder engagement at National** <br>**Grid can be found on pages [23](#i6f250a91cd464a04873e5851a20d0163_46) — [25](#i5f01a1f3f9cb479583ed3457f56cad14_17155).** |

---

**Community engagement**

We engage extensively with communities affected

by our infrastructure through planning

consultations on major projects, and we use their

feedback to inform our development proposals.

Throughout the year, Board members visit

operational sites and receive updates on

community matters. This input is a key enabler for

progression of new infrastructure projects, allowing

us to support economic growth in local

communities.

**International engagement**

At COP30 in November 2025, we partnered with

the UK Government, Business Council for

Sustainable Energy, US Council for International

Business and other UK, US and international

organisations to participate in discussions on the

energy transition.

We focused on showcasing how we're helping to

deliver the energy transition and on sharing best

practice with international peers. We also were able

to bring back key learnings from others to inform

our own strategy and engage our colleagues on

sustainability issues.

As part of our wider international engagement this

year, we've provided technical support and

participated in knowledge sharing with

governments and initiatives worldwide. Early in the

year, we welcomed a delegation of officials from

around the world on a tour of the London Power

Tunnels. Throughout the year, we hosted several

international delegations to share insights on

energy regulation, offshore wind infrastructure, and

the UK power system.

We also partnered with the British embassies in

Vietnam and Egypt and worked with global

organisations and alliances on research and

engagement. Finally, we were a major participant in

New York Climate Week and London Climate

Action Week.

**Responsible political lobbying**

National Grid is committed to responsible lobbying

and engagement with our elected leaders across

the jurisdictions in which we operate. We engage

with elected officials in a manner appropriate to the

jurisdiction, with attention to variations in lobbying

definitions across the geographies in which we

work.

All our lobbying and engagement is conducted in

line with the principles and targets set out within

our RBC.

We have global corporate policies on political

contributions, responsible political lobbying,

employment of former public officials and

secondment of employees into public bodies, all

accessible on our website. Our guidelines include

clear principles, an integrated management

approach, and Board accountability and oversight.

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Full details of our political donations and** <br>**expenditure can be found on page 235.** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **52** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Responsible Business review cont.**<br>**Our Responsible Business Fundamentals**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g176.gif)

**Transparent reporting**

Transparent and public reporting is an integral part

of being a responsible business. We remain

committed to reporting our activities, commitments

and performance in a transparent manner,

including our sustainability data and performance.

**Our approach**

To determine which Responsible Business issues

are important to our business and essential for us

to embed in our strategy, we undertook a double

materiality assessment in 2022. The double

materiality assessment forms the basis of our

reporting. We identified six topics that encompass

the most significant factors for our business and

that align with the priorities of our stakeholders.

We are currently in the process of refreshing our

double materiality assessment to reflect the most

current internal and external environment.

We recognise the need to adapt to changes and

remain proactive in addressing emerging

challenges and opportunities. We are committed to

continuously evolving our approach and striving for

improvement to maintain robust performance on

Responsible Business.

---

| | |
|:---|:---|
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **Further details on our material topics and double** <br>**materiality assessment, as well as our work** <br>**against the UN SDGs, can be found on our** <br>**website.** |

---

**Our Responsible Business reporting** 

**methodology**

The Directors are responsible for reporting our

Responsible Business data as of 31 March 2026,

in accordance with the reporting criteria as set out

in Our Reporting Methodology document. Our

reporting methodology document presents metric

definitions, scope and calculations and underpins

our reporting.

---

| | |
|:---|:---|
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **For further details, please refer to our Reporting** <br>**Methodology document on our website.** |

---

**Scope of Responsible Business**![](nggtf-20260331_g177.gif)

**reporting**

Our methodology applies the GHG Protocol

operational control approach across all emissions

and environmental metrics unless stated otherwise.

Key changes to the Group's global operations over

the past three years have been reflected in the

scope of our Responsible Business reporting,

namely:

–Grain LNG and National Grid Renewables were

disposed of in November 2025 and May 2025

respectively and are excluded from 2025/26

Responsible Business reporting, in line with our

disposals policy.

–The Electricity System Operator (ESO) separated

from National Grid on 1 October 2024, with the

NESO established under government ownership;

ESO data is excluded from 2024/25 reporting in

accordance with our disposals policy.

–Viking Link, the UK–Denmark subsea

interconnector, became operational in

December 2023 and is fully included across all

relevant Responsible Business metrics from

2024/25, following inclusion of the

"interconnector capacity" metric for 2023/24, as

it was operational by 31 March 2024.

**Our reporting centre**<br>Beyond our Responsible Business review <br>and TCFD statement in this report, we also <br>produce supplementary reports aligning to <br>established sustainability reporting <br>standards:<br>–Responsible Business data tables<br>–EU Taxonomy<br>–Green Financing<br>–SASB<br>–GRI<br>–Our Reporting Methodology<br>Our Responsible Business reporting centre <br>on our website consolidates our suite of <br>documents, policies and our commitment to <br>reporting.<br>

![](nggtf-20260331_g178.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

![TCFD Intro Image v3.jpg](nggtf-20260331_g179.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **53** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD)**  |  |  |  |  |  |

---

Understanding

the potential

impacts of

climate change

![](nggtf-20260331_g180.gif)

---

| | |
|:---|:---|
| **CA 2006 requirement** | **TCFD recommendation** |
| **Governance** |  |
| Section 414CB (2A)(a) | a) Describe the Board's oversight of climate-related risks and opportunities: pages [54](#i6f250a91cd464a04873e5851a20d0163_82) – [55](#ib26bf7691c7242d6b73558d3831533be_8238) |
|  | b) Describe management's role in assessing and managing climate-related risks and <br>opportunities: page [55](#ib26bf7691c7242d6b73558d3831533be_8238)<br>|
| **Risk Management** |  |
| Section 414CB (2A)(b) | a) We describe the organisation's processes for identifying and assessing climate-related <br>risks: page [61](#i6f250a91cd464a04873e5851a20d0163_88)<br>|
|  | b) We describe the organisation's processes for managing climate related risks: page [61](#i6f250a91cd464a04873e5851a20d0163_88) |
| Section 414CB (2A)(c) | c) We describe how processes for identifying, assessing and managing climate-related <br>risks are integrated into the organisation's overall risk management: page [61](#i6f250a91cd464a04873e5851a20d0163_88) – [66](#id208b0c889184a5c98a53e81a6e79bb4_21230)<br>|
| **Strategy** |  |
| Section 414CB (2A)(d) | a) We describe the climate-related risks and opportunities the organisation has identified <br>over the short, medium and long term: pages [62](#id208b0c889184a5c98a53e81a6e79bb4_21231) – [66](#id208b0c889184a5c98a53e81a6e79bb4_21230)<br>|
| Section 414CB (2A)(e) | b) We describe the impact of climate-related risks and opportunities on the organisation's <br>businesses, strategy and financial planning: pages [62](#id208b0c889184a5c98a53e81a6e79bb4_21231) – [66](#id208b0c889184a5c98a53e81a6e79bb4_21230)<br>|
| Section 414CB (2A)(f) | c) We describe the resilience of the organisation's strategy, taking into consideration <br>different climate-related scenarios, including a 2oC or lower scenario: pages: [56](#i6f250a91cd464a04873e5851a20d0163_85) – [60](#i5a35e8296354476fab63a4019a093c17_15835)<br>|
| **Metrics and Targets** | **Metrics and Targets** |
| Section 414CB (2A)(h) | a) Our metrics used to assess climate-related risks and opportunities in line with our <br>strategy and risk management processes: pages [67](#i6f250a91cd464a04873e5851a20d0163_94) – [68](#i04acc15a45a7420086e6933b916efcba_9297)<br>|
| N/A | b) Our Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions and the related <br>risks: pages [40](#i6f250a91cd464a04873e5851a20d0163_67) – [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751) and [67](#i6f250a91cd464a04873e5851a20d0163_94) – [68](#i04acc15a45a7420086e6933b916efcba_9297)<br>|
| Section 414CB (2A)(g) | c) Our targets used to manage climate-related risks and opportunities and performance <br>against targets: pages [67](#i6f250a91cd464a04873e5851a20d0163_94) – [68](#i04acc15a45a7420086e6933b916efcba_9297)<br>|

---

At National Grid, we recognise that our

networks and operations are crucial to

transforming the energy system in the

jurisdictions where we operate.

We support the Paris Agreement's long-

term goal to keep the rise in global average

temperature by 2100 to well below 2ºC

above pre-industrial levels, and to pursue

efforts to limit the increase to 1.5ºC.

Over the past year, we have operated in

a complex environment of economic and

political uncertainty, with energy security

and affordability remaining key priorities.

As a responsible business, we respond

to these expectations across our

stakeholders. While UK policy continues

to support clean power, affordability and

system resilience are pressing challenges;

in the US, New York faces affordability

challenges and Massachusetts is behind

on key climate targets.

We fully comply with Financial Conduct Authority

(FCA) UK Listing Rule 6.6.6R(8) and align our

climate-related financial disclosures with the TCFD's

four pillars – governance, strategy, risk

management, and metrics and targets, with 11

recommended disclosures under these pillars.

Additionally, we meet the climate-related financial

disclosure requirements outlined in sections 414CA

and 414CB of the Companies Act 2006.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **54** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.** |  |  |  |  |  |

---

Governance

The Board sets and leads the Group's climate-related

strategy and goals, maintaining oversight of key risks

and opportunities.

Responding to climate change and supporting the

transition to net zero continue to be important

considerations in shaping our strategy. The Board

is responsible for setting the Group's climate-

related strategy and goals, although delegates

certain responsibilities to its Committees.

Board members bring a blend of skills and

experience, including expertise in delivering

sustainability and climate change strategies. Their

backgrounds and executive experience, particularly

in the energy sector, help ensure the requisite skills

are available to support the Group's strategy and

monitor climate-related risks and opportunities.

Several Board members, including Tony Wood,

Martha Wyrsch and Earl Shipp, bring strong

climate and sustainability experience. Martha, Chair

of the People & Remuneration Committee,

contributes extensive climate expertise from her

leadership of a major international gas transmission

business and her role in developing Vestas' US

renewable energy operations. Earl Shipp, Chair of

the Safety & Operations Committee, adds deep

environmental and sustainability knowledge from

his long career in the chemicals industry and

service on the US Federal Reserves Energy

Advisory Committee.

Tony Wood, Chair of the Responsible Business

Committee, provides further sustainability and

climate experience from senior roles in the

aerospace and defence sector, including as CEO

of Meggitt plc where he was responsible for

leading the Group's sustainability strategy over a

five-year period. This included overseeing the

development of science-based targets for Scope 1,

2 and 3 emissions in line with the Science Based

Targets initiative (SBTi). Other Board members

including Paula Rosput Reynolds, Jacqui Ferguson

and Jonathan Silver also bring relevant climate-

related expertise. See pages [91](#i6f250a91cd464a04873e5851a20d0163_115) – [93](#i3c4c976321044b05a8f4ef04dbab9910_0-0-1-1-954736) for

information on the individual experience of Board

members and page 98 for the Board's skill profile.

As set out on page [89](#ie48c6c7315164b6b9533a3859b72d6c1_4539), the Board Committees

were restructured during the year. As part of the

restructure, the Responsible Business Committee

was established.

The Responsible Business Committee provides

strengthened oversight of sustainability and

climate-related matters, consolidating

responsibilities that were previously dispersed

across broader Committee remits. It now holds

explicit responsibility for tracking the Group's

ambition and progress against its sustainability and

climate targets and commitments, meeting three

times during the financial year.

As part of its mandate, the Committee oversees

the Group Principal Risk (GPR) – Climate change

mitigation, reviewing management updates,

assessing risk-tolerance levels and monitoring the

effectiveness of mitigation strategies.

Climate-related risks and opportunities remain

integral to the Group's decision-making and

oversight. The Committee considers these matters

across strategy, including explicit consideration of

factors such as affordability pressures and fiscal

constraints that may affect the pace of

decarbonisation.

Prior to this change, climate-related matters were

primarily overseen by the former Safety &

Sustainability Committee, which met for the final

time in May 2025, when the Committee reviewed

progress against Scope 1 and 2 targets, discussed

Scope 3 dependencies, and considered key

external uncertainties, including policy, regulatory,

technological and geopolitical factors.

In September 2025, the Responsible Business

Committee and the Audit & Risk Committee held a

joint meeting to review the Climate Change

Mitigation GPR, including management's

assessment of the risk against the Board's risk

appetite and the effectiveness of existing controls

and mitigation actions.

The Committees challenged whether the risk

remained within appetite, noting increasing external

pressures, and considered key risk drivers and

interdependencies, including policy and regulatory

developments, affordability and energy security

considerations. The Committees also reviewed

how climate-related risks are monitored and

managed, including the use of key risk indicators,

emissions projections and scenario analysis, and

considered emerging risks such as climate-related

litigation. In addition, the Committees reviewed the

Group's approach to climate-related reporting and

disclosures, ensuring that climate risks,

dependencies and uncertainties are appropriately

reflected in external reporting and governance

arrangements.

The Board received three updates from the Chair

of the Responsible Business Committee and one

update from the Chair of the Safety & Sustainability

Committee during the year to provide an overview

of matters discussed at its Committee meetings.

The Board also receives a Chief Executive and

business update report at each meeting which

includes quarterly reporting of climate change

metrics such as GHG emission performance

versus targets.

The Board considered climate-related themes

across several sessions during the year, including

as part of its strategy-focused offsite in January

2026, where wider energy transition, system

resilience and long-term network investment

priorities were discussed alongside affordability and

regulatory considerations. Climate-related matters

were considered within the context of the Group's

strategic objectives, recognising the

interdependencies between decarbonisation,

security of supply and customer outcomes.

Prior to the Committee restructure, the People &

Governance Committee reviewed the composition

of the Board and its committees in the year,

applying a Board skills matrix to ensure that the

Board has an appropriate balance of skills and

competencies, including climate change matters.

The Board also considers climate-related issues

when reviewing and guiding annual budgets and

financial decision-making, including major capital

expenditure, acquisitions and divestments.

The remit of the Board and its Committees, as well

as the number of times they met and discussed

climate-related matters during the year, are set out

on pages [89](#i6f250a91cd464a04873e5851a20d0163_112) – [90](#ie48c6c7315164b6b9533a3859b72d6c1_4540).

---

| | |
|:---|:---|
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **Terms of Reference for the Board and its** <br>**Committees are available on our website** <br>**nationalgrid.com/about-us/corporate-**<br>**information/corporate-governance**<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **55** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Governance**<br>|  |  |  |  |  |

---

![Board committees dia v2.jpg](nggtf-20260331_g181.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Board**  |  |  |
| **Responsible Business** <br>**Committee**<br>| **Audit & Risk** <br>**Committee** <br>| **Safety & Operations** <br>**Committee** <br>| **People & Remuneration** <br>**Committee**<br>| **Nomination** <br>**Committee** <br>|
| Responsible for Board <br>oversight of climate-related <br>matters, including <br>sustainability strategy, <br>climate transition planning, <br>resilience considerations <br>and identification of <br>climate-related risks and <br>opportunities, in line with the <br>TCFD framework.<br>| Oversees the identification, <br>assessment and <br>management of risks, <br>including internal controls <br>and review of TCFD-aligned <br>disclosures. Considers <br>climate-related financial <br>impacts, capital allocation, <br>financing decisions and <br>metrics, and alignment of <br>financial planning with the <br>Group's transition plan.<br>| Monitors operational safety <br>and resilience, including <br>management of physical <br>climate-related risks and <br>adaptation measures <br>impacting assets and <br>operations.<br>| Establishes executive <br>remuneration, incentives, <br>skills and succession <br>planning, including LTPP <br>oversight of controllable <br>Scope 1 emissions <br>reductions and energy <br>transformation measures.<br>| Ensures the Board <br>collectively has appropriate <br>skills and experience, <br>covering climate, energy <br>transition and sustainability <br>expertise.<br>|
|  | **Group Executive Committee** | **Group Executive Committee** | **Group Executive Committee** |  |
| **Responsible** <br>**Business Committee**<br>Oversees Group-wide RBC <br>matters, including political, <br>societal, sustainability and <br>regulatory issues. | **Audit, Risk &** <br>**Finance Committee**<br>Manages and coordinates <br>development and delivery of <br>audit, risk and financial <br>activities across the Group, <br>including climate-related <br>principal risks. | **Safety & Operations** <br>**Committee**<br>Oversight of safety, heath and <br>wellbeing, asset management <br>and capital projects. | **People & Remuneration** <br>**Committee**<br>Sets remuneration and <br>oversees talent, culture, and <br>people risks to support Group <br>strategy. | **Group Investment** <br>**Committee**<br>Has delegated authority to <br>approve investment, acquisition <br>and divestment decisions, <br>including ASTI and NY Upstate <br>Upgrade. |
| **Responsible** <br>**Business Committee**<br>Oversees Group-wide RBC <br>matters, including political, <br>societal, sustainability and <br>regulatory issues. | **Audit, Risk &** <br>**Finance Committee**<br>Manages and coordinates <br>development and delivery of <br>audit, risk and financial <br>activities across the Group, <br>including climate-related <br>principal risks. | **Safety & Operations** <br>**Committee**<br>Oversight of safety, heath and <br>wellbeing, asset management <br>and capital projects. | **People & Remuneration** <br>**Committee**<br>Sets remuneration and <br>oversees talent, culture, and <br>people risks to support Group <br>strategy. | **Group Investment** <br>**Committee**<br>Has delegated authority to <br>approve investment, acquisition <br>and divestment decisions, <br>including ASTI and NY Upstate <br>Upgrade. |
| **Responsible** <br>**Business Committee**<br>Oversees Group-wide RBC <br>matters, including political, <br>societal, sustainability and <br>regulatory issues. | **Audit, Risk &** <br>**Finance Committee**<br>Manages and coordinates <br>development and delivery of <br>audit, risk and financial <br>activities across the Group, <br>including climate-related <br>principal risks. | **Safety & Operations** <br>**Committee**<br>Oversight of safety, heath and <br>wellbeing, asset management <br>and capital projects. | **People & Remuneration** <br>**Committee**<br>Sets remuneration and <br>oversees talent, culture, and <br>people risks to support Group <br>strategy. | **Group Investment** <br>**Committee**<br>Has delegated authority to <br>approve investment, acquisition <br>and divestment decisions, <br>including ASTI and NY Upstate <br>Upgrade. |
|  |  | **Management forums** |  |  |
| **Sustainability Delivery** <br>**Steering Group**<br>Drives RBC integration, <br>including climate strategy and <br>targets. Chaired by CSO with <br>attendance from business unit <br>and function senior leaders. | **ESG Strategic** <br>**Steering Group**<br>Guides and steers on ESG <br>strategy. Comprised of senior <br>leaders from Sustainability, <br>Finance, Legal and Corporate <br>Affairs. | **Sustainability** <br>**Implementation Group**<br>Implements RBC <br>commitments and principles. <br>Monitors climate progress and <br>shares best practice among <br>business peer groups.  | **Green Financing** <br>**Committee**<br>Chaired by the Group <br>Treasurer, overseeing <br>governance of the <br>programme, including project <br>evaluation for green financing. | **Group Sustainability** <br>**and Finance ESG teams**<br>Responsible for the Group's <br>sustainability strategy and <br>reporting deliverables, ensuring <br>credible and reliable data, <br>including TCFD disclosures. |
| **Sustainability Delivery** <br>**Steering Group**<br>Drives RBC integration, <br>including climate strategy and <br>targets. Chaired by CSO with <br>attendance from business unit <br>and function senior leaders. | **ESG Strategic** <br>**Steering Group**<br>Guides and steers on ESG <br>strategy. Comprised of senior <br>leaders from Sustainability, <br>Finance, Legal and Corporate <br>Affairs. | **Sustainability** <br>**Implementation Group**<br>Implements RBC <br>commitments and principles. <br>Monitors climate progress and <br>shares best practice among <br>business peer groups.  | **Green Financing** <br>**Committee**<br>Chaired by the Group <br>Treasurer, overseeing <br>governance of the <br>programme, including project <br>evaluation for green financing. | **Group Sustainability** <br>**and Finance ESG teams**<br>Responsible for the Group's <br>sustainability strategy and <br>reporting deliverables, ensuring <br>credible and reliable data, <br>including TCFD disclosures. |
| **Sustainability Delivery** <br>**Steering Group**<br>Drives RBC integration, <br>including climate strategy and <br>targets. Chaired by CSO with <br>attendance from business unit <br>and function senior leaders. | **ESG Strategic** <br>**Steering Group**<br>Guides and steers on ESG <br>strategy. Comprised of senior <br>leaders from Sustainability, <br>Finance, Legal and Corporate <br>Affairs. | **Sustainability** <br>**Implementation Group**<br>Implements RBC <br>commitments and principles. <br>Monitors climate progress and <br>shares best practice among <br>business peer groups.  | **Green Financing** <br>**Committee**<br>Chaired by the Group <br>Treasurer, overseeing <br>governance of the <br>programme, including project <br>evaluation for green financing. | **Group Sustainability** <br>**and Finance ESG teams**<br>Responsible for the Group's <br>sustainability strategy and <br>reporting deliverables, ensuring <br>credible and reliable data, <br>including TCFD disclosures. |
|  |  | **Business unit level** |  |  |
| Business units are responsible for delivering the Group's RBC and CTP. Targets are embedded in performance contracts and progress tracked through our Enterprise <br>Performance Management (EPM) framework. Climate change risks and opportunities are evaluated via the Enterprise Risk Management (ERM) process (see page [30](#i6f250a91cd464a04873e5851a20d0163_52)). | Business units are responsible for delivering the Group's RBC and CTP. Targets are embedded in performance contracts and progress tracked through our Enterprise <br>Performance Management (EPM) framework. Climate change risks and opportunities are evaluated via the Enterprise Risk Management (ERM) process (see page [30](#i6f250a91cd464a04873e5851a20d0163_52)). | Business units are responsible for delivering the Group's RBC and CTP. Targets are embedded in performance contracts and progress tracked through our Enterprise <br>Performance Management (EPM) framework. Climate change risks and opportunities are evaluated via the Enterprise Risk Management (ERM) process (see page [30](#i6f250a91cd464a04873e5851a20d0163_52)). | Business units are responsible for delivering the Group's RBC and CTP. Targets are embedded in performance contracts and progress tracked through our Enterprise <br>Performance Management (EPM) framework. Climate change risks and opportunities are evaluated via the Enterprise Risk Management (ERM) process (see page [30](#i6f250a91cd464a04873e5851a20d0163_52)). | Business units are responsible for delivering the Group's RBC and CTP. Targets are embedded in performance contracts and progress tracked through our Enterprise <br>Performance Management (EPM) framework. Climate change risks and opportunities are evaluated via the Enterprise Risk Management (ERM) process (see page [30](#i6f250a91cd464a04873e5851a20d0163_52)). |

---

**Management's role**

The Board delegates responsibility to management for

asset management and maintenance planning,

implementation of the net zero strategy and delivering

climate commitments and targets. This is then

considered at the relevant Group Executive Sub-

Committee. These Sub-Committees were revised in

the year to reflect the Board Committees and enable

more streamlined reporting and clearer accountability

of topics, including sustainability and climate change.

Management is also responsible on a day-to-day

basis for managing climate-related risks and

opportunities, and for reporting on progress to the

Board and its Committees.

Sustainability roles are integrated across the Group

to help ensure a top-down, bottom-up response to

climate. Our Chief Sustainability Officer (CSO) heads

a team of subject matter experts who lead the

implementation of the RBC across the Group,

working closely with business units and functions to

align strategy and operations with decarbonisation

and climate resilience targets.

The team drives the Group's sustainability strategy,

modelling potential climate scenarios and supporting

the business to develop glidepaths aligned to GHG

emission reduction targets. They also oversee

progress on sustainable supply chain initiatives via

the Supply Chain Climate Strategy Steering Group,

collaborating with representatives from Global

Procurement to develop decarbonisation levers

through supplier engagement.

The Chief Engineer leads on climate adaptation and

mitigation activities, assessing asset climate

vulnerability and guiding investment to strengthen

network resilience. Business unit Presidents are

accountable for delivering net zero commitments.

Group Finance further supports sustainability

ambitions through its ESG Centre of Excellence

(CoE), Investor Relations and Treasury teams. The

ESG CoE sets the Group's sustainability reporting

strategy, overseeing credible and reliable reporting of

disclosures and ESG rating agency submissions.

Investor Relations and Treasury attract green

investment, engaging with debt and equity investors

to communicate our climate strategy.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **56** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.** |  |  |  |  |  |

---

Strategy

Our understanding of climate-related risks and opportunities

informs our strategic decision-making, as we drive

unprecedented levels of investment in energy networks.

The energy transition provides significant growth

opportunities, and we are well-positioned to

harness these, through enabling the transportation

and distribution of clean energy to homes and

businesses. Achieving this requires a major

upgrade of our networks, and we are already

delivering these improvements across the regions

and jurisdictions in which we operate.

We proactively prepare and plan for the physical

and transition risks linked to climate change.

Through scenario planning, we assess a range of

possible futures to understand the opportunities

and risks in each, ensuring our strategy remains

resilient and adaptable. Achieving our emissions

reduction goals will be challenging without backing

from policymakers and regulators.

This section summarises how we are responding

to the main climate-related opportunity facing our

business – the expansion of electricity networks to

support the energy transition – and outlines how

we use scenario modelling to evaluate climate-

related risks and opportunities.

**Investing to enable the energy transition**

We expect to invest at least £70 billion across our

regulated energy networks and adjacent

businesses, in the UK and US, over the five-year

period to 2030/31. Of this group capital investment,

around 85% is considered to be aligned with the

principles of the EU Taxonomy legislation as at the

date of reporting (also referred to in this report as

green capital expenditure), directly invested into the

decarbonisation of energy networks.

Under our Green Financing Framework 2025,

National Grid plc and its subsidiaries are able to

issue green financing instruments to fund our

efforts towards a cleaner energy system. Moody's

provided a second party opinion on our updated

Framework published in May 2025 and assigned

an SQS1 sustainability quality score (excellent). See

our latest Green Financing Report on our website,

which details the issuance of green bonds totalling

£1.2 billion in 2025/26, along with the allocation of

proceeds and their environmental impact.

Having considered the climate-related risks and

opportunities on pages [62](#id208b0c889184a5c98a53e81a6e79bb4_21231) – [66](#id208b0c889184a5c98a53e81a6e79bb4_21230), we expect our

strategy and investment drivers to deliver strong

growth (see page [11](#i7949c222dedd4c34a3e1678a41d5c989_8306) for further details). We

continue to focus our business on electricity, with

our most recent projections suggesting that over

80% of Group assets are expected to be electric

by 2030/31.

Growth in clean generation and increased demand

for electricity is driving a need for larger, smarter

electricity networks, alongside ensuring existing

energy networks remain resilient and reliable. We

are connecting more new generation and load

faster than ever before, enabling economic growth,

bolstering energy security and supporting cleaner,

affordable energy for our communities and

customers on both sides of the Atlantic. This is a

significant climate-related financial opportunity, and

key activities we are undertaking to support clean

energy supply and electrification are outlined on

page [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20752).

As part of our strategy to focus on networks and

streamlining our business, we completed the sale

of National Grid Renewables, our US onshore

renewables business, and Grain LNG, our UK

LNG asset.

In seeking to achieve our net zero target and

support decarbonisation, we will leverage our

strong financial position and investment-grade

credit ratings to finance key investments for net

zero energy transmission and distribution.

Following the successful £7 billion Rights Issue in

2024/25, our balance sheet, backed by valuable

assets and strong credit ratings, is flexible and well

positioned for growth. We secure funding through

borrowing and shareholder investments, adhering

to regulatory rules, and closely monitor the financial

health of our UK and US operations to maintain

appropriate gearing ratios.

As asset growth and earnings become increasingly

aligned, this will support shareholder returns while

preserving balance sheet capacity. Beyond the

next five years, we remain confident in our balance

sheet strength and maintain a broad range of

funding options, including substantial headroom in

hybrid debt capacity, should it be needed.

We, alongside other network companies, have a

unique role to play in supporting system

decarbonisation. By building out the network of the

future, we seek to enable the deployment of low-

carbon energy supply to meet society's growing

electricity needs while bringing down emissions.

Our Climate Transition Plan, which is aligned with a

1.5°C scenario, identifies the policy and regulatory

support required for future investments aimed at

decarbonising the energy sector and reducing

emissions. For our performance details against the

CTP refer to pages [40](#i6f250a91cd464a04873e5851a20d0163_67) – [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751).

**Scenario modelling**

We use modelling to test how robust our Group

strategy is to a range of future scenarios out to

2050. Our scenarios are used to inform our

sustainability approach and assess progress

against our climate target commitments.

**Transition scenario modelling**

Our transition scenarios out to 2050 are tailored to

our UK and US business environments.

Our "Delayed" scenario represents a world with

higher warming levels, where governments,

industry and consumers do not pursue the

transition at pace.

Our "Balanced Pathway" scenario sees

approximately 2°C of warming, with the energy

transition progressing at pace but supply chain,

policy and cost challenges preventing our

jurisdictions from hitting targets.

Our "Electric Net Zero" scenario sees

approximately 1.5°C of warming, with governments

and industry prioritising decarbonisation goals

through supportive policies and regulatory reforms.

Our scenarios reflect possible actions and

conditions within our jurisdictions; the associated

°C ranges within our pathway titles are used as

reference labels for external conditions, rather

than implying corresponding global temperature

outcomes, which depend on cumulative

global emissions.

As part of our ongoing risk management processes,

we continually monitor changes in the external

environment and assess implications for our

scenarios. While our modelling is subject to

limitations, including data availability across other

sectors, we mitigate these through the use of diverse

sources and external scenario benchmarking.

Our scenarios are not intended as predictions, but

as tools to enhance our understanding of potential

climate-related risks and opportunities. Along with

our strategic planning and risk management

approaches, these scenarios guide us in identifying

material climate-related risks and opportunities as

set out on pages [62](#id208b0c889184a5c98a53e81a6e79bb4_21231) – [66](#id208b0c889184a5c98a53e81a6e79bb4_21230).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **57** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Strategy**<br>|  |  |  |  |  |

---

**Transition scenario descriptions, assumptions and inputs** 

**Scenario: Climate change by 2100 vs. pre-industrial levels (approximate)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Scenario** | **Targets** | **Macroenvironment and policy** | **Generation** | **Demand** |
| **Delayed** <br>**2-4°C**<br>| –Decarbonisation progresses <br>but is insufficient to meet net <br>zero in 2050<br>| –Geopolitics disrupts <br>established trade flows, with <br>supply chain impacts <br>–Policy delays<br>| –Wind and solar deployment continues slowly with thermal <br>generation staying online longer to support load growth<br>–Reduced opportunities for further interconnection growth <br>beyond what is in the pipeline<br>| –Total energy consumption reduces 18% by 2050<br>–Electricity demand increases 108% by 2050<br>–Gas heating dominates, with low uptake of heat pumps due to limited policy support<br>–EV uptake stagnates due to cost <br>|
| **Balanced** <br>**Pathway** <br>**2°C**<br>| –Decarbonisation progresses <br>but falls short of near-term <br>targets with ~10-year delay to <br>Clean Power 2030<br>| –Geopolitical tensions continue, <br>but with gradual recovery of <br>supply chains<br>–Policy incentives maintained <br>with reforms over time<br>| –Wind and solar deployment continues but misses targets, <br>while gas for the power sector still has a role to play in the <br>2030s beyond the maximum 5% of power generation <br>targeted in Clean Power 2030<br>–Interconnector projects progress at pace<br>| –Total energy consumption reduces 31% by 2050<br>–Electricity demand increases 112% by 2050, mainly because of electrification of heat and <br>transport, green hydrogen production and data centre expansion<br>–Heat pump growth restricted to new build houses. Current houses converting off gas heating <br>continues at current rates <br>–EVs continue to grow at the current rate with the Zero Emissions Vehicles mandate in place <br>|
| **Electric** <br>**Net Zero** <br>**1.5°C**<br>| –Delayed achievement of Clean <br>Power 2030, with economy-<br>wide net zero by 2050 <br>| –Geopolitical tensions ease, <br>with robust and diversified <br>supply chains and increased <br>international collaboration <br>–Policy progress accelerates <br>and supports increasing <br>investment and target delivery<br>| –Strong renewable expansion supported by distributed <br>flexibility and storage, with some abated gas capacity <br>providing dispatchable supply<br>–Increased collaboration and coordination results in faster <br>adoption of offshore hybrid assets and overall increased <br>interconnectors<br>| –Total energy consumption reduces 32% by 2050, as more efficient electric technology <br>replaces combustion technology<br>–Electricity demand increases 127% by 2050 with near-complete electrification of demand <br>sectors such as heat and transport<br>–Heat pumps mandated in existing homes as well as sufficient subsidy to support wide-<br>spread adoption <br>–Widespread EV adoption as policies achieve targets<br>|
| **Delayed** <br>**2-4°C**<br>| –Achieves ~50% reduction in <br>energy-related emission from <br>1990 levels by 2050<br>| –Policy prioritises affordability | –New gas infrastructure to address resource adequacy<br>–No offshore wind added beyond what is fully permitted and <br>currently under construction<br>–Some large onshore renewables are added each decade as <br>states continue to pursue renewable targets but at a <br>delayed pace<br>| –Total energy consumption reduces 22% by 2050<br>–Electricity demand increases 58% by 2050<br>–State subsidies are scaled back, resulting in low uptake of heat pumps<br>–EV adoption stagnates in the near term driven by fewer federal incentives, although increases <br>as costs decline in the 2030s<br>|
| **Balanced** <br>**Pathway** <br>**2°C**<br>| –Softening in decarbonisation <br>targets, achieves ~60% <br>reduction in energy-related <br>emissions by 2050<br>| –Softening in decarbonisation <br>targets due to affordability <br>concerns<br>| –No new fossil units or major enhancements to existing plant, <br>with limited gas repowering<br>–Offshore wind stalls through 2035, then existing lease areas <br>are gradually built out driven by energy needs, given no <br>politically viable alternatives<br>–Onshore renewables deployment increases steadily but <br>roughly 10 years behind stated policy goals<br>| –Total energy consumption reduces 36% by 2050<br>–Electricity demand increases 64% by 2050<br>–Heat pump adoption increases steadily as costs fall, capturing 45% of heat demand by 2050<br>–Slow adoption of EVs through the 2030s after Federal incentives end in 2025, with full <br>competitiveness and growth upswing by 2035<br>|
| **Electric** <br>**Net Zero** <br>**1.5°C**<br>| –Clean electricity targets lag <br>through 2035, but energy-<br>related emissions achieve <br>~85% reduction in line with <br>overall state emissions targets <br>by 2050<br>| –Policy prioritises clean power <br>and decarbonisation<br>| –Existing gas capacity retained for emergency back-up <br>–New nuclear plays a larger role in decarbonisation<br>–Offshore wind picks up in the 2030s becoming the leading <br>source of electricity generation in the region<br>–Onshore renewables deployment continues to meet the net <br>zero goals<br>| –Total energy consumption reduces 67% by 2050<br>–Electricity demand increases 78% by 2050<br>–Heat pump adoption increases with falling costs, capturing 70% of heat demand by 2050 <br>–Widespread EV adoption in line with policy targets<br>|

---

![transition scenario_Loz.jpg](nggtf-20260331_g182.jpg)

**Delayed 2-4°C**

Represents a world where governments, industry and consumers do not pursue

the transition at pace, meaning our jurisdictions miss climate targets.

**Balanced Pathway 2°C**

Energy transition drives forward at pace, but ongoing supply chain challenges,

policy implementation delays, and short-term financial concerns mean our

jurisdictions narrowly miss targets.

**Electric Net Zero 1.5°C**

Governments prioritise the achievement of decarbonisation goals through

supportive policies and regulatory reforms, new load is met through clean power

sources.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **58** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Strategy**<br>|  |  |  |  |  |

---

**Transition scenario outputs**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **UK** | **US NY** | **US MA** |
| **Annual** <br>**electricity** <br>**demand,** <br>**TWh** | **Delayed** <br>2–4°C <br>|  |  |  |
| **Annual** <br>**electricity** <br>**demand,** <br>**TWh** | **Balanced pathway**<br>2°C<br>|  |  |  |
| **Annual** <br>**electricity** <br>**demand,** <br>**TWh** | **Electric Net Zero** <br>1.5°C<br>|  |  |  |

---

![1](nggtf-20260331_g183.gif)

![37](nggtf-20260331_g184.gif)

![97](nggtf-20260331_g185.gif)

![25](nggtf-20260331_g186.gif)

![49](nggtf-20260331_g187.gif)

![73](nggtf-20260331_g188.gif)

![13](nggtf-20260331_g189.gif)

![61](nggtf-20260331_g190.gif)

![85](nggtf-20260331_g191.gif)

---

| | | | |
|:---|:---|:---|:---|
|  |  | **US NY** | **US MA** |
|  |  | **2024** | **2024** |
| **Annual** <br>**natural gas** <br>**demand,** <br>**MMBTU** | **Delayed** <br>2–4°C | 815m (2024)<br> 910m<br> 994m | 270m (2024)<br> 301m<br> 339m |
| **Annual** <br>**natural gas** <br>**demand,** <br>**MMBTU** | **Balanced Pathway** <br>2°C | 815m (2024)<br> 835m<br> 699m | 270m (2024)<br> 270m<br> 220m |
| **Annual** <br>**natural gas** <br>**demand,** <br>**MMBTU** | **Electric Net Zero** <br>1.5°C | 815m (2024)<br> 627m<br> 211m | 270m (2024)<br> 196m<br> 65m |

---

**Note:** Using 2024 data for natural gas demand in New York and Massachusetts, as 2025 data is not yet available.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **UK** | **US NY** | **US MA** |
| **Total** <br>**renewable** <br>**generation,** <br>**TWh** | **Delayed** <br>2–4°C<br>|  |  |  |
| **Total** <br>**renewable** <br>**generation,** <br>**TWh** | **Balanced Pathway** <br>2°C<br>|  |  |  |
| **Total** <br>**renewable** <br>**generation,** <br>**TWh** | **Electric Net Zero** <br>1.5°C<br>|  |  |  |

---

![217](nggtf-20260331_g192.gif)

![253](nggtf-20260331_g193.gif)

---

| | | | |
|:---|:---|:---|:---|
| 2025: **1.1** | 2035: **2.2** | 2050: **2.1** | Total: **5.4** |
| **3.2** | **3.2** |  |  |

---

![289](nggtf-20260331_g194.gif)

![229](nggtf-20260331_g195.gif)

![265](nggtf-20260331_g196.gif)

![277](nggtf-20260331_g197.gif)

![241](nggtf-20260331_g198.gif)

![301](nggtf-20260331_g199.gif)

![313](nggtf-20260331_g200.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **UK**  | **US NY** | **US MA**  |
| **Number of** <br>**passenger** <br>**EVs, millions** | **Delayed** <br>2–4°C |  |  |  |
| **Number of** <br>**passenger** <br>**EVs, millions** | **Delayed** <br>2–4°C | 93% of car fleet by 2050 | **70%** of car fleet by 2050 | **70%** of car fleet by 2050 |
| **Number of** <br>**passenger** <br>**EVs, millions** | **Balanced Pathway** <br>2°C |  |  |  |
| **Number of** <br>**passenger** <br>**EVs, millions** | **Balanced Pathway** <br>2°C | **96%** of car fleet by 2050 | **70%** of car fleet by 2050 | **70%** of car fleet by 2050 |
| **Number of** <br>**passenger** <br>**EVs, millions** | **Electric Net Zero** <br>1.5°C |  |  |  |
|  | **Electric Net Zero** <br>1.5°C | **100%** of car fleet by 2050 | **87%** of car fleet by 2050 | **88%** of car fleet by 2050 |

---

![109](nggtf-20260331_g201.gif)

![145](nggtf-20260331_g202.gif)

![181](nggtf-20260331_g203.gif)

![121](nggtf-20260331_g204.gif)

![157](nggtf-20260331_g205.gif)

![169](nggtf-20260331_g206.gif)

![133](nggtf-20260331_g207.gif)

![193](nggtf-20260331_g208.gif)

![205](nggtf-20260331_g209.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **UK** | **US NY** | **US MA** |
| **Number of** <br>**residential** <br>**heat pumps,** <br>**millions** | **Delayed** <br>2–4°C <br>|  |  |  |
| **Number of** <br>**residential** <br>**heat pumps,** <br>**millions** | **Balanced pathway** <br>2°C<br>|  |  |  |
| **Number of** <br>**residential** <br>**heat pumps,** <br>**millions** | **Electric Net Zero** <br>1.5°C<br>|  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| 2024: **0.08** | 2035: **0.35** | 2050: **0.49** | Total: **0.92** |

---

**2.3** ![416](nggtf-20260331_g210.gif)

![452](nggtf-20260331_g211.gif)

![488](nggtf-20260331_g212.gif)

**0.68** ![404](nggtf-20260331_g213.gif)

![440](nggtf-20260331_g214.gif)

![476](nggtf-20260331_g215.gif)

![392](nggtf-20260331_g216.gif)

![428](nggtf-20260331_g217.gif)

![464](nggtf-20260331_g218.gif)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 |  | 2035 |  | 2050 | Note: NY refers to New York State, MA to Massachusetts. UK Delayed and Electric Net Zero scenarios based on 2024/25 inputs. <br>US NY Heat Pump numbers are based on 2024 data as 2025 data is not yet available.  |
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | 2025 | ![Circle_Mid-blue.gif](nggtf-20260331_g220.gif) | 2035 | ![Circle_Dk-Gray.gif](nggtf-20260331_g221.gif) | 2050 | Note: NY refers to New York State, MA to Massachusetts. UK Delayed and Electric Net Zero scenarios based on 2024/25 inputs. <br>US NY Heat Pump numbers are based on 2024 data as 2025 data is not yet available.  |

---

**Note**: Graphics are not to scale.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **59** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Strategy**<br>|  |  |  |  |  |

---

**Changes since last year**

We have retained our scenario framework from last

year, which presents a wide range of energy

transition outcomes. They reflect the tensions or

trade-offs governments may need to manage. We

regularly update our Balanced Pathway scenarios

for the US and UK. Our Electric Net Zero and

Delayed scenarios are long-term outlooks and we

do not update them as frequently. The inputs for

our US Delayed and Electric Net Zero scenarios

have been updated since last year to reflect

market, policy and technology shifts, while the UK

Delayed and Electric Net Zero scenarios remain

consistent with our 2024/25 Annual Report. We will

continue to monitor the evolving market, policy and

technology landscape and consider any revisions

to our UK Delayed and Electric Net Zero scenarios

as appropriate.

**Transition scenario insights**

We assess the resilience of our business strategy

against our transition scenarios, with a particular

focus on the Electric Net Zero scenario, given

the greater level of action required to deliver

decarbonised energy systems. The following

five transition insights are most relevant to a

1.5°C scenario.

**1. Achieving energy transition targets** 

**depends on effective reforms to drive clean** 

**power deployment and policies that** 

**incentivise consumer uptake of low-carbon** 

**technologies**

Policy interventions will continue to be a key

enabler of the transition. Our ability to meet our

own climate commitments relies on these.

Government support for both supply-side and

demand-side clean technologies is important to

achieve policy targets. This extends to key enabling

policies regarding connections, planning and

permitting, as necessary preconditions for our

jurisdictions to accelerate in line with targets.

Without additional support, despite technology

cost declines, there will be a financing gap for

some clean technologies.

**2. Electricity use and share of final demand** 

**will increase driven by consumer** 

**electrification and large demand customer** 

**growth (e.g. data centres)**

As more consumers switch to electric vehicles and

heat pumps, electricity demand will increase. Rapid

growth of data centres and the rise of AI, alongside

industrial electrification, is a potentially significant

additional driver of demand. In the UK, we expect

electricity demand to increase 50% by 2035 and

more than double by 2050. In our states in the US,

we expect an increase of around 30% by 2035 and

more than 50% by 2050. These projections could

increase if the pace of electrification accelerates,

with the growth of AI and associated power needs

a key variable. Rising electrification will continue to

drive additional growth and investment in our

electricity network.

**3. Energy supply structure will continue** 

**to shift**

Renewable capacity will continue to grow globally,

to meet electricity demand growth and replace

fossil fuel generation. Other low-carbon

technologies are also seeing a resurgence in

growth, including nuclear, with growing momentum

for next generation technologies such as small

modular reactors. Battery storage capacity and

other flexible assets continue to advance, with

some technologies already commercially scalable,

and supporting system balancing and curtailment.

**4. Pathways will adapt to global and** 

**local realities**

Our governments continue to actively shape energy

policy, and we expect to see different energy

transition pathways across our jurisdictions. In the

UK, the Government has continued to drive

progress towards its Clean Power 2030 Action

Plan, breaking further records in recent renewable

auctions. In the US, the Federal Government

remains focused on energy abundance, through

natural gas and expanding energy infrastructure.

Our states continue to pursue climate targets and

policies, while seeking to balance these with other

priorities including affordability.

**5. CTP achievement will be challenging in** 

**slower scenarios**

Our ability to achieve our climate targets is closely

linked to the decarbonisation of the energy

systems in the jurisdictions in which we operate.

We have always viewed our climate targets as

ambitious, and meeting our targets is contingent

on a range of dependencies. Slower scenarios

present greater challenges to meeting our targets,

and in some we will not be able to meet our

targets. Moving forward, we will continue to evolve

and refine our approach based on progress and

developments in the external landscape.

**Conclusion**<br>None of the transition scenarios tested <br>materially threaten the Group's resilience, <br>and we are well positioned to adapt our <br>portfolio to maximise the opportunities of <br>the energy transition, with no significant risk <br>of a material adjustment to the carrying <br>amounts of assets and liabilities in the next <br>annual reporting period.<br>

![](nggtf-20260331_g222.gif)

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Further detail on the transition risks and** <br>**opportunities identified in our scenario analysis,** <br>**including estimated qualitative and quantitative** <br>**impacts where applicable, can be found on pages** <br>**[62](#id208b0c889184a5c98a53e81a6e79bb4_21231) – [66](#id208b0c889184a5c98a53e81a6e79bb4_21230).**<br>|

---

![TCFD Strategy Image.jpg](nggtf-20260331_g223.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **60** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Strategy**<br>|  |  |  |  |  |

---

**Physical scenario modelling**

We use Group-wide climate scenarios to assess

our vulnerability to climate change. These scenarios

benchmark global progress toward limiting warming

to 1.5°C in line with the Paris Agreement and

evaluate how physical climate impacts – such as

extreme weather and long-term changes in weather

patterns – could affect our business.

**Descriptions, assumptions and inputs** 

Climate hazard data is sourced from national

climate assessments in the UK (UKCP18) and US

(CMIP5). Scenario modelling uses the

Intergovernmental Panel on Climate Change

(IPCC's) Representative Concentration Pathway

(RCP) of RCP8.5 (4°C) and RCP4.5 (2°C) across

future decades (2030s–2070s), compared with

1981–2010 (UK) and 1976–2005 (US) baselines.

While climate projections are inherently uncertain –

due to natural variability, model limits, and imperfect

observations – these uncertainties should not delay

action to mitigate or adapt to climate change.

**Outputs**

Most climate hazards are expected to become

more frequent, with high temperatures and coastal

and river flooding posing the greatest risk across

our operations. Risks are generally higher in a 4°C

scenario than a 2°C scenario.

Wildfire risk remains lower in our territories

compared with areas such as the western US, but

we have strengthened situational awareness and

operating procedures. We recently completed a

third-party wildfire risk assessment for our US

jurisdictions and are in the process of initiating one

in the UK, helping us identify vulnerabilities and

develop mitigations.

We have advanced our physical risk analysis to

guide strategic planning and investment. Our

Climate Change Risk Tool (CCRT) uses geospatial

capability to provide tailored physical risk

assessments for each mapped business area while

still maintaining a Group-level view. We aspire to

further develop the CCRT to account for portfolio

changes and incorporate additional infrastructure

data points in areas like NGED, NGV and SI to

refine our overall risk picture.

**Climate Vulnerability Assessment (CVA)**

Using CCRT insights, we conduct a Group-wide

![critical climate risks.jpg](nggtf-20260331_g224.jpg)

Climate Vulnerability Assessment (CVA) to evaluate

how climate change could affect our assets over

the coming decades. This is typically performed on

a five-year basis, and we anticipate completing the

next Group-wide CVA in 2028.

Understanding changing climate conditions and

asset risk allows us to develop appropriate

mitigations to protect existing assets and build

climate resiliency. The CVA follows a phased risk-

based approach to identify high-risk assets and

develop adaptation plans. Outputs of the CVA

process include business-specific vulnerability

assessment reports, equipment specification

updates, external engineering standards, asset

policy changes, discrete investment projects and

CCRT development.

Each business unit identifies critical assets

vulnerable to climate hazards, accounting for

existing adaptation measures and the latest climate

science. Adaptations are locally developed to inform

standards, capital investment, and broader industry

alignment. Given that many of our assets have

lifespans of 50+ years, future climate hazards must

be considered upfront in planning to avoid

premature asset repair or replacement. For

example, a site not currently at risk of coastal

flooding may become vulnerable within a decade

based on climate projections. Understanding future

climate hazards allows us to make informed design

decisions and resiliency investments to protect our

Group's assets and improve reliability for customers.

The Climate Resilience Working Group is attended

by representatives from across our business units

who meet monthly to discuss best practice,

particularly related to climate assessments and

response. Additional detail on our actions to

anticipate and respond to climate-related

disruptions is on page [35](#i8ebe50234db3417ba33cc3b26f4858d7_24378) and information on

business unit level assessments is on page [66](#id208b0c889184a5c98a53e81a6e79bb4_21232).

The climate hazards most significant to us are summarised below.

---

| | |
|:---|:---|
| **Group-level critical climate risks** | **Vulnerability** |
| High temperatures<br>and heatwaves | Risk of power failure, equipment overheating, <br>warmer air temperatures contributing toward <br>accelerated ageing, reduced capacity of <br>transmission and distribution lines. |
| ![Sun_Icon.gif](nggtf-20260331_g225.gif)<br>![C_Md-Blue_Icon.gif](nggtf-20260331_g226.gif)<br>![A_Dk-Grey_Icon.gif](nggtf-20260331_g227.gif)<br>| Risk of power failure, equipment overheating, <br>warmer air temperatures contributing toward <br>accelerated ageing, reduced capacity of <br>transmission and distribution lines. |
| Cold weather | Ice accretion overloading overhead lines, <br>structural failure. |
| ![Snow_Icon.gif](nggtf-20260331_g228.gif)<br>![A_Dk-Grey_Icon.gif](nggtf-20260331_g227.gif)<br>| Ice accretion overloading overhead lines, <br>structural failure. |
| Lightning | Risk of power failure, short-circuit faults, <br>and equipment deterioration. |
| ![lightning-bolt.gif](nggtf-20260331_g229.gif)<br>![A_Dk-Grey_Icon.gif](nggtf-20260331_g227.gif)<br>| Risk of power failure, short-circuit faults, <br>and equipment deterioration. |
| Flooding/Erosion | Risk of power failure, accelerated asset <br>corrosion, debris damage, equipment <br>submersion and water infiltration, soil erosion. |
| ![Flood_Icon.gif](nggtf-20260331_g230.gif)<br>![C_Md-Blue_Icon.gif](nggtf-20260331_g226.gif)<br>![A_Dk-Grey_Icon.gif](nggtf-20260331_g227.gif)<br>| Risk of power failure, accelerated asset <br>corrosion, debris damage, equipment <br>submersion and water infiltration, soil erosion. |
| Extreme wind | Structural failure to overhead lines due to <br>extreme wind exceeding design standard and <br>vegetation contact. |
| ![Wind_Icon.gif](nggtf-20260331_g231.gif)<br>![A_Dk-Grey_Icon.gif](nggtf-20260331_g227.gif)<br>| Structural failure to overhead lines due to <br>extreme wind exceeding design standard and <br>vegetation contact. |
| **Risk descriptions** |  |
| ![C_Md-Blue_Icon.gif](nggtf-20260331_g226.gif) | ![A_Dk-Grey_Icon.gif](nggtf-20260331_g227.gif) |
| **Chronic**<br>**physical risk**<br>Gradual, persistent impact over a longer sustained period | **Acute**<br>**physical risk**<br>Immediate, high-severity impact concentrated in a short period<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **61** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.** |  |  |  |  |  |

---

Risk Management

Climate change is fully integrated into our

enterprise risk management framework.

**Climate change and ERM**

Climate change is a key Group risk factor and is

fully integrated into our enterprise risk management

framework. We consider both physical and

transition risks, and their potential impact on our

business operations, financial performance, and

reputation. For more information on our ERM

framework, which remains consistent with the prior

year, please refer to page [30](#i6f250a91cd464a04873e5851a20d0163_52).

We manage two climate-related Group Principal

Risks (GPR):

**1. Climate change (mitigation GPR):** This risk

aligns to the strategic objective Enable the

energy transition for all, with a focus on

delivering clean, decarbonised energy to meet

our net zero goals (refer to page [33](#i8ebe50234db3417ba33cc3b26f4858d7_24400)).

**2. Loss of supply**<sup>1</sup> **(adaptation GPR):** Physical

climate risks are incorporated into the Loss of

supply control framework to support system

resilience and the safe, reliable delivery of energy

(refer to page [35](#i8ebe50234db3417ba33cc3b26f4858d7_24385)).

This structure provides clear oversight and

accountability – mitigating risk, and maximising

opportunities – in line with Group risk appetite.

1. Significant disruption of energy was renamed to Loss of supply

during 2025/26 to better reflect the nature of the risk, and reflect

that upstream supply considerations are included as a key cause.

Other GPRs affected by climate-related transition

and physical risks include Major capital

programmes which become more significant in a

1.5°C scenario, requiring proactive management

and intervention. Physical risks also contribute to

our Significant safety or environmental event risk,

reinforcing the need for robust safety and

environmental disciplines. Acute physical risks are

already occurring and are expected to increase in

frequency and severity, with greater long-term

impacts under a 4°C scenario.

We routinely horizon scan and track critical energy

transition trends. We monitor key indicators and

metrics against established thresholds and assess

these against our strategy and business plans.

Emerging risks are identified and managed through

our ERM processes with outcomes shared,

reviewed and challenged by senior leadership (refer

to page [30](#i6f250a91cd464a04873e5851a20d0163_52)).

Climate-related risk management is embedded

across all levels of the organisation and follows the

Group's established "Three Lines" model (see page

[30](#i6f250a91cd464a04873e5851a20d0163_52)).

**Group Risk Taxonomy**

The Group Risk Taxonomy enables the business to

classify any climate change risk under four

categories – strategic, operational, financial, and

compliance – with more detailed sub-categories

and assigned risk appetites. All GPRs are subject

to a detailed annual review and treated as equally

important and not prioritised.

Despite external pressures, our climate-related risk

exposure remains broadly stable, with most risks

within appetite. These risks primarily fall under our

strategic and operational categories.

**How we manage and monitor our** 

**climate-related risks**

As part of our risk management process, we have

defined key controls to manage both climate

change mitigation and adaptation risks.

Mitigation controls align with our strategy and

regulatory frameworks and extend across other

relevant risks such as regulatory outcomes, political

and societal expectations, and loss of supply.

These key controls focus on tracking progress

against targets, identifying transition-risk triggers,

and implementing appropriate actions and

solutions. Our material climate change mitigation

controls include the following:

**–Business unit action plans:** These are

designed to ensure each business unit can

deliver climate change goals to support the

delivery of Group emission reduction targets in

line with our vision and strategy.

**–Governance:** Our top-down, bottom-up

approach to sustainability governance across all

levels of the organisation (described on page 54)

drives performance and holds business units to

account.

**–Responsible Business reporting:** We annually

report on our performance, transparently

documenting progress and dependencies

against our commitments.

**Assessing our climate-related financial** 

**risks and opportunities** 

Our GPRs are rated on a scale of 1 to 5 across

financial, reputational, and likelihood categories.

Financial ratings reflect increasing monetary

impact, while reputational ratings range from

"internal" to "international".

The overall indicative risk score is calculated by

multiplying likelihood by the greater of financial or

reputational impact, consistent with the stress-

testing methodology used for our Viability

Statement (page [86](#i6f250a91cd464a04873e5851a20d0163_103)).

For TCFD disclosures, we build on this internal

assessment of impact, timeframe and likelihood by

incorporating market data and insights from

subject matter experts across the Group. Short-

term time horizons consider the current effects of

climate-related risks and opportunities while

medium- to long-term consider the

anticipated effects.

We assess material climate-related risks and

opportunities over short, medium, and long-term

horizons, aligned with strategic business planning,

investment and financial forecasting processes.

![](nggtf-20260331_g232.gif)

**Conclusion**

Our financially material climate-related risks

and opportunities, along with how we

measure and respond to them, are outlined

on the following pages.

Across all pathways, including worst-case

scenarios, none of the identified risks

undermine the Group's resilience.

We remain well-positioned to adapt our

portfolio and respond to opportunities from

the energy transition.

Reducing uncertainty for uncontrollable

risks through building resilience into

operations and influencing regulatory

outcomes remains essential.

![risks background new.jpg](nggtf-20260331_g233.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **62** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Risk Management**<br>|  |  |  |  |  |

---

![risks background new v2.jpg](nggtf-20260331_g234.jpg)

![](nggtf-20260331_g235.gif)

**1. Transition Risk**

---

| | |
|:---|:---|
| Demand for natural gas is <br>uncertain in long-term scenarios | Demand for natural gas is <br>uncertain in long-term scenarios |
| **Risk/opportunity**<br>**Policy and legal**<br>Gas is expected to continue to play an important role across <br>our US jurisdictions, including the gas assets we own and <br>operate today. However, achieving net zero will require <br>progressive decarbonisation of energy networks over the long <br>term, with the future role of gas shaped by economic, <br>technological, legal, policy and regulatory developments.<br>Over the next decade, natural gas demand is expected to <br>remain robust, reflecting affordability and regional economic <br>priorities. Over the longer term, net zero pathways assume <br>increased electrification, including for heating, which would <br>raise electricity demand and reduce gas consumption, with <br>implications for the useful economic lives (UELs) and elements <br>of our gas network assets. | **Risk/opportunity**<br>**Policy and legal**<br>Gas is expected to continue to play an important role across <br>our US jurisdictions, including the gas assets we own and <br>operate today. However, achieving net zero will require <br>progressive decarbonisation of energy networks over the long <br>term, with the future role of gas shaped by economic, <br>technological, legal, policy and regulatory developments.<br>Over the next decade, natural gas demand is expected to <br>remain robust, reflecting affordability and regional economic <br>priorities. Over the longer term, net zero pathways assume <br>increased electrification, including for heating, which would <br>raise electricity demand and reduce gas consumption, with <br>implications for the useful economic lives (UELs) and elements <br>of our gas network assets. |
|  | **Business units potentially affected:** <br>NY and NE<br>|
|  | **Asset group(s) potentially affected:** <br>Gas Distribution and Generation<br>|
|  | **Timeframe** |
|  | **Likelihood** |
|  | **Measurement indicators:**<br>–Gas UEL sensitivities<br>–GHG emissions<br>–CTP<br>|

---

**Potential impact**

Massachusetts and New York are pursuing accelerated

decarbonisation pathways centred on electrification, which may

reduce long-term demand for gas heating and shorten the UELs of

certain gas network assets as policy, regulatory and planning

frameworks evolve. Current regulatory frameworks continue to

support capital investment, cost recovery and returns for gas

networks to maintain a safe and reliable service, and while new

customer connections may be constrained, there are no regulatory

mandates requiring the forced conversion of existing gas customers.

State net zero pathways assume a rapid near-term acceleration in

heat pump adoption, which is a key indicator of electrification and

future gas demand. Achieving material reductions in gas reliance

would also require significant investment in supporting electric

infrastructure. However, recent setbacks to renewable energy

development have increased delivery risk in Massachusetts and New

York. The transition scenario outputs summary on page <u>[30](#i6f250a91cd464a04873e5851a20d0163_52)</u> illustrates

the KPIs relative to the accelerated deployment required under

forecast transition scenarios.

More frequent cold weather events across New York and

Massachusetts underscore the importance of resilient energy

infrastructure. Given the likelihood of recurring extreme cold weather,

many customers are expected to adopt partial electrification

solutions, retaining gas connections for reliability and backup.

Full electrification scenarios appear challenging due to high costs,

customers opting for gas, and existing challenges on the electric

infrastructure to support increasing load in the short term.

We have performed sensitivity analysis to assess the impact on our

![](nggtf-20260331_g236.gif)

**Short**

![](nggtf-20260331_g236.gif)

**Medium**

![](nggtf-20260331_g237.gif)

**Long**

Group financial results of shortening the UELs of our gas business

assets, which for 2050 illustrates an unlikely worst-case scenario.

Please refer to note 13 Property, plant and equipment for more

![](nggtf-20260331_g238.gif)

**Very Low**

![](nggtf-20260331_g238.gif)

**Low**

![](nggtf-20260331_g238.gif)

**Moderate**

![](nggtf-20260331_g239.gif)

**High**

![](nggtf-20260331_g238.gif)

**Very High**

details.

**Our response**

We support the decarbonisation of energy networks while

recognising that gas is expected to continue to play an important,

though evolving, role over the medium to long term, including

through our existing gas assets, with its future role beyond 2050

dependent on economic, technological, legal and regulatory

developments. In assessing the UEL of these assets, we consider

multiple demand pathways reflecting customer behaviour,

electrification pace and affordability, the potential role of low-carbon

fuels, and jurisdictional net zero ambitions, noting that while New

York and Massachusetts prioritise large-scale electrification,

challenges remain in meeting near-term targets.

Notwithstanding long-term policy objectives, safety and reliability of

the gas network remain key priorities for both National Grid and

regulators. This is evidenced by continued regulatory support for

targeted gas infrastructure investment, including approval of cost

recovery and allowed returns where investment is required to

maintain safe and reliable service. On 7 November 2025, the New

York Department of Environmental Conservation approved permits

for the Northeast Supply Enhancement (NESE) pipeline, which, while

not Company-owned, will supply gas solely to National Grid and has

been incorporated into our long-term planning assumptions. The

December 2025 adoption of the New York State Energy Plan further

signals ongoing regulatory recognition of the role of gas infrastructure

in meeting system reliability and policy objectives.

Alternative pathways considered in regulatory proceedings could

also support continued use of gas assets, including as a back-up

fuel during peak winter demand or through lower-carbon fuels. Our

US fossil-fuelled generation assets are currently expected to be

materially depreciated by 2040, aligning with New York State's

zero-emissions electricity target. However, due to system reliability

needs, fossil-fuel generation assets may continue to operate beyond

2040. During recent extreme weather events, these assets provided

critical system reliability, including increased steam generation during

a winter cold snap and record daily output at the Northport plant

during a late-June heatwave. As such events become more

frequent, existing assets can continue to support grid resilience and

climate adaptation.

---

| | | | |
|:---|:---|:---|:---|
| **Time horizons:**  |  |  | **Likelihood:**  |
| The timeframes we have used to assess the climate-related risks and opportunities are: | The timeframes we have used to assess the climate-related risks and opportunities are: | The timeframes we have used to assess the climate-related risks and opportunities are: | Our likelihood assessment is an indicative estimate of the probability for material financial impacts with <br>reference to the following categorisation: |
| **Up to one year** <br>In line with our annual planning and <br>shorter-term budget process.<br>| **From two to ten years** <br>Reflects our strategic business <br>planning process period.<br>| **Ten years plus** <br>Aligns with our longer-term emerging risk assessment timelines, <br>up to the date of our net zero commitment.<br>| We use our ERM risk assessment scoring scale to categorise the likelihood of our climate change risks and <br>opportunities. |
| *These time horizons largely align with our planning and forecasting process timelines,* <br>*with some buffers to reflect the regularity of updating scenarios.* | *These time horizons largely align with our planning and forecasting process timelines,* <br>*with some buffers to reflect the regularity of updating scenarios.* | *These time horizons largely align with our planning and forecasting process timelines,* <br>*with some buffers to reflect the regularity of updating scenarios.* | We use our ERM risk assessment scoring scale to categorise the likelihood of our climate change risks and <br>opportunities. |

---

![](nggtf-20260331_g239.gif)

**Very Low**

![](nggtf-20260331_g239.gif)

**Low**

![](nggtf-20260331_g239.gif)

**Moderate**

![](nggtf-20260331_g239.gif)

**High**

![](nggtf-20260331_g239.gif)

**Very High**

![](nggtf-20260331_g237.gif)

**Short**

![](nggtf-20260331_g237.gif)

**Medium**

![](nggtf-20260331_g237.gif)

**Long**

![risks background new.jpg](nggtf-20260331_g233.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **63** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Risk Management**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g235.gif)

**2. Transition Risk**

---

| | |
|:---|:---|
| Uncertainty in the extent <br>of electricity demand growth  | Uncertainty in the extent <br>of electricity demand growth  |
| **Risk/opportunity**<br>**Market, policy and legal**<br>Electricity demand growth is projected in all scenarios, but <br>there is uncertainty about the pace and scale of this growth. <br>A wide range of factors may influence the trajectory, including <br>political, technological and market trends, and associated rates <br>of consumer adoption. AI adoption is forecast to drive electricity <br>load growth, with data centres already a major contributor to <br>growth in connection demand queues, but there remains <br>uncertainty including scale of adoption and location. Electricity <br>demand growth is a key driver of long-term network planning. <br>This is further complicated by the growth of embedded <br>generation and flexibility. | **Risk/opportunity**<br>**Market, policy and legal**<br>Electricity demand growth is projected in all scenarios, but <br>there is uncertainty about the pace and scale of this growth. <br>A wide range of factors may influence the trajectory, including <br>political, technological and market trends, and associated rates <br>of consumer adoption. AI adoption is forecast to drive electricity <br>load growth, with data centres already a major contributor to <br>growth in connection demand queues, but there remains <br>uncertainty including scale of adoption and location. Electricity <br>demand growth is a key driver of long-term network planning. <br>This is further complicated by the growth of embedded <br>generation and flexibility. |
|  | **Business units potentially affected:** <br>All<br>|
|  | **Asset group(s) potentially affected:** <br>Electrical Distribution and Transmission <br>|
|  | **Timeframe** |
|  | **Likelihood** |
|  | **Measurement indicators:**<br>–Network reliability<br>–UK and US power networks<br>–Capital investment<br>|

---

![](nggtf-20260331_g236.gif)

**Short**

![](nggtf-20260331_g237.gif)

**Medium**

![](nggtf-20260331_g237.gif)

**Long**

![](nggtf-20260331_g238.gif)

**Very Low**

![](nggtf-20260331_g238.gif)

**Low**

![](nggtf-20260331_g239.gif)

**Moderate**

![](nggtf-20260331_g238.gif)

**High**

![](nggtf-20260331_g238.gif)

**Very High**

**Potential impact**

It is important to accurately forecast demand to right-size the networks

of the future.

If electricity demand is underestimated, there is a risk that the electricity

transmission and distribution networks we operate may not be able to

accommodate the scale of demand growth required to support the

energy transition. This could result in National Grid slowing the pace of

electrification and potentially affect both the reliability of our services

and the delivery of our sustainability objectives, with financial and

reputational risks.

If electricity demand is overestimated, there is a risk of over-investment

in network assets, increasing energy system costs at a time when

consumer affordability is strained. This would undermine the trust and

confidence of both consumers and regulators, potentially damaging our

reputation and credibility in the market.

Given this two-way risk would likely materialise over the medium to long

term, it is not possible to reliably quantify this risk at this time.

**Our response**

It is important that governments continue to set clear policy

commitments to provide strategic direction to National Grid

and the wider industry. System planners and regulators play

important roles in providing independent assessments of demand

growth, and we continue to work closely with them to ensure our

plans are flexible and responsive to changing needs. We

undertake our own internal analysis, based on decades of

experience in energy infrastructure development, to model

different futures with varying electric demand growth. This is

supported by close stakeholder relationships across wider

industry and government.

In the UK, NESO has a central role in the strategic planning of

Great Britain's energy system. Given the scale of electricity

demand growth, we are delivering no-regret anticipatory

investment to future-proof the network. In UK ET, we are making

have integrated anticipatory approaches into our RIIO-T3 plan.

Ofgem's RIIO-T3 Final Determinations include mechanisms to

respond to projects that may be required by NESO's Centralised

Strategic Network Plan. We are developing our business plan for

RIIO-ED3, with tools and mechanisms to address uncertainty. Our

DSO governance panel plays an important role in providing

rigorous, independent challenge to our plans.

In the US, investment is prioritised based on system performance,

engineering needs, and execution strategy, and we continue to

deliver efficient solutions to enable electricity demand growth such

as energy efficiency, demand response, and other non-wires

alternatives. We regularly measure and report our network

reliability across the transmission, distribution and interconnection

network (refer to page [28](#iee4806b7ad9c44e2be5eaed98caea4fa_3-0-1-6-954736)).

![risks background new.jpg](nggtf-20260331_g233.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **64** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Risk Management**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g235.gif)

**3. Transition Risk**

---

| | |
|:---|:---|
| There are several dependencies <br>which affect our ability to deliver our <br>commitments, including supply <br>chain, talent and finance | There are several dependencies <br>which affect our ability to deliver our <br>commitments, including supply <br>chain, talent and finance |
| **Risk/opportunity**<br>**Reputation and market**<br>We are playing our role in delivering an unprecedented <br>transformation of energy systems, with associated delivery risks <br>across areas within our strategic influence. These areas <br>primarily include, but are not limited to, supply chains, <br>workforce capability and access to capital. Our energy <br>networks are critical to enable the flows of energy from cleaner <br>generation to decarbonised demand, and delays to delivery <br>could jeopardise wider societal decarbonisation goals. <br>Assuming broader supportive and aligned external conditions <br>exist, such as political, regulatory and technological, failure to <br>effectively execute within areas under National Grid's strategic <br>influence could result in reputational harm and market <br>consequences. There may be reputational and market impacts <br>if we fall short of our own ambitious GHG emissions targets. | **Risk/opportunity**<br>**Reputation and market**<br>We are playing our role in delivering an unprecedented <br>transformation of energy systems, with associated delivery risks <br>across areas within our strategic influence. These areas <br>primarily include, but are not limited to, supply chains, <br>workforce capability and access to capital. Our energy <br>networks are critical to enable the flows of energy from cleaner <br>generation to decarbonised demand, and delays to delivery <br>could jeopardise wider societal decarbonisation goals. <br>Assuming broader supportive and aligned external conditions <br>exist, such as political, regulatory and technological, failure to <br>effectively execute within areas under National Grid's strategic <br>influence could result in reputational harm and market <br>consequences. There may be reputational and market impacts <br>if we fall short of our own ambitious GHG emissions targets. |
|  | **Business units potentially affected:** <br>All<br>|
|  | **Asset group(s) potentially affected:** <br>Electrical Distribution and Transmission, Gas Distribution<br>|
|  | **Timeframe** |
|  | **Likelihood** |
|  | **Measurement indicators:**<br>–GHG emissions<br>–Network reliability<br>–Proportion of renewables in energy mix<br>–Customer satisfaction (US)<br>–Cumulative green bonds on issue<br>–Capital investment<br>–Supply chain engagement<br>–Employee engagement index<br>|

---

**Potential impact**

The external context in which we operate has evolved significantly,

particularly across political and regulatory frameworks, technological

developments, affordability considerations, and customer expectations.

While these broader factors are captured within our Group Principal

Risks, this transition risk scenario focuses on the potential reputational

and market consequences arising from our execution across areas

under National Grid's strategic influence. Assuming supportive external

conditions, ineffective delivery could adversely affect stakeholder

confidence, with implications for investors, regulators and other key

stakeholders. Further detail on Group Principal Risks and related

management actions is provided on pages [32](#i6f250a91cd464a04873e5851a20d0163_58) – [37](#i8ebe50234db3417ba33cc3b26f4858d7_24396).

Our businesses in the US and UK both depend on, and compete in, a

global market for materials and equipment, talent and green finance. To

deliver at the pace and scale required, we need to purchase

equipment, including assets with long lead times and constrained

global supply in the right timeframes. We also need to compete

effectively for talent, to deliver significant network reinforcement as well

as maintaining a robust and reliable network. Attracting investment

underpins our ability to deliver this reinforcement. It is crucial that we

have investable regulatory frameworks with the right return on and of

capital. These regulatory frameworks include incentives and penalties.

Our supply chain, talent and financing need to operate in conjunction

to successfully deliver investments, and failure could result in

materially lower financial performance, impacting our share price and

EPS projections. It could also damage our relationships with our

trusted stakeholders, including our investors, regulators and

customers, and potentially position National Grid as an obstacle rather

than an enabler in the energy transition. The wider economy is

dependent on the energy sector to enable their decarbonisation plans,

with the ability to connect to our transmission and distribution

networks in a timely manner.

![](nggtf-20260331_g236.gif)

**Short**

![](nggtf-20260331_g237.gif)

**Medium**

![](nggtf-20260331_g237.gif)

**Long**

Given this risk would likely materialise over the medium to long term, it

is not possible to reliably quantify this risk at this time.

![](nggtf-20260331_g238.gif)

**Very Low**

![](nggtf-20260331_g238.gif)

**Low**

![](nggtf-20260331_g239.gif)

**Moderate**

![](nggtf-20260331_g238.gif)

**High**

![](nggtf-20260331_g238.gif)

**Very High**

**Our response**

Climate-related targets are embedded into our internal performance

management and incentives, maintaining our focus on ensuring the

supply chain, talent and financing is in place to deliver on our

commitments. The Responsible Business section (pages [40](#i6f250a91cd464a04873e5851a20d0163_67) – [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751))

sets out our progress against our Group CTP – our roadmap to a

vision of reaching net zero. We continue to work closely with

stakeholders, including regulators, to ensure policy and regulatory

frameworks enable and facilitate our net zero plans.

We continue to deliver transformative new approaches to strengthen

our supply chains. In the UK, building on pioneering initiatives

including the Great Grid Partnership, in July 2025 we launched our c.

£8bn Electricity Transmission Partnership to unlock long-term supply

chain capacity and skills. In New England, we have established

strategic contractor partnerships to accelerate timelines, reduce risk,

and lower costs across over $3 billion of planned capital work over

the next five years. We also engage with our suppliers to establish

action plans and commitments towards a Science Based Target

(refer to page [42](#i90fddb706a2d4b05823daf62ce7e3a6f_20753)).

We have a strategic priority to 'build tomorrow's workforce today' to

develop the skills we need to deliver on our ambitions. We continue to

deliver strong entry level programmes for graduates, interns and

apprentices, as well as proactively investing in leadership

development. In 2026, we expanded our Construction Development

Programme to include a Development Engineer Pathway aimed at

individuals looking to re-skill and transition into the network

development space within our Electricity Transmission business, and

we launched Leading @ Grid, a global development programme to

enhance senior leadership capabilities.

We work closely with regulators to get investable frameworks in place

in all our jurisdictions, with the acceptance of the RIIO-T3 regulatory

framework a significant milestone in March 2026. Our upgraded five-

year financial framework provides a clear investor proposition,

including an upgraded EPS.

![risks background new.jpg](nggtf-20260331_g233.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **65** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Risk Management**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g240.gif)

**4. Transition Opportunity**

---

| | |
|:---|:---|
| Growth of clean generation and <br>increased demand for electricity, even <br>in our slowest decarbonising scenarios  | Growth of clean generation and <br>increased demand for electricity, even <br>in our slowest decarbonising scenarios  |
| **Risk/opportunity**<br>**Market**<br>Renewable generation projects are reorienting our system <br>design, with power flowing from new locations across our <br>networks. Electrification of heat and transport, alongside <br>growing business electricity demand, such as data centres, <br>offers significant growth opportunities in the UK and US. <br>National Grid is well positioned to capitalise on these <br>opportunities through our central role in connecting new <br>sources of energy to end users via our networks. <br>**Products and services**<br>The evolution of the energy system will require innovative <br>solutions to deliver expanded and decarbonised electricity <br>networks, with National Grid leading the way to scale these <br>technologies, benefitting our business and consumers. | **Risk/opportunity**<br>**Market**<br>Renewable generation projects are reorienting our system <br>design, with power flowing from new locations across our <br>networks. Electrification of heat and transport, alongside <br>growing business electricity demand, such as data centres, <br>offers significant growth opportunities in the UK and US. <br>National Grid is well positioned to capitalise on these <br>opportunities through our central role in connecting new <br>sources of energy to end users via our networks. <br>**Products and services**<br>The evolution of the energy system will require innovative <br>solutions to deliver expanded and decarbonised electricity <br>networks, with National Grid leading the way to scale these <br>technologies, benefitting our business and consumers. |
|  | **Business units potentially affected:** <br>All<br>|
|  | **Asset group(s) potentially affected:** <br>Electrical Distribution and Transmission, NGV Interconnectors <br>and NGP investment<br>|
|  | **Timeframe** |
|  | **Likelihood** |
|  | **Measurement indicators:**<br>–Network efficiency and reliability<br>–Renewable capacity additions<br>–Proportion of renewables in energy mix<br>–EU Taxonomy green capital expenditure<br>–Investment in research and development<br>–National Grid Partners investment<br>|

---

**Potential impact**

While the pace and scale of electrification growth is uncertain, the

positive trajectory is clear, driving growth in electricity networks.

In the UK, the Government is supporting continued momentum towards

its Clean Power 2030 Plan. Supply-side objectives are intertwined with

ambition for uptake of decarbonised customer technologies including

electric vehicles, heat pumps, embedded generation and storage. In the

US, our states have established targets for clean energy supply and

consumer electrification. The drive to cleaner energy in our jurisdictions

requires the infrastructure to deliver it, underpinning our new five-year

financial framework with cumulative capital investment of at least £70

billion.

Alongside expanding networks in our jurisdictions, we will need greater

interconnectivity to match intermittent renewable generation to

increased electricity demand.

**Our response**

To maximise these opportunities, we are delivering on our strategy to

focus on networks and streamlining our business. In May 2025, we

completed the sale of National Grid Renewables, our US onshore

renewables business. In November 2025 we completed the sale of

Grain LNG, our UK LNG asset. Our recently upgraded five-year

financial framework projects capital investment of at least £70 billion

across our energy networks from 2027 to 2031. This investment

continues the Group's shift towards electric, with latest projections

forecasting over 80% of Group assets will be electric by 2030/31.

In the UK, we are leading the largest overhaul of the electricity grid in

a generation, doubling our investment in UK electricity networks

relative to the previous five years. We expect to invest £31 billion in

the next five years to 2030/31 in UK ET. Ofgem's Final Determination

delivers a price control (running from 1 April 2026 to 31 March 2031)

![](nggtf-20260331_g237.gif)

**Short**

![](nggtf-20260331_g237.gif)

**Medium**

![](nggtf-20260331_g237.gif)

**Long**

that enables networks to invest at the pace and scale needed to

meet the ramp up in power demand, with plans to nearly double the

amount of power that can flow across the country. This will help

![](nggtf-20260331_g238.gif)

**Very Low**

![](nggtf-20260331_g238.gif)

**Low**

![](nggtf-20260331_g238.gif)

**Moderate**

![](nggtf-20260331_g238.gif)

**High**

![](nggtf-20260331_g239.gif)

**Very High**

avoid constraint costs and ensure a resilient, clean and future-

proofed network that will be critical to underpinning economic

competitiveness and growth in the UK in the years ahead.

For UK ED, we expect to invest £9 billion in the next five years. We

continue to deliver against our RIIO-ED2 business plan (ED2 price

control period runs from 1 April 2023 to 31 March 2028), to ensure

the readiness of the electricity network to unlock the potential for

customers to electrify further and faster. We'll continue to engage

customers and stakeholders as we refine and get ready to submit

our RIIO-ED3 business plan to Ofgem in December 2026 for the

ED3 price control period, which will run from 1 April 2028 to

31 March 2033. ED3 will be a critical period in transforming

electricity distribution networks to achieve the UK's climate targets.

In the US, our well-developed energy transition scenarios have enabled

us to submit credible rate case filings outlining the investments needed

to deliver the energy transition. As part of our five-year financial

framework to 2031, we expect to invest around £17 billion and £12

billion in our New York and New England regulated businesses

respectively. In New York, we continue to make significant progress

on the $4 billion Upstate Upgrade programme, to deliver a smarter,

stronger and cleaner energy grid. Our NIMO rate settlement for 2025

to 2028 was approved in August 2025, including investments to

integrate renewables and reduce emissions from gas leaks. In New

England, we secured approval for the cost recovery mechanism for

our nearly $600 million Electric Sector Modernization Plan, balancing

customer affordability with the state's clean energy objectives. Gas

has a foundational role in Massachusetts' all-of-the-above energy

strategy. In January 2026, we submitted our rate case filing for

Massachusetts Gas. These activities further enhance our role in

delivering the energy transition, while helping to ensure energy

security and sustainable affordability in the regions we operate in.

Our NGV business has planned capital investment of around £1 billion

out to 2031. NGV is a leader in developing electricity interconnector

projects to connect Great Britain with other European countries. By

enabling cross-border electricity trade, interconnectors can displace

fossil fuel generation in favour of renewable energy, reducing the CO2e

intensity of the energy mix, while generating revenue. Our current

portfolio of six interconnectors provide 7.8 GW of capacity, allowing

us to trade excess power – including renewable energy generated

from the sun, wind and water – between different countries, and we

estimate that by 2030, 90% of the energy imported via our

interconnectors will be from zero-carbon sources. We are working

towards expanding our portfolio of interconnectors, including LionLink,

a first-of-its-kind interconnector connecting offshore wind to Great Britain

and the Netherlands' electricity grids, and GriffinLink, a new

multi-purpose interconnector project in partnership with TenneT

Germany. In the US, NGV continues to develop opportunities, including

its announcement in 2025 that it will install the world's first 100%

hydrogen fuelled commercial linear generator at Northport power plant.

Our corporate venture capital arm, National Grid Partners, continues

to invest in startups at the intersection of energy and emerging

technology, allowing National Grid to benefit operationally and

strategically as we scale them across our business and industry. Since

its founding in 2018, National Grid Partners has invested more than

$550 million in startups advancing the future of energy; and it recently

committed another $100 million to artificial intelligence startups

supporting a smarter, more resilient grid and boosting energy security.

![risks background new.jpg](nggtf-20260331_g233.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **66** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Risk Management**<br>|  |  |  |  |  |

---

![](nggtf-20260331_g241.gif)

**5. Physical Risk**

---

| | |
|:---|:---|
| Increased frequency of extreme <br>weather events and long-term shifts <br>in global climate patterns  | Increased frequency of extreme <br>weather events and long-term shifts <br>in global climate patterns  |
| **Risk/opportunity**<br>**Acute**<br>Our assets are at risk of physical impacts from increased <br>frequency of extreme weather events such as storms and <br>flooding, leading to asset damage and operational risks.<br>**Chronic**<br>Our assets are at risk of physical impacts from changing <br>climate trends in the longer term, including increased frequency <br>and severity of coastal flooding, high temperatures, extreme <br>wind, wildfires and low temperature, exposing us to asset <br>damage and operational risks.  | **Risk/opportunity**<br>**Acute**<br>Our assets are at risk of physical impacts from increased <br>frequency of extreme weather events such as storms and <br>flooding, leading to asset damage and operational risks.<br>**Chronic**<br>Our assets are at risk of physical impacts from changing <br>climate trends in the longer term, including increased frequency <br>and severity of coastal flooding, high temperatures, extreme <br>wind, wildfires and low temperature, exposing us to asset <br>damage and operational risks.  |
|  | **Business units potentially affected:** <br>All<br>|
|  | **Asset group(s) potentially affected:** <br>Electrical Distribution and Transmission, Gas Distribution<br>|
|  | **Timeframe** |
|  | **Likelihood** |
|  | **Measurement indicators:**<br>–Network reliability<br>–Major storm costs<br>–CCRT outputs<br>–Research outputs from innovation projects<br>–EU Taxonomy climate adaptation capital expenditure<br>|

---

**Potential impact**

Under our US regulatory frameworks, major storm-related costs

become recoverable in future years once deferrable criteria are met. In

2025/26, we incurred deferrable storm costs (net of allowances) which

are eligible for future recovery of £39 million, but this did not exceed our

pre-set $100 million threshold to be excluded from underlying results.

In the prior year, we incurred £87 million of deferrable storm costs (net

of allowances) and consequently these were all excluded from our

reported underlying results. Further details are provided on pages [71](#i202fa9fb1f56481f9b7c2ceca5912235_61962)

and [73](#i202fa9fb1f56481f9b7c2ceca5912235_61956). Cost recovery for other US weather-related events is included

within the base rates set at the outset of each rate filing period.

In the UK, storm costs above predefined thresholds can be recovered

through re-opener mechanisms within our price control frameworks,

allowing adjustments to allowed revenues for severe weather-related

expenditure.

At the end of 2023, Niagara Mohawk Power Corporation (NIMO)

submitted its Climate Change Resilience Plan (CCRP) to the New York

Public Service Commission (NYPSC), assessing the vulnerability of its

electric infrastructure to climate-related risks. The study identified a

capital investment of approximately $243 million in resilience

programmes over a five-year period (2026-2030), with cumulative

investments projected to reach about $566 million by the tenth year

(2026-2035) and $1.39 billion by the twentieth year (2026-2045). The

revenue requirements for these resilience investments are expected to

result in total bill increases of 0.02% in 2025/26 to 0.66% in 2029/30

compared to current rates across all service classes.

Subsequent modifications to the CCRP were submitted in December

![](nggtf-20260331_g237.gif)

**Short**

![](nggtf-20260331_g237.gif)

**Medium**

![](nggtf-20260331_g237.gif)

**Long**

2024 with an updated filing in February 2025. The CCRP programme

timelines and budgets were revised following the NMPC FY26-28 rate

case, with several projects deferred to support customer affordability.

![](nggtf-20260331_g238.gif)

**Very Low**

![](nggtf-20260331_g238.gif)

**Low**

![](nggtf-20260331_g238.gif)

**Moderate**

![](nggtf-20260331_g239.gif)

**High**

![](nggtf-20260331_g238.gif)

**Very High**

As a result, the FY26-30 CCRP budget was reduced from $243 million

to $110 million.

Weather-related events are likely to become more frequent in line with

the increasing likelihoods illustrated by the IPCC. Costs are expected to

grow accordingly, including potential rises to insurance premiums to

cover such events, unless climate adaptation is appropriately

implemented.

**Our response**

Our Group-wide CVA leverages CCRT data analysis to identify

long-term climate hazard risks to our energy infrastructure. We are

utilising our findings to develop tailored climate change adaptation

plans across our business.

In Massachusetts, efforts to produce a climate change resilience

plan commenced in 2025 with collaboration among Massachusetts

utilities and the state's Office of Climate Science. This plan, due to

state regulators in September 2029, will identify specific mitigation

actions across the state. While this plan is developed, we continue

to address substation flood mitigation concerns at substations where

flooding is identified as a risk. These resiliency projects total $98.5

million and form part of the recently approved MECO rate case. We

also continue to accelerate the installation of Fault Location Isolation

and Restoration (FLISR) schemes to improve reliability and resiliency

during storms across both New York and New England.

In the UK, ED responded to Ofgem's Sector Specific Methodology

Consultation (SSMC) which included dedicated climate resiliency

questions linked to the ED3 price control framework.

In addition, as part of our UK ET T3 business plan, we submitted

a RIIO-T3 Climate Resilience Strategy as an annex to the main

business plan submission.

We continue to invest in climate adaptation across the Group in

the form of storm hardening and flood defences, with a further

£79 million (2024/25: £57 million) invested in the year. Such

investments should increase our ability to withstand disruptive

events, and improve our organisational capability to reduce the

magnitude and impact from such events.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **67** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.** |  |  |  |  |  |

---

Metrics

and Targets

We disclose our GHG emissions metrics through our

Responsible Business reporting, tracking performance

and material climate change risks and opportunities.

Our approach to setting, reviewing and monitoring

climate-related targets is embedded in our Climate

change mitigation GPR on page [35](#i8ebe50234db3417ba33cc3b26f4858d7_24385), which outlines

how we assess and manage the actual and

potential impacts of climate change. Progress

against each target is monitored using defined

quantitative indicators, with performance reviewed

through established risk management and

governance processes.

Our greenhouse gas (GHG) emission reduction

targets and other climate-related metrics are

summarised on page [68](#i04acc15a45a7420086e6933b916efcba_9297), with performance analysis

(including trends and year-on-year movements)

provided in the KPI section on page [27](#iace58ec4179c4a61842725e2f14f2a69_1-6-1-1-954736) and the

Responsible Business review on page [40](#i9e6cd58f418241358d44ca7dfb3e65ca_1416). The

Responsible Business review also includes

additional metrics and targets used by us to assess

and manage relevant climate-related risks and

opportunities. We also disclose industry-based

metrics relevant to our business model and

activities, and reflected in our SASB-aligned

reporting on our website which helps inform our

Responsible Business commitments.

Our emissions reduction targets have been

informed by the objectives of the Paris Agreement

and the jurisdictional commitments that flow from

it, recognising that failing to play our role in

delivering emissions reductions would risk

undermining the wider decarbonisation goals of the

jurisdictions in which we operate. We are not

subject to entity-specific legally mandated GHG

reduction targets beyond regulated mechanisms to

incentivise GHG reductions.

In the US, long-term policy frameworks such as

New York's Climate Leadership and Community

Protection Act and Massachusetts' Clean Energy

and Climate Plan set out pathways to fossil-free

energy systems by 2050, while in the UK the

Government's Clean Power 2030 Action Plan

signals an accelerated transition to a decarbonised

power system. These commitments have shaped

the ambition and timing of our targets and reinforce

the importance of engagement with policymakers,

trade associations and industry bodies, where

responsible advocacy for enabling policy

frameworks is critical to delivering both

jurisdictional climate objectives and our net zero

commitment (see page [51](#i021c40488e4146b08af7159ea13a8831_18355)).

We continually monitor our climate-related metrics

and targets to ensure that the data we measure is

meaningful, aligns with our strategy, and provides

the necessary information for effective performance

monitoring and progress demonstration. By

integrating these metrics into our financial

Enterprise Performance Management (EPM)

processes, it allows us to assess GHG reduction

performance in the context of wider enterprise

performance. Our annual Strategic Business

Planning cycle includes mechanisms to track

business units' plans against our SBTi glide paths.

Our monitoring and reporting processes

incorporate internal controls and a team of

technical consultants reviewed our CTP publication

for accuracy, consistency and any material

discrepancies. We have been clear that we do not

expect emissions reductions to follow a linear

trajectory and a significant portion of our emissions

are outside our control.

All of our GHG emissions are reported on a gross

basis, and our primary focus is on decarbonising

the business in line with a 1.5°C pathway. We do

not assume the use carbon offsetting to meet our

near-term science-based targets; however, we do

use limited carbon offsets to support our emissions

reduction efforts where emissions cannot be

reduced further, in line with SBTi guidance and our

internal carbon offsetting policy. The Group Carbon

Offsetting Policy, revised in 2025 under the

oversight of the Carbon Offsetting Committee,

helps ensures offsetting is used only as a

high-integrity complement to direct emissions

reductions and requires a balanced portfolio across

carbon reduction and removal projects, locations,

technologies, storage durations, costs and

co-benefits. All offsetting is governed by robust

principles including additionality, permanence,

transparency, independent verification and effective

risk management to help ensure environmental

integrity and value for National Grid.

Within our UK Electricity Transmission business, we

collaborated with Housing Associations' Charitable

Trust to purchase around 1,000 Verified Carbon

Standard credits from achieved carbon reductions

delivered through energy efficiency initiatives in

low-income households, delivering wider social

benefits to local communities. We also partnered

with Forest Carbon to purchase approximately

14,000 UK-based Pending Issuance Units (PIUs)

from a bespoke portfolio of woodland projects.

These PIUs represent a promise to deliver a tonne

of carbon dioxide equivalent in the future and

support planning for the compensation of

UK-based emissions, while delivering

environmental co-benefits. Under the RIIO-T3

framework, our UK Electricity Transmission

business has Ofgem-approved funding of £16.17m

to support further carbon compensation over the

regulatory period. This funding is based on an

assumed unit cost of £74 per tCO₂e, capped at

6% of NGET's business carbon footprint

GHG emissions.

Details of Directors' remuneration, including the

incorporation of climate-related considerations into

executive remuneration and the proportion linked

to such considerations in the current period, are

set out in the Directors' Remuneration Report on

pages [107](#i6f250a91cd464a04873e5851a20d0163_142) – 126.

In addition to the metrics laid out on the following

page, we have disclosed the proportion of IFRS

revenue, operating expenditure and capital

expenditure that align with the principles of the

EU Taxonomy.

A significant proportion of our Scope 1 GHG

emissions are subject to either a traded carbon

price or a regulatory non-traded cost of carbon.

These carbon prices are primarily applied through

regulatory frameworks rather than as an internal

shadow price for capital allocation. While carbon

pricing has enhanced our understanding of the

emissions implications of our activities, it has not

materially influenced investment decisions to date,

and we do not operate a single, Group-wide

internal carbon price applied uniformly across our

businesses. Carbon pricing is one of several tools

we use alongside policy drivers, regulatory

commitments, and carbon reduction

methodologies, including the application of carbon

weighting in tendering for construction projects.

On the next page we include our GHG emissions

footprint, a key indicator against our climate-related

risks and opportunities.

![Metrics and Targets pp67.jpg](nggtf-20260331_g242.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **68** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Task Force on Climate-related Financial Disclosures (TCFD) cont.**<br>**Metrics and targets**<br>|  |  |  |  |  |

---

**Index of climate-related quantitative measurement indicators**<sup>1</sup>

In the last year our emissions have risen, due to factors outside of our control and despite our efforts to reduce emissions where we have control.

Refer to pages [40](#i6f250a91cd464a04873e5851a20d0163_67) – [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751) for further details.

---

| | | | |
|:---|:---|:---|:---|
|  | **2025/26** | 2024/25 | 2023/24 |
| **SBTi validated GHG emissions reduction targets** | **SBTi validated GHG emissions reduction targets** | **SBTi validated GHG emissions reduction targets** | **SBTi validated GHG emissions reduction targets** |
| Reduce absolute Scope 1 and 2 GHG emissions by 60% by 2030<sup>2,3</sup> | **(3.3)%** | (4.4)% | (11.8)% |
| Reduce absolute Scope 1 and 2 GHG emissions excluding generation by 50% by 2030<sup>2,3</sup> | **(26.0)%** | (14.7)% | (14.4)% |
| Reduce the carbon intensity of our power generation (Scope 1 GHG emissions) by 90% by 2030, and by 92% by <br>2033<sup>3</sup><br>| **2.5%** | (36.7)% | (34.7)% |
| Reduce the carbon intensity of our power generation and sold electricity (Scope 1 and Scope 3 GHG <br>emissions) by 86% by 2033<sup>3</sup><br>| **(1.2)%** | (18.3)% | (15.4)% |
| Reduce absolute GHG emissions for all Scope 3, excluding sold electricity, by 37.5% by 2033<sup>4</sup> | **11.1%** | 5.8% | 0.8% |
| Reduce absolute GHG emissions from gas sold by third parties by 37.5% by 2033<sup>4,5</sup> | **(9.6)%** | (10.5)% | (17.6)% |
| **Key climate-related metrics** | **Key climate-related metrics** | **Key climate-related metrics** | **Key climate-related metrics** |
| Scope 1 GHG emissions (ktCO2e)  | **5001** | 4467 | 3988 |
| Scope 2 GHG emissions (ktCO2e, location based) | **2510** | 2955 | 2864 |
| Total Scope 1 and 2 GHG emissions<sup>2</sup> (ktCO2e) | **7511** | 7422 | 6852 |
| Scope 3 GHG emissions (ktCO2e) | **29503** | 28435 | 27384 |
| Total Scope 1, 2 and 3 GHG emissions<sup>2</sup> (full value chain) (ktCO2e) | **37015** | 35857 | 34236 |
| Intensity ratio: Scope 1 and 2 GHG emissions per million of revenue<sup>2</sup> (tCO2e/£m) | **425** | 427 | 345 |
| Climate change adaptation capital expenditure (EU Taxonomy aligned activities, £m) | **79** | 57 | 30 |
| Climate change mitigation capital expenditure (EU Taxonomy aligned activities, £m) | **9756** | 7610 | 5962 |
| Group energy consumption from fossil fuel generation (GWh) | **19317** | 17390 | 14375 |
| Group energy consumption from electricity systems line losses (GWh) | **15111** | 15514 | 14519 |
| Group energy consumption excluding fossil fuel generation and electricity systems line losses (GWh) | **1386** | 1916 | 2547 |
| Total Group energy consumption (GWh) | **35814** | 34820 | 31441 |
| UK energy consumption from electricity systems line losses (GWh) | **9702** | 10413 | 10046 |
| UK energy consumption excluding electricity systems losses (GWh) | **276** | 790 | 1297 |
| Total UK energy consumption (GWh) | **9978** | 11203 | 11343 |
| UK Scope 1 GHG emissions (ktCO2e) | **211** | 278 | 377 |
| UK Scope 2 GHG emissions<sup>2</sup> (ktCO2e) | **1670** | 2137 | 2113 |
| Total UK Scope 1 and 2 GHG emissions<sup>2</sup> (ktCO2e) | **1881** | 2415 | 2490 |

---

1. Refer to our Responsible Business Reporting Methodology

(methodology) on our website for calculation details. Target year

20Yn indicates that the performance will be reported in the

financial year that aligns with the year 20Yn/Yn+1. Our

methodology applies the GHG Protocol operational control

principle across all emissions and environmental metrics.

Operations that are sold or disposed of are excluded from

reporting from the year of exit. For this reporting year, this

includes National Grid Renewables and Grain LNG. Further

details are provided in the "Changes to global operations"

section within our methodology and in Note 1 (Basis of

preparation and recent accounting developments) to the

consolidated financial statements. We report Scope 3 emissions

across six categories within our current SBTi target boundary, as

defined by the GHG Protocol. Our disclosed Scope 3 GHG

emissions include GHG Protocol Scope 3 Categories 1, 2, 3, 5,

6, 7 and 11. Categories not listed are excluded as not material.

2. Includes Scope 2 location-based emissions only as line losses

make up the vast majority of these emissions and we have

limited renewable electricity certificates and other contractual

instruments in place. 2024/25 excludes National Grid ESO.

3. Near-term target approved by Science Based Targets initiative

(SBTi) and aligned to the Paris Agreement and a 1.5°C pathway.

GHG targets are against a financial year 2018/19 baseline.

4. Near-term target approved by SBTi and aligned to a well below

2°C pathway. GHG targets are against a financial year 2018/19

baseline.

5. Third-Party Sold Gas, a US-only emission, are downstream

emissions associated with the combustion of natural gas

delivered through our network but sold by a company other than

National Grid. This differs from Scope 3 Cat. 11 GHG Protocol

guidance, which otherwise advises to consider only the end use

of goods sold by the reporting company itself.

Note: The above data together with our Climate change – Scope 1,

2 and 3 emissions KPIs on page [27](#iace58ec4179c4a61842725e2f14f2a69_1-6-1-1-954736) and "Absolute energy

consumption in our flagship offices" on page [42](#i90fddb706a2d4b05823daf62ce7e3a6f_20754) is responsive to the

UK Government's Streamlined Energy and Carbon Reporting (SECR)

requirements. We have split out our Group energy consumption into

constituent parts for greater transparency. Fuels consumed for

power generation on behalf of LIPA, the contracting body is shown

separately because energy consumption related to power generation

can vary greatly year-on-year and is determined by LIPA. Amounts

are presented in GWh, with 1 GWh=1,000,000 kWh.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **69** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review** |  |  |  |  |  |

---

A solid financial return

Making the connection – delivering outputs efficiently and earning a solid financial return.

![](nggtf-20260331_g243.gif)

---

| | | |
|:---|:---|:---|
| Revenue | Profit and cash flows | Investment |
| The vast majority of our revenues are set in accordance with our <br>regulatory agreements (see pages 220 – 225) and are calculated <br>based on a number of factors, including investment in network assets, <br>performance on incentives, allowed returns on equity and cost of <br>debt, and customer satisfaction.<br>| Our ability to convert revenue to profit and cash is important. By managing <br>our operations efficiently, safely and for the long term, we generate substantial <br>operating cash flows. Coupled with long-term debt financing, as well as <br>additional capital generated through the Rights Issue and take-up of the <br>shareholder scrip dividend option during periods of higher investment, <br>we are able to invest in growing our asset base and fund our dividends.<br>| We invest efficiently in our networks to achieve strong and sustainable <br>growth in our regulated asset base over the long term. We also invest <br>in assets in our non-regulated businesses. We continually assess, monitor <br>and challenge investment decisions so we can continue to run safe, reliable <br>and cost-effective networks.<br>|
| **Statutory revenue (%)** | **Statutory operating profit (%)** | **Capital investment (%)** |
| **Underlying net revenue**<sup>1</sup> **(%)** | **Underlying operating profit**<sup>1</sup> **(%)** | **Total assets (used for asset growth) (%)** |

---

![50](nggtf-20260331_g244.gif)

![106](nggtf-20260331_g245.gif)

![174](nggtf-20260331_g246.gif)

---

| | |
|:---|:---|
| UK Electricity Transmission (UK ET) | **16%** |
| UK Electricity Distribution (UK ED) | **11%** |
| New York | **43%** |
| New England | **23%** |
| National Grid Ventures (NGV) | **6%** |
| Other activities | **1%** |

---

---

| | |
|:---|:---|
| UK Electricity Transmission (UK ET) | **30%** |
| UK Electricity Distribution (UK ED) | **21%** |
| New York | **22%** |
| New England | **17%** |
| National Grid Ventures (NGV) | **13%** |
| Other activities | **(3)%** |

---

---

| | |
|:---|:---|
| UK Electricity Transmission (UK ET) | **38%** |
| UK Electricity Distribution (UK ED) | **14%** |
| New York | **30%** |
| New England | **17%** |
| National Grid Ventures (NGV) | **1%** |
| Other activities | **—%** |

---

**£17.7bn**

**£5.4bn**

**£11.6bn**

![](nggtf-20260331_g247.gif)

![](nggtf-20260331_g248.gif)

![](nggtf-20260331_g249.gif)

![78](nggtf-20260331_g250.gif)

![134](nggtf-20260331_g251.gif)

![162](nggtf-20260331_g252.gif)

---

| | |
|:---|:---|
| UK Electricity Transmission (UK ET) | **20%** |
| UK Electricity Distribution (UK ED) | **14%** |
| New York | **38%** |
| New England | **20%** |
| National Grid Ventures (NGV) | **8%** |
| Other activities | **—%** |

---

---

| | |
|:---|:---|
| UK Electricity Transmission (UK ET) | **30%** |
| UK Electricity Distribution (UK ED) | **22%** |
| New York | **30%** |
| New England | **15%** |
| National Grid Ventures (NGV) | **6%** |
| Other activities | **(3)%** |

---

---

| | |
|:---|:---|
| UK Electricity Transmission (UK ET) | **34%** |
| UK Electricity Distribution (UK ED) | **18%** |
| New York | **27%** |
| New England | **14%** |
| National Grid Ventures (NGV) | **4%** |
| Other activities | **3%** |

---

**£13.2bn**

**£5.7bn**

**£72.0bn**

1. Non-GAAP alternative performance measures (APMs). For further details and reconciliation to equivalent GAAP measures see Other unaudited financial information on pages 236 – 247.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **70** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

![](nggtf-20260331_g253.gif)

**Summary of Group financial** 

**performance for the year** 

**ended 31 March 2026**

---

| |
|:---|
| **Statutory EPS**<sup>1</sup> |
| **65.5p** |

---

---

| |
|:---|
| **2024/25** |
| **2023/24** |

---

![366](nggtf-20260331_g254.gif)

---

| |
|:---|
| **Underlying EPS**<sup>1</sup> |
| **78.0p** |

---

---

| |
|:---|
| **2024/25** |
| **2023/24** |

---

![370](nggtf-20260331_g255.gif)

---

| |
|:---|
| **Group RoE** |
| **9.8%** |

---

---

| |
|:---|
| **2024/25** |
| **2023/24** |

---

![375](nggtf-20260331_g256.gif)

---

| |
|:---|
| **Asset growth** |
| **10.9%** |

---

---

| |
|:---|
| **2024/25** |
| **2023/24** |

---

![379](nggtf-20260331_g257.gif)

1. From continuing operations.

**Financial summary for continuing operations** 

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| **Accounting profit** |  |  |  |
| Gross revenue | **17687** | 18378 | (4)% |
| Other operating income | **489** |  | n/m |
| Operating costs | **(12745)** | (13444) | 5% |
| **Statutory operating profit** | **5431** | 4934 | 10% |
| Net finance costs | **(1325)** | (1357) | 2% |
| Share of joint ventures and associates | **76** | 73 | 4% |
| Tax | **(939)** | (821) | (14)% |
| Non-controlling interest | **(2)** | (3) | 33% |
| **Statutory earnings** | **3241** | 2826 | 15% |
| Exceptional items and remeasurements<sup>1</sup> | **(333)** | (171) | n/m |
| Tax on exceptional items and remeasurements<sup>1</sup> | **(16)** | (40) | 60% |
| **Adjusted earnings**<sup>1</sup> | **2892** | 2615 | 11% |
| Timing and major storm costs<sup>1</sup> | **636** | 592 | n/m |
| Tax on timing and major storm costs<sup>1</sup> | **(168)** | (156) | n/m |
| Deferred tax on underlying profits in NGET and NGED<sup>1</sup> | **499** | 401 | 24% |
| **Underlying earnings**<sup>1</sup> | **3859** | 3452 | 12% |
| **Statutory EPS** | **65.5p** | 60.0p | 9% |
| **Adjusted EPS**<sup>1</sup> | **58.5p** | 55.6p | 5% |
| **Underlying EPS**<sup>1</sup> | **78.0p** | 73.3p | 6% |
| Dividend per share<sup>1</sup> | **48.49p** | 46.72p | 3.8% |
| Dividend cover – underlying<sup>1</sup> | **1.6x** | 1.6x | 3% |
| **Economic profit** |  |  |  |
| Group financial performance after interest and tax (Group RoE numerator)<sup>1</sup> | **2866** | 2602 | 10% |
| **Group RoE**<sup>1</sup> | **9.8%** | 9.0% | 80bps |
| **Capital investment and asset growth** |  |  |  |
| Capital investment | **11576** | 9847 | 18% |
| Regulated asset growth<sup>1</sup> | **11.7%** | 10.5% | 120bps |
| **Asset growth**<sup>1</sup> | **10.9%** | 9.0% | 190bps |
| **Balance sheet strength** |  |  |  |
| FFO/adjusted net debt<sup>1</sup> | **13.0%** | 13.7% | -70bps |
| RCF/adjusted net debt<sup>1</sup> | **9.3%** | 9.8% | -50bps |
| Net debt (note 29 to the financial statements) | **44160** | 41371 | 7% |
| Add: held for sale net debt | **—** | (55) | n/m |
| Net debt (including held for sale)<sup>1</sup> | **44160** | 41316 | 7% |
| **Group regulatory gearing**<sup>1</sup> | **61%** | 61% | 0bps |

---

1. Non-GAAP alternative performance

measures (APMs) and/or regulatory

performance measures (RPMs).

For further details see Other

unaudited financial information

on pages 236 – 247.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **71** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Performance management framework**

In managing the business, we focus on various non-IFRS alternative performance measures (APMs) and

regulatory performance measures (RPMs) which provide meaningful comparisons of performance between

years, monitor the strength of the Group's balance sheet and ensure profitability reflects the Group's

regulatory economic arrangements. Such APMs and RPMs are supplementary to, and should not be

regarded as a substitute for IFRS measures, which we refer to as statutory results.

Our business performance as set out in our regulatory agreements can differ from accounting under

IFRS, principally because our regulators allow for regulatory deferral accounting. Our allowed revenues

are set in accordance with our regulatory price controls or rate plans. Statutory IFRS does not allow us

to recognise regulatory assets or liabilities (for the difference between collected and allowed regulatory

revenues). As a result we use a suite of APMs (defined by us) to help measure and monitor our underlying

regulated business performance. We explain the basis of these measures and, where practicable,

reconcile these to statutory IFRS results (i.e. GAAP) in Other unaudited financial information on pages

236 – 247. Our RPMs have been calculated for the total Group (or individual entities where relevant)

and these are not based on IFRS measures. Specifically, we measure the financial performance of the

Group from different perspectives:

**–Accounting profit:** In addition to statutory IFRS measures we report adjusted results (i.e. before

exceptional items and remeasurements), and underlying results, which further take account of:

i) volumetric and other revenue timing differences arising from our regulatory contracts; (ii) major storm

costs (net of in-year allowances and deductibles) which are recoverable in future periods when they

exceed a $100 million threshold; and (iii) deferred tax in our UK regulated businesses (NGET and

NGED). In doing so, we intend to make the impact of such items clear to users of the financial

information in this Annual Report.

**–Economic profit:** Group Return on Equity (RoE) takes account of the regulated value of our assets

and of our regulatory economic arrangements to show the returns on shareholder equity.

**–Capital investment and asset growth:** Capital investment comprises our additions to PP&E and

intangible assets (excluding acquisitions), equity investments in joint ventures and associates, along

with net movements in capex prepayments. Asset growth represents the year-on-year increase in

RAV and US rate base in our regulated businesses (referred to as 'regulated asset growth'), plus

the increase in net assets (excluding certain balances such as pensions, net debt and deferred taxes)

in our non-regulated businesses, but excluding the impact of currency movements.

**–Balance sheet strength:** Maintaining a strong investment grade credit rating allows us to finance

our growth ambitions at a competitive rate. Hence, we monitor credit metrics used by the major rating

agencies to ensure we are generating sufficient cash flow to service our debts. Group regulatory

gearing measures our Group net debt as a proportion of the Group's assets that are used to measure

asset growth. This includes balances for businesses classified as held for sale under IFRS.

This balanced range of measures of financial wellbeing informs our dividend policy which aims to grow

annual DPS in line with UK CPIH, thus maintaining the DPS in real terms.

**Financial summary for continuing operations**

Accounting profit: Statutory IFRS earnings were £3,241 million in 2025/26, £415 million (15%)

higher than the prior year. Statutory earnings benefited from pre-tax net exceptional gains of £376 million

related to the sale of our two businesses (Grain LNG and National Grid Renewables) in 2025/26; and pre-

tax remeasurement losses of £43 million (2025: pre-tax net exceptional credits of £42 million and pre-tax

remeasurement gains of £129 million). For details on exceptional items, refer to note 5 to the financial

statements. Timing swings were £131 million adverse year-on-year, with a £636 million net under-

recovery in 2025/26 (2025: £505 million net under-recovery). These factors, the net impact of tax on these

items and an improvement in underlying business performance meant that statutory EPS for continuing

operations of 65.5p was 5.5p higher than the prior year.

Our 'adjusted' results exclude the impacts from exceptional items and remeasurements as explained

on page 155. In 2025/26, adjusted earnings from continuing operations were £2,892 million, up

£277 million (11%) from the prior year. Adjusted earnings in 2025/26 included a timing net under-recovery

after tax of £468 million (2025: £372 million net under-recovery). As a result, adjusted operating profit of

£5,044 million was up £279 million (2025: £4,765 million). Adjusted net finance costs of £1,271 million

were £90 million lower, as a result of higher average net debt and higher interest rates being more than

offset by higher capitalised interest and other interest income. Share of profits from joint ventures and

associates of £76 million were broadly flat year-on-year. Adjusted tax of £955 million was £94 million

higher, driven by the increase in profits, but resulted in a stable effective tax rate of 25.3% (2025: 25.3%).

Our policy is to exclude deferrable storm costs (net of allowances and deductibles) from underlying results if

these exceed a $100 million aggregate pre-tax threshold. In 2024/25, we included $110 million (£87 million)

of storm costs in our adjusted results, but excluded these from underlying results. In 2025/26, our

allowances were higher and deferrable storm costs were below this threshold, so $52 million (£39 million)

of deferrable storm costs that are recoverable in future periods are included in our underlying results.

Underlying operating profit was up 6% driven by improved performance in New York (from updated rates

and the collection of unremunerated costs in prior periods) along with higher allowed revenues in UK

Electricity Transmission (RAV growth and increased ASTI-related 'fast money'). New England was lower

with updated rates and capital trackers being more than offset by a FERC order on Transmission Owner

RoEs across New England (mostly related to historical years). National Grid Ventures was lower mainly

as a result of the sale of two businesses in the year (Grain LNG and National Grid Renewables). Other

activities and the contribution from joint ventures and associates were broadly flat year-on-year. Regulated

controllable costs were 2% higher (at constant currency), with inflation and workload increases being

partly offset by efficiency savings. Depreciation and amortisation were higher than the prior year due to

our growing asset base. Net debt-related financing costs were higher, driven by our ongoing investment

programme. Other interest was favourable year-on-year driven by higher levels of capitalised interest.

After accounting for non-controlling interests, underlying earnings increased by 12% and resulted in

a 6% increase in underlying EPS to 78.0p.

Economic profit: Our Group RoE for 2025/26 was 9.8%, 80bps higher than the 9.0% achieved in the

prior year, with the numerator increasing by £264 million, (up 10% year-on-year), primarily driven by higher

regulatory business performance, compared with an increase in the denominator of £49 million (up 0.2%

year-on-year), which includes the beneficial impact of asset growth being partly funded by higher gearing.

Capital investment and asset growth: Capital investment of £11,576 million was £1,729 million

(18%) higher than 2024/25, driven by a step up in investment across our regulated businesses, partly

offset by lower investment in National Grid Ventures. Higher capital investment and the impact of RAV

indexation have helped deliver asset growth of 10.9% (2025: 9.0%).

Balance sheet strength: Net debt increased from £41.4 billion at March 2025 to £44.2 billion at

March 2026. Operating cash inflows of £7.8 billion (2025: £6.8 billion) along with disposal proceeds

from the sales of NG Renewables £1.5 billion and Grain LNG £1.3 billion helped to fund £10.6 billion

(2025: £9.7 billion) of investing cash outflows. Regulatory gearing was maintained at 61% (2025: 61%)

and our calculation of RCF/adjusted net debt credit metric was 9.3%, a decrease of -50bps compared

with 2024/25 and remains above the current rating threshold of 7.0%.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **72** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Dividend**

The recommended full-year dividend per ordinary share of 48.49p is in line with our policy of increasing the prior year dividend in line with UK CPIH inflation and is covered 1.6 times by underlying EPS.

**Profitability and earnings**

In calculating adjusted profit measures, where we consider it is in the interests of users of the financial statements to do so, we exclude certain discrete items of income or expense that we consider to be exceptional

in nature. The table below reconciles our statutory profit measures for continuing operations, at actual exchange rates, to adjusted and underlying versions. Further information on exceptional items and remeasurements

is provided in notes 2, 5 and 6 to the financial statements.

**Reconciliation of profit and earnings from continuing operations** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Operating profit**  | **Operating profit**  | **Operating profit**  | **Profit after tax**  | **Profit after tax**  | **Profit after tax**  | **Earnings per share**  | **Earnings per share**  | **Earnings per share**  |
| **£m**  | **2025/26** | 2024/25 | Change | **2025/26** | 2024/25 | Change | **2025/26** | 2024/25 | Change |
| **Statutory results** | **5431** | 4934 | 10% | **3243** | 2829 | 15% | **65.5p** | 60.0p | 9% |
| Exceptional items | **(376)** | (42) | n/m | **(384)** | (118) | n/m | **(7.7p)** | (2.4p) | n/m |
| Remeasurements | **(11)** | (127) | n/m | **35** | (93) | n/m | **0.7p** | (2.0p) | n/m |
| **Adjusted results** | **5044** | 4765 | 6% | **2894** | 2618 | 11% | **58.5p** | 55.6p | 5% |
| Timing | **636** | 505 | n/m | **468** | 372 | n/m | **9.5p** | 7.9p | n/m |
| Major storm costs | **—** | 87 | (100)% | **—** | 64 | (100)% | **—p** | 1.3p | (96)% |
| Deferred tax in NGET and NGED | **—** |  | —% | **499** | 401 | 24% | **10.0p** | 8.5p | 17% |
| **Underlying results** | **5680** | 5357 | 6% | **3861** | 3455 | 12% | **78.0p** | 73.3p | 6% |

---

**Timing over/(under)-recoveries**

In calculating underlying profit, we exclude regulatory revenue timing over- and under-recoveries,

major storm costs (defined below) and deferred tax on underlying results of our UK regulated business

(NGET and NGED), also defined below. Under the Group's regulatory frameworks, most of the revenues

we are allowed to collect each year are governed by regulatory price controls in the UK and rate plans

in the US. If more than this allowed level of revenue is collected, an adjustment will be made to future

prices to reflect this over-recovery; likewise, if less than this level of revenue is collected, an adjustment

will be made to future prices in respect of the under-recovery. These variances between allowed and

collected revenues and timing of revenue collections for pass-through costs give rise to 'timing' over-

and under-recoveries.

The following table summarises management's estimates of such amounts for the two years ended

31 March 2026 and 31 March 2025 for continuing operations. All amounts are shown on a pre-tax basis

and, where appropriate, opening balances are restated for exchange adjustments and to correspond with

subsequent regulatory filings and calculations, and are translated at the 2025/26 average exchange rate

of $1.343:£1.

---

| | | |
|:---|:---|:---|
| **£m** | **2025/26** | 2024/25<sup>1</sup> |
| Balance at start of year (restated) | **60** | 1018 |
| UK Electricity Transmission | **(77)** | (151) |
| UK Electricity Distribution | **(116)** | 407 |
| UK Electricity System Operator (sold in 2024/25) | **—** | (479) |
| New England | **94** | 57 |
| New York | **(537)** | (323) |
| In-year under-recovery | **(636)** | (489) |
| Disposal of UK Electricity System Operator | **—** | (462) |
| **Balance at end of year** | **(576)** | 67 |

---

1. March 2025 balances restated to correspond with 2024/25 regulatory filings and calculations.

In relation to timing under-recoveries, the estimated closing net under-recovered balance at 31 March

2026 (at an average exchange rate of $1.34) was £576 million, comprising: a net £68 million asset

to be recovered in UK Electricity Transmission; a net £2 million liability to be returned in UK Electricity

Distribution; a net £274 million asset to be recovered in New England; and a net £236 million asset to

be recovered in New York (for further details see page 240). In calculating the post-tax effect of these

in-year timing recoveries, we impute a tax rate based on the regional marginal tax rates, consistent with

the relative mix of UK and US balances.

---

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| **Financial review cont.** |  |  |  |  |  |

---

**Major storm costs (US)**

We exclude the impact of major storm costs in the US where the aggregate amount is sufficiently

material in any given year. Such costs (net of in-year allowances and deductibles) are recoverable under

our rate plans but are expensed as incurred under IFRS. Accordingly, where the aggregate total US

major storm costs incurred (net of in-year allowances and deductibles) exceeds $100 million in any given

year, we exclude the net costs from underlying earnings. In 2025/26, we incurred deferrable storm costs

(net of allowances) which are eligible for future recovery of $52 million, but this did not exceed our pre-set

$100 million threshold to be excluded from underlying results. In the prior year, we incurred $110 million

(£87 million) of deferrable storm costs (net of allowances) before tax, or £64 million post-tax and

consequently these were all excluded from our reported underlying results.

**Deferred tax in UK regulated businesses**

We exclude deferred tax in our UK regulated businesses (NGET and NGED) in our underlying earnings

measure. Tax is generally considered to be a pass-through cost by our UK regulator, with revenue tax

allowances linked to the level of cash tax expected to be paid in the year. In 2025/26, we excluded

£499 million (2025: £401 million) of deferred tax charges from our underlying results.

**Segmental operating profit**

The tables below set out operating profit on statutory, adjusted, and underlying bases.

**Statutory operating profit**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| UK Electricity Transmission | **1605** | 1277 | 26% |
| UK Electricity Distribution | **1122** | 1598 | (30)% |
| UK Electricity System Operator | **—** | (213) | 100% |
| New England | **947** | 1008 | (6)% |
| New York | **1184** | 1269 | (7)% |
| National Grid Ventures | **715** | 5 | n/m |
| Other activities | **(142)** | (10) | n/m |
| **Total** | **5431** | 4934 | 10% |

---

The notation 'n/m' is used throughout this section where the year-on-year percentage change is deemed

to be 'not meaningful'.

Statutory operating profit increased in the year, primarily as a result of exceptional net gains of

£376 million in 2025/26 compared with net gains of £42 million in the prior year. For details on

exceptional items, refer to note 5 to the financial statements. This was largely offset by £131 million

adverse year-on-year movements in timing, £116 million adverse year-on-year movements in commodity

derivative remeasurements and the impact of a weaker exchange rate. Statutory operating profit was

also supported by an improved underlying performance in our UK Electricity Transmission, UK Electricity

Distribution and New York businesses, partially offset by the prior year including a contribution from the

UK Electricity System Operator prior to its disposal, along with lower underlying profits in New England,

adversely impacted by the FERC order (mainly related to historical periods) and lower underlying profits

in National Grid Ventures, with the latter being driven by the sales of National Grid Renewables and

Grain LNG in 2025/26.

**Adjusted operating profit (a non-GAAP measure)**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| UK Electricity Transmission | **1605** | 1277 | 26% |
| UK Electricity Distribution | **1122** | 1610 | (30)% |
| UK Electricity System Operator | **—** | (364) | 100% |
| New England | **960** | 982 | (2)% |
| New York | **1172** | 1023 | 15% |
| National Grid Ventures | **327** | 380 | (14)% |
| Other activities | **(142)** | (143) | 1% |
| **Continuing operations** | **5044** | 4765 | 6% |

---

**Underlying operating profit (a non-GAAP measure)**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| UK Electricity Transmission | **1682** | 1428 | 18% |
| UK Electricity Distribution | **1238** | 1203 | 3% |
| UK Electricity System Operator | **—** | 115 | (100)% |
| New England | **866** | 924 | (6)% |
| New York | **1709** | 1450 | 18% |
| National Grid Ventures | **327** | 380 | (14)% |
| Other activities | **(142)** | (143) | 1% |
| **Continuing operations** | **5680** | 5357 | 6% |

---

---

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| **Financial review cont.** |  |  |  |  |  |

---

The following segmental commentaries describe the reasons for the movements in statutory, adjusted

and underlying operating profit compared with the prior year. Unless otherwise stated, the discussion

of performance in the remainder of this Financial review focuses on underlying results.

**UK Electricity Transmission**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| Revenue | **2898** | 2619 | 11% |
| Operating costs | **(1293)** | (1342) | 4% |
| **Statutory operating profit** | **1605** | 1277 | 26% |
| Exceptional items | **—** |  | —% |
| **Adjusted operating profit** | **1605** | 1277 | 26% |
| Timing | **77** | 151 | n/m |
| **Underlying operating profit** | **1682** | 1428 | 18% |
| **Analysed as follows:** |  |  |  |
| Net revenue | **2507** | 2164 | 16% |
| Regulated controllable costs (including pensions) | **(290)** | (293) | (1)% |
| Other operating costs | **(62)** | (54) | (15)% |
| Depreciation and amortisation | **(550)** | (540) | (2)% |
| **Adjusted operating profit** | **1605** | 1277 | 26% |
| Timing  | **77** | 151 | n/m |
| **Underlying operating profit** | **1682** | 1428 | 18% |

---

UK Electricity Transmission statutory operating profit was £328 million higher in the year. Timing under-

recoveries were £77 million in 2025/26 compared with an under-recovery of £151 million in 2024/25.

This year-on-year less adverse under-recovery is mainly the impact of the return in 2024/25 of prior

period balances (primarily tax allowances), a lower inflation true-up and a lower in-year recovery on

volumes and pass-through costs than 2024/25.

UK Electricity Transmission underlying operating profit increased by 18%. Underlying net revenues were

£269 million (12%) higher principally from higher totex allowances (including fast money on ASTI spend)

but also the impact of inflationary increases linked to RAV growth.

Regulated controllable costs including pensions were £3 million lower with the impact of inflationary

and workload increases, due to a larger workforce to support the growing asset base, being more than

offset by efficiency savings, non-recurring benefits related to IT and support service recharges and the

reclassifications of insurance recharges. Other costs were slightly higher than the prior year at £62 million,

including cost reclassifications, but this was partly offset by lower customer-funded diversions and

favourable gains on disposals of assets compared with 2024/25.

The higher depreciation and amortisation principally reflects a higher asset base as a result of continued

investment.

**UK Electricity Distribution**

---

| | | | |
|:---|:---|:---|:---|
| **£m** | **2025/26** | 2024/25 | Change |
| Revenue | **1937** | 2424 | (20)% |
| Operating costs | **(815)** | (826) | 1% |
| **Statutory operating profit** | **1122** | 1598 | (30)% |
| Exceptional items | **—** | 12 | (100)% |
| **Adjusted operating profit** | **1122** | 1610 | (30)% |
| Timing | **116** | (407) | n/m |
| **Underlying operating profit** | **1238** | 1203 | 3% |
| **Analysed as follows:** |  |  |  |
| Net revenue | **1753** | 2239 | (22)% |
| Regulated controllable costs (including pensions) | **(311)** | (302) | 3% |
| Other operating costs | **(49)** | (78) | 37% |
| Depreciation and amortisation | **(271)** | (249) | (9)% |
| **Adjusted operating profit** | **1122** | 1610 | (30)% |
| Timing | **116** | (407) | n/m |
| **Underlying operating profit** | **1238** | 1203 | 3% |

---

UK Electricity Distribution statutory operating profit was £476 million lower in the year, reflecting the

impact of £523 million adverse year-on-year timing movements. Timing under-recoveries of £116 million

in 2025/26 were mainly due to the return of prior period balances, principally driven by an over-collection

in K-factor (i.e. volumes/prices) in 2024/25 which was effectively returned in 2025/26, partly offset by true-

ups for pass-through costs and inflation. This compares with a timing over-recovery of £407 million in the

prior year, which was favourably driven by an over-collection of K-factor.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **75** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

In 2025/26 there were no exceptional costs compared with £12 million of exceptional costs in 2024/25

related to our major transformation programme.

UK Electricity Distribution underlying operating profit increased by £35 million (3%). Underlying net

revenues were £37 million higher than the prior year due to the impact of higher inflation, higher

totex allowances and improved DSO incentives performance partly offset by lower engineering

recharge income.

Regulated controllable costs including pensions were £9 million (3%) higher than the prior year from the

impact of increased inspection and maintenance work, combined with investment in capability build and

inflation impacts, partly offset by efficiencies achieved. Other costs were £29 million lower, reflecting costs

incurred in the prior year associated with Storm Darragh and lower engineering recharges.

Depreciation and amortisation increased by £22 million compared with the prior year due to the increasing

asset base.

**UK Electricity System Operator**

---

| | | | |
|:---|:---|:---|:---|
| **£m** | **2025/26** | 2024/25 | Change |
| Revenue | **—** | 1029 | (100)% |
| Operating costs | **—** | (1242) | 100% |
| **Statutory operating loss** | **—** | (213) | 100% |
| Exceptional items | **—** | (151) | n/m |
| **Adjusted operating loss** | **—** | (364) | 100% |
| Timing | **—** | 479 | n/m |
| **Underlying operating profit** | **—** | 115 | (100)% |
| **Analysed as follows:** |  |  |  |
| Net revenue | **—** | (188) | 100% |
| Controllable costs | **—** | (159) | 100% |
| Post-retirement benefits | **—** | (10) | 100% |
| Other operating costs | **—** | (7) | 100% |
| Depreciation and amortisation | **—** |  | —% |
| **Adjusted operating loss** | **—** | (364) | 100% |
| Timing | **—** | 479 | n/m |
| **Underlying operating profit** | **—** | 115 | (100)% |

---

UK Electricity System Operator was purchased by the UK Government on 1 October 2024 and had been

classified as 'held for sale' since October 2023. Based on the scale and pass-through nature of the

UK Electricity System Operator, it was not considered to be a separate major line of business and hence,

did not meet the definition of a discontinued operation under IFRS 5.

UK Electricity System Operator had a statutory operating loss of £213 million in 2024/25 as a

result of adverse timing (net of provisions for regulatory liabilities recognised under IFRS). In 2023/24

a £498 million exceptional provision was made for the return of the estimated remaining balance of

over-collected revenues at the expected date of disposal (at that time, expected to be June 2024).

This provision was partially reversed in 2024/25 generating an exceptional credit of £151 million. Under

IFRS, a regulatory liability is not usually recognised on balance sheet for the return of such over-

recoveries, however due to the intended disposal of this business during 2024/25, a liability was

recognised given these amounts were expected to be settled through the planned sale process as

opposed to reduced future revenues. The remaining £347 million exceptional provision at the disposal

date was reflected in the reported gain on disposal of this business.

During 2024/25, UK Electricity System Operator had a timing under-recovery of £479 million arising from

the return of prior period over-recovered balances. The over-recovery was the result of higher revenues

collected through the BSUoS fixed price charges compared with total system balancing costs incurred.

At the disposal date, the impact of the residual net over-recovered position was assessed when

calculating the overall net disposal proceeds.

UK Electricity System Operator underlying operating profit in 2024/25 was £115 million. No depreciation

and amortisation was charged while the business was classified as 'held for sale'.

**New England**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| Revenue | **4174** | 4306 | (3)% |
| Operating costs | **(3227)** | (3298) | 2% |
| **Statutory operating profit** | **947** | 1008 | (6)% |
| Exceptional items | **—** | 3 | n/m |
| Remeasurements | **13** | (29) | n/m |
| **Adjusted operating profit** | **960** | 982 | (2)% |
| Timing | **(94)** | (61) | n/m |
| Major storm costs | **—** | 3 | (100)% |
| **Underlying operating profit** | **866** | 924 | (6)% |
| **Analysed as follows:** |  |  |  |
| Net revenue | **2723** | 2648 | 3% |
| Regulated controllable costs | **(668)** | (706) | 5% |
| Post-retirement benefits | **(9)** | (21) | 57% |
| Bad debt expense | **(84)** | (62) | (35)% |
| Other operating costs | **(509)** | (408) | (25)% |
| Depreciation and amortisation | **(493)** | (469) | (5)% |
| **Adjusted operating profit** | **960** | 982 | (2)% |
| Timing | **(94)** | (61) | n/m |
| Major storm costs | **—** | 3 | (100)% |
| **Underlying operating profit** | **866** | 924 | (6)% |

---

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **76** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

New England's statutory operating profit was £61 million lower (or £3 million lower on a constant

currency basis). This included commodity derivative remeasurement losses of £13 million (£42 million

adverse year-on-year), partially offset by £33 million favourable year-on-year timing movements. Timing

over-recoveries of £94 million in 2025/26 are mainly due to the recognition of a receivable for FERC RoE

refunds in Mass Electric from New England Transmission Owners (which will be returned to customers

in future periods). In 2024/25, timing was over-recovered by £61 million mainly due to phasing of energy

efficiency programme spend and commodity costs. In 2024/25, there were £3 million of exceptional

items related to £7 million of charges for our major transformation progress and a £4 million gain related

to environmental provision movements.

New England's underlying operating profit decreased by £58 million (6%) or £5 million (1%) on a constant

currency basis. Underlying net revenue was £42 million higher (£190 million higher at constant currency)

driven by updated rates, higher revenues from capital trackers and storm recoveries, partly offset by the

adverse impact of the FERC order. New England controllable costs were lower by £38 million (£3 million

higher at constant currency) as a result of additional workload and inflation, which were offset by efficiency

savings. Bad debt expense increased by £22 million (£25 million at constant currency) as a result of higher

accounts receivables and higher reserve rates. Depreciation and amortisation increased by £24 million

(£51 million at constant currency) as a result of higher investment. Other costs (on an underlying basis)

were £101 million higher (£124 million higher at constant currency) due to higher investment-related

expenses and higher property taxes, both driven by the growth in asset base along with higher funded

programme costs.

**New York**

---

| | | | |
|:---|:---|:---|:---|
| **£m** | **2025/26** | 2024/25 | Change |
| Revenue | **7618** | 6689 | 14% |
| Operating costs | **(6434)** | (5420) | (19)% |
| **Statutory operating profit** | **1184** | 1269 | (7)% |
| Exceptional items | **—** | (133) | n/m |
| Remeasurements | **(12)** | (113) | n/m |
| **Adjusted operating profit** | **1172** | 1023 | 15% |
| Timing | **537** | 343 | n/m |
| Major storm costs | **—** | 84 | (100)% |
| **Underlying operating profit** | **1709** | 1450 | 18% |
| **Analysed as follows:** |  |  |  |
| Net revenue | **4505** | 4202 | 7% |
| Regulated controllable costs | **(1032)** | (1049) | 2% |
| Post-retirement benefits | **(19)** | (33) | n/m |
| Bad debt expense | **(156)** | (141) | (11)% |
| Other operating costs | **(1357)** | (1225) | (11)% |
| Depreciation and amortisation | **(769)** | (731) | (5)% |
| **Adjusted operating profit** | **1172** | 1023 | 15% |
| Timing | **537** | 343 | n/m |
| Major storm costs | **—** | 84 | (100)% |
| **Underlying operating profit** | **1709** | 1450 | 18% |

---

New York statutory operating profit was lower by £85 million (or £12 million lower at constant currency).

In the prior year New York incurred £133 million of net exceptional credits (a £142 million credit on

environmental provision movements, partly offset by a £9 million charge on our major transformation

programme). Timing under-recoveries in 2025/26 were £537 million (principally related to revenue

decoupling in KEDNY/KEDLI and the impact of levelisation of new rate increases in NIMO, along

with lower auction sale prices on transmission wheeling). In 2024/25, timing under-recoveries were

£343 million (driven by transmission wheeling and commodity under-recoveries due to colder weather

and KEDNY/KEDLI rate levelisation under-recoveries). This resulted in a £194 million adverse year-on-

year timing swing (£214 million adverse at constant currency).

New York underlying operating profit increased by £259 million (18%), or £342 million (25% at constant

currency). This was driven by higher net underlying revenues which increased by £497 million (11%),

or £757 million at constant currency, principally driven by updated rates including higher storm cost

allowances and the recovery of previously unremunerated costs (e.g. environmental and property taxes).

Regulated controllable costs were £17 million lower (£43 million higher at constant currency) year-on-

year, primarily as a result of increased workload (gas safety and reliability initiatives, CLCPA and increased

IT spend on new digital platforms) plus the impact of inflation, partly offset by efficiency savings. Bad debt

expense increased by £15 million (£23 million at constant currency) driven by increased customer billings.

Depreciation and amortisation increased due to the growth in assets. Other costs (on an underlying basis)

increased due to higher storm costs (partly offset by increased storm cost allowances in revenues), higher

property taxes, inflation-related environmental costs and investment-related costs.

**National Grid Ventures**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| **Revenue** | **1098** | 1397 | (21)% |
| Operating costs | **(232)** | (1220) | 81% |
| Depreciation and amortisation | **(151)** | (173) | 13% |
| **Statutory operating profit** | **715** | 5 | n/m |
| Exceptional items | **(376)** | 360 | n/m |
| Remeasurements | **(12)** | 15 | n/a |
| **Adjusted/underlying operating profit** | **327** | 380 | (14)% |

---

National Grid Ventures' statutory operating profit improved by £710 million, principally as a result of

a £489 million exceptional gain on sale on the disposal of Grain LNG in November 2025, partly offset

by a £96 million exceptional loss on disposal of National Grid Renewables sold in May 2025 (mainly

driven by the recycling of cumulative exchange rate adjustments since 2019/20 when this business was

originally acquired). This compared with exceptional charges in 2024/25 of £303 million (impairment of

our Community Offshore Wind investment), along with £57 million of transaction and separation costs for

the planned disposal of National Grid Renewables. Commodity remeasurements were gains of £12 million

in 2025/26 compared with losses of £15 million in 2024/25.

National Grid Ventures' underlying operating profit was £53 million lower than 2024/25. On 29 May 2025

the sale of National Grid Renewables was completed, and on 28 November 2025 the sale of Grain LNG

was completed. The sale of Grain LNG in 2025/26 reduced underlying operating profit by £35 million year-

on-year. In the UK, interconnector profits decreased versus the prior year primarily as a result of lower

interconnector revenues as market spreads remained low. In the US, profit was lower, due to a £24 million

Revolution Wind gain on sale recognised in 2024/25, partly offset by lower development expenditure.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **77** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Other activities**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| **Statutory operating loss** | **(142)** | (10) | (1330)% |
| Exceptional items | **—** | (133) | n/m |
| **Adjusted/underlying operating loss** | **(142)** | (143) | 1% |
| **Analysed as follows:** |  |  |  |
| Property | **46** | 54 | (15)% |
| Corporate and Other activities | **(188)** | (197) | 5% |
| **Adjusted/underlying operating loss** | **(142)** | (143) | 1% |

---

Other activities incurred a statutory operating loss of £142 million (2025: £10 million loss, which included

a £187 million exceptional gain on disposal of UK Electricity System Operator, £46 million of exceptional

charges related to our major transformation programme and £8 million of exceptional transaction and

separation costs incurred by our corporate function related to the planned disposal of our Grain LNG

business). Following a review of strategic priorities in 2025/26, the major transformation programme

launched in 2024 has been reshaped and the associated programme costs in the current year no longer

meet the quantitative threshold to be treated as exceptional.

Other activities' underlying operating loss was £142 million (including corporate costs) in 2025/26

compared with £143 million loss in 2024/25. This improvement was driven by favourable year-on-year

fair value movements in our NG Partners investment portfolio and higher insurance captive profits,

mostly offset by increases in central costs to help deliver our overall group efficiency programme and

other corporate centre cost increases along with lower UK property sales in 2025/26 compared with

the prior year.

**Exceptional items and remeasurements in operating profit – continuing**

In 2025/26, we classified a number of items as exceptional, which has the net impact of increasing

our statutory operating profit by £376 million (2025: £42 million increase) compared with our adjusted

and underlying operating profit measures. These items comprise an exceptional gain of £489 million

on the sale of Grain LNG; an exceptional loss of £96 million on the sale of National Grid Renewables;

transaction, separation and integration costs of £17 million (2025: £65 million). The prior year included

a £146 million credit related to changes in environmental provisions; a £151 million provision release and

a £187 million gain on sale (both linked to UK Electricity System Operator); and a £303 million impairment

of an investment in National Grid Ventures. For further details see note 5 to the financial statements.

In 2024/25, we embarked on a new four-year major transformation programme designed to implement

our 'pureplay networks business' strategy, incurring £74 million of exceptional costs. In 2025/26, it was

determined that this programme no longer met the exceptional items criteria and current year costs have

not been treated as exceptional.

We also exclude certain unrealised gains and losses on mark-to-market financial instruments

('remeasurements') from adjusted and underlying profit. In 2025/26, net remeasurement gains

on commodity contract derivatives (i.e. 'mark-to-market' movements on derivatives used to hedge

the cost of buying wholesale gas and electricity on behalf of US customers and derivatives in our

UK interconnectors business) were £11 million, compared with net remeasurement gains of

£127 million in 2024/25.

**Financing costs and taxation – continuing** 

**Net finance costs** 

Statutory net finance costs of £1,325 million were down from £1,357 million in 2024/25 and included

derivative remeasurement net losses of £54 million (2025: £4 million net gains). Underlying net finance costs

of £1,271 million for 2025/26 were £90 million or 7% lower (£37 million or 3% lower at constant currency)

than 2024/25. Net debt related finance costs were £89 million higher (£146 million higher at constant

currency), driven by higher levels of average net debt (to fund our capex programme) and slightly higher

interest rates, partly offset by gains on favourable debt buy-backs. The effective interest rate for continuing

operations of 4.3% is 20bps higher than the prior year rate. Other interest was favourable year-on-year

reflecting £122 million higher capitalised interest, principally attributable to the step up in ASTI investment

in UK Electricity Transmission, along with favourable pension and OPEB interest income, lower discount

unwind on provisions and higher other interest income.

**Joint ventures and associates** 

The Group's share of net profits from joint ventures and associates on a statutory basis increased to

£76 million (2025: £73 million). Due to the sale of our Emerald joint venture on 29 May 2025, there are no

derivative remeasurements in the current year (2025: £2 million of losses). On an adjusted basis, the share

of net profits from joint ventures and associates increased by £1 million compared with 2024/25, mostly

reflecting higher BritNed revenues driven by higher auction prices, offset by a shorter ownership period

of our Emerald joint venture, which was sold as part of the National Grid Renewables disposal.

**Tax**

The statutory tax charge for continuing operations was £939 million (2025: £821 million) including the

impact of tax on exceptional items and remeasurements of £16 million credit (2025: £40 million credit).

The adjusted tax charge for continuing operations was £955 million (2025: £861 million), resulting in an

adjusted effective tax rate for continuing operations (excluding profits from joint ventures and associates)

of 25.3% (2025: 25.3%).

The underlying tax charge for the year (a non-GAAP measure) was £624 million (2025: £616 million).

The underlying effective tax rate (excluding joint ventures and associates) of 14.2% was 120bps lower

than last year (2025: 15.4%). This is mainly due to profit mix within the Group being more weighted

towards NGET and higher levels of capital investment in NGED leading to a lower underlying tax charge.

Our definition of underlying tax excludes deferred tax for NGET and NGED (as these entities do not

receive a regulatory revenue allowance for tax that has not yet been paid i.e. current tax is effectively

a pass-through from a regulatory perspective). The Group's tax strategy is detailed later in this review.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **78** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Capital investment and asset growth**

**Capital investment**

Capital investment comprises capital expenditure in critical energy infrastructure, equity investments,

equity funding contributions to joint ventures and associates, and net movements in capital expenditure-

related prepayments to secure delivery of future capital investment projects.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **At actual exchange rates**  | **At actual exchange rates**  | **At actual exchange rates**  | **At constant currency**  | **At constant currency**  | **At constant currency**  |
| **£m** | **2025/26** | 2024/25 | Change | **2025/26** | 2024/25 | Change |
| UK Electricity Transmission | **4372** | 2999 | 46% | **4372** | 2999 | 46% |
| UK Electricity Distribution | **1617** | 1426 | 13% | **1617** | 1426 | 13% |
| New England | **2043** | 1751 | 17% | **2043** | 1650 | 24% |
| New York | **3428** | 3289 | 4% | **3428** | 3101 | 11% |
| National Grid Ventures | **109** | 378 | (71)% | **109** | 362 | (70)% |
| Other activities | **7** | 4 | 75% | **7** | 4 | 75% |
| **Total Group** | **11576** | 9847 | 18% | **11576** | 9542 | 21% |

---

UK Electricity Transmission investment was £1,373 million higher than 2024/25 with this 46% increase

primarily driven by expenditure on strategic investment (both Wave 1 and Wave 2 projects) including

offshore spend on EGL4 and Sea Link capacity reserve advance payments, and increased onshore spend

including North London Reinforcement, Yorkshire Green, Tilbury-Grain and Norwich-Tilbury along with

other smaller projects. In addition, investment was higher from progress on projects such as Uxbridge

Moor, Wallend and Margam and also increased for IT and cyber including a new state-of-the-art control

room and Supervisory Control and Data Acquisition (SCADA) system. Capitalised interest and interest

on prepayments of £229 million was £86 million higher than the prior year due to higher levels of assets

under construction.

UK Electricity Distribution increased by £191 million primarily due to increased asset replacement

and refurbishment, higher reinforcement works (in line with the scale up under RIIO-ED2), along with

higher non-load capex driven by higher volumes across overhead lines and diversions and increased

investment in IT and telecoms.

In New England capital investment increased by £292 million (up £393 million at constant currency)

compared with the prior year. This was driven by spend on electric distribution including increases

in asset condition and system capacity, as well as grid modernisation through Advanced Metering

Infrastructure and Fault Location Isolation and Service Restoration (FLISR), higher electric transmission

investment primarily from asset condition and system capacity work, along with an increase in IT

investment. Investment in gas distribution remained relatively stable, with lower Gas System Enhancement

Plan activity being partly offset by increased enhanced safety regulation compliance investment.

Capital investment in New York was £139 million higher (up £327 million at constant currency) compared

with the prior year. The principal driver of this was higher electric investment, driven by system reinforcement

and increasing capacity to fulfil clean energy investment commitments (Upstate Upgrade and Climate

Leadership and Community Protection Act programmes) but also higher from an increase in the level

of IT system development. Investment in our gas networks was lower than in the prior year, with reduced

investment on our mains replacement programme, partly offset by higher spend on city state construction

and other mandated programme spend.

Capital investment in National Grid Ventures was £269 million lower (£253 million lower at constant

currency) with £210 million of this decrease attributable to the disposals of NG Renewables and

Grain LNG, and £53 million reflects the completion of construction of Viking Link interconnector

during 2024/25.

UK Electricity System Operator reported no capital investment since being classified as held for sale

during 2023/24.

**Asset growth and regulated asset growth (non-GAAP measures)**

A key part of our investor proposition is growth in our regulated asset base. The regulated asset base is

a regulatory construct, representing the invested capital on which we are authorised to earn a cash return.

By investing efficiently in our networks, we add to our regulatory asset base over the long term and this in

turn contributes to delivering shareholder value. Our regulated asset base comprises our regulatory asset

value (RAV) in the UK, plus our rate base in the US (these are used to measure our 'regulated asset

growth'). We also invest in related activities that are not subject to network regulation and this further

contributes to 'asset growth'.

In total, asset growth in 2025/26 was 10.9% (2025: 9.0%). Asset growth tracks the overall increase in

assets (excluding foreign exchange movements and the impact of significant increases or decreases

from business acquisition or disposal transactions) using a combination of UK RAV and US rate base

for our regulated businesses, and IFRS balances for our non-regulated businesses. Asset growth

excludes the impact of the reduction in assets in our National Grid Ventures businesses as a result of

the disposal of our Grain LNG and National Grid Renewables businesses during 2025/26. A detailed

calculation of asset growth is provided on page 247.

In terms of asset growth by business sector, UK RAV growth was 12.8% (2025: 9.8%) driven by

increased 'slow money' additions and RAV indexation, along with higher RAV depreciation. US rate base

grew strongly by 10.3% (2025: 11.5%), with continued high levels of capital expenditure (as measured

under US GAAP) and more assets coming into service during the year resulting in increased rate base

at 31 March 2026. On a combined basis, the increase in our UK RAV and US rate base (at constant

currency) produced 'regulated asset growth' of 11.7% (2025: 10.5%).

Non-regulated businesses' growth was 4.3% (2025: (2.1)%) primarily as a result of ongoing investment

in our US Servco on IT, which will support our US regulated businesses, partly offset by lower assets

held in our UK Property business.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **79** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Cash flow, net debt and funding** 

Net debt is the aggregate of cash and cash equivalents, borrowings, current financial and other

investments and derivatives (excluding commodity contract derivatives) as disclosed in note 29 to the

financial statements. 'Adjusted net debt' used for the RCF/adjusted net debt calculation is principally

adjusted for pension deficits and hybrid debt instruments. For a full reconciliation, see page 242.

The following table summarises the Group's cash flow for the year, reconciling this to the change

in net debt.

**Summary cash flow statement**

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **2025/26** | 2024/25 | Change |
| Cash generated from continuing operations | **7861** | 6991 | 12% |
| Purchase of intangibles, PP&E, investments in JVs and <br>acquisition of financial investments (net of disposals)<br>| **(10601)** | (9713) | (9)% |
| Dividends from JVs and associates | **105** | 126 | (17)% |
| **Business net cash outflow from continuing operations** | **(2635)** | (2596) | (2)% |
| Net interest paid | **(1701)** | (1588) | (7)% |
| Net tax paid | **(32)** | (183) | 83% |
| Cash dividends paid | **(1623)** | (1529) | (6)% |
| Other cash movements | **39** | 11 | 255% |
| **Net cash outflow (continuing)** | **(5952)** | (5885) | (1)% |
| Disposals of subsidiaries and associates<sup>1</sup> | **2809** | 1263 | 122% |
| Discontinued operations | **—** | 22 | (100)% |
| Rights Issue (net of costs) | **—** | 6839 | (100)% |
| Other, including net financing raised/(repaid) in year | **2195** | (1474) | n/m |
| **(Decrease)/increase in cash and cash equivalents** | **(948)** | 765 | n/m |
| **Reconciliation to movement in net debt** | **Reconciliation to movement in net debt** | **Reconciliation to movement in net debt** | **Reconciliation to movement in net debt** |
| (Decrease)/increase in cash and cash equivalents | **(948)** | 765 | n/m |
| Less: other net cash flows from investing and financing <br>transactions<br>| **(2195)** | 1474 | n/m |
| Net debt reclassified to held for sale | **—** | (55) | 100% |
| Impact of foreign exchange movements on opening net debt | **624** | 528 | 18% |
| Other non-cash movements | **(270)** | (476) | 43% |
| (Increase)/decrease in net debt | **(2789)** | 2236 | n/m |
| Net debt at start of year | **(41371)** | (43607) | 5% |
| **Net debt at end of year** | **(44160)** | (41371) | (7)% |

---

1. Cash proceeds of £1,499 million for Grain LNG (less £163 million balance of cash and cash equivalents disposed) and £1,531 million

for National Grid Renewables (less £58 million balance of cash and cash equivalents disposed) (2025: cash proceeds of £628 million

for ESO (less £51 million balance of cash and cash equivalents disposed) and £686 million for the disposal of 20% retained interest

in National Gas Transmission).

Cash flow generated from continuing operations was £7.9 billion, £870 million higher than last year,

mainly due to higher net revenues (i.e. after deducting pass-through costs) increasing operating profit

and favourable working capital inflows. Cash expended on investment activities increased as a result of

continued growth in our regulated businesses including a significant step-up of cash capital investment in

UK Electricity Transmission, which was £1.1 billion higher than the prior year, along with higher investment

in New York, New England and UK Electricity Distribution. This includes ongoing cash investment in Grain

LNG and National Grid Renewables, subsequent to these businesses being reclassified as held for sale.

Net interest paid increased mainly as a result of lower interest income following Rights Issue proceeds

being utilised to fund the capital investment programme across the Group, along with the impact of the

timing of cash interest payments (accrued interest movements), partly offset by a higher average level of

net debt. The Group made net tax payments of £32 million (2025: £183 million) during 2025/26. This

decrease mainly related to lower cash tax payable in our US business as a result of offsetting losses and

lower cash tax payable in the UK as a result of our expanding capital programme.

The higher cash dividend reflected a lower weighted average scrip uptake of 28% in the current year

(2025: 31%) along with the annual inflationary increase and a higher share count.

In 2025/26, we completed the sale of our National Grid Renewables business for net cash proceeds of

£1,473 million and also sold our UK Grain LNG business for net cash proceeds of £1,336 million. These

net cash proceeds exclude cash balances sold with these businesses and exclude a provision for estimated

post closing capital expenditure obligations (see note 10 of the financial statements). In 2024/25, we had

cash inflows of £628 million from the sale of our UK Electricity System Operator business to the UK. We

also sold our final 20% interest in National Gas Transmission for proceeds of £686 million.

During the year, we raised £4.2 billion of new long-term senior debt to refinance maturing debt and

to fund a portion of our significant capital programme. In addition, we signed £2.4 billion of new loan

facilities, undrawn as at 31 March 2026, which we expect to draw in the future, including £1.7 billion

across two loan facilities that are guaranteed by European Export Credit Agencies and which are aligned

with our Green Financing Framework. Finally, on 13 April 2026, National Grid North America Inc. signed

a new £0.7 billion equivalent term loan.

Other cash movements principally relate to net financing inflows or outflows to maintain our cash balances

at an appropriate level in accordance with the Group liquidity policy, but do not have an impact on the

Group's net debt. Other non-cash movements which do impact net debt, primarily reflect changes in the

sterling–dollar exchange rate, accretions on index-linked debt, lease additions and other derivative fair

value movements, offset by the amortisation of fair value adjustments on acquired debt.

As at 13 May 2026, we have £8.0 billion of undrawn committed facilities available for general corporate

purposes, all of which have expiry dates no earlier than May 2027. National Grid's balance sheet remains

robust, with strong overall investment grade ratings from Moody's, Standard & Poor's (S&P) and Fitch.

The Board has considered the Group's ability to finance normal operations as well as funding a significant

capital programme. This includes stress testing of the Group's finances under a 'reasonable worst-case'

scenario, assessing the timing of the sale of businesses held for sale and the further levers at the Board's

discretion to ensure our businesses are adequately financed. As a result, the Board has concluded that

the Group will have adequate resources to do so.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **80** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Financial position**

The following table sets out a condensed version of the Group's IFRS balance sheet.

**Summary balance sheet** 

---

| | | | |
|:---|:---|:---|:---|
| **£m**  | **31 March 2026** | 31 March 2025 | Change |
| Goodwill and intangibles | **13296** | 13096 | 2% |
| Property, plant and equipment | **81520** | 74091 | 10% |
| Assets and liabilities held for sale | **—** | 2194 | (100)% |
| Other net liabilities | **(1663)** | (805) | (107)% |
| Tax balances | **(9049)** | (8246) | (10)% |
| Net pension assets | **2147** | 1916 | 12% |
| Provisions | **(2761)** | (3049) | 9% |
| Net debt | **(44160)** | (41371) | (7)% |
| **Net assets** | **39330** | 37826 | 4% |

---

Goodwill and intangibles increased mainly as a result of additional investment in IT systems, partly offset

by amortisation and exchange rate movements. Property, plant and equipment increased mainly as a result

of the continuing capital investment programme offset by depreciation and exchange rate movements.

Assets and liabilities held for sale at 31 March 2025 comprised our UK Grain LNG business and our

US National Grid Renewables business, both of which were sold during 2025/26. Tax balances increased

principally from accelerated tax depreciation due to ongoing capital investment and movements in other net

temporary differences, partly offset by exchange rate movements. Net pension assets increased mainly

as a result of returns on investments and actuarial gains on scheme net assets. Provisions were reduced

principally as a result of utilisation of US environmental and UK interconnector revenue provisions, exchange

rate movements, partly offset by the impact of the discount unwind. Other movements are largely explained

by net working capital inflows and changes in the sterling–dollar exchange rate.

Regulatory gearing was maintained at 61% as at 31 March 2026 (2025: 61%). Regulatory gearing is a

non-GAAP measure and is calculated as net debt as a proportion of total regulatory asset value and other

business invested capital. Beneficial inflows from the proceeds for the sales of businesses (National Grid

Renewables and Grain LNG) were offset by financing outflows for net interest and dividend payments.

Taking into account the benefit of our hybrid debt, adjusted gearing as at 31 March 2026 was 61% (2025:

60%), with the current overall Group credit rating of BBB+/Baa1 (S&P/Moody's).

Retained cash flow as a proportion of adjusted net debt was 9.3%, 50bps lower than 2024/25 but well

above the long-term average level of 7.0% indicated by Moody's, as consistent with maintaining our

current Group rating.

**Off-balance sheet items**

There were no significant off-balance sheet items other than the commitments and contingencies detailed

in note 30 to the financial statements. In accordance with IFRS, regulatory assets and regulatory liabilities

are not recognised on the balance sheet. Further information in respect of certain of the Group's energy

purchase contracts and commodity price risk is disclosed in note 32(f) to the financial statements.

**Economic returns (non-GAAP measures)**

A principal way in which we measure our performance in generating value for shareholders is to divide

regulated financial performance by regulatory equity, to produce RoE.

As explained on page 242, regulated financial performance adjusts reported operating profit to reflect

the impact of the Group's various regulatory economic arrangements in the UK and US. In order to show

underlying performance, we calculate RoE measures excluding exceptional items of income or expenditure.

Group RoE is used to measure our performance in generating value for our shareholders by dividing

regulated and non-regulated financial performance, after interest and tax, by our measure of equity

investment in all our businesses, including the regulated businesses, NGV and other activities and

joint ventures. For further details, please see page 244.

Regulated businesses' RoEs are measures of how the businesses are performing compared with

the assumptions and allowances set by our regulators. US jurisdictional and UK entity regulated returns

are calculated using the capital structure assumed within their respective regulatory arrangements

and, in the case of the UK, assuming long-run inflation of 2% CPIH under RIIO-2. As these assumptions

differ between the UK and the US, RoE measures are not directly comparable between the two

geographies. In our performance measures, we compare achieved RoEs to the level assumed when

setting base rate and revenue allowances in each jurisdiction.

**Return on Equity 'RoE' (non-GAAP measures)**

---

| | | | |
|:---|:---|:---|:---|
| **%** | **2025/26** | 2024/25 | Change |
| UK Electricity Transmission | **8.2%** | 8.3% | -10bps |
| UK Electricity Distribution | **8.1%** | 7.9% | 20bps |
| New England | **9.2%** | 9.1% | 10bps |
| New York | **9.0%** | 8.7% | 30bps |
| Group RoE | **9.8%** | 9.0% | 90bps |

---

In 2025/26, UK Electricity Transmission achieved operational returns of 8.2%, delivering 100bps of

outperformance under RIIO-T2, mainly from totex performance related to savings on capital delivery

(2025: 8.3% achieved return, or 100bps above the allowed base return). UK Electricity Distribution

achieved an operational return of 8.1% in 2025/26, including 50bps outperformance, mostly consisting

of non-totex DSO performance incentives (2025: 7.9% achieved return, or 20bps above the allowed

base return).

New England's achieved return of 9.2% was 96% of the allowed return in 2025/26 compared with an

achieved return of 9.1% in 2024/25. New York's achieved return of 9.0% was 96% of the allowed return

in 2025/26 compared with an achieved return of 8.7% in 2024/25. The quoted returns for New England

and New York represent the weighted average return across operating companies within each jurisdiction.

Overall Group RoE, which incorporates NGV, property, corporate and other activities, and financing and

tax performance, was 9.8% in 2025/26 compared with 9.0% achieved in 2024/25.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **81** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Tax transparency**

As a responsible taxpayer, we have voluntarily included additional tax disclosures, which we believe are

of interest to our stakeholders. For information on the Company's activities, please see page [4](#i6f250a91cd464a04873e5851a20d0163_16), and for

a definition of discontinued operations, please see note 10 to the financial statements.

**Tax strategy**

National Grid is a responsible taxpayer. Our approach to tax is consistent with the Group's broader

commitments to doing business responsibly and upholding the highest ethical standards. This includes

managing our tax affairs, as we recognise not only that our tax contribution supports public services but

also that responsible tax practices are part of our social licence and are a key enabler of stakeholder trust,

especially for customers, regulators and tax authorities. We endeavour to manage our tax affairs so that

we pay and collect the right amount of tax, at the right time, in accordance with the tax laws in all the

territories in which we operate. We will claim valid tax reliefs and incentives where these are applicable

to our business operations, but only where they are widely accepted through the relevant tax legislation

such as those established by government to promote investment, employment and economic growth.

We do not have operations in tax havens or low-tax jurisdictions without commercial purpose.

We have a strong governance framework and our internal control and risk management framework helps

us manage risks, including tax risk, appropriately. We take a conservative approach to tax risk. While

there is no prescribed limit to the amount of acceptable tax risk, any material tax judgements are subject

to review and monitoring under our risk management framework with escalation to the Audit & Risk

Committee as appropriate.

Our financial statements have been audited. The figures in the tax transparency disclosures in the

Annual Report and Accounts have been taken from our financial systems, which are subject to our

internal control framework.

We act with openness and honesty when engaging with relevant tax authorities and seek to work with

tax authorities on a real-time basis. We engage proactively in developments of external tax policy and

engage with relevant bodies where appropriate. Ultimate responsibility and oversight of our tax strategy

and governance rests with the Audit & Risk Committee, with executive management delegated to our

Chief Financial Officer who oversees and approves the tax strategy on an annual basis. For more detailed

information, please refer to our published tax strategy on our website.

**Country-by-country reporting summary**

We have disclosed in the table below data showing the scale of our activities in each of the countries

we operate in. This allows our stakeholders to see the profits earned, taxes paid and the context of those

payments. The Group's entities are tax resident in their jurisdiction of incorporation other than where

indicated in the footnotes to note 34 to the financial statements.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **2025/26** | **Revenue** | **Revenue** | **Revenue** | Profit/<br>(loss) before<br>income tax<sup>3</sup><br>£m | Income tax<br>accrued – <br>current year<sup>4</sup><br>£m | Tangible <br>assets/(liabilities) <br>other than cash <br>and cash <br>equivalents<sup>5</sup><br>£m |
| **Tax jurisdiction** | Unrelated<br>party<sup>1</sup><br>£m<br>| Related<br>party<sup>2</sup><br>£m<br>| **Total**<br>**£m**<br>| Profit/<br>(loss) before<br>income tax<sup>3</sup><br>£m | Income tax<br>accrued – <br>current year<sup>4</sup><br>£m | Tangible <br>assets/(liabilities) <br>other than cash <br>and cash <br>equivalents<sup>5</sup><br>£m |
| United Kingdom | 5472 | 197 | **5669** | 3014 | 9 | 39155 |
| United States | 12215 | 51 | **12266** | 1104 |  | 42365 |
| Isle of Man |  | 62 | **62** | 64 | 9 |  |
| Luxembourg |  |  | **—** |  |  |  |
| Belgium |  |  | **—** |  |  |  |
| **Total** | 17687 | 310 | **17997** | 4182 | 18 | 81520 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **2024/25** | **Revenue** | **Revenue** | **Revenue** | Profit/<br>(loss) before<br>income tax<sup>3</sup><br>£m | Income tax<br>accrued – <br>current year<sup>4</sup><br>£m | Tangible <br>assets/(liabilities) <br>other than cash <br>and cash <br>equivalents<sup>5</sup><br>£m |
| **Tax jurisdiction** | Unrelated<br>party<sup>1</sup><br>£m<br>| Related<br>party<sup>2</sup><br>£m<br>| **Total**<br>**£m**<br>| Profit/<br>(loss) before<br>income tax<sup>3</sup><br>£m | Income tax<br>accrued – <br>current year<sup>4</sup><br>£m | Tangible <br>assets/(liabilities) <br>other than cash <br>and cash <br>equivalents<sup>5</sup><br>£m |
| United Kingdom | 6707 | 241 | **6948** | 2703 | 67 | 34680 |
| United States | 11671 | 58 | **11729** | 947 | 47 | 39411 |
| Isle of Man |  | 51 | **51** | 51 |  |  |
| Luxembourg |  |  | **—** |  |  |  |
| Belgium |  |  | **—** | 1 |  |  |
| **Total** | 18378 | 350 | **18728** | 3702 | 114 | 74091 |

---

1. Unrelated party revenue comprises revenue from continuing operations of £17,687 million (2025: £18,378 million) (see note 2 to

the financial statements) and revenue from discontinued operations of £nil (2025: £nil) (see note 10 to the financial statements).

2. Related party revenue only includes cross-border transactions and comprises related party revenue from continuing operations

of £310 million (2025: £350 million) and related party revenue from discontinued operations of £nil (2025: £nil).

3. Profit/(loss) before income tax (PBT) from operations after exceptionals comprises continuing operations PBT of £4,182 million

(2025: £3,650 million) (see consolidated income statement) and discontinued operations PBT of £nil million (2025: £52 million)

(see note 10 to the financial statements).

4. Current year income tax accrued comprises current year income tax from continuing operations of £18 million (2025: £113 million)

(see note 7 to the financial statements) and current year income tax from discontinued operations of £nil million (2025: £1 million).

See the tax charge to tax paid reconciliation below for further information.

5. Tangible assets comprises property, plant and equipment (see consolidated statement of financial position) and excludes tangible fixed

assets for businesses classified as 'held for sale' or disposed of during the year of £962 million (Grain LNG £962 million) (2025: £1,359

million UK Electricity System Operator (ESO) £121 million, National Grid Renewables £340 million, Grain LNG £898 million) (see note 10

to the financial statements).

---

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| **National Grid plc** Annual Report and Accounts 2025/26 | **82** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

Our Isle of Man company is a captive insurance company and pays taxes in the Isle of Man as applicable.

The company is treated as a controlled foreign company for UK tax purposes and, as such, additional

UK corporation tax is paid on its profits under the UK controlled foreign company rules.

Our presence in Luxembourg is to address a nationalisation risk which arose from a Labour Party

proposal in 2019 to nationalise nearly all of National Grid's UK assets.

Transfer pricing is not a significant issue for the Group given the nature of our core businesses and the

number of jurisdictions we operate in. Where there are related party transactions, these are taxed on an

arm's length basis in accordance with the Organisation for Economic Co-operation and Development

(OECD) principles.

**Group's total tax charge to tax paid**

The total tax charge for the year disclosed in the financial statements in accordance with accounting

standards and the equivalent total corporate income tax paid during the year will differ.

The principal differences between these two measures are as follows:

Reconciliation of Group's total tax charge to tax paid

---

| | | |
|:---|:---|:---|
| **£m** | **2025/26** | 2024/25 |
| **Total Group tax charge**<sup>1</sup> | **939** | 822 |
| Adjustment for Group non-cash deferred tax | **(1093)** | (783) |
| Adjustments for Group current tax (charge)/credit in respect of prior years | **172** | 75 |
| **Group current tax charge** | **18** | 114 |
| Group tax charge not payable in the current year | **(9)** | (46) |
| Group tax instalment payments (repayable)/payable in respect of the prior year | **—** | 25 |
| Tax instalment payments over/(under) paid in the current year | **3** | (27) |
| Tax recoverable offset against current tax payments due | **—** |  |
| Tax instalment payments over/(under) paid due in the following year | **—** |  |
| Group tax payment/(refunds) in respect of prior years paid in the current year | **22** |  |
| Tax charge/(credit) included elsewhere in the accounts<sup>2</sup> | **(2)** | 117 |
| **Group tax paid** | **32** | 183 |
| **Profit before income tax**<sup>3</sup> | **4182** | 3702 |
|  | **%** | % |
| Effective cash tax rate | **0.8** | 4.9 |
| Effective tax rate<sup>4</sup> | **22.5** | 22.2 |

---

1. Total Group tax charge from operations after exceptionals is comprised of tax charge of continuing operations of £939 million

(2025: £821 million) and discontinued operations of £nil (2025: £1 million).

2. Relates to amounts charged through OCI (2025: relates to amounts charges in other liabilities in note 10).

3. Profit/(loss) before income tax (PBT) from continuing operations after exceptionals is comprised of continuing operations

PBT of £4,182 million (2025: £3,651 million) and discontinued operations PBT of £nil (2025: £52 million).

4. Effective tax rate for continuing operations after exceptionals is 22.5% (2025: 22.5%) and discontinued operations is nil% (2025: 2.1%).

**Effective cash tax rate**

The effective cash tax rate for the total Group is 0.8%. The difference between this and the accounting

effective rate of 22.5% is primarily due to the following factors.

National Grid is a capital-intensive business, across both the UK and the US, and invests significant

sums each year in its networks. In 2025/26, the Group's total capital expenditure was £11,549 million

(excluding JV investment). To promote investment, tax legislation allows a deduction for qualifying capital

expenditure at a faster rate than the associated depreciation in the statutory accounts. The impact of this

is to defer cash tax payments into future years.

Within the UK, tax relief for capital expenditure on property, plant and machinery is given in law via capital

allowances. From 1 April 2023, HM Treasury have increased the rates of capital allowances on in year

capital expenditure spend to 100%/50% (previously 18%/6%). This accelerated tax relief, combined with

the increased capital expenditure in the UK, significantly reduces the Group's UK cash tax liability and as

a consequence reduces the effective cash tax rate for the year. This trend is expected to continue while

UK capital expenditure remains at current levels and capital allowance rates remain as they are.

The sale of Grain LNG in the year gave rise to a non-taxable gain as it met the conditions of the

UK Substantial Shareholding Exemption. This also reduced the effective cash tax rate for the year.

The Group continued to make payments into the UK defined benefit pension schemes, National Grid

Electricity Group section of the Electricity Supply Pension Scheme and the Western Power Pension

Scheme during the course of the year. These payments have further reduced the overall cash tax paid

in the UK.

**Group's total tax contribution** 

The total amount of taxes we pay and collect globally year-on-year is significantly more than just the tax

which we pay on our global profits. To provide a full picture, we have disclosed the Group's global total

tax contribution which includes contributions from both continuing and discontinued businesses.

![](nggtf-20260331_g258.gif)

**Group's total tax contribution 2025/26** 

Taxes borneTaxes collected

![54785](nggtf-20260331_g259.gif)

![54787](nggtf-20260331_g260.gif)

**£1.9bn**

**£1.3bn**

---

| | | |
|:---|:---|:---|
| **Key:** | **Key:** | £m |
| 🟇 | People | 305 |
| 🟇 | Product | 224 |
| 🟇 | Profit | 32 |
| 🟇 | Property | 1306 |
| 🟇 | Miscellaneous | 31 |
|  | **Total** | **1898** |

---

---

| | | |
|:---|:---|:---|
| **Key:** | **Key:** | £m |
| 🟇 | People | 911 |
| 🟇 | Product | 359 |
| 🟇 | Miscellaneous | 1 |
|  | **Total** | **1271** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **83** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

Taxes borne are a cost to the Group. Taxes collected are taxes generated by the operations of the Group

which we are obliged to administer on behalf of the government (e.g. income tax under PAYE, employees'

national insurance contributions).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **2025/26** | **Tax contribution** | **Tax contribution** | **Tax contribution** | **Tax contribution** | **Tax contribution** |  |
| **Tax jurisdiction** | Income <br>tax paid/<br>(repaid) on <br>cash basis<sup>1</sup><br>£m<br>| Property <br>taxes<br>£m<br>| Other <br>taxes <br>borne<sup>2</sup><br>£m<br>| Taxes <br>collected<br>£m<br>| **Total tax** <br>**contribution**<br>**£m**<br>| Number of <br>employees<sup>3</sup> as at <br>31 March 2026<br>|
| United Kingdom | 36 | 247 | 162 | 428 | **873** | 14554 |
| United States | (4) | 1060 | 397 | 843 | **2296** | 18472 |
| Ireland |  |  |  |  | **—** |  |
| Isle of Man |  |  |  |  | **—** |  |
| Luxembourg |  |  |  |  | **—** |  |
| Netherlands |  |  |  |  | **—** |  |
| **Total** | 32 | 1307 | 559 | 1271 | **3169** | 33026 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **2024/25** | **Tax contribution** | **Tax contribution** | **Tax contribution** | **Tax contribution** | **Tax contribution** |  |
| **Tax jurisdiction** | Income <br>tax paid/<br>(repaid) <br>on cash <br>basis<sup>1</sup><br>£m<br>| Property <br>taxes<br>£m<br>| Other <br>taxes <br>borne<sup>2</sup><br>£m<br>| Taxes <br>collected<br>£m<br>| **Total tax** <br>**contribution**<br>**£m**<br>| Number of <br>employees<sup>3</sup> as at <br>31 March 2025<br>|
| United Kingdom | 156 | 247 | 140 | 858 | **1401** | 13477 |
| United States | 27 | 990 | 382 | 788 | **2187** | 18177 |
| Ireland |  |  |  |  | **—** |  |
| Isle of Man |  |  |  |  | **—** |  |
| Luxembourg |  |  |  |  | **—** |  |
| Netherlands |  |  |  |  | **—** |  |
| **Total** | 183 | 1237 | 522 | 1646 | **3588** | 31654 |

---

1. See the tax charge to tax paid reconciliation above for further information.

2. Other taxes borne is made up of People, Product and Miscellaneous taxes.

3. Number of employees is calculated as the total National Grid workforce across all parts of the business, including Non-executive Directors

and Executive Directors and employees of the discontinued operations. All are active, permanent employees as well as both full-time and

part-time employees.

For 2025/26, our total tax contribution was £3,169 million (2024/25: £3,588 million), taxes borne were

£1,898 million (2024/25: £1,942 million) and taxes collected were £1,271 million (2024/25: £1,646 million).

The reduction in taxes borne is primarily the result of reduced income taxes paid because of increased

capital spend and an increase in UK capital allowance rates. This reduction is partially offset by an increase

in US property taxes which is paid to over 1,200 cities and towns in Massachusetts, New Hampshire,

New York, Rhode Island and Vermont to help fund local services.

The reduction in taxes collected is primarily the result of a reduction in our net VAT position because

of higher input VAT on our increased capital spend.

In the UK, we participate in the 100 Group's Total Tax Contribution Survey. The survey ranks the

UK's biggest listed companies in terms of their contribution to the total UK Government's tax receipts.

The most recent result of the survey for 2024/25 ranks National Grid as the 20th highest contributor

of UK taxes (2023/24: 15th), the 18th highest in respect of taxes borne (2023/24: 12th) and 2nd

(2022/23: 2nd) in respect of capital expenditure of £3,947 million (2022/23: £3,052 million) on fixed

assets. Our ranking in the survey is proportionate to the size of our business and capitalisation relative

to the other contributors to the survey.

However, National Grid's contribution to the UK and US economies is broader than just the taxes

it pays over to and collects on behalf of the tax authorities.

Both in the UK and the US, we employ thousands of individuals directly. We also support jobs in the

construction industry through our capital expenditure, which in 2025/26 was £11,549 million (excluding

JV investment), as well as supporting a significant number of jobs in our supply chain. Furthermore,

as a utility we provide a core essential service which allows the infrastructure of the country/states

we operate in to run smoothly. This enables individuals and businesses to flourish and contribute

to the economy and society.

**Development of future tax policy** 

We believe that the continued development of a coherent and transparent tax policy across the

Group is critical to help drive growth in the economy.

We continue to engage on consultations with policymakers where the subject matter impacts taxes

borne or collected by our business, with the aim of openly contributing to the debate and development

of tax legislation for the benefit of all our stakeholders.

To ensure that the needs of our stakeholders are considered in the development of tax policy, we are

a member of a number of industry groups which participate in the development of future tax policy,

such as the Electricity Tax Forum, together with the 100 Group in the UK, which represents the views of

Finance Directors of FTSE 100 companies and several other large UK companies. We undertake similar

activities in the US, where the Group is an active member in the Edison Electric Institute, the American

Gas Association, the Global Business Alliance, the American Clean Power Association, the Business

Council for Sustainable Energy and the Solar Energy Industries Association.

Feedback from these groups, such as the results of the 100 Group Total Tax Contribution survey, helps

to ensure that we consider the needs of our stakeholders and are engaged at the earliest opportunity

on tax issues which affect our business.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **84** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Financial review cont.** |  |  |  |  |  |

---

**Pensions** 

In 2025/26, defined contribution pensions, defined benefit pensions and other post-employment benefit

operating costs were slightly lower than prior year at £279 million (2025: £305 million).

During the year, our pensions and other post-retirement benefit plans increased from a net surplus position

of £1,916 million at 31 March 2025 to a net surplus of £2,147 million at 31 March 2026.

This was principally the result of actuarial gains on plan assets of £72 million (higher investment returns)

and actuarial gains on plan liabilities of £215 million (including changes in US post-retirement demographic

assumptions). Employer contributions during the year were £120 million (2025: £282 million), including

£4 million (2025: £12 million) of deficit contributions. As at 31 March 2026, the total UK and US

assets and liabilities and the overall net IAS 19 (revised) accounting surplus (2025: surplus) is shown

below. Further information can be found in note 25 to the financial statements.

We continue to actively manage our defined benefit pension obligations, including by transferring defined

benefit pensions risk to insurers where appropriate. During the year, £0.9 billion of UK pension liabilities

and £0.5 billion of US pension liabilities were secured with insurers via bulk annuity transactions.

**Net defined benefit asset**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US other** <br>**post-retirement** <br>**benefits** | **US other** <br>**post-retirement** <br>**benefits** | **Total** | **Total** |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m | **£m** | £m | **£m** | £m |
| Liabilities | **(51)** | (51) | **(186)** | (196) | **(123)** | (326) | **(360)** | (573) |
| Assets | **1122** | 1179 | **599** | 672 | **786** | 638 | **2507** | 2489 |
| **Net defined** <br>**benefit asset**<br>| **1071** | 1128 | **413** | 476 | **663** | 312 | **2147** | 1916 |

---

**Dividend**

The Board has recommended a final dividend of 32.14p per ordinary share ($2.1738 per American

Depository Share), which will be paid on 23 July 2026 to shareholders on the register of members as at

29 May 2026. If approved, this will bring the full-year dividend to 48.49p per ordinary share, representing

an increase of 3.8% to the dividend per share for 2024/25. This is in line with the increase in average

UK CPIH inflation for the year ended 31 March 2026 as set out in our dividend policy.

The Board aims to grow annual dividend per share (DPS) in line with UK CPIH, thus maintaining the DPS

in real terms. The Board will review this policy regularly, taking into account a range of factors including

expected business performance and regulatory developments.

At 31 March 2026, National Grid plc had £17.0 billion of distributable reserves, which is sufficient to cover

more than five years of forecast Group dividends. If approved, the final dividend will absorb approximately

£1,598 million of shareholders' funds. The 2025/26 full dividend is covered approximately 1.6x by

underlying earnings.

The Directors consider the Group's capital structure at least twice a year when proposing an interim and

final dividend and aim to maintain distributable reserves that provide adequate cover for dividend payments.

A scrip dividend alternative will again be offered in respect of the 2025/26 final dividend.

**New accounting standards**

We did not adopt any new accounting standards in 2025/26. Amendments to certain existing accounting

standards were adopted during the year, but these had no material impact on the Group's results or

financial statement disclosures.

**Post balance sheet events**

For further details, see note 36 to the financial statements.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **85** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Section 172 Statement and Non-financial and sustainability information statement** | **Section 172 Statement and Non-financial and sustainability information statement** | **Section 172 Statement and Non-financial and sustainability information statement** |  |  |  |

---

**Section 172(1) Statement** 

The Board recognises its responsibilities to the Group's stakeholders and to wider society, and the

importance of effective engagement in delivering the Group's long-term strategy. The Directors have

regard to the interests and perspectives of stakeholders when making decisions and are responsible for

setting and overseeing the Group's culture and values, which underpin those decisions. In balancing the

often competing priorities of stakeholders, the Board seeks to support the long-term, sustainable success

of the Group and maintain high standards of conduct consistent with its purpose and values.

Throughout the year, the Directors have acted in the way they considered, in good faith, was most likely

to promote the long-term success of the Company for the benefit of its members as a whole, and have

had regard to the matters set out in section 172 of the Companies Act 2006. Further information on how

the Board has had regard to each of these matters is set out below.

---

| | | | |
|:---|:---|:---|:---|
| **Section 172 factor** | **Disclosure** | **Page** | **Page** |
| **The likely consequence of any decision** <br>**in the long term** | Our strategic priorities | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[16](#i6f250a91cd464a04873e5851a20d0163_40)** |
| **The likely consequence of any decision** <br>**in the long term** | Our business model | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[12](#i6f250a91cd464a04873e5851a20d0163_31)** |
| **The interests of the Company's** <br>**employees** | Our stakeholders | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[23](#i6f250a91cd464a04873e5851a20d0163_46)** |
| **The interests of the Company's** <br>**employees** | Responsible Business review | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[38](#i6f250a91cd464a04873e5851a20d0163_61)** |
| **The interests of the Company's** <br>**employees** | Board workforce engagement | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[95](#i6f250a91cd464a04873e5851a20d0163_121)** |
| **The need to foster the Company's** <br>**business relationships with suppliers,** <br>**customers and others** | Our stakeholders | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[23](#i6f250a91cd464a04873e5851a20d0163_46)** |
| **The need to foster the Company's** <br>**business relationships with suppliers,** <br>**customers and others** | Responsible Business review | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[38](#i6f250a91cd464a04873e5851a20d0163_61)** |
| **The need to foster the Company's** <br>**business relationships with suppliers,** <br>**customers and others** | Board stakeholder engagement | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[95](#i6f250a91cd464a04873e5851a20d0163_121)** |
| **The impact of the Company's operations** <br>**on the community and the environment** | Our stakeholders | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[23](#i6f250a91cd464a04873e5851a20d0163_46)** |
| **The impact of the Company's operations** <br>**on the community and the environment** | Responsible Business review | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[38](#i6f250a91cd464a04873e5851a20d0163_61)** |
| **The impact of the Company's operations** <br>**on the community and the environment** | TCFD | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[53](#i6f250a91cd464a04873e5851a20d0163_79)** |
| **Maintaining a reputation for high** <br>**standards of business conduct** | Responsible Business review | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[38](#i6f250a91cd464a04873e5851a20d0163_61)** |
| **Maintaining a reputation for high** <br>**standards of business conduct** | Corporate Governance overview | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[89](#i6f250a91cd464a04873e5851a20d0163_112)** |
| **The need to act fairly as between** <br>**members of the Company** | Our stakeholders | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[23](#i6f250a91cd464a04873e5851a20d0163_46)** |
| **The need to act fairly as between** <br>**members of the Company** | Responsible Business review | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[38](#i6f250a91cd464a04873e5851a20d0163_61)** |
| **The need to act fairly as between** <br>**members of the Company** | Board stakeholder engagement | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[95](#i6f250a91cd464a04873e5851a20d0163_121)** |

---

Additional information on the Board's engagement with key stakeholders can be found on page [95](#i6f250a91cd464a04873e5851a20d0163_121).

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Further reading** | **Environment** | **Social matters and employees** | **Anti-corruption** <br>**and bribery**<br>| **Human**<br>**rights**<br>|
| Our policies and due diligence | [40](#i6f250a91cd464a04873e5851a20d0163_67) — [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751) | [45](#i6f250a91cd464a04873e5851a20d0163_70) — [46](#ic17d58fe0c944cdd81782ccf311e247f_8417) and [49](#i6f250a91cd464a04873e5851a20d0163_76) — [52](#i021c40488e4146b08af7159ea13a8831_18353) | **[50](#i021c40488e4146b08af7159ea13a8831_18352)** | [50](#i021c40488e4146b08af7159ea13a8831_18352) |
| Outcomes | [40](#i6f250a91cd464a04873e5851a20d0163_67) — [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751) | [45](#i6f250a91cd464a04873e5851a20d0163_70) — [46](#ic17d58fe0c944cdd81782ccf311e247f_8417) and [49](#i6f250a91cd464a04873e5851a20d0163_76) — [52](#i021c40488e4146b08af7159ea13a8831_18353) | **[50](#i021c40488e4146b08af7159ea13a8831_18352)** | 50 |

---

**Non-financial and sustainability information statement** 

**This page contains disclosures in compliance with sections 414CA and 414CB of the** 

**Companies Act 2006. The non-financial information listed below is incorporated by cross-**

**reference.**

---

| | | |
|:---|:---|:---|
| **Environmental matters** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[40](#i6f250a91cd464a04873e5851a20d0163_67) — [44](#i90fddb706a2d4b05823daf62ce7e3a6f_20751) and [53](#i6f250a91cd464a04873e5851a20d0163_79) — [68](#i04acc15a45a7420086e6933b916efcba_9297)** |
| **Our employees** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[47](#i6f250a91cd464a04873e5851a20d0163_73) — [48](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7139) and [95](#i6f250a91cd464a04873e5851a20d0163_121)**  |
| **Social matters** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[45](#i6f250a91cd464a04873e5851a20d0163_70) — [46](#ic17d58fe0c944cdd81782ccf311e247f_8417) and [49](#i6f250a91cd464a04873e5851a20d0163_76) — [52](#i021c40488e4146b08af7159ea13a8831_18353)** |
| **Human rights** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[50](#i021c40488e4146b08af7159ea13a8831_18352) and 234** |
| **Anti-corruption and anti-bribery** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[50](#i021c40488e4146b08af7159ea13a8831_18352)** |

---

In addition, other information describing the business relationships, products and services which are likely

to cause adverse impacts in relation to the matters above can be found as follows:

---

| | | |
|:---|:---|:---|
| **Business model** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[12](#i6f250a91cd464a04873e5851a20d0163_31) — [13](#i5110d61af8504a579b53a7d2b36e7655_126)** |
| **KPIs** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[26](#i6f250a91cd464a04873e5851a20d0163_49) — [29](#i03890296f02f458fae1796993c269a45_683)** |
| **Our stakeholders** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[23](#i6f250a91cd464a04873e5851a20d0163_46) — [25](#i5f01a1f3f9cb479583ed3457f56cad14_17155)** |
| **Risks** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[32](#i6f250a91cd464a04873e5851a20d0163_58) — [36](#i8ebe50234db3417ba33cc3b26f4858d7_24401)** |
| **TCFD** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[53](#i6f250a91cd464a04873e5851a20d0163_79) — [68](#i04acc15a45a7420086e6933b916efcba_9297)** |
| **Responsible Business Committee report** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[106](#i6f250a91cd464a04873e5851a20d0163_139)** |
| **People & Remuneration Committee report** | ![Read-more-arrow-centre.gif](nggtf-20260331_g261.gif) | **[107](#i6f250a91cd464a04873e5851a20d0163_142) — 108** |

---

The Company complies with FCA UK Listing Rule 6.6.6R(8) and aligns our climate-related financial

disclosures with the TCFD's four pillars and 11 recommended disclosures under those pillars.

The Company's TCFD reporting and index for the 11 recommended disclosures can be found on pages

[53](#i6f250a91cd464a04873e5851a20d0163_79) — [68](#i04acc15a45a7420086e6933b916efcba_9297).

![viability statement_NEW.jpg](nggtf-20260331_g262.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **86** | **Strategic Report** | Corporate Governance | Financial Statements | Additional Information |
| **Viability Statement** |  |  |  |  |  |

---

**The Board's consideration of the longer-term viability** 

**of the Group is an extension of the business** 

**planning process.** 

Our business strategy aims to enhance our long-term prospects by

making sure our operations and finances are sustainable. The business

planning process includes financial forecasting, risk assessment and

regular budget reviews, as well as scenario planning of industry trends

including emerging issues and economic conditions.

As required by provision 31 of the 2024 UK Corporate Governance

Code, the Board has formally assessed the prospects of the Group

over the next five financial years, which is in line with the Company's

Strategic Business Plan.

We also consider how various emerging risks could impact our

Group Principal Risks and we include a cluster scenario to assess

potential impacts if several of our Group Principal Risks were to

crystallise at the same time.

**Risk cluster** 

The impact of multiple Group Principal Risks crystallising over the

assessment period was selected by considering the most significant

threat to our viability. Scenarios modelled the financial impact of a

significant cyber attack resulting in a material data breach, a

catastrophic asset failure in the US gas business, a severe loss of

supply, and the potential impact on our New York gas operating

licences, including a period of reduced access to capital markets.

Stress testing concluded that, while the cluster scenarios would lead

to significant impacts, management would have mitigation strategies

available to ensure the Company remains viable over the five-year

assessment period. National Grid operates in largely stable, regulated

markets and the robust financial position of the Group, including the

ability to sell assets, raise capital and suspend or reduce the payment

of dividends, provides a multiple opportunities to secure viability in

addition to ensuring we would have a sound operational response.

**Viability**

The Directors are satisfied that they have sufficient information to

judge the viability of the Company and, based on the assessment

described above and on pages [30](#i6f250a91cd464a04873e5851a20d0163_52) – [37](#i8ebe50234db3417ba33cc3b26f4858d7_24396), have a reasonable

expectation that the Company will be able to continue operating and

meet its liabilities as they fall due in the period to May 2031.

The Strategic Report, comprising pages 1 – 86, was approved by the

Board and signed on its behalf. By order of the Board

**Julian Baddeley** 

Group Company Secretary

13 May 2026

**Principal Risk stress testing**

Each Group Principal Risk was considered and, where appropriate, a stress testing scenario was identified

to assess impacts on reputation and financial performance over the five-year assessment period as detailed

below. All scenarios are considered low probability events.

---

| | | | |
|:---|:---|:---|:---|
| **High** |  |  |  |
| **Financial impact** |  |  |  |
| **Low** |  |  |  |
|  | **Internal** | **Reputational impact** | **International** |

---

![Viability_No1_Stroke.gif](nggtf-20260331_g263.gif)

![Viability_No9_Stroke.gif](nggtf-20260331_g264.gif)

![Viability_No5_Stroke.gif](nggtf-20260331_g265.gif)

![Viability_No3_Stroke.gif](nggtf-20260331_g266.gif)

![Viability_No2_Stroke.gif](nggtf-20260331_g267.gif)

![Viability_No7_Stroke.gif](nggtf-20260331_g268.gif)

![Viability_No8_Stroke.gif](nggtf-20260331_g269.gif)

![Viability_No6_Stroke.gif](nggtf-20260331_g270.gif)

![Viability_No4_Stroke.gif](nggtf-20260331_g271.gif)

---

| | | |
|:---|:---|:---|
| **Group Principal Risk** | **Group Principal Risk** | **Stress testing scenarios** |
| ![Viability_No1.gif](nggtf-20260331_g272.gif) | Catastrophic <br>security incident\*<br>| A significant successful cyber attack. |
| ![Viability_No2.gif](nggtf-20260331_g273.gif) | Significant safety or <br>environmental event <br>(asset failure)\*<br>| A catastrophic failure of the US gas <br>system, leading to a major safety breach <br>or environmental spill.<br>|
| ![Viability_No3.gif](nggtf-20260331_g274.gif) | Loss of supply\* | An extreme weather event leads to the <br>failure of critical energy assets and <br>networks, resulting in a widespread loss <br>of gas and electricity supply across the <br>US, UK and interconnectors, impacting a <br>significant number of customers.<br>|
| ![Viability_No4.gif](nggtf-20260331_g275.gif) | Major capital <br>projects<br>| Inability to either successfully secure <br>appropriate incentive mechanisms and/<br>or deliver our major capital projects.<br>|
| ![Viability_No5.gif](nggtf-20260331_g276.gif)<br>| Satisfactory <br>regulatory <br>outcomes<br>| Poor outcome of future US rate case <br>filings, and low performance under RIIO-<br>T3 in the UK.<br>|

---

---

| | | |
|:---|:---|:---|
| **Group Principal Risk** | **Group Principal Risk** | **Stress testing scenarios** |
| ![Viability_No6.gif](nggtf-20260331_g277.gif) | Climate change <br>mitigation<br>| Inability to meet net zero targets. |
| ![Viability_No7.gif](nggtf-20260331_g278.gif) | Political and societal <br>expectations<br>| Challenges in NY/MA to meet increasing <br>demand due to infrastructure constraints <br>alongside diminishing acceptance of the <br>energy transition.<br>|
| ![Viability_No8.gif](nggtf-20260331_g279.gif) | People capability <br>and capacity<br>| n/a |
| ![Viability_No9.gif](nggtf-20260331_g280.gif) | Financing our <br>business\*<br>| Financing a significant capital investment <br>programme amid higher interest rates, <br>inflation, and concerns about cash flow <br>sufficiency and market risk.<br>|
| \* as part of risk cluster. | \* as part of risk cluster. | \* as part of risk cluster. |
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more about our Group Principal Risks on pages [31](#ice727abade1c466db3e1bae9b17c9ddd_886) – [37](#i8ebe50234db3417ba33cc3b26f4858d7_24396).** | **Read more about our Group Principal Risks on pages [31](#ice727abade1c466db3e1bae9b17c9ddd_886) – [37](#i8ebe50234db3417ba33cc3b26f4858d7_24396).** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **87** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Governance with purpose** |  |  |  |  |  |

---

![Governance intro image v2.jpg](nggtf-20260331_g281.jpg)

Powering

performance

today and

tomorrow

---

| | |
|:---|:---|
| **[88](#i6f250a91cd464a04873e5851a20d0163_109)** | Chair's statement |
| **[89](#i6f250a91cd464a04873e5851a20d0163_112)** | Governance overview |
| **[91](#i6f250a91cd464a04873e5851a20d0163_115)** | Our Board |
| **[94](#i6f250a91cd464a04873e5851a20d0163_118)** | Key Board activities |
| **[95](#i6f250a91cd464a04873e5851a20d0163_121)** | Culture and workforce engagement |
| **[96](#i6f250a91cd464a04873e5851a20d0163_124)** | Board evaluation |
| **[97](#i6f250a91cd464a04873e5851a20d0163_127)** | Directors' induction, development and training |
| **[98](#i6f250a91cd464a04873e5851a20d0163_130)** | Nomination Committee report |
| **[100](#i6f250a91cd464a04873e5851a20d0163_133)** | Audit & Risk Committee report |
| **[105](#i6f250a91cd464a04873e5851a20d0163_136)** | Safety & Operations Committee report |
| **[106](#i6f250a91cd464a04873e5851a20d0163_139)** | Responsible Business Committee report |
| **[107](#i6f250a91cd464a04873e5851a20d0163_142)** | Directors' Remuneration report |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **88** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Chair's statement** | **Chair's statement** |  |  |  |  |

---

![Chairs intro image flat bottom.jpg](nggtf-20260331_g282.jpg)

**Dear shareholder**<br>**I am pleased to introduce our Corporate** <br>**Governance Report, which explains how the Board** <br>**governs the Company in support of long-term** <br>**value creation and the responsible delivery of our** <br>**strategy for shareholders and wider stakeholders.**<br>**In a year marked by global uncertainty and a** <br>**complex external environment, effective** <br>**governance matters more than ever; it helps** <br>**ensure we take well-judged decisions at pace and** <br>**manage risk thoughtfully.**<br>

![](nggtf-20260331_g283.gif)

![](nggtf-20260331_g284.gif)

**Our approach to this year's Governance Report**

In preparing this year's Governance Report, we have taken a more focused and streamlined approach. Our reporting has been sharpened to

concentrate on matters most material to the Company's long-term success, including key strategic and governance considerations, the actions

taken by the Board and its Committees, and the outcomes achieved. We have focused on reducing duplication and narrative without clear

purpose, and reflected how the Board has applied the principles of the 2024 Code in practice. The report is intended to provide a clear,

balanced and meaningful account of the Board's stewardship on behalf of shareholders and wider stakeholders.

As always, the Board balances its deliberative time on major

strategic, regulatory and business decisions. It was a busy year on

the regulatory front in particular. Our largest business, UK Electricity

Transmission, submitted its RIIO-T3 rate case last year. Investability

and workability of the proposed Ofgem framework were actively

discussed by the Board. We also considered rate filings in our

Upstate New York electric and natural gas distribution business

and Massachusetts gas business with affordability as a major

consideration. With largely supportive regulatory outcomes, we

were able to extend and upgrade the five-year financial framework.

At the same time, active monitoring of performance remains key.

We routinely reviewed the manner in which we are executing our

£70 billion capital plans. Safety and reliability remain paramount, and

the Board has been deeply engaged in understanding asset health,

particularly in the aftermath of the North Hyde substation incident.

**Chief Executive transition**

It is often said that the most consequential decision a Board will

make is the appointment of the Chief Executive. National Grid

flourished under the leadership of John Pettigrew. But succession

planning has been under consideration by the Board as an ongoing

process. That process led us to the announcement on 1 May 2025

that Zoë Yujnovich would join National Grid on 1 September 2025

and succeed John at the half-year. This transition plan provided

continuity of leadership and uninterrupted delivery. The Board worked

closely with Zoë to develop objectives for her first period as Chief

Executive, maintaining focus on safe and reliable operations,

disciplined capital allocation, effective delivery of our strategy, and

continued attention to culture, talent and stakeholder outcomes.

**2024 UK Corporate Governance Code**

As a company listed in both the UK and the US, we remain focused

on meeting the high standards of governance and disclosure

expected across our markets. This year is our first year reporting

against the 2024 UK Corporate Governance Code (the '2024 Code').

We have also continued our multi-year programme of work to ensure

we are ready to report fully against Provision 29 in 2027.

**Board effectiveness**

During the year, the Board has progressed actions arising from our

last internal evaluation. We adopt goals as a Board that keep us

focused on Board and Committee processes, the quality of

discussion, and robust decision-making. In line with our three-year

evaluation cycle, the Board commissioned an externally facilitated

evaluation this year. The findings and recommendations will be

reported in next year's Annual Report. Further information can be

found on page [96](#i6f250a91cd464a04873e5851a20d0163_124).

**Reconsideration of Committee structures**

The UK Governance Code has led most companies to structure their

committees in similar fashion, with Audit, Nominations, and

Remuneration as the key functions. In our industry, having a safety

committee is customary. But as part of our effectiveness efforts, we

reviewed our register of Group Principal Risks, looked forward to

emerging trends and issues, and concluded it would be salutary to

refresh our governance architecture with overall oversight remaining

with the Board. The specifics of how we have realigned and

enhanced the coverage of key risks across the committee structure

can be found on page [89](#i6f250a91cd464a04873e5851a20d0163_112) and in the Committee reports.

**Stakeholders**

The Board has remained close to our key stakeholders across the

year. In addition to receiving input from investors, we have engaged

with regulators, public officials, and community representatives as we

hold our meetings at various locations in our franchised service areas.

The Board has had routine engagement with employees, including

site visits to key operational sites and projects across the UK and US,

as set out on page [95](#i6f250a91cd464a04873e5851a20d0163_121).

**AGM**

Over the years, most of our shareholders have opted to participate in

the Annual General Meeting (AGM) remotely. For the few

shareholders who remain interested in attending in person, we will

hold the in-person meeting in July 2026 adjacent to our Warwick, UK

campus. It will be a hybrid meeting, meaning that shareholders may

join online during the live meeting. Further details are set out in the

Notice of AGM, available on our website.

**Paula Rosput Reynolds** 

Chair

13 May 2026

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **89** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Governance overview** | **Governance overview** |  |  |  |  |

---

**We maintain a high-functioning, balanced Board.** 

**Our governance framework supports effective decision-**

**making and robust oversight of the Group's activities,** 

**underpinned by our core values: do the right thing;** 

**find a better way; and make it happen.**

**Governance structure**

The matters reserved for the Board, together with the Terms of

Reference of each Board Committee, are set out in the Board

Governance document, which is available on the Company's website.

**Changes to the Board Committees during the year**

During the year, the Board undertook a review of the structure, remit

and effectiveness of its Committees. Informed by feedback from the

Board evaluation and a series of stakeholder engagement exercises,

the Board implemented a revised Committee structure in November

2025, as illustrated in the diagram opposite. The principal changes

were as follows:

–The remit of the Audit & Risk Committee was expanded to incorporate

the responsibilities previously overseen by the Finance Committee.

–The remit of the Remuneration Committee was broadened to

include wider people matters below Board level, including high

potential talent pipeline, culture and workforce engagement.

–The former Safety & Sustainability Committee was separated into

a Safety & Operations Committee and a Responsible Business

Committee, reflecting the distinct nature and scale of these areas.

The restructure aligns the Group Principal Risks to the committees best

placed for specialist oversight, with the Audit & Risk Committee reviewing

the overall effectiveness of the Group's risk management and internal

control systems.

Committee memberships and Chairs were aligned to ensure the

appropriate balance of skills and experience under the revised structure.

A Board Standing Committee was also established to provide flexible

oversight of ad-hoc and transaction-specific matters that fall outside

the remit or cadence of the Board's other Committees, supporting

timely and efficient Board decision-making.

The Disclosure Committee oversees the identification, review and timely

disclosure of market-sensitive and regulatory information, and monitors

the effectiveness of the Company's disclosure controls. The Disclosure

Committee is chaired by the Chief Financial Officer and members

include the Chief Executive, Group Chief Legal Officer, Group Company

Secretary and the Director of Investor Relations. The Disclosure

Committee meets in advance of key announcements, including the

full and half-year results, and as required throughout the year.

![Gov_framework_image v6.jpg](nggtf-20260331_g285.jpg)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Our governance framework** | **Our governance framework** | **Our governance framework** | **Our governance framework** |  |
|  |  | **Board of Directors** | **Board of Directors** | **Board of Directors** | **Board of Directors** |  |
| The Board has collective responsibility for the long-term <br>success of the Group and for providing effective oversight of <br>its activities. It sets the Group's strategic direction and <br>objectives, approves the business plan, dividend policy, <br>viability assessment and governance framework, and <br>monitors their implementation to promote sustainable success <br>and the creation of long-term shareholder value.<br>The Board also establishes the Company's purpose, values <br>and culture, and ensures that these are aligned with strategy. | The Board has collective responsibility for the long-term <br>success of the Group and for providing effective oversight of <br>its activities. It sets the Group's strategic direction and <br>objectives, approves the business plan, dividend policy, <br>viability assessment and governance framework, and <br>monitors their implementation to promote sustainable success <br>and the creation of long-term shareholder value.<br>The Board also establishes the Company's purpose, values <br>and culture, and ensures that these are aligned with strategy. | The Board has collective responsibility for the long-term <br>success of the Group and for providing effective oversight of <br>its activities. It sets the Group's strategic direction and <br>objectives, approves the business plan, dividend policy, <br>viability assessment and governance framework, and <br>monitors their implementation to promote sustainable success <br>and the creation of long-term shareholder value.<br>The Board also establishes the Company's purpose, values <br>and culture, and ensures that these are aligned with strategy. | The Board has collective responsibility for the long-term <br>success of the Group and for providing effective oversight of <br>its activities. It sets the Group's strategic direction and <br>objectives, approves the business plan, dividend policy, <br>viability assessment and governance framework, and <br>monitors their implementation to promote sustainable success <br>and the creation of long-term shareholder value.<br>The Board also establishes the Company's purpose, values <br>and culture, and ensures that these are aligned with strategy. | In discharging its responsibilities, the Board considers the <br>interests of key stakeholders and has regard to the matters <br>set out in section 172 of the Companies Act 2006, thereby <br>supporting Directors in fulfilling their statutory duties (see page <br>[85](#i6f250a91cd464a04873e5851a20d0163_100)). To support effective oversight and the efficient discharge <br>of its responsibilities, the Board has delegated certain matters <br>to its Committees. Each Committee Chair reports regularly to <br>the Board on the activities of their Committee, and Committee <br>papers and minutes are made available to all Directors, save <br>where an actual or potential conflict of interest exists. | In discharging its responsibilities, the Board considers the <br>interests of key stakeholders and has regard to the matters <br>set out in section 172 of the Companies Act 2006, thereby <br>supporting Directors in fulfilling their statutory duties (see page <br>[85](#i6f250a91cd464a04873e5851a20d0163_100)). To support effective oversight and the efficient discharge <br>of its responsibilities, the Board has delegated certain matters <br>to its Committees. Each Committee Chair reports regularly to <br>the Board on the activities of their Committee, and Committee <br>papers and minutes are made available to all Directors, save <br>where an actual or potential conflict of interest exists. | In discharging its responsibilities, the Board considers the <br>interests of key stakeholders and has regard to the matters <br>set out in section 172 of the Companies Act 2006, thereby <br>supporting Directors in fulfilling their statutory duties (see page <br>[85](#i6f250a91cd464a04873e5851a20d0163_100)). To support effective oversight and the efficient discharge <br>of its responsibilities, the Board has delegated certain matters <br>to its Committees. Each Committee Chair reports regularly to <br>the Board on the activities of their Committee, and Committee <br>papers and minutes are made available to all Directors, save <br>where an actual or potential conflict of interest exists. |
|  |  | **Board Committees** | **Board Committees** | **Board Committees** | **Board Committees** |  |
| **Nomination** <br>**Committee** | **Nomination** <br>**Committee** | **Audit & Risk** <br>**Committee** | **Safety & Operations**<br>**Committee** | **Safety & Operations**<br>**Committee** | **Responsible**<br>**Business Committee** | **People &** <br>**Remuneration** <br>**Committee** |
|  | **Report from page** <br>**[98](#i6f250a91cd464a04873e5851a20d0163_130)**<br>| **Report from page** <br>**[100](#i6f250a91cd464a04873e5851a20d0163_133)**<br>| **Report from page** <br>**[105](#i6f250a91cd464a04873e5851a20d0163_136)** | **Report from page** <br>**[105](#i6f250a91cd464a04873e5851a20d0163_136)** | **Report from page** <br>**[106](#i6f250a91cd464a04873e5851a20d0163_139)**<br>| **Report from page** <br>**[107](#i6f250a91cd464a04873e5851a20d0163_142)**<br>|
|  |  | **Group Executive Committee** | **Group Executive Committee** | **Group Executive Committee** | **Group Executive Committee** |  |
| The Group Executive Committee is responsible for the day-to-day management of the Group and oversees its safety, <br>operational and financial performance. It takes such operational and management decisions as are necessary to deliver the <br>strategy, objectives and targets set by the Board and to safeguard the interests of the Company. Biographical details of the <br>members of the Group Executive Committee are available on the Company's website. The Group Executive Committee is <br>supported by a number of management committees, as set out in the table below. | The Group Executive Committee is responsible for the day-to-day management of the Group and oversees its safety, <br>operational and financial performance. It takes such operational and management decisions as are necessary to deliver the <br>strategy, objectives and targets set by the Board and to safeguard the interests of the Company. Biographical details of the <br>members of the Group Executive Committee are available on the Company's website. The Group Executive Committee is <br>supported by a number of management committees, as set out in the table below. | The Group Executive Committee is responsible for the day-to-day management of the Group and oversees its safety, <br>operational and financial performance. It takes such operational and management decisions as are necessary to deliver the <br>strategy, objectives and targets set by the Board and to safeguard the interests of the Company. Biographical details of the <br>members of the Group Executive Committee are available on the Company's website. The Group Executive Committee is <br>supported by a number of management committees, as set out in the table below. | The Group Executive Committee is responsible for the day-to-day management of the Group and oversees its safety, <br>operational and financial performance. It takes such operational and management decisions as are necessary to deliver the <br>strategy, objectives and targets set by the Board and to safeguard the interests of the Company. Biographical details of the <br>members of the Group Executive Committee are available on the Company's website. The Group Executive Committee is <br>supported by a number of management committees, as set out in the table below. | The Group Executive Committee is responsible for the day-to-day management of the Group and oversees its safety, <br>operational and financial performance. It takes such operational and management decisions as are necessary to deliver the <br>strategy, objectives and targets set by the Board and to safeguard the interests of the Company. Biographical details of the <br>members of the Group Executive Committee are available on the Company's website. The Group Executive Committee is <br>supported by a number of management committees, as set out in the table below. | The Group Executive Committee is responsible for the day-to-day management of the Group and oversees its safety, <br>operational and financial performance. It takes such operational and management decisions as are necessary to deliver the <br>strategy, objectives and targets set by the Board and to safeguard the interests of the Company. Biographical details of the <br>members of the Group Executive Committee are available on the Company's website. The Group Executive Committee is <br>supported by a number of management committees, as set out in the table below. | The Group Executive Committee is responsible for the day-to-day management of the Group and oversees its safety, <br>operational and financial performance. It takes such operational and management decisions as are necessary to deliver the <br>strategy, objectives and targets set by the Board and to safeguard the interests of the Company. Biographical details of the <br>members of the Group Executive Committee are available on the Company's website. The Group Executive Committee is <br>supported by a number of management committees, as set out in the table below. |
| ![Online-arrow.gif](nggtf-20260331_g165.gif) | **Information on the Group Executive Committee can be found on our website.** | **Information on the Group Executive Committee can be found on our website.** | **Information on the Group Executive Committee can be found on our website.** | **Information on the Group Executive Committee can be found on our website.** | **Information on the Group Executive Committee can be found on our website.** |  |
| **Group Executive Committees**<sup>1</sup> | **Group Executive Committees**<sup>1</sup> | **Group Executive Committees**<sup>1</sup> | **Group Executive Committees**<sup>1</sup> | **Group Executive Committees**<sup>1</sup> | **Group Executive Committees**<sup>1</sup> | **Group Executive Committees**<sup>1</sup> |
| **Group Investment** <br>**Committee**<br>Responsible for <br>approving material <br>capital, operating <br>and investment <br>decisions in line with <br>the Group's <br>investment strategy. | **Group Investment** <br>**Committee**<br>Responsible for <br>approving material <br>capital, operating <br>and investment <br>decisions in line with <br>the Group's <br>investment strategy. | **Audit, Risk &** <br>**Finance Committee**<br>Responsible for <br>overseeing and <br>coordinating audit, <br>risk and financial <br>activities across the <br>Group. | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. | **Responsible** <br>**Business** <br>**Committee**<br>Responsible for <br>oversight of Group- <br>wide responsible <br>business matters, <br>including political, <br>societal, sustainability <br>and regulatory issues. | **People &** <br>**Remuneration** <br>**Committee**<br>Responsible for <br>setting remuneration <br>and overseeing talent, <br>culture, and people <br>risks to support the <br>Company's strategy. |
| **Group Investment** <br>**Committee**<br>Responsible for <br>approving material <br>capital, operating <br>and investment <br>decisions in line with <br>the Group's <br>investment strategy. | **Group Investment** <br>**Committee**<br>Responsible for <br>approving material <br>capital, operating <br>and investment <br>decisions in line with <br>the Group's <br>investment strategy. | **Audit, Risk &** <br>**Finance Committee**<br>Responsible for <br>overseeing and <br>coordinating audit, <br>risk and financial <br>activities across the <br>Group. | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. | **Responsible** <br>**Business** <br>**Committee**<br>Responsible for <br>oversight of Group- <br>wide responsible <br>business matters, <br>including political, <br>societal, sustainability <br>and regulatory issues. | **People &** <br>**Remuneration** <br>**Committee**<br>Responsible for <br>setting remuneration <br>and overseeing talent, <br>culture, and people <br>risks to support the <br>Company's strategy. |
| **Group Investment** <br>**Committee**<br>Responsible for <br>approving material <br>capital, operating <br>and investment <br>decisions in line with <br>the Group's <br>investment strategy. | **Group Investment** <br>**Committee**<br>Responsible for <br>approving material <br>capital, operating <br>and investment <br>decisions in line with <br>the Group's <br>investment strategy. | **Audit, Risk &** <br>**Finance Committee**<br>Responsible for <br>overseeing and <br>coordinating audit, <br>risk and financial <br>activities across the <br>Group. | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. | **Responsible** <br>**Business** <br>**Committee**<br>Responsible for <br>oversight of Group- <br>wide responsible <br>business matters, <br>including political, <br>societal, sustainability <br>and regulatory issues. | **People &** <br>**Remuneration** <br>**Committee**<br>Responsible for <br>setting remuneration <br>and overseeing talent, <br>culture, and people <br>risks to support the <br>Company's strategy. |
|  |  |  | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. | **Safety &** <br>**Operations** <br>**Committee**<br>Responsible for <br>oversight of safety, <br>health and wellbeing, <br>asset management <br>and capital projects, <br>including risk and <br>performance. |  |  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **90** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Governance overview cont.** | **Governance overview cont.** |  |  |  |  |

---

![](nggtf-20260331_g286.gif)

**Corporate Governance Compliance Statement**

The Company is subject to the Principles and Provisions of the 2024

Code, except for Provision 29 which becomes effective for the financial

year beginning 1 April 2026. The Board considers that, for the year

ended 31 March 2026, the Company has complied in full with the

applicable Provisions of the 2024 Code. For the year ended 31 March

2026, the Company has complied with Provision 29 of the 2018 UK

Corporate Governance Code (the '2018 Code'). The table below

provides a guide to where the relevant disclosures can be found in this

report. The 2024 Code and the 2018 Code are published by the

Financial Reporting Council and are available at frc.org.uk.

---

| | | | |
|:---|:---|:---|:---|
| **1** | **Board leadership and company purpose** |  |  |
| A. | The role of the Board and long-term sustainable success | The role of the Board and long-term sustainable success | [6](#i6f250a91cd464a04873e5851a20d0163_25), [89](#i6f250a91cd464a04873e5851a20d0163_112)-[90](#i20787fc335b94177b6aaaf2c03d37903_703) |
| B. | Purpose, values, strategy and culture | [4](#i6f250a91cd464a04873e5851a20d0163_16)-[5](#i6f250a91cd464a04873e5851a20d0163_19), [12](#i6f250a91cd464a04873e5851a20d0163_31)-[13](#i6f250a91cd464a04873e5851a20d0163_34), [16](#i6f250a91cd464a04873e5851a20d0163_40)-[17](#i3678cc92190b49c68efca9c7d0135c7b_1-2-1-1-954736), <br>[47](#i6f250a91cd464a04873e5851a20d0163_73)-[48](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7139), [95](#i6f250a91cd464a04873e5851a20d0163_121) | [4](#i6f250a91cd464a04873e5851a20d0163_16)-[5](#i6f250a91cd464a04873e5851a20d0163_19), [12](#i6f250a91cd464a04873e5851a20d0163_31)-[13](#i6f250a91cd464a04873e5851a20d0163_34), [16](#i6f250a91cd464a04873e5851a20d0163_40)-[17](#i3678cc92190b49c68efca9c7d0135c7b_1-2-1-1-954736), <br>[47](#i6f250a91cd464a04873e5851a20d0163_73)-[48](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7139), [95](#i6f250a91cd464a04873e5851a20d0163_121) |
| C. | Board decisions and outcomes | Board decisions and outcomes | [94](#i6f250a91cd464a04873e5851a20d0163_118)-[95](#i6f250a91cd464a04873e5851a20d0163_121) |
| D. | Shareholder and stakeholder engagement | [23](#i6f250a91cd464a04873e5851a20d0163_46)-[25](#i5f01a1f3f9cb479583ed3457f56cad14_17155), [94](#i6f250a91cd464a04873e5851a20d0163_118)-[95](#i6f250a91cd464a04873e5851a20d0163_121) | [23](#i6f250a91cd464a04873e5851a20d0163_46)-[25](#i5f01a1f3f9cb479583ed3457f56cad14_17155), [94](#i6f250a91cd464a04873e5851a20d0163_118)-[95](#i6f250a91cd464a04873e5851a20d0163_121) |
| E. | Workforce policies and practices | [24](#i5f01a1f3f9cb479583ed3457f56cad14_17154), [47](#i6f250a91cd464a04873e5851a20d0163_73)-[48](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7139), [95](#i6f250a91cd464a04873e5851a20d0163_121)  | [24](#i5f01a1f3f9cb479583ed3457f56cad14_17154), [47](#i6f250a91cd464a04873e5851a20d0163_73)-[48](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7139), [95](#i6f250a91cd464a04873e5851a20d0163_121)  |
| **2** | **Division of responsibilities** |  |  |
| F. | Chair's leadership | [6](#i6f250a91cd464a04873e5851a20d0163_25), [88](#i6f250a91cd464a04873e5851a20d0163_109) | [6](#i6f250a91cd464a04873e5851a20d0163_25), [88](#i6f250a91cd464a04873e5851a20d0163_109) |
| G. | Board composition and division of responsibilities | Board composition and division of responsibilities | [89](#i6f250a91cd464a04873e5851a20d0163_112)-[90](#i20787fc335b94177b6aaaf2c03d37903_703) |
| H. | Time commitment and role of Non-executive Directors | Time commitment and role of Non-executive Directors | [90](#i20787fc335b94177b6aaaf2c03d37903_703), [97](#i6f250a91cd464a04873e5851a20d0163_127) |
| I. | Policies, processes, information and resources |  | [88](#i6f250a91cd464a04873e5851a20d0163_109)-[90](#i20787fc335b94177b6aaaf2c03d37903_703), [95](#i6f250a91cd464a04873e5851a20d0163_121), <br>233 |
| **3** | **Composition, succession and evaluation** | **Composition, succession and evaluation** |  |
| J. | Board appointments and succession planning |  | [88](#i6f250a91cd464a04873e5851a20d0163_109), [98](#i6f250a91cd464a04873e5851a20d0163_130)-[99](#ic005eb49e8034d1faf6559986e5db036_1-1-1-6-954736) |
| K. | Board and Committee skills, experience, knowledge <br>and tenure | Board and Committee skills, experience, knowledge <br>and tenure | [91](#i6f250a91cd464a04873e5851a20d0163_115)-[93](#i3c4c976321044b05a8f4ef04dbab9910_0-0-1-1-954736), [98](#i6f250a91cd464a04873e5851a20d0163_130)-[99](#ic005eb49e8034d1faf6559986e5db036_1-1-1-6-954736) |
| L. | Board evaluation |  | [96](#i6f250a91cd464a04873e5851a20d0163_124) |
| **4** | **Audit, risk and internal control** |  |  |
| M. | Independence and effectiveness of <br>internal and external audit functions<br>|  | [103](#ie2bace0f98aa4e9fb46620ee1881b26c_29969) |
| N. | Fair, balanced and understandable assessment |  | [102](#ie2bace0f98aa4e9fb46620ee1881b26c_29967) |
| O. | Risk management, internal control and determining the <br>nature and extent of principal risks | Risk management, internal control and determining the <br>nature and extent of principal risks | [30](#i6f250a91cd464a04873e5851a20d0163_52)-[37](#i8ebe50234db3417ba33cc3b26f4858d7_24396), [102](#ie2bace0f98aa4e9fb46620ee1881b26c_29968) |
| **5** | **Remuneration** |  |  |
| P. | Remuneration policies and practices |  | [107](#i6f250a91cd464a04873e5851a20d0163_142)-126 |
| Q. | Director and senior management remuneration |  | [107](#i6f250a91cd464a04873e5851a20d0163_142)-126 |
| R. | Independent judgement and discretion in remuneration <br>outcomes | Independent judgement and discretion in remuneration <br>outcomes | [107](#i6f250a91cd464a04873e5851a20d0163_142)-126 |

---

Details on information required for our US Securities and

Exchange Commission (SEC) filing and the Form 20-F can be

found on page 252.

**Board composition and roles**

As at the date of this report, the Board comprises a Non-executive Chair (independent on appointment), two Executive Directors (Chief

Executive and Chief Financial Officer) and eight independent Non-Executive Directors. There is a clear division of responsibilities between the

Chair, the Chief Executive and the Senior Independent Director. The key responsibilities of each role are set out in our Board Governance

document which can be found on our website.

**Meeting attendance**

The table below sets out Directors' attendance at scheduled Board and Committee meetings held during the year ended 31 March 2026.

Three ad hoc Board meetings were also held during the year.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Directors** | **Committee** <br>**Chair**<br>| **Board** | **People &** <br>**Governance** <br>**Committee**<sup>1</sup><br>| **Nomination** <br>**Committee**<sup>2</sup><br>| **Audit & Risk** <br>**Committee**<br>| **Finance** <br>**Committee**<sup>3</sup><br>| **Safety &** <br>**Sustainability** <br>**Committee**<sup>4</sup><br>| **Safety &** <br>**Operations** <br>**Committee**<sup>5</sup><br>| **Responsible** <br>**Business**<br>**Committee**<sup>6</sup><br>| **Remuneration** <br>**Committee**<sup>7</sup><br>| **People &** <br>**Remuneration** <br>**Committee**<sup>8</sup><br>|
| Paula Rosput <br>Reynolds<br>| ![Committee_N.gif](nggtf-20260331_g287.gif) | 7/7 | 1/1 | 1/1 | – | – | – | – | – | – | – |
| Zoë Yujnovich<sup>9</sup>  | ![Committee_E.gif](nggtf-20260331_g288.gif) | 4/4 | – | – | – | – | – | – | – | – | – |
| Andy Agg |  | 7/7 | – | – | – | 1/1 | – | – | – | – | – |
| Ian Livingston |  | 7/7 | – | 1/1 | 5/5 | 1/1 | – | – | 3/3 | 1/1 | 3/3 |
| Jacqui Ferguson |  | 7/7 | – | 1/1 | 5/5 | – | 2/2 | 2/2 | – | – | – |
| Iain Mackay | ![Committee_A.gif](nggtf-20260331_g289.gif) | 7/7 | – | 1/1 | 5/5 | 1/1 | – | – | – | 1/1 | 3/3 |
| Anne Robinson |  | 7/7 | – | 1/1 | – | – | 2/2 | – | 3/3 | 1/1 | 3/3 |
| Earl Shipp | ![Committee_S.gif](nggtf-20260331_g290.gif) | 7/7 | 1/1 | 1/1 | – | – | 2/2 | 2/2 | 3/3 | – | – |
| Jonathan Silver |  | 7/7 | 1/1 | 1/1 | – | 1/1 | – | – | 3/3 | – | 3/3 |
| Tony Wood | ![Committee_R.gif](nggtf-20260331_g291.gif) | 7/7 | 1/1 | 1/1 | – | – | 2/2 | 2/2 | 3/3 | – | – |
| Martha Wyrsch | ![Committee_P.gif](nggtf-20260331_g292.gif) | 7/7 | – | 1/1 | – | – | 2/2 | 2/2 | – | 1/1 | 3/3 |
| John Pettigrew<sup>10</sup> |  | 5/5 | – | – | – | 1/1 | – | – | – | – | – |

---

1. Reflects attendance for the People & Governance Committee prior to the restructure of the Board Committees.

2. Reflects attendance at the Nomination Committee following the restructure of the Board Committees.

3. Reflects attendance at the Finance Committee prior to the restructure of the Board Committees. Following the restructure, matters considered by the Finance Committee were transferred

to the Audit & Risk Committee.

4. Reflects attendance for the Safety & Sustainability Committee prior to the restructure of the Board Committees. Following the restructure, safety matters were transferred to the Safety &

Operations Committee and sustainability matters transferred to the Responsible Business Committee.

5. Reflects attendance at the Safety & Operations Committee following the restructure.

6. Reflects attendance at the Responsible Business Committee following the restructure.

7. Reflects attendance for the Remuneration Committee prior to the restructure.

8. Reflects attendance at the People & Remuneration Committee following the restructure.

9. Zoë Yujnovich was appointed to the Board on 1 September 2025.

10. John Pettigrew retired from the Board effective 16 November 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Committees** | **Committees** | **Committees** | **Committees** | **Committees** | **Committees** |
| ![Committee_A.gif](nggtf-20260331_g289.gif) | **Audit & Risk Committee** | ![Committee_P.gif](nggtf-20260331_g292.gif) | **People & Remuneration Committee** | ![Committee_S.gif](nggtf-20260331_g290.gif) | **Safety & Operations Committee** |
| ![Committee_N.gif](nggtf-20260331_g287.gif) | **Nomination Committee** | ![Committee_R.gif](nggtf-20260331_g291.gif) | **Responsible Business Committee** | ![Committee_E.gif](nggtf-20260331_g288.gif) | **Group Executive Committee** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **91** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Our Board** | **Our Board** |  |  |  |  |

---

![BoD_Committee_Nominations_Chair.gif](nggtf-20260331_g293.gif)<br>

![BoD_Committee_Executive_Chair.gif](nggtf-20260331_g294.gif)<br>

![BoD_Committee_Executive.gif](nggtf-20260331_g295.gif)<br>

![BoD_Committee_Auditors.gif](nggtf-20260331_g296.gif)<br>![Committee_N.gif](nggtf-20260331_g287.gif)<br>![BoD_Committee_People&Rem.gif](nggtf-20260331_g297.gif)<br>![BoD_Committee_ResponsibleBusiness.gif](nggtf-20260331_g298.gif)<br>

---

| | | | |
|:---|:---|:---|:---|
| ![Paula_Rosput_Reynolds.jpg](nggtf-20260331_g299.jpg) | ![Zoë_Yujnovich.jpg](nggtf-20260331_g300.jpg) | ![Andy_Agg.jpg](nggtf-20260331_g301.jpg) | ![Ian_Livingston.jpg](nggtf-20260331_g302.jpg) |
| Paula Rosput <br>Reynolds<br>| Zoë Yujnovich | Andy Agg | Ian Livingston |
| **Chair** | **Chief Executive** | **Chief Financial Officer** | **Senior Independent** <br>**Non-executive Director** <br>|
| **Appointed:** | **Appointed:** | **Appointed:** | **Appointed:** |
| Chair on 31 May 2021<br>Independent Non-executive Director on 1 January 2021<br>| Chief Executive on 17 November 2025<br>Chief Executive Designate on 1 September 2025<br>| 1 January 2019 | 1 August 2021 |
| **Age:** 69 | **Age:** 51 | **Age:** 56 | **Age:** 61 |
| **Skills and competencies:** | **Skills and competencies:** | **Skills and competencies:**  | **Skills and competencies:**  |
| Paula brings a wealth of board-level experience to National <br>Grid, having led global companies in the energy and <br>financial sectors. She has over 20 years' experience as a <br>Non-executive Director in both the UK and US across <br>multiple sectors and businesses and has brought a <br>strategic and regulatory lens on issues to the Board. <br>During her career, Paula has played a vital role with several <br>company-wide transformations and mergers. She is <br>recognised for having transformed AGL Resources from a <br>local utility into a multi-state energy and <br>telecommunications company and for materially <br>enhancing the operating and financial performance of <br>Safeco Corp, a US insurance company that was ultimately <br>acquired by Liberty Mutual.<br>| Zoë is an international energy executive with extensive <br>experience in large-scale operations, capital delivery, and <br>performance transformation across complex, global <br>markets.<br>She has held senior leadership roles at Rio Tinto and Shell <br>plc, working across Australia, the United States, the <br>United Kingdom, the Netherlands, Brazil, and Canada. <br>She has a strong track record of leading diverse teams <br>and improving operational and cultural performance. At <br>Shell, she led major infrastructure projects and large <br>integrated businesses, including serving as Director of <br>Integrated Gas and Upstream and as a member of the <br>Executive Committee. <br>Zoë brings deep expertise in capital discipline, operational <br>excellence, stakeholder engagement, and navigating <br>complex energy systems.<br>| Andy trained and qualified as a chartered accountant with <br>PricewaterhouseCoopers and is a member of the Institute <br>of Chartered Accountants in England and Wales. Joining <br>National Grid in 2008, Andy has significant financial <br>experience and commercial acumen, having held a <br>number of senior finance leadership roles across the <br>Group, including Group Financial Controller, UK Chief <br>Financial Officer and Group Tax and Treasury Director. <br>Andy has in-depth knowledge of National Grid, in both <br>the UK and the US, and has broad experience across <br>operational and corporate finance roles, including a proven <br>track record of leading and delivering value-creating <br>strategies, significant transformation programmes, and <br>significant transactional experience. Andy is also a member <br>of the 100 Group Main Committee contributing to <br>domestic and international finance and regulatory matters.<br>| Ian brings a wealth of experience to National Grid, having <br>been both CEO and CFO of BT Group plc, and CFO of <br>Dixons Group. In addition to a highly successful executive <br>career, he has also had extensive non-executive <br>experience in large UK and US public companies as <br>board, audit and remuneration committee chair. Ian also <br>has significant experience of large, regulated companies <br>operating in both the UK and internationally. He is <br>a member of the House of Lords and has also previously <br>served in the UK Government as Minister of State for <br>Trade and Investment. He is a qualified Chartered <br>Accountant.<br>|
| **External appointments:** | **External appointments:** | **External appointments:** | **External appointments:** |
| –Non-executive Director and Chair of the Safety & <br>Sustainability Committee of GE Vernova<br>–Non-executive Director of Linde plc<br>| –Non-executive Director of Unilever PLC | –Non-executive Director of The Weir Group plc | –Chair of S&P Global Inc.<br>–Chair of BGF Group plc<br>–Member of the House of Lords<br>|

---

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![BoD_Committee_Auditors.gif](nggtf-20260331_g296.gif) | **Audit & Risk Committee** | ![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif) | **Nomination Committee** | ![BoD_Committee_People&Rem.gif](nggtf-20260331_g297.gif) | **People & Remuneration Committee** | ![BoD_Committee_ResponsibleBusiness.gif](nggtf-20260331_g298.gif) | **Responsible Business Committee** | ![BoD_Committee_Safety.gif](nggtf-20260331_g304.gif) | **Safety & Operations Committee** | ![BoD_Committee_Executive.gif](nggtf-20260331_g295.gif) | **Group Executive Committee** | ![BoD_Committee_Chair.gif](nggtf-20260331_g305.gif) | **Committee Chair** |

---

![](nggtf-20260331_g306.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **92** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Our Board cont.** | **Our Board cont.** |  |  |  |  |

---

![BoD_Committee_Auditors.gif](nggtf-20260331_g296.gif)<br>![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif)<br>![BoD_Committee_Safety.gif](nggtf-20260331_g304.gif)<br>

![BoD_Committee_Auditors_Chair.gif](nggtf-20260331_g307.gif)<br>![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif)<br>![BoD_Committee_People&Rem.gif](nggtf-20260331_g297.gif)<br>

![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif)<br>![BoD_Committee_People&Rem.gif](nggtf-20260331_g297.gif)<br>![BoD_Committee_ResponsibleBusiness.gif](nggtf-20260331_g298.gif)<br>

![BoD_Committee_Safety_Chair.gif](nggtf-20260331_g308.gif)<br>![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif)<br>![BoD_Committee_ResponsibleBusiness.gif](nggtf-20260331_g298.gif)<br>

---

| | | | |
|:---|:---|:---|:---|
| ![Jacqui_Ferguson.jpg](nggtf-20260331_g309.jpg) | ![Iain_Mackay.jpg](nggtf-20260331_g310.jpg) | ![Anne_Robinson.jpg](nggtf-20260331_g311.jpg) | ![Earl_Shipp.jpg](nggtf-20260331_g312.jpg) |
| Jacqui Ferguson | Iain Mackay | Anne Robinson | Earl Shipp |
| **Independent Non-executive Director** | **Independent Non-executive Director** | **Independent Non-executive Director** | **Independent Non-executive Director** |
| **Appointed:** | **Appointed:** | **Appointed:** | **Appointed:** |
| 1 January 2024 | 11 July 2022 | 19 January 2022 | 1 January 2019 |
| **Age:** 55 | **Age:** 64 | **Age:** 55 | **Age:** 68 |
| **Skills and competencies:** | **Skills and competencies:**  | **Skills and competencies:**  | **Skills and competencies:**  |
| Jacqui has significant non-executive experience in <br>complex science and technology-centric businesses and <br>in her executive career as a divisional CEO in the <br>technology industry. She has global broad business <br>experience, including in mergers and acquisitions, and has <br>worked across numerous international and emerging <br>markets. Jacqui has expertise in leading technology-<br>enabled transformations, digital, cyber security, technology <br>and business process solutions. Jacqui has formerly held <br>various senior positions with Hewlett Packard (HP), <br>including Chief of Staff to the Chairman and CEO, SVP HP <br>Enterprise Services, Electronic Data Systems (which was <br>acquired by HP) and KPMG. She was also most recently <br>the Chair of Tesco Bank. <br>| Iain has significant financial experience, gained in a range of <br>sectors and operating in regulated environments globally. <br>He was most recently Chief Financial Officer at GSK plc, <br>where he was responsible for several of its key global <br>functions, including Finance, Investor Relations and <br>Technology. Prior to this, Iain was Group Finance Director <br>at HSBC Holdings plc for eight years, working across Asia, <br>the US and Europe, and previously worked at General <br>Electric, Dowell Schlumberger and Price Waterhouse. <br>Iain's extensive background knowledge and financial <br>expertise allow him to effectively chair the Audit & Risk <br>Committee. Iain is a member of the Institute of Chartered <br>Accountants of Scotland, holds an MA in Business <br>Studies and Accounting, and received an Honorary <br>Doctorate from Aberdeen University in Scotland.<br>| Anne has over 20 years' legal experience in the financial <br>services industry, where she has counselled senior <br>executives on a wide range of legal, regulatory and <br>business issues. She currently serves as IBM's Senior Vice <br>President and Chief Legal Officer. Anne brings to the <br>Board extensive legal expertise across the financial <br>services and consulting sectors. Anne earned a BS from <br>Hampton University and a JD from Columbia University <br>Law School and is an advocate for sponsorship and <br>mentorship of other women in the legal profession. <br>| Earl has substantial experience in the global industrial and <br>energy sectors as an Executive and Non-executive <br>Director. With a career of over 40 years in the chemical <br>industry, he has a track record of successfully leading <br>transformative growth projects and driving pioneering <br>technology innovation. <br>Earl is a former chair of the US Federal Reserve Bank of <br>New Orleans and was a member of the Federal Reserves <br>Energy Advisory Committee for several years. He has an <br>enhanced knowledge of cyber risk having graduated from <br>the Carnegie Mellon University Cyber-Risk Oversight <br>Program for Corporate Directors. <br>|
| **External appointments:** | **External appointments:** | **External appointments:** | **External appointments:** |
| –Senior Independent Director and Remuneration <br>Committee Chair of Croda International plc <br>–Senior Independent Director at Softcat plc <br>| –Non-executive Director of Schroders plc<br>–Non-executive Director of UK Government Investments Ltd<br>–Non-executive Director of O-I Glass, Inc. <br>| –Senior Vice President and Chief Legal Officer at IBM | –Non-executive Director of Olin Corporation <br>–Non-executive Director of Great Lakes Dredge and <br>Dock Co.<br>|

---

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![BoD_Committee_Auditors.gif](nggtf-20260331_g296.gif) | **Audit & Risk Committee** | ![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif) | **Nomination Committee** | ![BoD_Committee_People&Rem.gif](nggtf-20260331_g297.gif) | **People & Remuneration Committee** | ![BoD_Committee_ResponsibleBusiness.gif](nggtf-20260331_g298.gif) | **Responsible Business Committee** | ![BoD_Committee_Safety.gif](nggtf-20260331_g304.gif) | **Safety & Operations Committee** | ![BoD_Committee_Executive.gif](nggtf-20260331_g295.gif) | **Group Executive Committee** | ![BoD_Committee_Chair.gif](nggtf-20260331_g305.gif) | **Committee Chair** |

---

![](nggtf-20260331_g313.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **93** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Our Board cont.** | **Our Board cont.** |  |  |  |  |

---

![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif)<br>![BoD_Committee_People&Rem.gif](nggtf-20260331_g297.gif)<br>![BoD_Committee_ResponsibleBusiness.gif](nggtf-20260331_g298.gif)<br>

![BoD_Committee_ResponsibleBusiness_Chair.gif](nggtf-20260331_g314.gif)<br>![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif)<br>![BoD_Committee_Safety.gif](nggtf-20260331_g304.gif)<br>

![BoD_Committee_People&Rem_Chair.gif](nggtf-20260331_g315.gif)<br>![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif)<br>![BoD_Committee_Safety.gif](nggtf-20260331_g304.gif)<br>

---

| | | | |
|:---|:---|:---|:---|
| ![Jonathan_Silver.jpg](nggtf-20260331_g316.jpg) | ![Tony_Wood.jpg](nggtf-20260331_g317.jpg) | ![Martha_Wyrsch.jpg](nggtf-20260331_g318.jpg) | ![Julian_Baddeley.jpg](nggtf-20260331_g319.jpg) |
| Jonathan Silver | Tony Wood | Martha Wyrsch | Julian Baddeley |
| **Independent Non-executive Director** | **Independent Non-executive Director** | **Independent Non-executive Director** | **Group Company Secretary** |
| **Appointed:** | **Appointed:** | **Appointed:** | **Appointed:** |
| 16 May 2019 | 1 September 2021 | 1 September 2021 | 1 July 2024 |
| **Age:** 68 | **Age:** 60 | **Age:** 68 | **Age:** 45 |
| **Skills and competencies:** | **Skills and competencies:**  | **Skills and competencies:**  | **Skills and competencies:**  |
| Jonathan has considerable knowledge of the US-regulated <br>energy environment, and experience and understanding of <br>integrating public policy and technology into a utility. <br>Jonathan's previous work in the US Department of Energy <br>included leading the federal government's $40bn clean <br>energy investment fund and a $20bn fund focused on <br>electric vehicles. Jonathan's strong background in finance <br>and government policy, along with his long career at the <br>intersection of policy, technology, finance and energy, <br>brings innovative insight to the Board's policy discussions <br>and to its interaction with management. <br>Jonathan's former roles include consultant at McKinsey in <br>the Financial Institutions practice, COO of Tiger <br>Management, Senior Advisor to Guggenheim Securities <br>and Senior Policy Advisor to the US Secretary of <br>Commerce and the US Secretary of the Interior. | Tony has proven business leadership credentials as an <br>experienced Chief Executive and brings to the Board <br>significant engineering experience. Tony was Chief <br>Executive of Meggitt plc and led the operational and <br>cultural transformation of the company, transitioning from <br>an industrial holding structure to a focused and customer-<br>led business, leveraging technology investment.<br>Tony was formerly President of the Aerospace division of <br>Rolls Royce plc and developed a strong reputation as an <br>operator, turning around and growing several challenging <br>business units and internationalising the company's <br>footprint. Tony is a Fellow of the Royal Aeronautical <br>Society. | Martha has held a number of senior positions in the energy <br>industry and has significant experience of the US market. <br>She has served as General Counsel of energy and utility <br>companies and was CEO of the divisions of major energy <br>companies, including a major international gas <br>transmission business, as well as leading the growth and <br>development of the renewables business of Vestas in <br>the US. <br>As an accomplished Director for publicly listed companies <br>in both the UK and the US, Martha brings to the Board <br>relevant experience across the renewable energy sector, <br>as well as a strong understanding of the US regulatory <br>environment, having previously held leadership roles in <br>large US-regulated utility businesses.  | Julian is a Chartered Company Secretary and corporate <br>lawyer. Prior to joining National Grid, Julian served as <br>Group Company Secretary of abrdn plc, previously known <br>as Standard Life Aberdeen. He has extensive Board, C-<br>suite, transactional and regulatory experience in large <br>FTSE 100 organisations from his former roles at Aviva, <br>Clifford Chance, Friends Life and Cadbury plc. Julian is <br>responsible for guiding the Board in governance matters <br>and leading the Company Secretariat function.<br>|
| Jonathan has considerable knowledge of the US-regulated <br>energy environment, and experience and understanding of <br>integrating public policy and technology into a utility. <br>Jonathan's previous work in the US Department of Energy <br>included leading the federal government's $40bn clean <br>energy investment fund and a $20bn fund focused on <br>electric vehicles. Jonathan's strong background in finance <br>and government policy, along with his long career at the <br>intersection of policy, technology, finance and energy, <br>brings innovative insight to the Board's policy discussions <br>and to its interaction with management. <br>Jonathan's former roles include consultant at McKinsey in <br>the Financial Institutions practice, COO of Tiger <br>Management, Senior Advisor to Guggenheim Securities <br>and Senior Policy Advisor to the US Secretary of <br>Commerce and the US Secretary of the Interior. | Tony has proven business leadership credentials as an <br>experienced Chief Executive and brings to the Board <br>significant engineering experience. Tony was Chief <br>Executive of Meggitt plc and led the operational and <br>cultural transformation of the company, transitioning from <br>an industrial holding structure to a focused and customer-<br>led business, leveraging technology investment.<br>Tony was formerly President of the Aerospace division of <br>Rolls Royce plc and developed a strong reputation as an <br>operator, turning around and growing several challenging <br>business units and internationalising the company's <br>footprint. Tony is a Fellow of the Royal Aeronautical <br>Society. | Martha has held a number of senior positions in the energy <br>industry and has significant experience of the US market. <br>She has served as General Counsel of energy and utility <br>companies and was CEO of the divisions of major energy <br>companies, including a major international gas <br>transmission business, as well as leading the growth and <br>development of the renewables business of Vestas in <br>the US. <br>As an accomplished Director for publicly listed companies <br>in both the UK and the US, Martha brings to the Board <br>relevant experience across the renewable energy sector, <br>as well as a strong understanding of the US regulatory <br>environment, having previously held leadership roles in <br>large US-regulated utility businesses.  | **External appointments:** |
| Jonathan has considerable knowledge of the US-regulated <br>energy environment, and experience and understanding of <br>integrating public policy and technology into a utility. <br>Jonathan's previous work in the US Department of Energy <br>included leading the federal government's $40bn clean <br>energy investment fund and a $20bn fund focused on <br>electric vehicles. Jonathan's strong background in finance <br>and government policy, along with his long career at the <br>intersection of policy, technology, finance and energy, <br>brings innovative insight to the Board's policy discussions <br>and to its interaction with management. <br>Jonathan's former roles include consultant at McKinsey in <br>the Financial Institutions practice, COO of Tiger <br>Management, Senior Advisor to Guggenheim Securities <br>and Senior Policy Advisor to the US Secretary of <br>Commerce and the US Secretary of the Interior. | Tony has proven business leadership credentials as an <br>experienced Chief Executive and brings to the Board <br>significant engineering experience. Tony was Chief <br>Executive of Meggitt plc and led the operational and <br>cultural transformation of the company, transitioning from <br>an industrial holding structure to a focused and customer-<br>led business, leveraging technology investment.<br>Tony was formerly President of the Aerospace division of <br>Rolls Royce plc and developed a strong reputation as an <br>operator, turning around and growing several challenging <br>business units and internationalising the company's <br>footprint. Tony is a Fellow of the Royal Aeronautical <br>Society. | Martha has held a number of senior positions in the energy <br>industry and has significant experience of the US market. <br>She has served as General Counsel of energy and utility <br>companies and was CEO of the divisions of major energy <br>companies, including a major international gas <br>transmission business, as well as leading the growth and <br>development of the renewables business of Vestas in <br>the US. <br>As an accomplished Director for publicly listed companies <br>in both the UK and the US, Martha brings to the Board <br>relevant experience across the renewable energy sector, <br>as well as a strong understanding of the US regulatory <br>environment, having previously held leadership roles in <br>large US-regulated utility businesses.  | –Independent Director/Trustee of ShareGift and Chair of <br>the Audit Committee<br>|
| **External appointments:** | **External appointments:** | **External appointments:** |  |
| –Chair of the Global Sustainability Platform at Apollo Global <br>Management, Inc.<br>–Chair of Terram Lab<br>| –Non-executive Director of Airbus SE <br>–Chair of Chemring Group plc<br>| –Independent Director of Quanta Services, Inc. <br>–Advisor to Summit Carbon Solutions<br>|  |

---

![](nggtf-20260331_g320.gif)

**Former Directors who served during the year:** 

John Pettigrew retired from the Board effective 16

November 2025.

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ![BoD_Committee_Auditors.gif](nggtf-20260331_g296.gif) | **Audit & Risk Committee** | ![BoD_Committee_Nominations.gif](nggtf-20260331_g303.gif) | **Nomination Committee** | ![BoD_Committee_People&Rem.gif](nggtf-20260331_g297.gif) | **People & Remuneration Committee** | ![BoD_Committee_ResponsibleBusiness.gif](nggtf-20260331_g298.gif) | **Responsible Business Committee** | ![BoD_Committee_Safety.gif](nggtf-20260331_g304.gif) | **Safety & Operations Committee** | ![BoD_Committee_Executive.gif](nggtf-20260331_g295.gif) | **Group Executive Committee** | ![BoD_Committee_Chair.gif](nggtf-20260331_g305.gif) | **Committee Chair** |

---

![](nggtf-20260331_g313.gif)

![Board evaluation v2.jpg](nggtf-20260331_g321.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **94** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Key Board activities** | **Key Board activities** |  |  |  |  |

---

Board meeting agendas are agreed in advance by the Chair, Chief Executive and Group Company

Secretary, and are structured to ensure that key standing items are considered across the year,

while providing time for deep-dives and flexibility for any additional matters to be considered.

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board approved Chief Executive succession <br>arrangements, including the appointment of <br>Zoë Yujnovich as Chief Executive Designate <br>(from 1 September 2025) and Chief Executive <br>(from 17 November 2025), together with related <br>transition, regulatory and remuneration <br>arrangements.<br>|

---

![](nggtf-20260331_g322.gif)

**April**

![](nggtf-20260331_g323.gif)

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | On 1 May 2025 the appointment of Zoë Yujnovich <br>was announced. <br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board approved the 2024/25 full-year results, <br>Annual Report and Accounts, Form 20-F, final <br>dividend, Notice of AGM and the internal Board <br>evaluation action plan.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board reviewed progress on the RIIO-T3 <br>electricity transmission business plan, focusing on <br>regulatory engagement with Ofgem ahead of Draft <br>Determinations, the balance between near-term <br>bill impacts and long-term consumer benefits, and <br>the need for continued advocacy to support <br>investment in energy security, affordability and the <br>UK's clean power ambitions.<br>|

---

![](nggtf-20260331_g322.gif)

**May**

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board held its 2025 AGM at the University of <br>Warwick.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board approved changes to the Board <br>committee structure, approved the Group Modern <br>Slavery Statement for publication, and authorised <br>delegated authority (via a transaction committee) <br>to progress and approve matters relating to the <br>sale of Grain LNG. An update was received on <br>NGED covering business performance and <br>planning for the pathway towards RIIO-ED3. <br>|

---

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | Zoë Yujnovich joined the Board as Chief Executive <br>Designate. <br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | Board and Committee meetings were held at the <br>Waltham office in Massachusetts. As part of the <br>meetings, the Board held a talent engagement <br>session, enabling employees to engage directly <br>with the Board and share insights on National <br>Grid's talent and people programmes.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board reviewed Group performance and <br>outlook, delivery against strategic priorities and the <br>Strategic Business Plan, performance across the <br>US businesses, UK and US regulatory and policy <br>developments, major transformation programmes <br>and investor perspectives, including insights from <br>the Investor Perception Study.<br>|

---

![](nggtf-20260331_g324.gif)

**September**

![](nggtf-20260331_g323.gif)

![](nggtf-20260331_g325.gif)

**October**

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board held an ad hoc meeting where it <br>considered the RIIO-T3 electricity transmission <br>business plan, including the investability and <br>workability of the framework and management's <br>engagement with regulators. The Board also <br>reviewed an update on major infrastructure <br>initiatives to support system resilience in the US.<br>|

---

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board and Committee meetings held were <br>largely focused on half-year results and included <br>the approval of the 2025 Strategic Business Plan <br>and the 2025/26 interim dividend. <br>The Board considered the RIIO-T3 electricity <br>business plan in advance of Ofgem's final <br>determinations, including progress with Ofgem <br>and the investability and workability of the <br>proposed framework.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board considered the RIIO-T3 electricity <br>business plan in advance of Ofgem's Final <br>Determinations, including progress with Ofgem, <br>the investability and workability of the proposed <br>framework.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | John Pettigrew retired from the Board on 16 <br>November. Zoë Yujnovich became Chief <br>Executive on 17 November 2025.<br>|

---

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | An employee breakfast discussion was held at the <br>Strand office, London, hosted by Martha Wyrsch. <br>The session was an opportunity for UK <br>participants from various talent cohort <br>programmes to discuss their experience of talent <br>and development at National Grid. <br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | Completion of the Grain LNG sale.  |

---

![](nggtf-20260331_g326.gif)

**November**

![](nggtf-20260331_g323.gif)

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | Following the completion of a competitive audit <br>tender process, the Board approved the <br>appointment of the external auditor for the next <br>audit term, having considered the Audit & Risk <br>Committee's recommendation and the outcome <br>of its evaluation.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board held an ad hoc meeting to review the <br>RIIO-T3 Final Determinations, with continuing <br>focus on investability, workability and implications <br>for delivery against the Strategic Business Plan, <br>and considered associated risks and next steps. <br>|

---

![](nggtf-20260331_g326.gif)

**December**

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board held a strategy offsite led by Zoë <br>Yujnovich, as described opposite.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | Deep-dive sessions focused on capital, assets <br>and customers, as well as people and <br>performance culture. The Board reviewed the <br>RIIO-T3 Final Determinations and any potential <br>impact on the Strategic Business Plan. <br>|

---

![](nggtf-20260331_g325.gif)

**January**

![](nggtf-20260331_g326.gif)

**November**

![](nggtf-20260331_g327.gif)

**July**

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board approved the 2026/27 budget. |
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | The Board Sub-Committee reviewed the <br>RIIO-T3 Final Determinations and their impact <br>on the Group's five-year financial framework, <br>including investment priorities and market <br>guidance, ensuring the outcome supported <br>long-term value creation and system resilience.<br>|

---

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | Deep-dives were received on the New York and <br>New England business units considering <br>technology, customer experience and regulatory <br>developments. <br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | A site visit was held at the Northport Power <br>Station in Long Island, one of the Group's large <br>steam turbine generating plants within National <br>Grid Generation.<br>|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g328.gif) | Board evaluation process. |
| The Board considers key stakeholders in its decision <br>making and, in doing so, ensures that the Directors <br>comply with their duty under section 172 of the <br>Companies Act 2006. Our section 172 statement and <br>further information on our key stakeholders can be <br>found on page [85](#i6f250a91cd464a04873e5851a20d0163_100) and pages [23](#i6f250a91cd464a04873e5851a20d0163_46) to [25](#i5f01a1f3f9cb479583ed3457f56cad14_17155). | The Board considers key stakeholders in its decision <br>making and, in doing so, ensures that the Directors <br>comply with their duty under section 172 of the <br>Companies Act 2006. Our section 172 statement and <br>further information on our key stakeholders can be <br>found on page [85](#i6f250a91cd464a04873e5851a20d0163_100) and pages [23](#i6f250a91cd464a04873e5851a20d0163_46) to [25](#i5f01a1f3f9cb479583ed3457f56cad14_17155). |

---

![](nggtf-20260331_g329.gif)

**March**

![](nggtf-20260331_g330.gif)

---

| |
|:---|
| Strategy offsite |
| In January 2026, the Board held its annual Strategy <br>offsite, the first led by Zoë Yujnovich in role as Chief <br>Executive, which provided dedicated time for in-depth <br>engagement with senior management and Business <br>Unit Presidents. The Board reviewed performance <br>against the five-year framework, assessed progress <br>made during the year, and discussed investment <br>priorities and transformation opportunities to support <br>the Group's growth agenda. These discussions were <br>informed by detailed management presentations and <br>a series of deep-dive sessions focused on Capital, <br>Assets and Customers, alongside People and <br>performance culture.<br>|

---

![](nggtf-20260331_g329.gif)

**March**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **95** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Culture and workforce engagement** | **Culture and workforce engagement** |  |  |  |  |

---

Through a combination of direct engagement, reporting and committee oversight, the Board monitors how the Company's values are reflected in day-to-day <br>practice. During the year, the Board continued the 'Full Board Employee Voice' approach to workforce engagement, supported by the four key pillars of <br>engagement outlined below. Following the refreshment of the Board Committees, these pillars were considered in greater depth. In particular, the creation of <br>the People & Remuneration Committee has consolidated oversight of talent, engagement and wider people matters within a single committee and under one <br>Non-executive Director, providing a more coherent and consistent forum for discussion and challenge. Similarly, the Safety & Operations Committee enables <br>site visits and workforce interactions to be aligned more closely to emerging operational and safety themes, where appropriate. <br>The Board receives regular insight into workforce sentiment, these insights inform the Board's oversight of workforce culture, engagement and wellbeing and <br>support ongoing discussion of people strategy and organisational priorities. Health, safety and wellbeing remain fundamental Board considerations. Through the <br>Safety & Operations Committee, the Board reviews performance trends, serious incidents and management actions, alongside broader wellbeing initiatives.<br>

Understanding workforce <br>culture, engagement and <br>wellbeing is fundamental <br>to effective oversight and <br>long-term performance. <br>

![](nggtf-20260331_g331.gif)

![](nggtf-20260331_g331.gif)

---

| |
|:---|
| Talent engagement |
| Provides engagement with key talent cohorts and <br>strengthens Board familiarity with succession <br>candidates.<br>|
| **Review of effectiveness**<br>–The Chair of the People & Remuneration <br>Committee hosted talent engagement <br>sessions in the UK and US, enabling <br>participants from Group talent programmes <br>to engage directly with Board members on <br>talent management, strengths and areas for <br>further development.<br>|
| **Impact and outcomes**<br>–Board-led talent engagement enhanced the <br>Board's understanding of leadership <br>capability and succession depth, informing <br>more effective challenge on talent <br>development and long-term succession <br>planning. <br>–The sessions provided first-hand insight into <br>emerging leaders, leadership behaviours and <br>talent management across the Group, <br>highlighting both strengths and areas for <br>improvement, while also increasing Board <br>familiarity with the succession pipeline.<br>|

---

![](nggtf-20260331_g332.gif)

---

| |
|:---|
| Site visits |
| Provides the Board with direct exposure to <br>colleagues at key sites and real-time workforce <br>insight.<br>|
| **Review of effectiveness**<br>–Board members undertook site visits across <br>UK and US. Visits included operational and <br>project locations such as the Network <br>Design Centre in Bristol, Yorkshire Green <br>project sites, and the Northport Power <br>Station on Long Island. <br>–The visits provided direct engagement with <br>colleagues on the ground and insight into <br>culture, safety and workforce experience <br>across different parts of the business.<br>|
| **Impact and outcomes**<br>–The site visits enhanced the Board's <br>understanding of workforce culture, <br>engagement and the lived experience of <br>colleagues across diverse operational <br>settings. These insights informed Board <br>challenge and assurance on health and <br>safety, operational resilience and wellbeing.<br>–Direct engagement informed Board <br>challenge and discussion, reinforced the <br>importance of visible leadership and open <br>dialogue, and fed into Safety & Operations <br>Committee consideration of safety reporting, <br>contractor management and on-site safety <br>behaviours.<br>|

---

![](nggtf-20260331_g331.gif)

---

| |
|:---|
| Wider workforce engagement |
| Ensures the Board hears from a wide cross-<br>section of the workforce, including those <br>colleagues not reached through other pillars of <br>the Board's engagement programme. <br>|
| **Review of effectiveness**<br>–Board members engaged with the workforce <br>through the receipt of Company-wide <br>webcasts, values-led events, participation in <br>the Annual Corporate Audit Conference in <br>the US, and direct engagement with <br>business unit Presidents and senior leaders <br>at the January 2026 strategy offsite, as well <br>as attendance at engineering dinners, to <br>gain insight into employee views and <br>experiences across the Group.<br>–In February 2026, the Chair visited our <br>training facility in Eakring.<br>|
| **Impact and outcomes**<br>–Direct engagement enabled the Board to <br>hear directly from a broad cross-section of <br>colleagues, strengthening its understanding <br>of workforce culture, values and lived <br>experience beyond formal reporting. <br>–Insights from the annual Grid:Voice survey <br>and interim pulse surveys supported <br>effective oversight of workforce culture, <br>engagement and wellbeing, informing Board <br>discussion on people strategy and <br>organisational priorities. Employee feedback, <br>including identified improvement <br>opportunities, was considered by the Board <br>and will inform the ongoing development of <br>workforce engagement arrangements.<br>|

---

---

| |
|:---|
| Board and Committee reporting |
| Provides the Board and its Committees with the <br>data to support the other engagement pillars. <br>|
| **Review of effectiveness**<br>–The Board and Committees received regular <br>reporting throughout the year to support and <br>refine the key engagement priorities. This <br>included updates from the annual Grid:Voice <br>employee survey, a mid-year snapshot, <br>succession planning and people strategy <br>updates, and gender and ethnicity pay gap <br>reporting. <br>–The Safety & Operations Committee <br>oversees health, safety and wellbeing, with <br>the Board overseeing performance trends, <br>serious incidents, management actions and <br>wider wellbeing initiatives.<br>|
| **Impact and outcomes**<br>–The structured flow of information through <br>the People & Remuneration Committee and <br>the Board enabled more targeted workforce <br>engagement and better-informed discussion <br>of people and culture matters.<br>–Ongoing focus through the Safety & <br>Operations Committee reinforced a strong <br>safety culture, supported continuous <br>improvement in health, safety and wellbeing <br>and ensured timely Board scrutiny of serious <br>incidents and workforce risks.<br>|

---

![](nggtf-20260331_g333.gif)

![](nggtf-20260331_g333.gif)

![](nggtf-20260331_g333.gif)

![](nggtf-20260331_g333.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **96** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Board evaluation** | **Board evaluation** |  |  |  |  |

---

Our annual evaluation process provides the Board and its Committees with an opportunity to consider and reflect

on the quality and effectiveness of decision-making and the contribution and performance of individual members.

The 2025 Board evaluation was internally facilitated and focused on the effectiveness of Board processes,

the operation of the Board and its Committees, and the quality of discussion and decision-making.

This built on the views and feedback received from the previous year's evaluation, in particular in relation

to succession and committee structure. Each action has progressed, supported by the arrival of a new

Chief Executive and Chief People Officer in the year who have brought a refreshed lens on talent and

succession and how this feeds into Board discussion. The evaluation actions were approved at the

May 2025 Board meeting and included in last year's annual report for information. In addition, and mindful

of the Chief Executive Succession process, the evaluation highlighted the importance of maintaining focus

on safe and reliable operations, disciplined capital allocation and effective delivery of our strategy, all of

which were factored into the transition planning. Progress against the actions is outlined below.

**External evaluation** 

In line with the three-year evaluation cycle, the 2026 evaluation was externally facilitated. Christopher Saul

was appointed as the independent evaluator, and the Chair and Group Company Secretary agreed the

scope and approach for the evaluation, ensuring alignment with the Company's governance framework

and the 2024 Code. He attended the March Board and Committee meetings as an observer, and met

with Board members and members of the Group Executive Committee for their input. His report, with

recommendations, was presented to the Board at its May 2026 meeting and an update on the actions

will be provided in next year's annual report. Christopher Saul has no other connection to the Company or

individual Directors.

![](nggtf-20260331_g334.gif)

---

| | | |
|:---|:---|:---|
| **Progress against our 2025 evaluation actions** | **Progress against our 2025 evaluation actions** | **Progress against our 2025 evaluation actions** |
|  | **Actions** | **Progress** |
| Talent and <br>Succession<br>| –Focus on senior leadership succession <br>and the Board's exposure to senior <br>management. <br>| –With the creation of the People & Remuneration Committee, all non-Board people-related matters have been consolidated under one <br>Committee. This provides consistency and wider context around people discussions. This also provides clearer accountability around <br>Board talent engagement, which is now led by the Chair of the Committee with the support of the Chief People Officer and Group <br>Company Secretary.<br>–As part of an induction for Directors into the new Committee, a focused deep-dive session on people and culture was undertaken to <br>support the expanded remit of the revised Committee led by senior management from the respective teams. <br>–Across the year, a series of roundtable engagement sessions were held with participants from the talent leadership programme, <br>increasing the Board's exposure to senior management and the wider talent pipeline.<br>–The appointment of Zoë Yujnovich as Chief Executive and Emma Hardaker-Jones as Chief People Officer in the year has demonstrated <br>senior leadership succession in action and brought a refreshed approach to how talent exposure to the Board is managed. <br>|
| Governance <br>framework<br>| –Review the Committee structure <br>particularly in respect of risk, <br>sustainability, reputation, operational <br>and financing matters.<br>–Assess if the continued ownership of <br>all the Company's Group Principal <br>Risks by the Audit & Risk Committee <br>remains the most optimal and time <br>efficient oversight model.<br>| –Building on the prior year action around committee structure and external benchmarking, a revised committee framework was <br>implemented to better reflect the fast moving external environment that the Company operates in, while continuing to give appropriate <br>focus to key elements of risk, safety and operational performance. This also included the re-allocation of Group Principal Risks. <br>–Sustainability and reputation oversight: A Responsible Business Committee was established to provide focused oversight of sustainability <br>and the environment.<br>–Safety and capital delivery: A Safety & Operations Committee was established with responsibility for safety oversight and the capital <br>delivery programme.<br>–Risk management: Each committee now assumes responsibility for Group Principal Risks within its remit, enabling more focused and <br>specialised risk reviews. The Audit & Risk Committee retains overall ownership of the risk framework, ensuring cohesive oversight across <br>the organisation.<br>|

---

![](nggtf-20260331_g335.gif)

![](nggtf-20260331_g336.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **97** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Directors' induction, development and training** | **Directors' induction, development and training** |  |  |  |  |

---

The Board is committed to ensuring that

Directors receive appropriate induction and

ongoing development and training to support

effective decision-making and oversight.

Ongoing development is tailored to individual

needs and is aligned with the Group's

strategy, operations and external

environment.

**Director induction and training**

The Group Company Secretary supports the Chair in ensuring that

each Non-executive Director receives a tailored and comprehensive

induction on appointment. The induction programme is aligned to the

Director's role, experience and Committee responsibilities and

includes meetings with fellow Board members, briefings from

business unit Presidents and other management, site visits and

discussions with key functions across the Group.

Ongoing Board development is supported through a programme of

enrichment sessions held throughout the year, designed to deepen

the Board's understanding of the business and to complement, or

provide further insight into, matters considered as part of the Board

agenda. The Board is kept informed of relevant corporate

governance and regulatory developments through regular briefings

from the Group Company Secretary. As the Board has evolved, the

Board's training and development programme has developed to

place greater emphasis on macroeconomic context and ensure

deep-dive sessions are aligned to the Group's strategic priorities and

risk profile.

The Board benefited from different external perspectives during the

year, with a number of external speakers attending Board meetings

and dinners to provide insights on political, regulatory, market and

industry developments, as well as energy sector trends, supporting

informed challenge and strategic oversight by the Board.

**Time commitment**

The Board considers potential conflicts of interest and Directors' time

commitments when approving appointments to the Board, including

any subsequent external appointments. On appointment, Directors

confirm that they are able to devote sufficient time to discharge their

duties effectively, including attending and preparing for Board and

Committee meetings, and undertaking site and office visits. Directors

are required to obtain prior Board approval before accepting any

additional external appointments.

During the year, the Board approved new external appointments only

where it was satisfied that these would not impair the relevant

Director's ability to perform their role.

**Re-election of Directors** 

The Nomination Committee considers each Director's skills,

experience, time commitment and tenure when making

recommendations to the Board on the election or re-election of

Directors. In recommending Directors for re-election at the 2026

AGM, the Board concluded that each continues to make an effective

and valuable contribution, brings significant knowledge and

experience to the Board, and demonstrates ongoing commitment to

their role. The Board also reviewed the independence of all

Non-executive Directors and considers each to be independent in

accordance with the UK Corporate Governance Code.

**Chief Executive appointment and induction**

During the year, the Board devoted considerable attention to Chief

Executive succession and the leadership transition, recognising the

importance of ensuring a stable, well-planned handover. Following a

robust process, as discussed in the People & Governance

Committee report last year, on 1 May 2025 the Board announced the

appointment of Zoë Yujnovich as the next Chief Executive,

succeeding John Pettigrew, who announced his retirement from the

Board after almost ten years in the role.

Consistent with the Board's commitment to long-term leadership

planning, the Board conducted a rigorous, multi-stage succession

process. This ensured that leadership requirements were considered

against the Group's strategic priorities, operational requirements and

the evolving external environment.

As part of this process, the Board undertook a search to identify the

individual best suited to lead the Company through its next phase of

strategic delivery. In order to support the Chief Executive succession

process the Board appointed Egon Zehnder, who have no other link

to the Company. In assessing candidates, the Board prioritised

identifying a leader with:

–a proven track record in delivering complex, large-scale capital

programmes;

–extensive operational experience across global energy markets;

–international stakeholder management; and

–the capability to guide the Company through the continuing

complexities of the energy transition.

Following detailed evaluation and robust Board scrutiny, the Board

concluded that Zoë Yujnovich brought the right balance of strategic

insight, operational expertise and industry experience to lead National

Grid into its next phase. She joined the Board as Chief Executive

Designate on 1 September 2025 and succeeded John Pettigrew as

Chief Executive on 17 November 2025, enabling a planned and

orderly transition.

To support an effective transition, a comprehensive and tailored

induction and transition programme was implemented during the

period in which Zoë Yujnovich served as Chief Executive Designate.

This programme was designed to provide comprehensive insight into

the Group's strategy, governance framework, risk profile and

stakeholder landscape, and to enable effective engagement with the

Board, executive leadership team, investors and key internal and

external stakeholders. The induction was tailored to the Chief

Executive role by covering strategy and external affairs, operational

and safety priorities, regulatory and investor perspectives,

governance and legal responsibilities, and people and culture

matters.

As part of this programme, Zoë Yujnovich undertook direct

engagement with frontline teams and senior operational leaders

across the Group's operations, including site visits to deepen her

understanding of the Group's operational footprint, safety culture

and capital delivery activities. These visits included exposure to

operational and training facilities, major assets and operations in both

the UK and the US.

Such site visits form a core component of the Board's wider

engagement programme and are used to bring to life the Group's

Principal Risks, safety priorities and workforce capability,

supporting effective oversight and continuity of leadership

during executive transitions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **98** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Nomination Committee report** | **Nomination Committee report** |  |  |  |  |

---

![Paula_Nom Com Flat bottom.jpg](nggtf-20260331_g337.jpg)

---

| | |
|:---|:---|
| Paula Rosput Reynolds | Paula Rosput Reynolds |
| Chair of the Nomination Committee | Chair of the Nomination Committee |
| **Role of the Committee** | **Role of the Committee** |
| –Oversees succession planning for Non-executive and <br>Executive Directors. <br>–Considers and makes recommendations to the Board <br>in respect of Board appointments.<br>–Ensured effective plans are maintained to result in a <br>diverse pipeline of succession to the Board.<br>–Assists the Board in discharging its responsibilities <br>around year-end governance disclosures. | –Oversees succession planning for Non-executive and <br>Executive Directors. <br>–Considers and makes recommendations to the Board <br>in respect of Board appointments.<br>–Ensured effective plans are maintained to result in a <br>diverse pipeline of succession to the Board.<br>–Assists the Board in discharging its responsibilities <br>around year-end governance disclosures. |
| **Composition** | **Membership** |
| The Committee comprises all <br>independent Non-executive <br>Directors and the Chair of the <br>Board who is appointed as Chair <br>of the Committee.<br>| –Paula Rosput Reynolds (C)<br>–Ian Livingston<br>–Jacqui Ferguson<br>–Iain Mackay<br>–Anne Robinson<br>–Earl Shipp<br>–Jonathan Silver<br>–Tony Wood<br>–Martha Wyrsch<br>|

---

![](nggtf-20260331_g283.gif)

**The Terms of Reference of the Nomination Committee are** <br>**available on our website nationalgrid.com/about-us/corporate-**<br>**information/corporate-governance.**<br>

![](nggtf-20260331_g338.gif)

–Oversight of Board composition.

–Succession planning for Executive and Non-executive

Directors.

–Support to the Board in relation to the Chief Executive

transition.

–Prior to the Committee restructure, the People & Governance

Committee considered people strategy and strategic

workforce planning.

Following the Board's committee restructure, as set out on page [89](#i6f250a91cd464a04873e5851a20d0163_112),

the Nomination Committee was redefined as a dedicated committee

responsible for Board succession planning for both Executive and

Non-executive Directors (NEDs). Our reasoning was that since we

were transitioning from one Chief Executive to another, we should

recognise that both Board and management composition will

naturally evolve. As such, we decided that all Non-executive Directors

be members of this committee at this juncture. Wider workforce

people-related matters are overseen by the People & Remuneration

Committee.

The Committee ensures that appointments to the Board are made

following a formal, rigorous and transparent process, in line with the

2024 Code. As such, although nine years is generally viewed as a

maximum, all our Non-executive Directors have to offer themselves

for annual re-election by shareholders.

![](nggtf-20260331_g339.gif)

**Year-end governance and reporting**

The Committee supports the Board in overseeing the Company's

Director related governance disclosures for inclusion in the Annual

Report and Accounts. The Committee reviewed and advised on

Board composition, succession planning, diversity and inclusion,

Board and Committee effectiveness, and related disclosures.

**Board skills and experience** 

The composition, balance of skills, experience, independence and

diversity of the Board remain under active evaluation. Our annual survey

of board effectiveness is another helpful tool. The quality of engagement

NEDs bring to board service, the style in which the individual Directors

interact with fellow board members, as well as the Company's

management, and the attitude of care about the Company's purpose,

contribute importantly to overall NED effectiveness.

What is also key is that the Board recognises that the issues facing the

Company continue to change and that the leadership of the Company is

dynamic as well. Thus, we are mindful of our responsibility as a Board to

refresh ourselves. The Board skills and experience matrix has to evolve

with the environment in which the Company does business.

An overview of Board skills can be seen in the table to the right and

the expertise of Directors can be found detailed within Board

biographies on page [91](#i6f250a91cd464a04873e5851a20d0163_115). Our skills matrix highlights the broad skills

that are in addition to the domain specific expertise of each director.

The consideration given to this area supports the Board in satisfying

itself that the Board operates in compliance with the 2024 Code and

that the right level of skills and expertise can be found on the Board

![](nggtf-20260331_g13.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

to reflect the increasingly complex environment that the Company

operates in.

![](nggtf-20260331_g340.gif)

**Key activities during the year**

![](nggtf-20260331_g340.gif)

**Board skills**

---

| | |
|:---|:---|
| **Strategic oversight** | **10** |
| **Regulatory engagement oversight** | **9** |
| **Mergers, acquisitions, financing and** <br>**divestments oversight** | **8** |
| **Government and political engagement oversight** | **7** |
| **Accounting and financial reporting oversight** | **6** |

---

![](nggtf-20260331_g341.gif)

![](nggtf-20260331_g342.gif)

![](nggtf-20260331_g341.gif)

![](nggtf-20260331_g342.gif)

![](nggtf-20260331_g343.gif)

![](nggtf-20260331_g342.gif)

![](nggtf-20260331_g344.gif)

![](nggtf-20260331_g342.gif)

![](nggtf-20260331_g345.gif)

![](nggtf-20260331_g342.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **99** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Nomination Committee report cont.** | **Nomination Committee report cont.** |  |  |  |  |

---

**Composition, time commitment and independence**![](nggtf-20260331_g346.gif)

**Approach to collating diversity data**

As required by UK regulation, we report on diversity data to the extent

that respondents voluntarily self-declare. For Non-executive Directors,

we ask that they submit relevant information at year-end as part of the

declaration process.

Board appointments are based on merit and objective criteria,

including an analysis of the match of a candidate to skills areas where

the Board determines particular expertise or depth is needed. In

accordance with the 2024 Code, we have a Board Composition

policy, which sets out the approach taken to appointments to the

Board and its Committees, including in relation to diversity. The policy

recognises the benefits of diversity in all its forms and seeks to ensure

a good balance of skills, business experience, knowledge,

perspectives and backgrounds is maintained, as per policy objective,

while having regard to the Board's current and future needs and any

periods of change or refreshment.

In the year, our gender, nationality, ethnicity and tenure of service

percentages changed with the addition of Zoë Yujnovich to the Board

and the departure of John Pettigrew. Our data can be seen in the

adjacent section. As at 31 March 2026, we met the FCA's targets on

Board diversity set out in UK Listing Rule 6.6.6R(9). We continue to

believe that it is the trends in these factors – and close examination of

the business qualifications of our Directors – that are the meaningful

way to determine how appropriately the Board is composed.

In accordance with UK Listing Rule 6.6.6R(10), as at 31 March 2026,

the numerical data on the gender and ethnic background of our

Board and Group Executive Committee is set out on the tables to

the right.

---

| | | | |
|:---|:---|:---|:---|
| **Board diversity as at 31 March 2026** | **Board diversity as at 31 March 2026** |  |  |
| **Chair and Non-executive Directors' tenure** | **Chair and Non-executive Directors' tenure** | **Board nationality** | **Board nationality** |
| ![Circle_Dk-Blue.gif](nggtf-20260331_g328.gif) | 0-3 years **1 (11%)** | ![Circle_Dk-Blue.gif](nggtf-20260331_g328.gif) | UK **5 (45.5%)** |
| ![Circle_Mid-blue.gif](nggtf-20260331_g347.gif) | 3-6 years **6 (67%)** | ![Circle_Mid-blue.gif](nggtf-20260331_g347.gif) | UK/Australian **1 (9%)** |
| ![Circle_Lt-Blue.gif](nggtf-20260331_g348.gif) | 6-9 years **2 (22%)** | ![Circle_Lt-Blue.gif](nggtf-20260331_g348.gif) | US **5 (45.5%)** |

---

![56](nggtf-20260331_g349.gif)

![68](nggtf-20260331_g350.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Gender** | **Number of Board** <br>**members**<br>| **Percentage** <br>**of the Board**<br>| **Number** <br>**of senior positions** <br>**on the Board**<sup>1</sup><br>| **Number** <br>**in executive** <br>**management**<sup>2</sup><br>| **Percentage** <br>**of executive** <br>**management**<sup>2</sup><br>|
| Men | 6 | 54.5 | 2 | 6 | 42.9 |
| Women | 5 | 45.5 | 2 | 8 | 57.1 |
| Not specified/prefer not <br>to say<br>| – | – | – | – | – |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Ethnicity** | **Number of Board** <br>**members**<br>| **Percentage** <br>**of the Board**<br>| **Number** <br>**of senior positions** <br>**on the Board**<sup>1</sup><br>| **Number** <br>**in executive** <br>**management**<sup>2</sup><br>| **Percentage** <br>**of executive** <br>**management**<sup>2</sup><br>|
| White British or other White (including minority-white <br>groups)<br>| 9 | 81.8 | 4 | 12 | 85.7 |
| Mixed/Multiple ethnic group | – | – | – | – | – |
| Asian/Asian British | – | – | – | – | – |
| Black/African/Caribbean/Black British | 2 | 18.2 | – | 1 | 7.1 |
| Other ethnic group | – | – | – | – | – |
| Not specified/prefer not to say | – | – | – | 1 | 7.1 |

---

1. Senior positions on the Board refer to the Chair, Chief Executive, Chief Financial Officer and Senior Independent Director.

2. Executive management comprises the Group Executive Committee, including the Group Company Secretary. The gender balance of senior management and their direct reports can be

found on page [48](#i4dcd1c6bec374cf683b65c0c15b1f0b3_7139).

**Paula Rosput Reynolds** 

Chair of the Nomination Committee

13 May 2026

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **100** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Audit & Risk Committee report** | **Audit & Risk Committee report** |  |  |  |  |

---

![Iain_Audit_Risk Comm flat bottom.jpg](nggtf-20260331_g351.jpg)

---

| | |
|:---|:---|
| Iain Mackay | Iain Mackay |
| Chair of the Audit & Risk Committee | Chair of the Audit & Risk Committee |
| **Role of the Committee** | **Role of the Committee** |
| –Monitors the integrity of the Group's financial reporting.<br>–Oversees risk management and internal control systems.<br>–Oversees the independence and effectiveness of the External <br>Auditor.<br>–Reviews the effectiveness of Internal Audit.<br>–Supports the Board's oversight of financial, operational and <br>compliance risks. | –Monitors the integrity of the Group's financial reporting.<br>–Oversees risk management and internal control systems.<br>–Oversees the independence and effectiveness of the External <br>Auditor.<br>–Reviews the effectiveness of Internal Audit.<br>–Supports the Board's oversight of financial, operational and <br>compliance risks. |
| **Composition** | **Membership** |
| The Committee comprises three <br>independent Non-executive <br>Directors. The Committee held <br>five scheduled meetings and two <br>ad hoc meetings during the year. <br>The ad hoc meetings considered <br>the tender for the External Audit <br>and the Group's investment in <br>Community Offshore Wind.<br>| –Iain Mackay (Chair)<br>–Jacqui Ferguson<br>–Ian Livingston<br>|

---

![](nggtf-20260331_g283.gif)

**The Terms of Reference of the Audit & Risk Committee are** <br>**available on our website nationalgrid.com/about-us/corporate-**<br>**information/corporate-governance.**<br>

![](nggtf-20260331_g338.gif)

–Oversaw a formal competitive External Audit tender process.

–Undertook focused reviews of several Group Principal Risks,

including Catastrophic security incident and Financing our

business.

–Expanded the Committee's remit and oversight to include

matters previously overseen by the Finance Committee.

–Reviewed and challenged management's preparation for

compliance with Provision 29 of the 2024 Code.

I am pleased to present the Committee's report for the year ended 31

March 2026. The Audit & Risk Committee plays a central role in

supporting the Board's oversight of the integrity of the Group's

financial reporting, the effectiveness of risk management and internal

controls, and the quality and independence of the external audit.

During the year, the Committee devoted significant time to reviewing

the Group's financial reporting and disclosures, overseeing the

year-end reporting process, and considering matters of accounting

judgement and estimation. We worked closely with management and

the External Auditor, providing robust challenge where appropriate, to

ensure that the Annual Report and Accounts present a clear,

balanced and transparent view of the Group's performance, position

and prospects.

The Committee also maintained oversight of the Group's systems

of risk management and internal control, including monitoring

progress against internal control enhancements and receiving

updates on Sarbanes-Oxley compliance. In light of the 2024 UK

Corporate Governance Code, we paid particular attention to the

work underway to support the Board's future internal control

declaration under Provision 29. We were satisfied that appropriate

processes and governance are being established to underpin this

enhanced reporting.

As part of the enhanced governance framework following the

restructuring of the Board committees, the Audit & Risk Committee

has expanded its oversight to include matters previously overseen by

the Finance Committee. This includes oversight of activity across

treasury, tax, pensions, insurance and commodity trading, including

management of financial risk within each of thes e areas. In parallel,

oversight of the Group Principal Risks was re-aligned across the

Board committees, with the Audit & Risk Committee continuing to

review and support the Board's oversight of risk management and

internal control processes.

The Committee undertook focused reviews of selected Group

Principal Risks, as set out on page 103, including a deep-dive into

the Catastrophic security incident Group Principal Risk. This review

considered the effectiveness of controls and mitigations in the

context of an increasingly challenging global threat environment.

To maintain appropriate oversight, it was agreed that cyber security

would also be considered by the Board, ensuring biannual focus

across both the Board and the Committee. The scope of the

Group Principal Risk was also expanded to include physical security

of assets.

![](nggtf-20260331_g13.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

Throughout the year, we received regular reports from Internal Audit

and the External Auditor, reviewed the effectiveness of both, and held

private meetings without management present to support open and

constructive dialogue. We also led a formal competitive External Audit

![](nggtf-20260331_g352.gif)

**Key activities during the year**

tender process which concluded with the Board's approval of the

Committee's recommendation to re-appoint Deloitte as the

Company's External Auditor. Further information on the External Audit

tender process can be found on pages 103 and 104.

As Chair, I met regularly with the lead External Audit Partner, the

Chief Financial Officer, the Chief Risk Officer, the Group Head of

Internal Audit and other senior leaders, ensuring that emerging issues

were identified early, and addressed through the Group's governance

and assurance frameworks. The Board was kept informed of the

Committee's work through regular reports, minutes and discussion.

On behalf of the Committee, I am satisfied that we have discharged

our responsibilities effectively during the year and that the Committee

has made a strong contribution to the Board's oversight of financial

reporting, risk management and internal controls.

**Committee financial experience**

The Board is satisfied that the Committee comprises members who

are suitably qualified with recent and relevant financial experience and

competence in accounting, auditing or both. Iain Mackay and Ian

Livingston are qualified chartered accountants and are considered

competent in accounting and auditing for the purposes of the 2024

Code and the FCA's Disclosure Guidance and Transparency Rules.

Collectively, the Committee brings an appropriate balance of

commercial and financial expertise to provide effective challenge and

oversight of the matters within its remit. The Committee as a whole is

deemed to have competence relevant to the sector in which the

Company operates. For the purposes of the US Sarbanes-Oxley Act

of 2002 (SOX), Iain Mackay is designated as the Committee's

financial expert. Further information on Committee members can be

found in their biographies on pages [91](#i6f250a91cd464a04873e5851a20d0163_115) to [93](#i3c4c976321044b05a8f4ef04dbab9910_0-0-1-1-954736).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **101** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Audit & Risk Committee report cont.** | **Audit & Risk Committee report cont.** |  |  |  |  |

---

**Key activities during the year**

The Committee maintains a comprehensive agenda across financial reporting, risk management, internal

controls and assurance, together with treasury, tax, pensions, insurance and commodities, and the

management of related financial risks. The Committee engages regularly with the External Auditor and

senior management from the Finance, Internal Audit, Risk, Treasury and Compliance functions, and

reported to the Board after each meeting, making recommendations where appropriate. The Committee's

key activities are summarised below.

**Financial and non-financial reporting**

–Monitored the integrity of the Group's financial and non-financial reporting, including the Annual Report

and Accounts and other formal financial communications, and compliance with SOX requirements.

–Reviewed and challenged significant accounting policies, key judgements and principal sources of

estimation uncertainty, and recommended these to the Board for inclusion in the half-year and full-year

financial statements and related US regulatory filings.

–Considered management's assessment of accounting matters such as the sale of NG Renewables and

Grain LNG, including judgements around post-closing capital project obligations, and developments in

the US Offshore wind industry following the full impairment of the Company's Community Offshore

Wind asset in 2024/25.

–Received updates on developments in accounting standards and practice, including IFRS 18 and IFRS

20, and considered the potential impact on the Group's external reporting.

–Held a joint meeting with the Responsible Business Committee to review the Climate change mitigation

Group Principal Risk and the Group's approach to sustainability reporting.

–Reviewed the Responsible Business, TCFD and other environment, social and governance disclosures

and recommended these disclosures to the Board for approval.

–Considered the recommendations of the FRC's Corporate Reporting Review of the Company's

2024/25 Annual Report and took these into consideration in the preparation of the 2025/26 Annual

Report.

**Risk management and internal control**

–Oversaw the Group's risk profile and management actions against the Board-approved risk appetite,

including the half-year and full-year review of the Group's principal, emerging and external risks,

including the design and operating effectiveness of related controls.

–Reviewed management attestations and assurance supporting the annual assessment of the

effectiveness of the Group's risk management processes and internal controls, and advised the Board

that these operated effectively across financial, operational and compliance matters.

–Performed deep-dives on five of the Group's Principal Risks, as set out on page 103.

–Considered climate-related transition risks, cyber security, including legacy technology risk, and other

key non-financial risks within the enterprise risk management framework, and the adequacy of the

associated control environment.

–Reviewed and challenged the going concern and viability assessments, including severe but plausible

downside scenarios, and the robustness of the underlying assumptions, stress testing and controls.

–Monitored progress on the Group's SOX attestation programme and the broader programme to

strengthen, document and test material controls, including actions to strengthen the maturity of the risk

and controls framework.

–Reviewed management's approach to identifying material controls, the scope and outcomes of controls

testing, and remediation of any identified deficiencies as part of its preparation for reporting against

Provision 29 of the 2024 Code.

**Treasury, tax, pensions, insurance and commodities**

–Received regular updates on treasury, tax, pensions and insurance, including oversight of financial risk

appetite, and approved the Finance Policy and related Delegations of Authority.

–Considered the Group's Tax Strategy and recommended to the Board for approval.

–Reviewed commodities activities, including US energy procurement and interconnector trading,

together with the associated governance framework, risk policies and delegations.

**Internal Audit**

–Oversaw succession planning and resourcing for the Internal Audit function, including the appointment

of the Group Head of Internal Audit during the year.

–Received regular updates on delivery of the 2025/26 Internal Audit Plan, including significant findings,

thematic insights and progress against agreed management actions, with Internal Audit providing

independent third-line assurance over the design and operating effectiveness of key controls, and

approved the 2026/27 Internal Audit Plan.

–Oversaw the work undertaken by the Internal Audit function on the Quality Assurance and Improvement

Plan, including progress made since the 2024/25 External Quality Assessment (EQA) which concluded

that the Internal Audit function generally conformed with Chartered Institute of Internal Auditors (IIA)

Standards, the highest rating from an EQA.

–Approved the updated Internal Audit Charter, confirming the function's mandate, independence and

authority under the Global Internal Audit Standards.

–Considered Internal Audit's work, findings and follow-up activity alongside the Committee's assessment

of the effectiveness of the Group's risk management and internal control framework.

**External Auditor**

–Received reports from the External Auditor at each meeting on audit progress, scope and key risk

areas, and reviewed the External Auditor's reports on the half-year and full-year results.

–Assessed the External Auditor's effectiveness, independence and professional scepticism, and

considered non-audit services.

–Recommended the re-appointment of Deloitte as External Auditor to the Board, for recommendation to

shareholders at the 2026 AGM and led a formal competitive audit tender process for the External Audit

for the year ending 31 March 2028.

**Compliance, governance and disclosure**

–Reviewed and recommended to the Board the Committee's Terms of Reference which were updated

to reflect the Committee's expanded remit.

–Received regular updates on ethics, business conduct and whistleblowing, and reports on legal and

regulatory compliance, including instances of non-compliance and actions taken to strengthen

compliance and investigation arrangements across the Group.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **102** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Audit & Risk Committee report cont.** | **Audit & Risk Committee report cont.** |  |  |  |  |

---

**Significant issues and judgements relating to the financial statements**

The significant issues and judgements considered by the Committee in relation to the financial statements

for the year ended 31 March 2026 are set out in the table below. During the year, the Committee

discussed these matters in detail with management and the External Auditor as part of its oversight of the

integrity of the Group's financial reporting.

---

| | |
|:---|:---|
| **Matters considered** | **Factors and reasons considered, including financial outcomes** |
| **US** <br>**environmental** <br>**remediation** <br>**provisions**<br>| During the year, the Committee reviewed the accounting for the £2,012bn of US <br>environmental remediation provisions. Following correspondence with <br>environmental regulators on the scope and design of remediation activities <br>related to Superfund sites, and the revision of management estimates, we <br>recognised a net movement in the associated provision of £nil. The net <br>movement in the provision is reported through exceptional items, consistent with <br>the Group's policy as disclosed in notes 5 and 26 to the financial statements.<br>|
| **Disposal of** <br>**Grain LNG**<br>| On 28 November 2025, Grain LNG was sold to a consortium of multinational <br>energy companies, Centrica plc, and an energy transition infrastructure <br>investment firm, Energy Capital Partners, part of Bridgepoint Group plc. The <br>Committee reviewed the gain on disposal calculation, including the judgements <br>around the post closing capital project obligations and related disclosures in note <br>10 to the financial statements.<br>|
| **Disposal of** <br>**National Grid** <br>**Renewables** <br>| On 29 May 2025, National Grid Renewables was sold to Brookfield Asset <br>Management and its institutional partners including Brookfield Renewable <br>Partners for $2.1 billion. A pre-tax loss on disposal of £96 million was recognised <br>within the Group's results (the loss arose principally from the recycling of <br>cumulative foreign exchange movements up to the date of disposal). The <br>Committee reviewed the loss on disposal calculation and related disclosures in <br>note 10 to the financial statements. <br>|
| **Monitoring of** <br>**North Hyde** <br>**related liability** <br>**exposure**<br>| The Committee received updates on the investigation into the North Hyde <br>substation outage. On 18 November 2025, NESO published its final report. <br>National Grid fully supports the NESO recommendations and remains committed <br>to working with NESO and others to implement them. The Ofgem investigation is <br>ongoing. The Committee reviewed management's assessment of the liability <br>exposure and the related disclosures in note 30 to the financial statements.<br>|
| **Obligations** <br>**relating to** <br>**FERC Return** <br>**on Equity** <br>**(ROE) order**<br>| On 19 March 2026, the FERC issued an order requiring certain transmission <br>operators in North East America to establish a base return on equity of 9.57%. <br>Historical amounts charged in excess of this base ROE are to be refunded. The <br>Committee has reviewed management's accounting treatment under IFRS and <br>the impact on underlying earnings. Further information can be found on page [76](#i202fa9fb1f56481f9b7c2ceca5912235_61888).<br>|

---

**Financial reporting**

**Going concern and longer-term viability** 

During the year, the Committee reviewed management's assessment of the Group's status as a going

concern and its longer-term viability. This included reviewing the Group's going concern and longer-term

viability statement (as set out on pages 142 and [86](#ied626f40b45c4524b15009c39935c7e1_2745) respectively), together with the supporting assessment

reports prepared by management. Based on this review, the Committee concluded that the financial

statements had been appropriately prepared on a going concern basis and that the Company and the

Group have adequate resources to continue in operation for at least 12 months from the date of approval

of the Consolidated Financial Statements for the year ended 31 March 2026 and recommended it to the

Board for approval.

**Fair, balanced and understandable**

In May 2026, the Committee reviewed this Annual Report and Accounts having provided input and

challenge on earlier drafts. The Committee concluded that the Annual Report and Accounts, taken as a

whole, is fair, balanced and understandable, and provides the information necessary for shareholders and

other stakeholders to assess the Group's position, performance, business model and strategy.

In reaching this conclusion, the Committee considered both the financial and non-financial disclosures,

including the Group's disclosures prepared in line with the TCFD recommendations (see pages [53](#i6f250a91cd464a04873e5851a20d0163_79)–[68](#i04acc15a45a7420086e6933b916efcba_9297)).

The Committee also considered the potential impact of these disclosures on the forward-looking

assumptions supporting the Group's going concern and viability assessments. The Committee's review

was informed by the following:

–a comprehensive drafting and review framework, including sign-off by Group Executive Committee

members of relevant areas of the Annual Report and Accounts;

–a robust verification process for key financial and non-financial statements;

–a comprehensive review by management, including members of the Group Executive Committee and

the Disclosure Committee, to assess the accuracy and consistency of messaging and overall balance;

and

–feedback from the Company's advisors, including the External Auditor and Remuneration Advisor.

On this basis, the Committee recommended the Annual Report and Accounts to the Board for approval.

**Risk management and internal controls**

The Board has overall responsibility for the Group's risk management and internal control framework,

including setting risk appetite, overseeing principal and emerging risks and reviewing the framework's

effectiveness. The Audit & Risk Committee supports the Board by providing focused oversight and

challenge on the design and operation of the framework, the quality of risk reporting, and the assurance

obtained across financial, operational, reporting and compliance matters.

**Risk management**

Effective risk management underpins delivery of the Group's strategic priorities. The Chief Risk Officer is

responsible for establishing and maintaining the Group's risk management processes and ensuring

principal and emerging risks are identified, assessed and managed within the risk appetite approved by

the Board. During the year, the Board reviewed and approved the Group's Principal Risks, which are set

out in the Strategic Report on pages [31](#i6f250a91cd464a04873e5851a20d0163_55)–37. The Committee provided detailed oversight through

scheduled risk updates and deep-dives, testing management's assessment of risk exposures, ownership,

mitigations, emerging risk indicators and the consistency of disclosures across the Annual Report and

Accounts.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **103** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Audit & Risk Committee report cont.** | **Audit & Risk Committee report cont.** |  |  |  |  |

---

Following the restructure of Board committees, the Group's Principal Risks are considered by the Board

committee best placed to provide specialist oversight, with the Audit & Risk Committee retaining

responsibility for assessing the overall effectiveness of risk management and internal control and receiving

half-year and full-year reporting that summarises how the Group Principal Risks have been managed.

During the year, the Committee undertook focused reviews of selected Group Principal Risks, assessing risk

ownership, key controls and mitigation plans, and the quality of management reporting and assurance. The

reviews included: Satisfactory regulatory outcomes; Major capital projects; Catastrophic security incident;

and Financing our business. The Committee considered the Climate change mitigation Group Principal Risk

in a joint meeting with the Responsible Business Committee.

**Internal controls and assurance**

The Group's internal control framework supports the integrity of financial and non-financial reporting and the

preparation of the Annual Report and Accounts. The Committee oversees the processes in place to support

timely and accurate reporting, the consistent application of accounting standards and significant

judgements, and key disclosures, including going concern and viability. This oversight is informed by regular

management reporting and assurance provided by Internal Audit and the External Auditor.

As a UK and US listed group, the Committee also receives periodic updates on the SOX programme and

management's assessment of internal control over financial reporting (ICFR), including progress against the

Group-wide compliance plan and developments in the controls environment. These updates informed the

Committee's review of full-year reporting and broader assurance across over the control environment.

**Governance developments and forward-looking oversight**

The Committee received updates on relevant regulatory developments, significant litigation and other

emerging matters, supporting forward-looking oversight of principal risks and the resilience of the control

environment. In line with the 2024 Code, the Committee reviewed management's programme to strengthen

and evidence the effectiveness of material internal controls across financial, operational, reporting and

compliance activities, supporting the Board's annual review and related disclosures.

**Internal control and risk management effectiveness** 

The Committee regularly reviewed the effectiveness of the Group's internal control and risk management

frameworks, with a focus on material controls aligned to the Group's Principal Risks. Based on the work

undertaken, the Committee confirmed to the Board that the control framework continued to operate

effectively and to provide appropriate assurance. The Committee was also satisfied that the sources of

assurance relied upon were of sufficient authority, independence and expertise to provide objective and

reliable assurance.

The Committee monitored material business conduct and compliance matters, including oversight of the

annual Certificate of Assurance process, through which management confirms the effectiveness of the

Group's risk management and internal control systems and identifies significant matters not otherwise

captured through existing assurance arrangements. Assurance over internal controls over financial reporting

is provided separately through the Group's SOX framework. No material weaknesses were identified and the

Committee reported to the Board that management's processes for monitoring and reviewing risk

management and internal control remained effective.

The Committee also oversaw management's approach to future compliance with Provision 29 of the 2024

Code, including the identification and review of the material controls that, individually or in aggregate, are

most relevant to the management of risks that could threaten the Group's business model, future

performance, solvency or liquidity. During the year, the Committee oversaw the development of a structured,

evidence-based framework to support the Board's annual effectiveness assessment, which is progressing

as planned in preparation for the year ending 31 March 2027 when this is implemented.

**Internal Audit**

The Internal Audit function supports the Group's risk management and internal control framework by

providing independent and objective assurance and insight. Its work is delivered in accordance with the

Institute of Internal Auditors' International Professional Practices Framework (IPPF). Based on the work

performed by the IIA in 2024/25, it was determined that the Internal Audit function generally conforms to all

relevant principles of the IPPF with a high degree of conformance. The Committee is satisfied that Internal

Audit has the appropriate quality, capability and expertise to fulfil its mandate. The appointment of the Group

Head of Internal Audit is a matter reserved for the Committee. During the year, the Committee considered

succession planning and resourcing for the Internal Audit function, including the appointment of the Group

Head of Internal Audit. The Group Head of Internal Audit attends all Committee meetings, has direct access

to the Committee Chair, and meets the Committee in private session without management present.

During the year, the Committee monitored the delivery of the Internal Audit Plan, including key themes arising

from audit work, management's remediation plans and the timely closure of actions. The Committee also

reviewed the Internal Audit Charter to ensure that it remained aligned to evolving Global Internal Audit

Standards, and received updates on the function's ongoing transformation to ensure it remains fit for

purpose in light of strategic and technological change and emerging risks.

**External Audit**

The Committee oversees the relationship with the External Auditor, including audit quality, independence and

effectiveness. The Company's External Auditor, Deloitte LLP, was re-appointed by shareholders at the

Company's AGM in July 2025 and the Committee was authorised to set Deloitte's remuneration. The

current Lead Audit Partner is Chris Thomas and 2025/26 was the fourth year of his term. Katie Houldsworth

will succeed Chris Thomas as Lead External Audit Partner following the announcement of the Company's

half-year results in November 2026. A transition plan is in place to ensure an effective handover.

**Audit tender process**

In accordance with UK requirements on audit firm rotation and tendering, the Committee keeps the

appointment of the External Auditor under regular review and, during the year, led a formal competitive

tender for the audit for the year ending 31 March 2028. Following the conclusion of the process, the Board

approved the re-appointment of Deloitte as the Company's External Auditor subject to shareholder approval

at the 2027 AGM. Deloitte was last appointed as the Group's External Auditor in 2017 and was re-appointed

at the Company's Annual General Meeting in July 2025.

The tender process undertaken during the year was overseen by the Committee, which was involved

throughout. Seven firms were initially invited to participate, comprising four top-tier and three mid-tier firms.

Two top-tier firms, including the incumbent auditor, accepted the invitation and progressed to the RFP

stage. The Chair of the Committee engaged with firms that declined to tender to understand their reasons

and to reinforce expectations regarding participation in audit tenders. A virtual data room was established for

both firms and structured meetings were held with Committee and Board members, together with senior

finance management to enable a clear assessment of each firm's capabilities, experience and understanding

of the Company's audit requirements. Feedback from these meetings was coordinated by the Group

External Reporting team.

Formal submissions were received and final presentations were delivered in December 2025. Proposals

were assessed against weighted criteria, with audit quality as the primary consideration, alongside audit

approach, technical competence and challenge. The Committee also considered the Audit Quality Review

reports published in respect of each firm. Final presentations were attended by the Chair of the

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **104** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Audit & Risk Committee report cont.** | **Audit & Risk Committee report cont.** |  |  |  |  |

---

Committee, Chief Executive, Chief Financial Officer, Head of Internal Audit, Group Financial Controller and

other senior finance leaders. Following detailed evaluation and discussion, the Committee recommended

the re-appointment of Deloitte, which the Board approved in December 2025.

In conducting the tender process, the Committee considered the guidance on tendering set out in the

FRC's Audit Committees and the External Audit: Minimum Standard.

**Effectiveness, quality and performance** 

As part of its responsibilities, the Committee regularly assesses the effectiveness, independence and

performance of the External Auditor to satisfy itself that the quality, rigour and outcomes of the external

audit remain appropriate. During the year, the Committee considered the quality of Deloitte's audit reports

and its responses to accounting, financial control and audit matters as they arose, and reviewed and

challenged the External Audit Plan prior to approval.

In forming its conclusions, the Committee engaged regularly with senior management and members of the

Finance function. The Committee Chair met with the External Auditor privately, both in conjunction with

scheduled Committee meetings and outside the formal meeting cycle, without management present, to

promote open and constructive dialogue. Committee members also met privately with the External Auditor

at least twice during the year. In considering the effectiveness of the External Auditor the Committee:

–reviewed the quality of audit planning, including audit approach, scope, progress and fee levels;

–considered the insights provided by the External Auditor via their reports presented to the Committee at

each meeting which highlight financial reporting and internal control areas which they consider should

be prioritised by management; and

–assessed Deloitte's performance against key aspects of audit delivery, including planning, resourcing,

use of technology, oversight and quality review.

The Committee concluded that the External Audit had been delivered effectively.

Following completion of the 2024/25 External Audit, management conducted a survey of key stakeholders

involved in the audit to gather feedback on the external audit process. The survey covered audit planning

and scope, robustness of the audit process, independence and objectivity, quality of delivery, quality of

people and service, and understanding of the Group. The results were shared with Deloitte and informed

planning for the 2025/26 External Audit.

Survey feedback indicated an improvement in Deloitte's scores compared with the prior year, reflecting

targeted actions taken in response to earlier feedback. The survey confirmed that the audit contributed to

the integrity of the Group's financial reporting, that relationships between Deloitte, the Committee and

management remained effective, and that Deloitte demonstrated appropriate professional scepticism,

supported by the skills and experience of the audit team.

Following its assessment for 2025/26, the Committee recommended to the Board the re-appointment of

Deloitte as External Auditor for the year ending 31 March 2027. A resolution to re-appoint Deloitte, and to

authorise the Committee to determine its remuneration, will be proposed to shareholders at the 2026

AGM. Based on its ongoing assessment, the Committee remains satisfied with Deloitte's independence,

objectivity, effectiveness and performance, and considers its re-appointment for 2026/27 to be in the best

interests of the Company.

The Committee confirmed that, during 2025/26, the Company complied with the mandatory audit

processes and audit committee responsibility provisions of the Competition and Markets Authority

Statutory Audit Services Order 2014. The Committee also confirms its continued compliance with the

FRC's Audit Committees and the External Audit: Minimum Standard. Activities undertaken to support this

assessment are described throughout this report. The Committee promotes transparency and

accountability across the Group's financial reporting and audit processes in support of high-quality

reporting and the long-term sustainability of the Company.

**Auditor independence and objectivity** 

The Committee recognises that auditor independence and objectivity are fundamental to the integrity of

the audit. During the year, it reviewed the safeguards supporting independence, including the annual

assessment by Internal Audit. In May 2026, Deloitte confirmed its compliance with applicable UK

regulatory and professional requirements, US SEC regulations, and Public Company Accounting

Oversight Board (PCAOB) standards, and that its objectivity had not been compromised. Having

considered these confirmations, the level of non-audit services and the safeguards applied, the

Committee concluded that Deloitte remained independent for the purposes of the External Audit and

confirmed that its recommendation to the Board was free from third-party influence and restrictive

contractual clauses.

**Non-audit services**

In line with the FRC's Ethical Standard and to maintain the External Auditor's objectivity and

independence, the Committee has established a policy governing the provision of non-audit services by

the External Auditor. The total fees payable for non-audit services in any financial year are capped at 70%

of the average audit fees paid in the preceding three financial years. All non-audit services require the prior

approval of the Committee. A limited subset of services which, due to their nature, the Committee has

determined that they do not pose a threat to the auditor's independence or objectivity and have a value of

less than £250,000 may be pre-approved by the Chief Financial Officer. The Committee receives regular

reports on all non-audit services provided by the External Auditor to ensure ongoing oversight. Non-audit

services approved during the year principally related to ESG assurance and reporting accountant services.

**External Auditor's fees**

The amounts (£m) paid to the External Auditor in the past three years were as follows:

![29325](nggtf-20260331_g353.gif)

---

| | | | |
|:---|:---|:---|:---|
| 🟇 | **Audit fees** | 🟇 | **Non-audit services** |

---

The total billed non-audit services provided by Deloitte during the year ended 31 March 2026 were £1.6

million, representing 8.1% of total audit and non-audit fees. Further information on the fees paid to Deloitte

for audit, audit-related and other services is provided in note 4 to the financial statements on page 152.

Total audit and audit-related fees include the fees paid to Deloitte for other services that the External

Auditor is required to perform, such as regulatory audits and SOX attestation. Non-audit fees represent all

non-statutory services provided by Deloitte.

**Iain Mackay**

Chair of the Audit & Risk Committee

13 May 2026

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **105** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Safety & Operations Committee report** | **Safety & Operations Committee report** |  |  |  |  |

---

![Earle_Safety_Ops Comm flat bottom.jpg](nggtf-20260331_g354.jpg)

---

| | |
|:---|:---|
| Earl Shipp | Earl Shipp |
| Chair of the Safety & Operations Committee | Chair of the Safety & Operations Committee |
| **Role of the Committee** | **Role of the Committee** |
| –The Committee assists the Board in fulfilling its oversight <br>responsibilities in respect of reviewing and challenging strategies, <br>policies, initiatives, risk exposure, targets and performance of the <br>Company in relation to safety and wellbeing. <br>–The Committee provides oversight of the Company's major capital <br>projects and operational activities, particularly in relation to delivery, <br>governance and risk management, and execution. | –The Committee assists the Board in fulfilling its oversight <br>responsibilities in respect of reviewing and challenging strategies, <br>policies, initiatives, risk exposure, targets and performance of the <br>Company in relation to safety and wellbeing. <br>–The Committee provides oversight of the Company's major capital <br>projects and operational activities, particularly in relation to delivery, <br>governance and risk management, and execution. |
| **Composition** | **Membership** |
| The Committee comprises four <br>independent Non-executive <br>Directors. The Committee held <br>one orientation meeting and one <br>further scheduled meeting during <br>the year.<br>| –Earl Shipp (Chair)<br>–Jacqui Ferguson<br>–Tony Wood<br>–Martha Wyrsch<br>|

---

![](nggtf-20260331_g283.gif)

**The Terms of Reference of the Safety & Operations Committee** <br>**are available on our website nationalgrid.com/about-us/**<br>**corporate-information/corporate-governance**<br>

![](nggtf-20260331_g355.gif)

–Oversaw health, safety and asset governance, operations and

major project delivery, including performance trends, serious

incidents, and the effectiveness of controls across the Group's

operations.

–Reviewed the management of operational and safety-related

risks, including relevant Group Principal Risks, asset integrity,

and resilience of critical infrastructure.

–Monitored safety culture, capability and assurance.

As a result of the Committee restructure detailed on page [89](#i6f250a91cd464a04873e5851a20d0163_112), the

Board approved the establishment of the Safety & Operations

Committee, replacing and extending elements of the former Safety &

Sustainability Committee and establishing the Committee's key areas

of focus as safety and wellbeing, operations, and major project

delivery.

**Safety and wellbeing**

The accelerating pace of work activities has increased reliance on

contractors and placed pressure on internal and external resources.

The refreshed Committee enables enhanced oversight of how we

manage safety performance and wellbeing, including learning from

safety incidents and near misses, regulatory insights and industry

benchmarking as well as how safety-related risk is mitigated. The

safety of our people, contractors, the public, and those affected by

the Group's activities remain paramount and a central focus for the

Committee.

The former Safety & Sustainability Committee met in May 2025 and

considered the Annual Health and Safety Report for 2024/25 which

provided a strategic review of the Group's safety, health and

wellbeing performance for the year, including performance against

key safety metrics, sustained areas of improvement, and emerging

operational vulnerabilities. The Safety & Operations Committee has

continued to oversee the Group's safety, health and wellbeing

performance and receives updates from the Director of Safety, Health

and Wellbeing at each Committee meeting.

The Committee reviewed progress against the Group's core safety

indicators, including trends in serious incidents and management's

recovery actions, alongside enhancements to reporting processes

designed to strengthen insight and support more proactive risk

management. Development of a new incident reporting system has

been monitored by the Committee ahead of implementation and the

Committee will continue to monitor progress of this roll-out.

The Committee considered initiatives to reduce the most common

causes of workplace harm and causes of lost time injuries, with a

focus on strengthening system controls, workplace conditions and

leadership engagement. The Committee noted progress in

these areas.

Wellbeing also remained a key focus. The Committee received

updates on initiatives to support mental health, strengthen

organisational resilience and ensure regulatory compliance.

As reported last year in the Safety & Sustainability Committee report,

the Committee continued to track progress against the actions from

an external review of safety governance and culture. This helped to

![](nggtf-20260331_g13.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

inform clearer roles and responsibilities and reinforced expectations

across our business units where progress has been positive.

![](nggtf-20260331_g352.gif)

**Key activities during the year**

**Operations and major project delivery** 

As a new area of focus, the Committee spent time understanding the

spread of major projects across the Group. This included those in

construction as well as those planned in the US and under the ASTI

projects in the UK. Operational performance was monitored, noting

the increasing pressure on networks as investment accelerates to

meet future system needs. The Committee reviewed major project

delivery and key operational risks, such as outage planning and

supply chain resilience across both electricity and gas businesses,

and supported the continued development of clearer

milestone-based reporting to enhance visibility of progress, cost,

schedule and risk exposure.

While overall portfolio performance remained within expected

tolerances, continued attention to supply chain pressures, resource

availability and increasing network operability challenges will be

critical to maintaining project delivery confidence.

The Committee also monitored initiatives to build the Company's

future delivery capability with an update received from the Group

Chief Engineer providing insight into the Group's progress around

strengthening engineering competencies.

Following the fire at North Hyde in March 2025, the Board received

several updates on this and asset maintenance. The Committee will

take forward the focus on this area through the next year, including

tracking progress on actions from both internal and external

investigations.

During the year, between the Committee, members participated

in seven site visits to observe field activities, meet and talk

with employees.

**Earl Shipp** 

Chair of the Safety & Operations Committee

13 May 2026

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **106** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Responsible Business Committee report** |  |  |  |  |  |

---

![Tony_RB Comm flat bottom.jpg](nggtf-20260331_g356.jpg)

---

| | |
|:---|:---|
| Tony Wood | Tony Wood |
| Chair of the Responsible Business Committee | Chair of the Responsible Business Committee |
| **Role of the Committee** | **Role of the Committee** |
| –Assists the Board in fulfilling its oversight responsibilities in respect <br>of the Company's role as a responsible business.<br>–Responsible for monitoring and, where appropriate, challenging <br>strategies, policies, initiatives and risk exposure relating to political, <br>societal and regulatory matters, as well as performance against <br>climate- and sustainability-related targets.<br>–Provides oversight of reputational risk across the Company's <br>stakeholder groups.  | –Assists the Board in fulfilling its oversight responsibilities in respect <br>of the Company's role as a responsible business.<br>–Responsible for monitoring and, where appropriate, challenging <br>strategies, policies, initiatives and risk exposure relating to political, <br>societal and regulatory matters, as well as performance against <br>climate- and sustainability-related targets.<br>–Provides oversight of reputational risk across the Company's <br>stakeholder groups.  |
| **Composition** | **Membership** |
| The Committee comprises five <br>independent Non-executive <br>Directors. The Committee held <br>one orientation meeting and two <br>further scheduled meetings <br>during the year. One ad hoc <br>meeting with the Audit & Risk <br>Committee was also held.<br>| –Tony Wood (Chair)<br>–Ian Livingston<br>–Anne Robinson<br>–Earl Shipp<br>–Jonathan Silver<br>|

---

![](nggtf-20260331_g283.gif)

![](nggtf-20260331_g357.gif)

–Oversaw the Group's sustainability and climate agenda,

including progress against climate commitments, the Climate

Change Mitigation Group Principal Risk and related disclosures.

–Reviewed Responsible Business reporting, reputation and

stakeholder engagement, ensuring disclosures and external

positioning remained credible, balanced and aligned with

stakeholder expectations.

–Monitored regulatory, political and societal developments,

including related Group Principal Risks, policy engagement

and ESG-linked performance measures.

**Our CTP and Responsible Business Charter can be found on our** <br>**website nationalgrid.com/responsibility**<br>

![](nggtf-20260331_g13.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

**The Terms of Reference of the Responsible Business Committee** <br>**are available on our website nationalgrid.com/about-us/**<br>**corporate-information/corporate-governance**<br>

The Responsible Business Committee was established during the

year following a committee restructure as detailed on page [89](#i6f250a91cd464a04873e5851a20d0163_112).

The creation of the Committee reflects the increasingly complex

external environment in which the Group operates, characterised by

heightened political, societal and regulatory scrutiny, evolving

stakeholder expectations, and a rapidly changing climate and

sustainability landscape. The Board determined that these

interrelated matters warranted more focused and integrated oversight

at Board committee level.

The Committee's remit encompasses three principal areas of focus:

sustainability (including climate change), reputation, and regulatory

and political matters. In this context, the Committee monitors and,

where appropriate, challenges the Company's strategies, policies,

initiatives and risk exposure relating to customer, political, societal

and regulatory issues, as well as performance against climate- and

sustainability-related targets.

As part of the committee refreshment, the Committee took

responsibility for monitoring and oversight of the following Group

Principal Risks: political and societal expectations; climate change

mitigation; and satisfactory regulatory outcomes. The Committee will

continue to give focus to ensure mitigations are appropriate to the

changing external environment. The Committee also has oversight of

reputational risk across the Company's key stakeholder groups.

During the initial period of operation, the Committee focused on

establishing a robust governance framework and forward agenda

planner, and on developing a shared understanding of the external

context across our areas of responsibility. It also confirmed its

approach to oversight and reporting. This included consideration of the

Company's Responsible Business strategy and climate targets, and

the development of enhanced reputation monitoring and reporting.

**External affairs**

The Committee considered the external environment affecting the

Company's role as a responsible business, including political, societal

and regulatory developments across the Group's jurisdictions. The

Committee discussed how heightened stakeholder scrutiny,

affordability pressures, geopolitical developments and evolving

regulatory expectations interact with the Company's sustainability

commitments, reputation and long-term outcomes.

**Sustainability** 

In relation to sustainability and climate change, the Committee

received updates on the Company's Responsible Business strategy,

including progress against climate targets and plans to refresh the

Responsible Business Charter. The Committee discussed the

challenges presented by the rapidly changing external environment

and the implications for the Company's climate commitments,

disclosures and external narrative. During the year, the Committee

held a joint meeting with the Audit & Risk Committee to review the

Climate change mitigation Group Principal Risk and the Group's

approach to sustainability reporting. Prior to the Committee

restructure, climate-related matters were overseen by the former

Safety & Sustainability Committee, which in May 2025 reviewed

progress against Scope 1 and 2 targets, discussed Scope 3

dependencies and considered key external uncertainties.

**Reputation** 

The Committee also focused on reputation and stakeholder

sentiment, recognising reputation as a critical business asset and an

important component of the Company's licence to operate. During

the year, the Committee oversaw the development of an enhanced

approach to reputation management, including the introduction of a

reputation dashboard designed to provide clearer insight into

stakeholder sentiment, including customers, regulators and

government, employees, suppliers and the general public. Where

![](nggtf-20260331_g352.gif)

**Key activities during the year**

appropriate, the Committee consolidates inputs from other

committees to avoid duplication while providing a holistic view. The

dashboard also provides insight into emerging issues and

reputational signals across geographies. The Committee discussed

how this insight could be used alongside existing risk frameworks to

support earlier identification of emerging risks and opportunities.

The Committee reviewed the broader regulatory landscape in the

Company's jurisdictions and considered how the Company positions

itself to support satisfactory regulatory outcomes over the longer term.

**Tony Wood**

![](nggtf-20260331_g13.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

Chair of the Responsible Business Committee

13 May 2026

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **107** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report** |  |  |  |  |  |

---

![Martha_People_Rem Comm flat bot.jpg](nggtf-20260331_g358.jpg)

---

| | |
|:---|:---|
| Martha Wyrsch | Martha Wyrsch |
| Chair of the People & Remuneration Committee | Chair of the People & Remuneration Committee |
| **Role of the Committee** | **Role of the Committee** |
| –Responsible for determining the Directors' Remuneration Policy <br>and setting the remuneration of the Chair, Executive Directors <br>and members of the Group Executive Committee.<br>–Oversees remuneration policies and practices across the wider <br>workforce. <br>–Oversees the talent and succession planning framework and <br>approach to diversity, equity and inclusion and organisational <br>culture.<br>–Monitors the Group Principal Risk relating to People, capability <br>and capacity, ensuring that matters are appropriately managed <br>and aligned with the Company's strategic objectives.  | –Responsible for determining the Directors' Remuneration Policy <br>and setting the remuneration of the Chair, Executive Directors <br>and members of the Group Executive Committee.<br>–Oversees remuneration policies and practices across the wider <br>workforce. <br>–Oversees the talent and succession planning framework and <br>approach to diversity, equity and inclusion and organisational <br>culture.<br>–Monitors the Group Principal Risk relating to People, capability <br>and capacity, ensuring that matters are appropriately managed <br>and aligned with the Company's strategic objectives.  |
| **Composition** | **Membership** |
| The Committee comprises five <br>independent Non-executive <br>Directors. Since the restructure of <br>the Committees, three scheduled <br>meetings were held. Prior to the <br>restructure, the Remuneration <br>Committee held one scheduled <br>meeting and two ad hoc <br>meetings.<br>| –Martha Wyrsch (Chair) <br>–Ian Livingston<br>–Iain Mackay <br>–Anne Robinson<br>–Jonathan Silver<br>|

---

![](nggtf-20260331_g283.gif)

**The Terms of Reference of the People & Remuneration Committee** <br>**are available on our website nationalgrid.com/about-us/**<br>**corporate-information/corporate-governance**<br>

![](nggtf-20260331_g359.gif)

–Chief Executive succession plan and integration of new Chief

Executive.

–Shareholder approval of the 2025 Directors' Remuneration

Policy.

–Review of forward-looking APP and LTPP performance

measures.

–Review of strategic workforce planning and early careers

programme.

–Review of employee feedback from workforce engagement

sessions and Group-wide employee engagement survey

First, we would like to thank shareholders for their strong support in

approving the Directors' Remuneration Policy at the 2025 AGM.

The Group has grown significantly over the past year, driven by

substantial increases in regulated assets and capital investment.

We achieved constructive regulatory outcomes in both the UK and

the USA and made significant progress in securing our supply chain,

leading to confidence in delivery of our capital investment plans. In

March we announced our extended and upgraded five year

Financial Framework, which increased our cumulative capital

investment commitment to at least $70 billion and upgraded

underlying earnings per share growth to 8-10%. It is underpinned by

multiple structural investment drivers, including acceleration demand

from data centres and the continued electrification of industrial

demand.

Against this backdrop, the Group delivered a strong financial and

operational performance in 2025/26, reflecting continued execution

against strategic priorities and disciplined delivery. This performance

provides important context for the Committee's approach to

remuneration outcomes for the year, as set out in this report, and

demonstrates the alignment between executive incentives, long-term

value creation and shareholder interests.

**Alignment of remuneration with our business strategy** 

We align our performance-linked elements of remuneration to our

strategic priorities, long-term stakeholder and shareholder value and

our vision to bring energy to power possibilities.

We continue to evolve our performance measures to align with our

strategic focus areas and are introducing a new 2026/27 APP

"Performance delivery" measure focusing on capital delivery, asset

management, customer and functional effectiveness. We are also

extending the "Enablement of strategic growth" 2026 LTPP measure

to include demand-side connections and large loads that support the

energy transition and economic growth, in addition to

generation connections.

Safety continues to be an important factor in remuneration decisions

and in previous years the Committee has exercised its discretion

when necessary.

![](nggtf-20260331_g13.gif)

![Online-arrow-clear.gif](nggtf-20260331_g9.gif)

![](nggtf-20260331_g352.gif)

**Key activities during the year**

As the Company's strategy evolves, the Committee will ensure that

the remuneration framework evolves in response, reinforcing a clear

and consistent link between strategic delivery and reward. We will

also consider whether an early review of the Remuneration Policy is

needed over the coming year to ensure it remains fit for purpose and

aligned with the Group's strategic objectives.

**Chief Executive appointment and leadership transition**

During the year, we welcomed our new Chief Executive, marking an

important point in the Company's leadership and strategic

development. We would like to thank both John Pettigrew and Zoë

Yujnovich for their leadership and for ensuring continuity during the

transition, while positioning the Group strongly for the next phase

of growth.

As announced in May 2025, John retired as Chief Executive on 16

November 2025 and remained available to the Group until 30 April

2026. John's leaving arrangement can be found on page [118](#i2e7e065bf2a0412daf36d431f6cb61b9_27323).

Zoë joined as Chief Executive Designate on 1 September 2025, to

support a smooth and orderly leadership transition, and was

appointed Chief Executive on 17 November 2025. In determining

Zoë's appointment terms, the Committee considered her skills and

experience, together with the scope of the role and prevailing market

practice. As Zoë was an external appointment, a share award was

granted for previous entitlements from Shell that were forfeited on her

departure. Further details of Zoë's joining arrangement can be found

on page [119](#i2e7e065bf2a0412daf36d431f6cb61b9_27320).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **108** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.** |  |  |  |  |  |

---

**Board and Committee structure**

The Committee's remit was expanded to include responsibility for

people matters and, reflecting this broader oversight, the Committee

was renamed the People & Remuneration Committee. This change

recognises the increasingly important link between pay, culture,

talent, and long-term performance.

As part of its expanded remit, the Committee placed increased

emphasis during the year on talent and succession planning,

including the strength and composition of the Group Executive

Committee.

People matters prior to the Board Committees restructure were

considered by the People & Governance Committee, including a

deep-dive into strategic workforce planning and early careers.

Following a restructuring of the Board Committees in November,

minor adjustments to the NED fees were made to reflect the scope

and the time commitment of their role. A summary of these changes

can be found on page [89](#ie48c6c7315164b6b9533a3859b72d6c1_4539).

**Wider workforce and People matters**

The Committee engages with the wider workforce at all levels on a

range of topics, including remuneration. Further details of the

Non-executive Director workforce engagement sessions are set out

on page [95](#iaf50f3471a59440d911479cff76cbe18_0-0-1-3-954736). We held employee engagement sessions in November

2025 and March 2026, during which we heard views from colleagues

on talent, succession and remuneration. The feedback received was

thoughtful and constructive, informing discussions at

Committee level.

The Committee received updates on the results of the Company's

employee engagement survey, including the mid-year pulse survey

and the full-year survey. Further information on the outcomes of these

surveys is set out on page [28](#i946a3207f24d4f729c49332ce980500f_1-3-1-1-954736). Insight into employee sentiment and

perceptions of leadership is an important input to the Committee's

wider consideration of remuneration, reflecting the value of its

expanded remit.

In determining remuneration for Executive Directors, the Committee

takes into account the context of the wider workforce. The

Committee seeks to ensure that reward across the organisation is

fair, competitive and consistent with the culture and values of

National Grid.

Incentive outcomes during the year

**Annual Performance Plan (APP) – 2025/26**

The 2025/26 Annual Performance Plan was structured to support

delivery of the Group's strategic priorities, with performance

assessed against financial measures (70%), operational measures

(15%) and individual objectives (15%). Financial performance

delivered an outcome of 72.58% of maximum, reflecting results for

Group Underlying EPS and Group RoE. Operational performance

reflected progress against key priorities, including capital delivery and

leadership of change, while individual performance outcomes

reflected delivery of executive objectives aligned to strategic and

operational priorities. Having considered performance across all

elements of the plan and overall Group performance during the year,

the Committee determined APP payouts of 74.22%, 69.72% and

71.22% of maximum for Zoë Yujnovich, Andy Agg and John

Pettigrew respectively. Full details are set out on page [112](#i2e7e065bf2a0412daf36d431f6cb61b9_27317).

**2023 Long Term Performance Plan (LTPP)**

The performance period for the 2023 LTPP ended on 31 March

2026, with outcomes reflecting performance against financial

measures (80%) and energy transformation measures (20%).

Financial performance outturned at 80.80% of maximum, based on

delivery against Group Underlying EPS and Group RoE, while energy

transformation performance outturned at 89.50% of maximum,

reflecting progress against Scope 1 emissions and enablement of

energy transformation objectives. The resulting formulaic vesting

outcome was 82.54% of maximum. Having considered overall

performance, shareholder experience and the external environment,

the Committee concluded that this outcome was appropriate. Full

details are set out on page [116](#i2e7e065bf2a0412daf36d431f6cb61b9_27322).

**Single total figure of remuneration**

The Committee is satisfied that the total single figure outcomes are

appropriate, taking into account the delivery against key performance

measures, wider employee pay, and shareholder and other

stakeholder experience in terms of value created.

Policy implementation in 2026/27

**Salary review**

Salary increases, with effect from 1 July 2026, of 4.5% have been

awarded to Zoë Yujnovich and 3.5% to Andy Agg. Overall workforce

pay rates were increased by 4.5%.

The Chief Executive's starting remuneration reflects that Zoë is new to

the role and was initially positioned towards the lower end of the FTSE

30 peer group, recognising it would rise in the future. Since joining,

Zoë has demonstrated exceptional performance, and the Committee

remains firmly committed to a performance-led approach to

remuneration. Given both her early impact and the need to ensure

ongoing market competitiveness, the Committee anticipates that

some evolution in pay will be required within the parameters of the

Policy. The Committee will review the Chief Executive's salary at the

point of her work anniversary. Any adjustment will reflect an

assessment of ongoing performance.

**Incentive structure**

The 2026/27 APP will continue to focus on delivery of the Group's

strategic priorities, with a maximum opportunity of 200% of salary

and include financial (70%), operational (15%) and individual (15%)

measures. Further details are set out on page [125](#i8fe2146c576a4e8dac1a34758467de02_8215).

The 2026 LTPP will be awarded at 400% of salary for Zoë Yujnovich

and 350% for Andy Agg, maintaining a focus on long-term financial

performance and strategic delivery. The financial and energy

transformation measures are set out on page [125](#i8fe2146c576a4e8dac1a34758467de02_8216).

**Martha Wyrsch**

Chair of the People & Remuneration Committee

13 May 2026

![REM at a glance 1 new.jpg](nggtf-20260331_g360.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **109** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Remuneration at a glance** |  |  |  |  |  |

---

**2025 Remuneration Policy**

–The 2025 Directors' Remuneration Policy (2025 Policy) was

adopted in July 2025 following approval at the AGM, with

98.38% of shareholders voting in favour of the Policy.

–Our remuneration strategy sets out to ensure strong

![1](nggtf-20260331_g361.gif)

alignment with our strategic priorities and creation of value for

shareholders while providing market competitive remuneration

to enable the attraction and retention of top leadership talent.

–The Policy operated as intended during the year, with

outcomes that were aligned to Company performance and

resulted in an appropriate level of remuneration quantum.

![13](nggtf-20260331_g362.gif)

–The Policy is available on our website at nationalgrid.com/

about-us/corporate-information/corporate-governance

**Single total figure of remuneration**

**Executive Directors**

**Zoë Yujnovich (Chief Executive) £,000**

![25](nggtf-20260331_g363.gif)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **0** | **2,000** | **4,000** | **6,000** | **8,000** |

---

2025/26 variable pay 74.2% of total maximum opportunity.

**Andy Agg (CFO) £,000**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **0** | **2,000** | **4,000** | **6,000** | **8,000** |

---

2025/26 variable pay 77.4% of total maximum opportunity.

**Former Executive Director**

**John Pettigrew (Former Chief Executive) £,000**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **0** | **2,000** | **4,000** | **6,000** | **8,000** |

---

2025/26 variable pay 71.2% of total maximum opportunity.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | Fixed Pay | ![Mid-blue-Circle.gif](nggtf-20260331_g220.gif) | APP | ![Dk-Grey-Circle.gif](nggtf-20260331_g221.gif) | Share award (inc. LTPP) |

---

**Policy implementation**

**Executive Directors**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Salary & pension** | **Salary & pension** |  |  |  |  |
| **Purpose and link to business strategy:** to attract, motivate and retain high-calibre individuals.<br>Executive Directors receive pension contributions of 12% of salary, which is aligned to the wider <br>workforce. | **Purpose and link to business strategy:** to attract, motivate and retain high-calibre individuals.<br>Executive Directors receive pension contributions of 12% of salary, which is aligned to the wider <br>workforce. | **Purpose and link to business strategy:** to attract, motivate and retain high-calibre individuals.<br>Executive Directors receive pension contributions of 12% of salary, which is aligned to the wider <br>workforce. | **Purpose and link to business strategy:** to attract, motivate and retain high-calibre individuals.<br>Executive Directors receive pension contributions of 12% of salary, which is aligned to the wider <br>workforce. | **Purpose and link to business strategy:** to attract, motivate and retain high-calibre individuals.<br>Executive Directors receive pension contributions of 12% of salary, which is aligned to the wider <br>workforce. | **Purpose and link to business strategy:** to attract, motivate and retain high-calibre individuals.<br>Executive Directors receive pension contributions of 12% of salary, which is aligned to the wider <br>workforce. |
| **2025/26** |  |  | **2026/27** |  |  |
|  | **Salary**<br>**£,000**<br>| **%**<br>**increase**<br>|  | **Salary**<br>**£,000**<br>| **%**<br>**increase**<br>|
| **Zoë Yujnovich** <br>**(Chief Executive)** | £1,300,000 | —% | **Zoë Yujnovich** <br>**(Chief Executive)** | £1,359,000 | 4.5% |
| **Andy Agg** <br>**(CFO)** | £820,575 | 5% | **Andy Agg** <br>**(CFO)** | £849,000 | 3.5% |
| **John Pettigrew** <br>**(Former Chief** <br>**Executive)** | £1,246,665 | 5% | **Wider workforce** <br>**principles** |  | 4.5% |
| **Wider workforce** <br>**principles** |  | 5% |  |  |  |
| **Wider workforce** <br>**principles** |  | 5% |  |  |  |

---

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [111](#i2e7e065bf2a0412daf36d431f6cb61b9_27318)** |

---

---

| | |
|:---|:---|
| **Shareholding requirement** | **Shareholding requirement** |
| **Requirement**<br>Chief Executive: 500% of salary<br>Chief Financial Officer: 400% of salary<br>Former Executive Directors: 200% of salary for two years post-employment | **Requirement**<br>Chief Executive: 500% of salary<br>Chief Financial Officer: 400% of salary<br>Former Executive Directors: 200% of salary for two years post-employment |
| **Achievement as at 31 March 2026** | **Achievement as at 31 March 2026** |
| **Zoë Yujnovich (Chief Executive)** | —% |
| **Andy Agg (CFO)** | 1,367% |
| **John Pettigrew (Former Chief** <br>**Executive)** | 2,164% |
| Zoë Yujnovich joined National Grid on 1 September 2025 and is building up towards her <br>shareholding requirement. | Zoë Yujnovich joined National Grid on 1 September 2025 and is building up towards her <br>shareholding requirement. |

---

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [119](#i2e7e065bf2a0412daf36d431f6cb61b9_27321)** |

---

![REM at a glance 2 new.jpg](nggtf-20260331_g364.jpg)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **110** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **Remuneration at a glance cont.** |  |  |  |  |  |

---

**APP**

---

| | | |
|:---|:---|:---|
| **Purpose and link to business strategy:** to incentivise and reward the achievement of annual <br>financial measures and strategic non-financial measures. | **Purpose and link to business strategy:** to incentivise and reward the achievement of annual <br>financial measures and strategic non-financial measures. | **Purpose and link to business strategy:** to incentivise and reward the achievement of annual <br>financial measures and strategic non-financial measures. |
| **2025/26**<br>**Maximum opportunity:** 200% of salary<br>**Total bonus payout (% of maximum):** | **2025/26**<br>**Maximum opportunity:** 200% of salary<br>**Total bonus payout (% of maximum):** |  |
| **74.22%**<br>**Zoë Yujnovich (Chief Executive)** | **69.72%**<br>**Andy Agg (CFO)**<br>| **71.22%**<br>**John Pettigrew (Former Chief** <br>**Executive)**<br>|

---

---

| | | | |
|:---|:---|:---|:---|
| **Performance** <br>**measure** | **Weighting** | **Outturn** <br>**bar**<br>| **Outcome (% of** <br>**maximum)**<br>|
| Group underlying <br>EPS (pence) | 35% |  | 89.52% |
| Group RoE | 35% |  | 55.64% |
| Group capital <br>delivery and <br>effectiveness | 7.5% |  | 87.12% |
| "Leadership of <br>change" index | 7.5% |  | 25% |
| **Individual objectives** | **Individual objectives** |  |  |
| Zoë Yujnovich<sup>1</sup> | 15% |  | 100% |
| Andy Agg | 15% |  | 70% |
| John Pettigrew | 15% |  | 80% |

---

![1](nggtf-20260331_g365.gif)

![13](nggtf-20260331_g366.gif)

![25](nggtf-20260331_g367.gif)

![37](nggtf-20260331_g368.gif)

![49](nggtf-20260331_g369.gif)

![61](nggtf-20260331_g370.gif)

![73](nggtf-20260331_g371.gif)

1Reflects seven months performance

---

| | | |
|:---|:---|:---|
| **2026/27**<br>**Maximum opportunity:** 200% of salary<br>**Measures:** | **2026/27**<br>**Maximum opportunity:** 200% of salary<br>**Measures:** |  |
| **Financial** | **Operational** | **Individual** |
| –Group underlying EPS: 35%<br>–Group RoE: 35% | –Performance delivery: 15% | –Individual objectives: 15% |

---

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [112](#i2e7e065bf2a0412daf36d431f6cb61b9_27317)** |

---

**LTPP**

---

| |
|:---|
| **Purpose and link to business strategy:** to drive long-term business performance, aligning <br>Executive Director incentives to key shareholder interests over the longer term. |
| **2023 LTPP**<br>**Maximum opportunity:** 350% (Chief Executive) and 300% (CFO) of salary in line with 2022 <br>Policy<br>**Performance outcome (% of maximum):** |
| **82.54%**<br>**2023 vesting outcome** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Performance** <br>**measure** | **Weighting** | **Outturn** <br>**bar**<br>| **Outcome (% of** <br>**maximum)**<br>|
| Underlying Group <br>EPS | 40% |  | 100% |
| Group RoE | 40% |  | 61.60% |
| Reduction in <br>Scope 1 <br>emissions | 10% |  | 100% |
| Enablement of <br>energy <br>transformation | 10% |  | 79.00% |

---

![85](nggtf-20260331_g372.gif)

![97](nggtf-20260331_g373.gif)

![109](nggtf-20260331_g374.gif)

![121](nggtf-20260331_g375.gif)

---

| | | |
|:---|:---|:---|
| **2026 LTPP**<br>**Maximum opportunity:** 400% (Chief Executive) and 350% (CFO) of salary in line with 2025 Policy<br>**Measures:** | **2026 LTPP**<br>**Maximum opportunity:** 400% (Chief Executive) and 350% (CFO) of salary in line with 2025 Policy<br>**Measures:** | **2026 LTPP**<br>**Maximum opportunity:** 400% (Chief Executive) and 350% (CFO) of salary in line with 2025 Policy<br>**Measures:** |
| **Measure** | **Threshold** | **Maximum** |
| **Cumulative three-year underlying Group EPS (40%)** | 291p | 311p |
| **Group RoE (40%)** | 10.30% | 11.55% |
| **Reduction of Scope 1 emissions (10%)** | 3% | 9% |
| **Enablement of strategic growth initiative (10%)** | Demand and generation connections | Demand and generation connections |

---

---

| | |
|:---|:---|
| ![Read-more-arrow.gif](nggtf-20260331_g20.gif) | **Read more on page [116](#i2e7e065bf2a0412daf36d431f6cb61b9_27322)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **111** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26<br>|  |  |  |  |  |

---

**Content contained within a grey box indicates that all the information in the panel is audited**<br>

![](nggtf-20260331_g376.gif)

![](nggtf-20260331_g377.gif)

**2025/26 remuneration implementation**

**Single total figure of remuneration – Executive Directors**

The following table shows a single total figure of remuneration in respect of qualifying service for 2025/26, together with comparative figures for 2024/25. All figures shown to £'000:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Executive Directors** | **Executive Directors** | **Executive Directors** | **Executive Directors** | **Executive Directors** | **Executive Directors** | **Former Executive Director** | **Former Executive Director** |
|  | **Zoë Yujnovich** | **Zoë Yujnovich** | **Zoë Yujnovich** | **Zoë Yujnovich** | **Andy Agg** | **Andy Agg** | **John Pettigrew** | **John Pettigrew** |
|  | **Chief Executive** <br>**Designate – 1** <br>**September '25 to** <br>**16 November '25**<br>| **Chief Executive –** <br>**17 November '25** <br>**to 31 March '26**<br>| **2025/26 total** | 2024/25 | **2025/26** | 2024/25 | **2025/26** | 2024/25 |
| **Salary** | **325** | **433** | **758** | – | **811** | 773 | **768** | 1175 |
| **Benefits** | **–** | **294** | **294** | – | **21** | 25 | **39** | 40 |
| **Pension** | **39** | **52** | **91** | – | **97** | 93 | **92** | 141 |
| **Total fixed pay** | **364** | **779** | **1143** | **–** | **929** | **891** | **899** | **1356** |
| **APP** | **–** | **1126** | **1126** | – | **1131** | 874 | **1094** | 1349 |
| **Share awards (inc. LTPP)** | **4200** | **–** | **4200** | – | **2799** | 2134 | **–** | 3783 |
| **Total variable pay** | **4200** | **1126** | **5326** | **–** | **3930** | **3008** | **1094** | **5132** |
| **Total remuneration** | **4564** | **1905** | **6469** | – | **4859** | 3899 | **1993** | 6488 |

---

**Notes:**<br>1.Zoë Yujnovich joined the National Grid plc Board as Chief Executive Designate on 1 September 2025 and was appointed Chief Executive on 17 November 2025.<br>2.John Pettigrew stood down from the Board on 16 November 2025. John's 2025/26 APP was prorated to reflect his period of service as an Executive Director. The leaving arrangement for John can be found on page [118](#i2e7e065bf2a0412daf36d431f6cb61b9_27323). <br>**Salary:** John Pettigrew's and Andy Agg's salaries increased by 5.0% to £1,246,665 and £820,575 as of 1 July 2025 respectively, aligned to the principles used for the wider workforce increases. Zoë Yujnovich was hired on a salary of £1,300,000.<br>**Benefits:** This includes private medical insurance, life assurance, allowance under the Group's flexible benefits programme, travel and accommodation expenses, partner travel, a fully expensed car or cash alternative and the use of a car and a driver when required. Zoë Yujnovich <br>received £165,095 as a relocation allowance, £7,000 for her company car allowance, £6,870 for life assurance, £1,782 for private medical insurance, £48,023 for the use of a car and driver, £57,814 for taxable accommodation and travel expenses including partner travel for <br>2025/26. A Sharesave option award was granted to Zoë Yujnovich on 30 January 2026 and benefit (approximately £7,500) of this award is included. Andy Agg received £12,000 for his company car allowance, £6,926 for life assurance, £2,852 for private medical insurance and <br>£185 for taxable accommodation and travel expenses for 2025/26. John Pettigrew received £7,533 for his company car allowance, £1,665 for life assurance, £624 for private medical insurance, £20,000 for legal fees and £9,281 for the use of a car and driver for 2025/26. There <br>were no Sharesave options granted to either Andy Agg or John Pettigrew during 2025/26.<br>**Pension:** Pension contributions for Zoë Yujnovich, Andy Agg and John Pettigrew were 12% of salary for 2025/26.<br>**Share awards (inc. LTPP):** The 2023 LTPP is due to vest in July 2026. The average share price over the three months from 1 January 2026 to 31 March 2026 of 1,274.85 pence has been applied and estimated dividend equivalents are included. The value of the 2023 LTPP award <br>is driven in part by growth in share value over the period, with a share price change of 35.10% and Total Shareholder Return (TSR) growth of 53.61% from the date of grant to 31 March 2026, using one-month average figures. The 2022 LTPP figures (included in the 2024/25 <br>column) have been restated to reflect the actual share price on vesting and all dividend equivalent shares. As the vesting share price of 1,077.92 pence was higher versus the estimate of 962.17 pence (and the reduced dividend equivalent shares added for the dividend with a record <br>date of 17 July 2025 with a dividend rate of 30.88 pence per share), the actual value at vesting was £391,057 higher than for the estimate published last year for John Pettigrew and £221,029 higher for Andy Agg. The share award value for Zoë Yujnovich relates to her buy-out <br>award and further information can be found on page [119](#i2e7e065bf2a0412daf36d431f6cb61b9_27320).<br>**Malus and clawback**: The Committee operates malus and clawback arrangements to ensure that variable remuneration outcomes are appropriate and fully justified. Malus (to reduce or forfeit unpaid or unvested awards) and clawback (to recover awards already paid or vested) <br>may be applied in exceptional circumstances, including material misstatement of results, awards determined using inaccurate or misleading information, fraud or gross misconduct, regulatory censure or significant reputational damage attributable to the participant, or a material <br>failure of risk management and/or corporate failure. Where such circumstances arise, the Committee may reduce, forfeit or recover all or part of an award using methods it considers appropriate. Malus applies to APP cash awards up to payment with clawback for two years from <br>the end of the performance period; to APP deferred shares until two years after the financial year in which the bonus is earned with clawback for a further two years; and to LTPP awards up to vesting with clawback during the two-year post-vesting holding period. During the year, <br>the Committee considered whether any or all of an award should be forfeited, even if already paid, due to the exceptional circumstances outlined above and in the Directors' Remuneration Policy, and determined that no action was required. The Committee considers these malus <br>and clawback periods to be appropriate having regard to the long-term nature of the Group's strategy, investment cycle and regulatory environment, and the timeframes over which risks and performance outcomes may crystallise.<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **112** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

![](nggtf-20260331_g378.gif)

**Total pension benefits**

Zoë Yujnovich, Andy Agg and John Pettigrew received a cash allowance in lieu of participation in a pension arrangement. There are no additional benefits on early retirement. The values of pension contributions,

received during this year, are shown in the single total figure of remuneration table.

John Pettigrew has, in addition, accrued defined benefit (DB) entitlements. He opted out of the DB scheme on 31 March 2016 with a deferred pension and lump sum payable at his normal retirement date of 26

October 2031. At 31 March 2026, John Pettigrew's accrued DB pension was £116,725 per annum and his accrued lump sum was £350,176. No additional DB entitlements have been earned over the financial

year, other than an increase for price inflation due under the pension scheme rules and legislation. Under the terms of the pension scheme, if he satisfies the ill-health requirements or he is made redundant, a

pension may be payable earlier than his normal retirement date. A lump sum death in service benefit is also provided in respect of these DB entitlements.

**2025/26 APP**

For 2025/26 APP, financial measures represented 70% of the award and operational measures and individual objectives represent 15% each of the award, similar to 2024/25. At least 50% of the award is

delivered in shares (after any sales to pay associated tax) which must be retained until the shareholding requirement is met. Once the shareholding requirement is met, at least 33% of the award is delivered in

shares (after any sales to pay associated tax) must be retained in shares for two years.

For financial measures, threshold, target and stretch performance levels are set by the Committee for the performance period and pay out at 0%, 50% and 100% of the maximum calculated on a straight-line

basis. The capital delivery and effectiveness measure has been assessed primarily on quantitative metrics with a qualitative element to reflect a balanced assessment of progress and performance in our capital

investment ambitions. The 'Leadership of change' index measure was a quantitative assessment from our annual Group-wide employee engagement survey of colleagues. Target and stretch performance levels

for the individual objectives are also predetermined by the Committee for the performance period, and an assessment of the performance relative to the target and stretch performance levels is made at the end

of the performance year on each objective. Executive Directors have a maximum opportunity of 200% of salary for 2025/26. In reaching its overall decisions on the APP, the Committee considered the strong

performance and delivery throughout the year across financial, operational, and individual objectives. The Committee concluded that the outcomes are appropriate in the context of performance achieved and

determined that no discretion was required to the resultant APP formulaic outcome.

**APP – Financial performance**

The financial measures (70%) were weighted equally between two measures – Group Underlying EPS and Group RoE. Performance was delivered through clear management actions, including improved

Electricity Distribution and New England incentive outcomes, strong interconnector performance, and proactive financing activities, offsetting headwinds from the FERC regulatory order.

The financial performance outcomes of the 2025/26 APP award are summarised in the table below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Measure** |  | **Weighting (% of APP)** | **Threshold** | **Target** | **Stretch** | **Outcome (% of max)** |
| **Group Underlying EPS (pence)** | ![APM-arrow.gif](nggtf-20260331_g26.gif) | 35% | 72.6p | 75.6p | 78.6p | 89.52% |
| **Group Underlying EPS (pence)** | ![APM-arrow.gif](nggtf-20260331_g26.gif) |  |  |  |  | 89.52% |
| **Group RoE (%)** | ![APM-arrow.gif](nggtf-20260331_g26.gif) | 35% | 9.4% | 9.8% | 10.2% | 55.64% |
| **Group RoE (%)** | ![APM-arrow.gif](nggtf-20260331_g26.gif) |  |  |  |  | 55.64% |
| **Total financial outturn** |  | 70% |  |  |  | 72.58% |

---

**78.0p**

![231](nggtf-20260331_g379.gif)

**9.85%**

![243](nggtf-20260331_g380.gif)

**Notes:**<br>**Group Underlying EPS:** Technical adjustments have been made which reduce the performance range (including threshold, target and stretch) by 2.5 pence. This reflects the net effect of currency adjustments, scrip issuances, US pension assumptions, US/UK pension interest and <br>storms.<br>**Group RoE:** Technical adjustments have been made which decrease the performance range by 0.1% to reflect the impact of the final opening equity being higher than forecast.<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **113** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

![](nggtf-20260331_g381.gif)

**APP – Operational performance**

The operational measures (15%) were weighted equally between two key measures:

–Group capital delivery and effectiveness; and

–Group "Leadership of change" index.

---

| | | | |
|:---|:---|:---|:---|
| **Measure** | **Details** | **Assessment** | **Outcome** |
| **Group capital delivery** <br>**and effectiveness** <br>**(7.5%)**<br>| –Progress in the investment <br>programme is a top priority for <br>investors, making this measure <br>essential for tracking performance.<br>–The capital delivery and effectiveness <br>measure is assessed primarily on <br>quantitative metrics with a qualitative <br>element to reflect a balanced <br>assessment of progress and <br>performance in our capital investment <br>ambitions.<br>| Actual capital investment for the year was £11.6bn, delivering a small variance to target and representing a significant <br>increase compared with the prior year. In parallel, an assessment linked to the delivery of major projects was undertaken, <br>focusing on performance against key milestones, the management of delivery risks, and overall delivery quality. <br>Performance has been strong, with record levels of capital investment achieved and the majority of projects remaining on <br>track; this resulted in an overall outturn of 87.12% of maximum.<br>| 87.12% |
| **'Leadership of change'** <br>**index (7.5%)**<br>| –Index in our annual employee <br>engagement survey (Grid:Voice) that <br>assesses the ability of leaders to drive <br>and sustain high performance during <br>periods of significant change in our <br>business to achieve our organisational <br>goals.<br>| Colleague feedback reflected a year of change, with engagement remaining generally positive but highlighting a continued <br>need for clearer and more consistent communication and practical support during periods of transition, resulting in an <br>overall outturn of 25% of maximum.<br>| 25.00% |
| **Combined operational** <br>**outcome**<br>|  |  | 56.06% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **114** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

**APP – Individual objectives**

In addition to the financial and operational goals outlined above, the Board approves annual individual performance for the Executive Directors in line with key operational and strategic priorities. As part of the process

for assessing individual performance, the Board is provided with a comprehensive review of company performance and individual contributions relative to the previously adopted goals. The following tables sets out

the 2025/26 individual objectives together with associated performance commentaries and the Committee's assessment of the performance outcome for each of the Executive Directors:

---

| |
|:---|
| **Individual objectives and performance summary – Zoë Yujnovich**<sup>1</sup><br>**Outcome – 100%**<br>|
| **Deliver 2025/26 business plan**<br>–Ensured continuity through leadership transition, maintaining strong delivery discipline, safety, and operational performance.<br>–Conducted extensive investor engagement to sustain confidence and built effective working relationships with the Board.<br>–Launched a strategic planning process with broad organisational engagement, preserving continuity while enabling forward-looking focus beyond 2025/26.<br>–Played an active role in final RIIO-T3 negotiations and supporting enhanced investor guidance.<br>|
| **Establish a performance-focused leadership cadence**<br>–Reset performance review cadence and content.<br>–Enhanced quality of leadership dialogue and demonstrated direct, hands-on leadership engagement.<br>–Refreshed executive team accountabilities.<br>–Embedded performance objectives deeper across the organisation, expanding metrics beyond financials to include asset health, capital delivery, and technology.<br>|
| **Deliver a high-quality Board strategy session**<br>–Board strategy session provided strong confidence in delivery, clarified key strategic shifts, and established a foundation for future refresh.<br>–Increased active management participation in strategy development to strengthen alignment and buy-in to ambitious delivery goals.<br>–Initiated first assessment of opportunities beyond 2031, identifying areas for further strategic development.<br>|

---

<sup>1</sup>Reflects seven months performance.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **115** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

---

| |
|:---|
| **Individual objectives and performance summary – Andy Agg**<br>**Outcome – 70%**<br>|
| **Delivering the next steps of the financing strategy**<br>–Played a leading role in the RIIO-T3 price control outcome, which supported market confidence in the Group's financing strategy and outlook.<br>–Delivered the launch of a new Green Financing Framework and completed the first green issuance under the Framework, strengthening access to sustainable finance.<br>–Closed the National Grid Renewables and Grain sales.<br>|
| **Securing positive regulatory outcomes and supporting the delivery of our capital projects**<br>–Successfully agreed the NiMo rate case and submitted other relevant regulatory cases.<br>–Drove continuous improvements in capex portfolio management, risk management and governance, with enhanced frameworks now embedded and informing a dedicated capital workstream.<br>–Total shareholder return (TSR) and share price performance were positive over the period, reflecting investor confidence in National Grid's strategy and growth plans.<br>|
| **Developing our organisational capabilities and tools**<br>–Exceeded efficiency targets for 2025/26, demonstrating continued cost discipline and productivity improvement.<br>–Progressed implementation of a new financial planning system, with deployment on track and expected to enhance forecasting and decision-making through AI-enabled capabilities.<br>–Continues to strengthen the internal control environment.<br>|
| **Driving the identification and development of talent into the right pipelines**<br>–Continued to strengthen succession planning and confidence across key roles.<br>–Supported leadership continuity and succession pipelines through targeted role moves and development, strengthening breadth of experience and capability.<br>–Leveraged workstreams to enhance visibility of talent, access to senior leadership and cross-functional development opportunities.<br>|

---

---

| |
|:---|
| **Individual objectives and performance summary – John Pettigrew**<br>**Outcome – 80%**<br>|
| **Deliver RIIO-T3 and continue to deliver to expectations set at time of rights offering including digital transformation milestones**<br>–Actively contributed to the RIIO-T3 outcome.<br>–Maintained regulatory and operational momentum to support delivery of the £60bn five-year commitment.<br>–Delivered capital investment.<br>–Strengthened focus on Electricity Distribution, driving safety improvements, capturing synergies, and positioning for the ED3 regulatory cycle.<br>–Progressed divestment of non-core assets.<br>–Scaled technologies including 3D printing, AMI/FLISR, and drone solutions.<br>–Identified new National Grid Partners opportunities, supporting an additional $100m AI investment.<br>|
| **Successful Chief Executive transition**<br>–Succession planning.<br>–Engaged directly with high-potential leaders through site visits across the organisation.<br>–Proactively communicated with investors following the leadership transition announcement.<br>–Agreed a clear division of responsibilities with the Chair and Chief Executive-Designate during the transition period.<br>–Facilitated introductions between the successor and key stakeholders, and transferred key industry leadership responsibilities.<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **116** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

![](nggtf-20260331_g382.gif)

2023 LTPP

**Performance conditions**

The 2023 LTPP will vest on 1 July 2026 and was based on two equally weighted financial measures, Group Underlying EPS (40%) and Group RoE (40%). The remaining 20% weighting was split equally between

two non-financial measures: Reduction of Scope 1 emissions (10%) and Enablement of energy transformation (10%). The targets and weightings of the 2023 LTPP below are the same for both Andy Agg and

John Pettigrew.

The outturns of the 2023 LTPP are reflective of the business' performance over the period. During the performance period we have delivered record levels of capital expenditure, while maintaining a strong focus

on cost efficiencies. In addition, we successfully completed the strategic pivot with the sale of the remaining 40% stake of the UK Gas Transmission business and completed the disposals of both Grain LNG and

National Grid Renewables (NGR). The financial element achieved 80.80% of maximum with EPS achieving stretch driven by strong performance by the regulated businesses, within the interconnector portfolio in

NGV and through management of financing costs. The non-financial measures recognise our role in delivering critical and green investment to enable the decarbonisation of power, transport and heat, and lead a

clean, fair and affordable energy transition across our jurisdictions. Scope 1 emissions reductions outturn is 100% with emissions reductions through SF6 leakage reduction, methane emissions reductions

including leak prone pipe replacement, deploying electric vehicles in our fleet and energy efficiency improvements in our buildings. This measure excludes Scope 1 emissions from our Generation plant in New

York, as these emissions are deemed to be outside management control. This measure therefore makes up a relatively small proportion of our group Scope 1 and 2 target and reflects the elements where

management are deemed to have more control. For further information on our GHG emissions performance, please see the Responsible Business section of this report on page [40](#i9e6cd58f418241358d44ca7dfb3e65ca_1416). Enablement of energy

transformation outturn was 79% of maximum and was based on progress in energy efficiency and generation, policy and regulatory engagement to support clean energy, and clean energy connections to our UK

transmission networks and UK and US electricity distribution networks.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Performance measure** | **Weighting** | **Threshold 20% vesting** | **Maximum 100% vesting** | **Maximum 100% vesting** | **Outcome (% of max)** |
| **Cumulative three-year** <br>**Underlying Group EPS** | 40% | 200p | 218p | 218p | 100% |
| **Cumulative three-year** <br>**Underlying Group EPS** | 40% | **223.4p** | **223.4p** | **223.4p** |  |
| **Group RoE** | 40% | 9.15% |  | 10.4% |  |
| **Group RoE** |  | **9.8%** | **9.8%** |  | 61.60% |
| **National Grid Scope 1 emissions** | 10% | '34ktCO2e | 77ktCO2e | 77ktCO2e |  |
| **National Grid Scope 1 emissions** |  | **119ktCO2e** | **119ktCO2e** | **119ktCO2e** | 100% |
| **Enablement of energy transformation:** <br>**Strategic initiatives (Scope 2 and 3)** | 10% | Four strategic initiatives assessed on a four-point scale | Four strategic initiatives assessed on a four-point scale | Four strategic initiatives assessed on a four-point scale |  |
| **Enablement of energy transformation:** <br>**Strategic initiatives (Scope 2 and 3)** |  | **79%** | **79%** |  | 79.00% |
|  |  |  |  |  | 82.54% |

---

**Notes**:As disclosed on p130 and p292 of the 2024/25 ARA, the financial performance targets were adjusted for the impact of the Rights Issue, exclude the impact of UK regulated Deferred Tax and reflect a change in the calculation methodology (approved by the Audit & Risk

Committee) to reflect amortisation of goodwill and other indefinite life intangible assets (ILIs) over 20 years. Scope 1 emissions targets have been adjusted to account for within-period emissions accounting methodology changes and the sale of our Grain LNG terminal in 2025.

**Vesting**

The performance period for the 2023 LTPP ended on 31 March 2026. Across the period, performance was based on financial measures (80%) and energy transformation measures (20%), as set out in the

2022/23 Annual Report and as detailed above.

The overall outcome of the 2023 LTPP was 82.54% of maximum, with 80.80% of the total award vesting linked to financial measures, driven by achievement of 100% of maximum for Group Underlying EPS and

61.60% of maximum for Group RoE, both weighted equally; 89.50% of the total LTPP award vested in relation to the energy transformation measures, driven by achievement of 100% of maximum for Scope 1

emissions and 79% of maximum for enablement of energy transformation, both weighted equally.

The amounts due to vest under the 2023 LTPP for the performance period that ended on 31 March 2026 are included in the 2025/26 single total figure table on page [111](#i2e7e065bf2a0412daf36d431f6cb61b9_27318) and are shown in the table below.

Because awards are not yet vested, the figures in the table are based on the average share price over the three months from 1 January 2026 to 31 March 2026 of 1,274.85 pence and the proposed 2025/26

final dividend with record date of 29 May 2026, subject to shareholder approval, is included. The total number of shares subject to awards which vest (after any sales to pay associated income tax and social

security), including dividend equivalent shares are subject to a two-year holding period.

The Committee considered wider business factors, such as underlying financial performance, ESG considerations, potential windfall gains and shareholder experience, when determining the final outturn for the

2023 LTPP and were comfortable that no adjustments were required.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **117** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

![](nggtf-20260331_g383.gif)

**Vesting** continued

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares awarded** | **Rights Issue** <br>**adjustment**<br>| **Total number of** <br>**shares**<br>| **Performance outcome** <br>**(% of maximum)**<br>| **Vested share based** <br>**on performance**<br>| **Face value of the** <br>**award at grant**<br>**(£'000)**<br>| **Share price** <br>**appreciation** <br>**(£,000)**<br>| **Dividend** <br>**equivalent shares** <br>**(£,000)**<br>| **Total value** <br>**(£'000)**<br>|
| **Andy Agg** | 214445 | 22945 | 237390 | 82.54 | 195941 | 2050 | 448 | 301 | 2799 |
| **John Pettigrew** | 380130 | 40673 | 420803 | 82.54 | 347330 | 3634 | 794 | 534 | 4962 |

---

**Assessment of National Grid shareholder returns**

National Grid plc's 10-year annual TSR performance against the FTSE 100 Index since 31 March 2016 is shown below and illustrates the growth in value of a notional £100 holding invested in National Grid plc

on 31 March 2016, compared with the same invested in the FTSE 100 Index. The FTSE 100 Index has been chosen because it is a widely recognised performance benchmark for large companies in the UK and

it is a useful reference to assess relative value creation for National Grid plc shareholders. Over the last 10-year period, National Grid plc's TSR is 145% versus the FTSE 100 Index at 143%, demonstrating

sustainable long-term value for our shareholders.

**Total Shareholder Return (£)**

![9945](nggtf-20260331_g384.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **118** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

![](nggtf-20260331_g385.gif)

2025 LTPP

**Performance conditions**

For the 2025 LTPP, the performance measures comprise two equally weighted financial measures totalling 80% and two equally weighted energy transformation measures totalling 20% over the three-year

performance period, as outlined in the table below.

---

| | | | |
|:---|:---|:---|:---|
| **Performance measure**  | **Weighting** | **Threshold 20% vesting** | **Maximum 100% vesting** |
| Cumulative three-year Underlying Group EPS | 40% | 241p | 259p |
| Group RoE | 40% | 9.35% | 10.60% |
| Reduction of Scope 1 emissions | 10% | 4% | 10% |
| Enablement of strategic growth initiative | 10% | 10.2 GW | 13.3 GW |

---

**Notes:** Vesting between threshold and maximum will be on a straight-line basis.

**2025 LTPP awards made during the year**

The face value of the awards is calculated using the volume weighted average share price at the date of grant. The date of grant for Andy Agg and John Pettigrew was 23 June 2025 and the share price was

1,065.79 pence. For Zoë Yujnovich the date of grant was 1 September 2025 and the share price was 1,027.49 pence. The 2025 LTPP will vest on 30 June 2028. The total number of shares subject to awards

which vest (after any sales to pay associated income tax and social security), including dividend equivalent shares, are subject to a two-year holding period following vesting.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Basis of award**<br>**(% of salary)**<br>| **Number of**<br>**shares**<br>| **Face value**<br>**(£'000)**<br>| **Proportion vesting** <br>**threshold performance**<br>| **Performance period**<br>**end date**<br>|
| Zoë Yujnovich | 400% | 506086 | 5200 | 20% | 31 March 2028 |
| Andy Agg | 300% | 230975 | 2462 | 20% | 31 March 2028 |
| John Pettigrew | 350% | 409397 | 4363 | 20% | 31 March 2028 |

---

**Payments to past Directors**

The leaving arrangement for John Pettigrew is set out below. There were no payments to past Directors during 2025/26.

**Leaving arrangement for John Pettigrew**

On 1 May 2025 the Company announced that John Pettigrew would retire from the Board effective 16 November 2025. John remained available to the Group until 30 April 2026, being the end of his 12-month

notice period. In line with the approved Policy, he received salary (£464,036), benefits (£10,830) and a pension allowance (£55,684) until 31 March 2026.

In line with the Policy, due to his retirement, John will be treated as a good leaver for the purposes of his outstanding incentive awards. He received a prorated 2025/26 APP to reflect his period of service as an

Executive Director. Details of the outcome of his 2025/26 APP can be found on pages [112](#i2e7e065bf2a0412daf36d431f6cb61b9_27317) to [115](#i9ca84629a27347da8f3ce2bfc928a6b7_0-0-1-1-954736). His outstanding LTPP awards will be prorated to his date of leaving, and will vest at the normal dates subject to

the achievement of the relevant performance conditions and continue to be subject to the two-year post-vesting holding period and any relevant malus and clawback provisions. Details of the vesting of his 2023

LTPP can be found on pages [116](#i2e7e065bf2a0412daf36d431f6cb61b9_27322) to [117](#i2e7e065bf2a0412daf36d431f6cb61b9_27319).

A post-employment shareholding requirement is applicable for two years following his departure.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **119** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

![](nggtf-20260331_g385.gif)

**Joining arrangement for Zoë Yujnovich**

Zoë Yujnovich joined the National Grid plc Board as Chief Executive Designate on 1 September 2025

and was appointed Chief Executive on 17 November 2025. Zoë receives a salary of £1,300,000 per

annum. The remaining elements of her remuneration are in line with the Directors' Remuneration

Policy and are set out within this report.

**Buy-out award**

On appointment, Zoë was granted a share-based award (408,762 shares) to replace remuneration

foregone when leaving her previous employer, as assessed by the Committee under the approved

Policy. The award was structured as a restricted share award, subject to continued employment, and

will vest in three equal tranches (12, 24 and 36 months from commencement of employment). The

face value of the award is £4,200,000 based on the volume weighted average share price at the date

of grant. This aims to broadly mirror the delivery mechanisms, time horizons and levels of

conditionality of the remuneration forfeited upon leaving her previous employment.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Type of award** | **Number of shares** | **Face value**<br>**(£'000)**<br>| **Vesting dates** |
| Zoë Yujnovich | Buy-out award | 408762 | 4200 | 1 September 2026 (one-third) <br>1 September 2027 (one-third) <br>1 September 2028 (one-third)<br>|

---

**Statement of Directors' shareholdings and share interests**

The Executive Directors are required to build up and hold a shareholding from vested share plan

awards until their shareholding requirement is met. Until this point, Executive Directors will not be

permitted to sell shares, other than to pay income tax liabilities on shares just vested or in exceptional

circumstances approved by the Committee. The following table shows the position of each of the

Executive Directors in relation to the shareholding requirement, including their connected persons.

The shareholding is as at 31 March 2026 and the salary used to calculate the value of the

shareholding is the gross salary as at 31 March 2026. The table also presents the number of shares

owned by the Non-executive Directors, including their connected persons.

Zoë Yujnovich is building up towards her shareholding requirement and Andy Agg has met his

shareholding requirement.

Further shares have been purchased in April and May 2026 on behalf of Andy Agg as part of the

Share Incentive Plan (SIP) (an HMRC tax-advantaged all-employee share plan), thereby increasing

the beneficial interests by 23 shares (11 in April and 12 in May) for Andy Agg. There have been no

other changes in Directors' shareholdings between 1 April 2026 and 13 May 2026.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Directors** | **Share** <br>**ownership** <br>**requirements** <br>**(multiple of** <br>**salary)**<br>| **Number of** <br>**shares owned** <br>**outright** <br>**(including** <br>**connected** <br>**persons and** <br>**SIP for** <br>**Executive** <br>**Directors)**<br>| **Value of shares** <br>**held as a** <br>**multiple of** <br>**current salary** <br>**(including** <br>**connected** <br>**persons)**<br>| **Number of** <br>**options** <br>**outstanding** <br>**under the** <br>**Sharesave Plan**<br>| **Conditional** <br>**share awards** <br>**subject to** <br>**performance** <br>**conditions** <br>**(2023, 2024 and** <br>**2025 LTPP)**<br>| **Share awards** <br>**subject to** <br>**time-based** <br>**vesting only** <br>**(buy-out** <br>**awards)**<br>|
| **Executive Director** | **Executive Director** | **Executive Director** | **Executive Director** | **Executive Director** | **Executive Director** | **Executive Director** |
| Zoë Yujnovich | 500% | - | - | 3292 | 506086 | 408762 |
| Andy Agg | 400% | 883769 | 1,367% | 4777 | 715558 | - |
| **Former Executive Director** | **Former Executive Director** | **Former Executive Director** | **Former Executive Director** | **Former Executive Director** | **Former Executive Director** | **Former Executive Director** |
| John Pettigrew | 500% | 2124589 | 2,164% | 4219 | 1268341 | - |
| **Non-executive Directors** | **Non-executive Directors** | **Non-executive Directors** | **Non-executive Directors** | **Non-executive Directors** | **Non-executive Directors** | **Non-executive Directors** |
| Paula Rosput <br>Reynolds<br>| - | 23393 | - | - | - | - |
| Anne Robinson | - | - | - | - | - | - |
| Earl Shipp | - | 6046 | - | - | - | - |
| Iain Mackay | - | 4500 | - | - | - | - |
| Ian Livingston | - | 2374 | - | - | - | - |
| Jacqui Ferguson | - | - | - | - | - | - |
| Jonathan Silver | - | - | - | - | - | - |
| Martha Wyrsch | - | 25000 | - | - | - | - |
| Tony Wood | - | 2583 | - | - | - | - |

---

**Notes:**

**Zoë Yujnovich:** On 31 March 2026, held 3,292 options under the Sharesave Plan with an exercise price of 928 pence per share (20% discounted

option price) which can, subject to their terms, be exercised between 1 April 2031 and 30 September 2031. The number of conditional share awards

subject to performance conditions is as follows: 2025 LTPP: 506,086. The number of shares awards subject to time-based vesting relates to the buy-

out award (408,762).

**Andy Agg:** On 31 March 2026, held 4,777 options granted under the Sharesave Plan with an exercise price of 628 pence per share (the 20%

discounted option price) and they can, subject to their terms, be exercised between 1 April 2026 and 30 September 2026. The number of conditional

share awards subject to performance conditions is as follows: 2023 LTPP: 237,390; 2024 LTPP: 247,193; and 2025 LTPP: 230,975.

**John Pettigrew:** On 31 March 2026, held 4,219 options granted under the Sharesave Plan with an exercise price of 743 pence per share (the 20%

discounted option price) which can, subject to their terms, be exercised between 1 April 2030 and 30 September 2030. The number of conditional

share awards subject to performance conditions is as follows: 2023 LTPP: 420,803; 2024 LTPP: 438,141 and 2025 LTPP: 409,397. During the year,

John exercised 4,670 share options granted under the Sharesave Plan at an option price of 642.30 pence per share.

**Paula Rosput Reynolds, Earl Shipp and Martha Wyrsch:** Hold American Depositary Shares (ADSs) and each ADS represents five ordinary shares,

as presented in the table above.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **120** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

**Post-employment shareholding requirements**

Past Executive Directors are required to continue to hold their vested shares post-employment for a

period of two years in line with our current Policy.

To enforce this, the Executive Directors have given permission for the Group to periodically check with its

third-party share scheme administrator whether the minimum shareholding requirement is being

maintained. The Executive Directors have acknowledged that if they breach their post-employment

shareholding requirement for any reason, the Group may enforce at its discretion one or more of the

following processes: to request they repay to the Group an amount equivalent in value to the shareholding

requirement that has not been met; the Group may withdraw/vary the vesting of any future shares granted

under the LTPP; the Company may publish a public statement in a form, as the Group may decide, that

the Director has failed to comply with the post-employment shareholding requirement. Executive Directors

are reminded annually and when employed, of the post-employment shareholding requirement. At

termination, the minimum shareholding requirement is confirmed to the Director and checks are made by

the Group at the 12-month and 24-month anniversary of leaving and at the relevant financial year end, 31

March, to ascertain if their post-employment shareholding requirement has been met.

John Pettigrew stood down from the Board on 16 November 2025 and remained subject to an in-

employment shareholding requirement until his final employment date of 30 April 2026, at which time he

was subject to a post-employment shareholding requirement of 200% of salary for a period of two years.

As of 13 May 2026, John Pettigrew continued to meet his shareholding requirement.

**Shareholder dilution**

All Company employees are encouraged to become shareholders through a number of all-employee

share plans and a significant proportion of our employees participate annually. These plans include

Sharesave and the SIP in the UK and the US Employee Stock Purchase Plan (ESPP) and US Incentive

Thrift Plan (commonly referred to as a 401(k) plan) in the US which are summarised on page 255 and in

our Policy.

Where shares may be issued or treasury shares reissued to satisfy incentives, dilution resulting from all

incentives, including all-employee incentives, will not exceed 10% in any 10-year period. The Committee

reviews dilution levels against this limit annually and under this limit the Company, as at 31 March 2026,

had a headroom of 8.18% respectively.

Unvested or unexercised awards under our all-employee and discretionary share plans that were

outstanding on 23 May 2024 have been adjusted to take account of the Rights Issue.

**Chief Executive pay ratio**

We have disclosed our Chief Executive pay ratios comparing the single total figure of remuneration of the

Chief Executive to the equivalent pay for the 25th percentile, median and 75th percentile UK employees

(calculated on a full-time equivalent basis), as well as the median Group-wide pay ratio.

The Chief Executive pay ratio has decreased from 85:1 to 52:1 at the UK median, primarily driven by the

Chief Executive leadership transition and the absence of share awards vesting during tenure. This has also

caused the Group median pay ratio to decrease when compared to last year. The Chief Executive

remuneration used in the pay ratio calculation reflects the combined single figure totals (as disclosed on

page [111](#i2e7e065bf2a0412daf36d431f6cb61b9_27318)) for Zoë Yujnovich and John Pettigrew during the periods in which they served as Chief

Executive.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **UK** | **UK** | **UK** | **UK** | **Group-wide** |
| **Year** | **Method** | **25th percentile** <br>**pay ratio**<br>| **Median pay** <br>**ratio**<br>| **75th percentile** <br>**pay ratio**<br>| **Median pay** <br>**ratio**<br>|
| 2025/26 | Option A | 69 | 52 | 40 | 39 |
| 2024/25 | Option A | 112 | 85 | 65 | 61 |
| 2023/24 | Option A | 117 | 90 | 69 | 65 |
| 2022/23 | Option A | 144 | 111 | 86 | 76 |
| 2021/22 | Option A | 135 | 105 | 81 | 76 |
| 2020/21 | Option A | 104 | 81 | 62 | 54 |
| 2019/20 | Option A | 111 | 86 | 66 | 53 |
| 2018/19 – voluntary | Option A | 96 | 76 | 58 | 48 |

---

**Notes:** Salaries as at 31 March 2026 and estimated performance-based annual payments for 2025/26 have been annualised for part-time

employees to reflect full-time equivalents. Performance payments have not been further adjusted to compensate where new employees have

not completed a full performance year. The comparison with UK employees is specified by the 2018 amendment of The Large and Medium-

sized Companies and Groups (Accounts and Reports) Regulations 2008. US employees represent approximately 56% of our total

employees. Our median pay ratio on a Group-wide basis is outlined above and calculated on the same basis as the UK pay ratios and at an

exchange rate of $1.34332:£1.

Changes in the Chief Executive pay ratio reflect the fact that a key feature of our executive and senior

leadership remuneration strategy is heavily weighted towards longer-term performance share-based

reward, resulting in larger swings year-on-year than the wider workforce. Across the wider workforce,

employee remuneration is largely focused on in-year annual delivery.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **121** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

The 2025/26 salary and total pay including benefits for the Chief Executive versus UK employees is shown below.

**2025/26 salary and benefits – Chief Executive versus UK wider workforce**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Chief Executive remuneration** | **UK employee 25th percentile** | **UK employee median** | **UK employee 75th percentile** |
| **Salary** | £1,201,000 | £45,495 | £53,379 | £68,321 |
| **Total pay and benefits** | £3,897,000 | £56,874 | £74,663 | £98,608 |

---

We have chosen to use Option A in calculating the ratios, which is a calculation based on the pay of all UK employees on a full-time equivalent basis, as this option is considered to be more statistically robust. The

ratios are based on total pay and benefits inclusive of short-term and long- term incentives applicable for the respective financial year (1 April – 31 March). The reference employees at the 25th, median and 75th

percentile have been determined by reference to pay and taxable benefits as at the last day of the respective financial year, 31 March, with estimates for the respective APP payouts and performance outcomes of the

LTPP and dividend equivalents.

We are satisfied that the median pay ratio reported this year is consistent with our wider pay, reward and progression policies for employees.

**Relative importance of spend on pay**

The chart below shows the relative importance of spend on pay compared with other costs and disbursements (dividends, tax, net interest and capital expenditure). Given the capital-intensive nature of our business

and the scale of our operations, these costs and disbursement were chosen as the most relevant measures for comparison purposes. All amounts exclude exceptional items and remeasurements.

**18%**

![22223](nggtf-20260331_g386.gif)

**5%**

**-5%**

**-7%**

**11%**

**Notes:**

1. Presented on a continuing basis only.

2. Percentage increase/decrease of the costs between years is shown.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **122** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

**Chief Executive's pay in the last 10 financial years**

Zoë Yujnovich became Chief Executive on 17 November 2025. John Pettigrew was Chief Executive from 1 April 2016 to 16 November 2025.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Zoë** <br>**Yujnovich**<br>| **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** | **John** <br>**Pettigrew** |
|  | **2025/26** | **2025/26** | **2024/25** | **2023/24** | **2022/23** | **2021/22** | **2020/21** | **2019/20** | **2018/19** | **2017/18** | **2016/17** |
| Single total figure of remuneration (£'000) | 6469 | 1993 | 6488 | 6113 | 7262 | 6614 | 5071 | 5205 | 4651 | 3648 | 4623 |
| Single total figure of remuneration including only 2014 LTPP (£'000) |  |  |  |  |  |  |  |  |  |  | 3931 |
| APP (proportion of maximum awarded) | 74.22% | 71.22% | 91.92% | 75.50% | 82.62% | 85.20% | 80.43% | 70.58% | 84.20% | 82.90% | 73.86% |
| LTPP (proportion of maximum vesting) | – | – | 76.31% | 81.87% | 100.00% | 74.22% | 68.00% | 84.90% | 84.20% | 85.20% | 90.41% |

---

**Notes:**<br>**Zoë Yujnovich:** The single total figure of remuneration for 2025/26 is explained in the single total figure of remuneration table.<br>**John Pettigrew:** The single total figure of remuneration for 2025/26 is explained in the single total figure of remuneration table and the single total figure for 2024/25 has been restated to reflect actual share price for 2022 LTPP vesting in 2025 and dividend equivalent shares, <br>consistent with comparative figures shown in this year's single total figure of remuneration table.<br>**2014 LTPP:** The 2016/17 single total figure of remuneration includes both the 2013 LTPP award and the 2014 LTPP award due to a change in the vesting period from four years (2013 LTPP) to three years (2014 LTPP).<br>

![](nggtf-20260331_g387.gif)

**Single total figure of remuneration – Non-executive Directors**

The following table shows a single total figure in respect of qualifying service for 2025/26, together with comparative figures for 2024/25:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Fees (£'000)** | **Fees (£'000)** | **Other emoluments (£'000)** | **Other emoluments (£'000)** | **Total (£'000)** | **Total (£'000)** |
|  | **2025/26** | **2024/25** | **2025/26** | **2024/25** | **2025/26** | **2024/25** |
| Paula Rosput Reynolds | 753 | 724 | 50 | 51 | 803 | 775 |
| Anne Robinson | 133 | 121 | 2 | 1 | 135 | 123 |
| Earl Shipp | 139 | 129 | 6 | 7 | 145 | 136 |
| Iain Mackay | 164 | 158 | - | 40 | 165 | 198 |
| Ian Livingston | 199 | 189 | 1 | 1 | 199 | 190 |
| Jacqui Ferguson | 136 | 123 | 2 | 3 | 138 | 126 |
| Jonathan Silver | 131 | 120 | 2 | 4 | 133 | 124 |
| Martha Wyrsch | 146 | 134 | 11 | 10 | 157 | 145 |
| Tony Wood | 133 | 118 | 5 | 6 | 137 | 124 |
| **Total** | **1934** | **1816** | **79** | **123** | **2012** | **1941** |

---

**Notes:**<br>Other emoluments: In accordance with the Group's expenses policies, Non-executive Directors receive reimbursement for their reasonable expenses for attending Board meetings. In instances where these costs are treated by HMRC as taxable benefits, the Group also meets the <br>associated tax cost to the Non-executive Directors through a PAYE settlement agreement with HMRC and these costs are included in the table above.<br>The total emoluments paid to Executive and Non-executive Directors in the year were £15.4 million (2024/25: £12.3 million).<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **123** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

**Percentage change in remuneration**

**(Executive Directors, Non-executive Directors, employee average)**

We have included percentage change in salary/fee, benefits and bonus for each of the Directors compared with prior years. The regulations cover employees of the Parent Company only and not across the Group,

and given most employees, if not all, are employed by subsidiary undertakings, we have voluntarily chosen a comparator group of all employees in the UK and the US to provide a representative comparison. In line

with the regulations, we disclose this information to display a five-year history.

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025/26** | **2025/26** | **2025/26** | **2024/25** | **2024/25** | **2024/25** | **2023/24** | **2023/24** | **2023/24** | **2022/23** | **2022/23** | **2022/23** | **2021/22** | **2021/22** | **2021/22** |
| **Executive Directors** | **Salary** | **Benefits** | **Bonus** | **Salary** | **Benefits** | **Bonus** | **Salary** | **Benefits** | **Bonus** | **Salary** | **Benefits** | **Bonus** | **Salary** | **Benefits** | **Bonus** |
| Zoë Yujnovich<sup>1</sup> | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
| Andy Agg | 4.9% | -15.2% | 32.2% | 4.4% | -14.3% | 29.6% | 4.6% | 0.3% | -7.8% | 6.5% | 32.6% | 2.1% | 6.5% | -31.6% | 15.9% |
| **Former Executive Director** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| John Pettigrew<sup>2</sup> | -34.6% | -2.5% | -19.0% | 4.4% | -54.0% | 27.0% | 3.9% | 48.9% | -5.0% | 3.4% | -42.0% | 0.3% | 1.7% | -8.8% | 7.8% |
| **Non-executive Directors** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Paula Rosput Reynolds | 4.1% | -2.1% | n/a | 3.4% | -9.2% | n/a | -% | 0.4% | n/a | 16.9% | 217.1% | n/a | 2816.8% | n/a | n/a |
| Anne Robinson | 9.4% | 115.9% | n/a | 4.3% | -89.4% | n/a | 5.4% | -23.7% | n/a | 474.0% | n/a | n/a | n/a | n/a | n/a |
| Earl Shipp | 7.9% | -15.0% | n/a | 4.4% | -31.1% | n/a | 0.7% | -51.6% | n/a | 9.0% | 208.6% | n/a | 8.6% | n/a | n/a |
| Iain Mackay | 4.3% | -99.6% | n/a | 10.2% | 86.5% | n/a | 60.7% | 9695.4% | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
| Ian Livingston | 5.1% | -18.2% | n/a | 16.9% | n/a | n/a | 14.3% | -100.0% | n/a | 113.2% | 3.0% | n/a | n/a | n/a | n/a |
| Jacqui Ferguson | 10.9% | -33.3% | n/a | 362.3% | 166.7% | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
| Jonathan Silver | 8.8% | -38.6% | n/a | -0.9% | -66.2% | n/a | -1.7% | -74.2% | n/a | 24.5% | 383.6% | n/a | -4.2% | n/a | n/a |
| Martha Wyrsch | 9.0% | 0.8% | n/a | 9.6% | 27.7% | n/a | 4.5% | -30.6% | n/a | 111.0% | 280.3% | n/a | n/a | n/a | n/a |
| Tony Wood | 12.1% | -21.2% | n/a | 4.3% | -60.0% | n/a | -3.1% | -19.0% | n/a | 144.2% | 857.5% | n/a | n/a | n/a | n/a |
| Employee median<sup>3</sup> | -0.4% | -5.8% | -1.5% | 2.3% | 3.6% | -8.0% | 5.0% | 6.6% | -3.8% | 12.4% | 36.4% | -23.0% | 2.8% | 6.1% | 40.0% |

---

1. Zoë Yujnovich was appointed to the Board on 1 September 2025, therefore percentage change is not applicable for 2025/26.

2. John Pettigrew retired from the Board effective 16 November 2025, his leaving arrangement is set out on page [118](#i2e7e065bf2a0412daf36d431f6cb61b9_27323).

3. The reduction in employee median values during 2025/26 primarily reflects the impact of exchange rate movements.

4. Benefits/other emoluments: For Executive Directors, benefits include private medical insurance, life assurance, allowance under the Group's flexible benefits programme, travel and accommodation expenses, a fully expensed car or cash alternative and the use of a car and a driver

when required. For Non-executive Directors, the equivalent of benefits is emoluments. In accordance with the Group's expenses policies, Non-executive Directors receive reimbursement for their reasonable expenses for attending Board meetings. In instances where these costs are

treated by HMRC as taxable benefits, the Group also meets the associated tax cost to the Non-executive Directors through a PAYE settlement agreement with HMRC and these costs are included in the table above.

**Service contracts/letters of appointment**

In line with our Policy, all Executive Directors have service contracts which are terminable by either party with 12 months' notice commencing immediately after announcement. Non-executive Directors are subject to

letters of appointment. The Board Chair's appointment is subject to six months' notice by either party; for other Non-executive Directors, notice is one month. All Directors are required to be elected at each AGM.

There have been no changes made to Directors' service contracts and letters of appointment. Copies of service contracts and letters of appointment are available for inspection at the Company's registered office.

**External appointments and retention of fees**

As per our Policy, Executive Directors may, with the approval of the Board, accept one external appointment as a Non-executive Director of another company and retain any fees received for the appointment.

Experience as a board member of another company is considered to be valuable personal development, which in turn is of benefit to the Company. The table below details the Executive Directors' appointments as

Non-executive Directors in other companies during the year ended 31 March 2026.

---

| | |
|:---|:---|
|  | **Company** |
| Zoë Yujnovich | Unilever plc |
| Andy Agg | The Weir Group plc |
| John Pettigrew | Rentokil Initial plc |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **124** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Statement of implementation of Policy in 2025/26 cont.<br>|  |  |  |  |  |

---

**The Committee's activities in 2025/26**

---

| | |
|:---|:---|
| **Meeting/circulations** | **Main areas of discussion**  |
| **April 2025** | Remuneration arrangements as part of Chief Executive succession plan |
| **May 2025** | AGM update<br>Approval of 2024/25 APP and 2022 LTPP outcomes for the Group Executive <br>Committee<br>Approval of the 2025/26 APP financial, operational and individual objectives and <br>2025 LTPP targets for the Group Executive Committee <br>Discussion on a number of governance updates, including share dilution limits and <br>shareholding for the Group Executive Committee<br>|
| **November 2025** | External market update and evolving governance<br>Update on the provisional incentive plan outcomes (2025/26 APP and outstanding <br>LTPP) for the Group Executive Committee<br>Discussion on the results of the half-year Group-wide employee engagement <br>survey<br>|
| **January 2026** | Discussion on the 2026/27 APP financial, operational and individual objectives and <br>2026 LTPP targets for the Group Executive Committee.<br>Review of broader workforce remuneration and approval of the Gender Pay Gap <br>calculation.<br>|
| **March 2026** | Discussion on the provisional incentive plan outcomes (2025/26 APP and <br>outstanding LTPP) for the Group Executive Committee<br>Discussion on the 2026/27 APP financial, operational and individual objectives and <br>2026 LTPP award for the Group Executive Committee<br>Market data review, salary increase proposals, in context of wider workforce <br>increases, for the Group Executive Committee<br>Review of Chair fees<br>Discussion on the results of the full-year Group-wide employee engagement <br>survey<br>|

---

![121](nggtf-20260331_g388.gif)

**Advisors to the People & Remuneration Committee**

PricewaterhouseCoopers LLP (PwC) was selected by the Committee to become its independent advisor

from 3 August 2020 and provided advice and counsel to the Committee throughout 2025/26. PwC is a

member of the Remuneration Consultants Group (RCG) and has signed up to RCG's code of conduct.

The Committee is satisfied that any potential conflicts were appropriately managed. Work undertaken by

PwC in its role as independent advisor to the Committee has incurred fees of £235,751 during the

2025/26 on the basis of time charged to perform services and deliverables.

The Committee reviews the objectivity and independence of the advice it receives from its advisors each

year. It is satisfied that PwC provided credible and professional advice. PwC has provided general and

technical remuneration services in relation to employees below Board and Group Executive Committee

level that include broad-based employee reward support and data assurance services. In addition, WTW

provided benchmarking support to the Committee in the year and incurred fees of £25,200.

The Committee considers the views of the Chair on the performance and remuneration of the Chief

Executive, and of the Chief Executive on the performance and remuneration of the other members of the

Group Executive Committee. The Committee is also supported by the Group Company Secretary, and

either he or his delegate acts as Secretary to the Committee; the Chief People Officer; the Group Head of

Reward; and, as required, the Chief Financial Officer and the Group Financial Controller.

---

| | |
|:---|:---|
| **Voting on the Policy and the Directors' Remuneration Report at the 2025 AGM** | **Voting on the Policy and the Directors' Remuneration Report at the 2025 AGM** |
| **2025 Policy**  | **Directors' Remuneration Report 2024/25** |
| **Notes:**<br>1.The Directors' Remuneration Policy voting figures shown refer to votes cast at the 2025 AGM and represent 76.43% of the issued share <br>capital. In addition, shareholders holding 3.9 million shares abstained.<br>2.The Directors' Remuneration Report voting figures shown refer to votes cast at the 2025 AGM and represent 76.44% of the issued <br>share capital. In addition, shareholders holding 3.4 million shares abstained. | **Notes:**<br>1.The Directors' Remuneration Policy voting figures shown refer to votes cast at the 2025 AGM and represent 76.43% of the issued share <br>capital. In addition, shareholders holding 3.9 million shares abstained.<br>2.The Directors' Remuneration Report voting figures shown refer to votes cast at the 2025 AGM and represent 76.44% of the issued <br>share capital. In addition, shareholders holding 3.4 million shares abstained. |

---

![133](nggtf-20260331_g389.gif)

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | For 98% |
| ![Circle_Lt-Blue.gif](nggtf-20260331_g390.gif) | Against 2% |

---

---

| | |
|:---|:---|
| ![Circle_Dk-Blue.gif](nggtf-20260331_g219.gif) | For 99% |
| ![Circle_Lt-Blue.gif](nggtf-20260331_g390.gif) | Against 1% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **125** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Implementation of the Policy for 2026/27<br>|  |  |  |  |  |

---

The 2025 Policy will be implemented in 2026/27 as detailed below.

**Salary and pensions**

Salary increases for the Executive Directors will be on par with the wider UK and US workforce principles

(4.5%). The wider workforce (non-union) salary budget increase is set at 3.5% plus 1% for compression

and market adjustment. Zoë Yujnovich and Andy Agg will each receive salary increases of 4.5% and 3.5%

respectively, effective from 1 July 2026, with both increases aligned with the principles applied in

determining increases across the wider workforce.

The Committee considers that the Chief Executive's starting remuneration appropriately reflects that Zoë

is new to the role and deliberately positioned towards the lower end of the market. Since appointment,

Zoë has delivered exceptional performance, reinforcing the Committee's performance-first philosophy.

Subject to continued strong company and individual performance, the Committee expects to review salary

at the Chief Executive's work anniversary, with a view to moving towards a more competitive level over

time. Any increase would be non-automatic, consistent with the shareholder-approved Policy, aligned with

relevant peer benchmarks, and reflective of the experience of shareholders.

John Pettigrew was Chief Executive to 16 November 2025 and continued to be available to the Group

through to the end of his 12-month notice period, which expired on 30 April 2026. His departure will be

treated in accordance with the Directors' Remuneration Policy and his service contract. Accordingly, he

continued to receive his current level of salary and benefits up to the cessation of his employment.

---

| | | | |
|:---|:---|:---|:---|
|  | **From 1 July 2026** | **From 1 July 2025** | **% increase** |
| Zoë Yujnovich | £1,359,000 | £1,300,000 | 4.5% |
| Andy Agg | £849,000 | £820,575 | 3.5% |

---

The pension contribution rate for both Executive Directors is in line with that for the UK wider workforce

and new joiners at 12%.

**2026/27 APP**

The 2026/27 APP measures will be split across financial measures, operational measures and individual

objectives, weighted 70%, 15% and 15% respectively. The maximum APP award for both Executive

Directors for 2026/27 is 200% of salary.

---

| | | |
|:---|:---|:---|
|  | **Measure** | **Weighting** |
| Financial measure | Underlying Group EPS | 35% |
|  | Group RoE | 35% |
| Operational measure | Performance delivery | 15% |
| Individual objectives |  | 15% |

---

**Financial measures**

For 2026/27, the Committee opted to retain Underlying Group EPS and Group RoE as financial measures.

Group RoE continues to be a relevant and important measure of performance as a primarily regulated

asset-based company and targets are set to ensure strong in-year returns and operational results. In

respect of earnings measures, Underlying Group EPS remains the most appropriate measure under the

APP from the perspective of the business, and the targets are set in a manner which considers specific

challenges and opportunities in the year ahead and are flexed accordingly while remaining consistent with

our longer-term performance goals.

Financial APP targets are considered commercially sensitive and consequently will be disclosed

retrospectively in the 2026/27 Directors' Remuneration Report.

**Operational measures**

The Committee is introducing a "performance delivery" measure focusing on capital, asset, customer and

functional effectiveness. Performance will be assessed on delivering our capital programme on time and

on budget; improving asset reliability, safety and productivity through stronger asset management;

providing consistent, high-quality customer experiences through clear communication and proactive

engagement; and enabling the business through efficient, responsive corporate functions and IT services.

**Individual objectives**

The Committee has approved individual objectives for the Executive Directors in line with key strategic and

operational priorities for the year ahead. Zoë Yujnovich's individual objectives for 2026/27 are focused on:

(1) aligning the Board on strategic direction and enhancing strategic optionality; (2) driving big shifts by

developing talent and a high-performance culture, building external influence and credibility, scaling

technology and innovation; and (3) delivering the brilliant basics. Andy Agg's individual objectives are

focused on: (1) execute our growth strategy; (2) enhance our investor engagement; (3) embed technology

& innovation; and (4) enhance functional effectiveness.

**2026 LTPP**

The 2026 LTPP performance measures and weightings for all Executive Directors comprise two equally

weighted financial measures totalling 80% and two equally weighted energy transformation measures

totalling 20% as outlined in the table below. The maximum 2026 LTPP award is 400% and 350% of salary

for Zoë Yujnovich and Andy Agg respectively.

LTPP performance is measured over the entire three-year performance period, which for the 2026 LTPP is

1 April 2026 – 31 March 2029.

---

| | | |
|:---|:---|:---|
|  | **Measure** | **Weighting** |
| Financial measure | Cumulative 3-year Underlying Group <br>EPS<br>| 40% |
|  | Group RoE | 40% |
| Energy transformation measures | Reduction of Scope 1 emissions | 10% |
|  | Enablement of strategic growth <br>initiative<br>| 10% |

---

**Financial measures**

Financial measures under the 2026 LTPP are selected to provide alignment with the key drivers of the

Group's long-term strategy and value creation for shareholders. Earnings growth and sustainable

investment returns remain key measures of long-term value creation in light of the Group's regulated and

long-term nature.

The Committee is conscious that financial performance measures under our short-term (APP) and long-

term (LTPP) performance plans are similar, however we are of the belief that these measures are the

appropriate and correct measures to deliver both short and long-term business strategy as well as long-

term efficient asset growth and shareholder value.

Consequently, the 2026 LTPP financial measures are designed in a manner which incentivises alternative

elements of performance over the long term as compared with the short term. Specifically in LTPP, Group

RoE is averaged across the three-year performance period to incentivise sustainable returns for

shareholders in the longer term. Similarly, the cumulative three-year Underlying Group EPS measure

assesses Underlying EPS for the three years in the LTPP performance period.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **126** | Strategic Report | **Corporate Governance** | Financial Statements | Additional Information |
| **People & Remuneration Committee report cont.**<br>Implementation of the Policy for 2026/27 cont.<br>|  |  |  |  |  |

---

Below are the performance ranges for the financial measures in the 2026 LTPP.

**Performance conditions**

---

| | | | |
|:---|:---|:---|:---|
| **Performance measures** | **Weighting** | **Threshold 20%** <br>**vesting**<br>| **Maximum 100%** <br>**vesting**<br>|
| Cumulative three-year Underlying Group EPS | 40% | 291p | 311p |
| Group RoE | 40% | 10.30% | 11.55% |

---

**Note:** Vesting between threshold and maximum will be on a straight-line basis. Underlying EPS growth reflects the cumulative summation of

the Underlying EPS results for each of the three years in the performance period: 2026/27, 2027/28 and 2028/29.

**Energy transformation measures**

Measures linked to the energy transformation continue to set out key targets and outcomes on the

Group's journey to achieve: (1) reductions in the Company's direct Scope 1 emissions and (2) enablement

of strategic growth initiative.

Similar to previous years, the reduction of Scope 1 emissions measure supports meeting our 2030 Group

emission reduction targets. These targets are SBTi validated and aligned to a 1.5ºC pathway.

The second measure of enablement of strategic growth initiative is being expanded to further align with

our strategy and include demand-side connections and large loads that support the energy transition and

business growth, in addition to generation connections. These demand-side connections include

transmission growth to support growth in renewable generation, electric vehicle demand and heat pumps

in distribution networks, electrification of industrial processes and data centre connections.

---

| | | | |
|:---|:---|:---|:---|
| **Performance measures** | **Weighting** | **Threshold 20% vesting** | **Maximum 100%** <br>**vesting**<br>|
| Reduction of Scope 1 emissions | 10% | 3% | 9% |
| Enablement of strategic growth | 10% | Demand and generation connections <br>measured in MW | Demand and generation connections <br>measured in MW |

---

**Notes:** 

Vesting between threshold and maximum will be on a straight-line basis.

The overall enablement of strategic growth initiative measure comprises of equally weighted demand and generation connection targets

across Electricity Transmission, Electricity Distribution, New England, and New York.

**Fees for Non-executive Directors**

Non-executive Director fees were reviewed in May 2026 and will be effective from 1 July 2026, in line with

the annual salary review cycle for our wider workforce.

---

| | | | |
|:---|:---|:---|:---|
|  | **From 1 July 2026** <br>**(£'000)**<br>| **From 1 July 2025** <br>**(£'000)**<br>| **% increase vs** <br>**2025**<br>|
| Chair | 795.0 | 760.8 | 4.5% |
| Senior Independent Director | 33.9 | 33.9 | —% |
| Board fee | 100.0 | 90.4 | 10.6% |
| Chair Audit & Risk Committee | 40.0 | 38.1 | 5.0% |
| Chair People & Remuneration Committee | 40.0 | 33.9 | 18.0% |
| Chair Nomination Committee |  |  | —% |
| Chair other Committees (Responsible Business, <br>Safety & Operations)<br>| 30.0 | 28.3 | 6.0% |
| Audit & Risk Committee member | 26.0 | 26.0 | —% |
| People & Remuneration Committee member | 26.0 | 20.3 | 28.1% |
| Nomination Committee member | 10.0 |  | n/a |
| Other Committee member (Responsible Business, <br>Safety & Operations)<br>| 17.0 | 17.0 | —% |

---

The above table incorporates adjustments following the December 2025 restructuring of the Committees to reflect changes in role scope.

These include the expansion of the Remuneration Committee to the People & Remuneration Committee, the establishment of the Nomination

Committee as a standalone committee, and changes to the composition of other Committees. Prior to the restructuring, other Committees

comprised Finance, Safety & Sustainability, and People & Governance.

The Directors' Remuneration Report has been approved by the Board and signed on its behalf by:

**Martha Wyrsch**

Chair of the People & Remuneration Committee

13 May 2026

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **127** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Financial Statements** | **Financial Statements** | **Financial Statements** |  |  |  |

---

Ready for

the future

---

| | |
|:---|:---|
| **[128](#i6f250a91cd464a04873e5851a20d0163_160)** | Statement of Directors' responsibilities |
| **129** | Independent Auditor's Report |
| **137** | Consolidated income statement |
| **138** | Consolidated statement of comprehensive income |
| **139** | Consolidated statement of changes in equity |
| **140** | Consolidated statement of financial position |
| **141** | Consolidated cash flow statement |
| **142** | Note 1 – Basis of preparation and recent <br>accounting developments<br>|
| **145** | Note 2 – Segmental analysis |
| **149** | Note 3 – Revenue |
| **152** | Note 4 – Other operating costs |
| **154** | Note 5 – Exceptional items and remeasurements |
| **158** | Note 6 – Finance income and costs |
| **159** | Note 7 – Tax |
| **163** | Note 8 – Earnings per share (EPS) |
| **164** | Note 9 – Dividends |
| **164** | Note 10 – Assets held for sale and discontinued operations |
| **166** | Note 11 – Goodwill |
| **167** | Note 12 – Other intangible assets |
| **168** | Note 13 – Property, plant and equipment |
| **171** | Note 14 – Other non-current assets |

---

---

| | |
|:---|:---|
| **171** | Note 15 – Financial and other investments |
| **172** | Note 16 – Investments in joint ventures and associates |
| **174** | Note 17 – Derivative financial instruments |
| **176** | Note 18 – Inventories |
| **176** | Note 19 – Trade and other receivables |
| **177** | Note 20 – Cash and cash equivalents |
| **177** | Note 21 – Borrowings |
| **178** | Note 22 – Trade and other payables |
| **179** | Note 23 – Contract liabilities |
| **179** | Note 24 – Other non-current liabilities |
| **179** | Note 25 – Pensions and other post-retirement benefits |
| **187** | Note 26 – Provisions |
| **188** | Note 27 – Share capital |
| **189** | Note 28 – Other equity reserves |
| **190** | Note 29 – Net debt |
| **194** | Note 30 – Commitments and contingencies |
| **194** | Note 31 – Related party transactions |
| **195** | Note 32 – Financial risk management |
| **205** | Note 33 – Borrowing facilities |
| **206** | Note 34 – Subsidiary undertakings, joint arrangements <br>and associates<br>|

---

---

| | |
|:---|:---|
| **210** | Note 35 – Sensitivities |
| **211** | Note 36 – Post balance sheet events |
| **212** | Company accounting policies |
| **214** | Company balance sheet |
| **215** | Company statement of changes in equity |
| **216** | Note 1 – Fixed asset investments |
| **216** | Note 2 – Debtors |
| **217** | Note 3 – Creditors |
| **217** | Note 4 – Derivative financial instruments |
| **217** | Note 5 – Investments |
| **218** | Note 6 – Borrowings |
| **218** | Note 7 – Share capital |
| **218** | Note 8 – Shareholders' equity and reserves |
| **218** | Note 9 – Parent Company guarantees |
| **218** | Note 10 – Audit fees |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **128** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Statement of Directors' responsibilities** |  |  |  |  |  |

---

**The Directors are responsible for preparing the Annual Report and Accounts,** 

**including the Group financial statements and the Parent Company financial** 

**statements in accordance with applicable law and regulations.**

Company law requires the Directors to prepare financial statements for each financial year. Under that

law, the Directors are required to prepare the Group financial statements in accordance with International

Accounting Standards in conformity with the requirements of the Companies Act 2006 and International

Financial Reporting Standards (IFRS) as adopted by the UK. The financial statements also comply with

IFRS as issued by the IASB. In addition, the Directors have elected to prepare the Parent Company

financial statements in accordance with UK Generally Accepted Accounting Practice (UK Accounting

Standards and applicable law), including FRS 101 'Reduced Disclosure Framework'. Under company

law, the Directors must not approve the accounts unless they are satisfied that they give a true and fair

view of the state of affairs of the Group and Parent Company and of the profit or loss of the Group and

Parent Company for that period.

In preparing the Group financial statements, International Accounting Standard 1 requires that Directors:

–properly select and apply accounting policies;

–present information, including accounting policies, in a manner that provides relevant, reliable,

comparable and understandable information;

–provide additional disclosures when compliance with the specific requirements in IFRS are insufficient

to enable users to understand the impact of particular transactions, other events and conditions on

the entity's financial position and financial performance; and

–make an assessment of the Group's ability to continue as a going concern.

In preparing the Parent Company financial statements, the Directors are required to:

–select suitable accounting policies and then apply them consistently;

–make judgements and accounting estimates that are reasonable and prudent;

–state whether applicable UK Accounting Standards have been followed, subject to any material

departures disclosed and explained in the financial statements; and

–prepare the financial statements on the going concern basis unless it is inappropriate to presume

that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and

explain the Group and Parent Company's transactions and disclose with reasonable accuracy at any

time the financial position of the Group and Parent Company on a consolidated and individual basis,

and to enable them to ensure that the Group financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Parent Company and its subsidiaries and

hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information

included on the Company's website. Legislation in the UK governing the preparation and dissemination of

financial statements may differ from legislation in other jurisdictions.

Having made the requisite enquiries, so far as the Directors in office at the date of the approval of this

Report are aware, there is no relevant audit information of which the auditors are unaware and each

Director has taken all reasonable steps to make themselves aware of any relevant audit information and

to establish that the auditors are aware of that information.

Each of the Directors, whose names and functions are listed on pages [91](#i6f250a91cd464a04873e5851a20d0163_115) – [93](#i3c4c976321044b05a8f4ef04dbab9910_0-0-1-1-954736) confirms that:

–to the best of their knowledge, the Group financial statements and the Parent Company financial

statements, which have been prepared in accordance with IFRS as issued by the IASB and IFRS

as adopted by the UK and UK GAAP FRS 101 respectively, give a true and fair view of the assets,

liabilities, financial position and profit of the Company on a consolidated and individual basis;

–to the best of their knowledge, the Strategic Report contained in the Annual Report and Accounts

includes a fair review of the development and performance of the business and the position of the

Company on a consolidated and individual basis, together with a description of the principal risks

and uncertainties that it faces; and

–they consider that the Annual Report and Accounts, taken as a whole, is fair, balanced and

understandable and provides the information necessary for shareholders to assess the Company's

position and performance, business model and strategy.

This Responsibilities Statement was approved by the Board and signed on its behalf.

**Directors' Report**

The Directors' Report, prepared in accordance with the requirements of the Companies Act 2006 and the

UK Listing Authority's Listing Rules, and Disclosure Guidance and Transparency Rules, comprising pages

[1](#i6f250a91cd464a04873e5851a20d0163_10) – [126](#i8fe2146c576a4e8dac1a34758467de02_8213) and 219 – 261, was approved by the Board and signed on its behalf.

**Strategic Report**

The Strategic Report, comprising pages [1](#i6f250a91cd464a04873e5851a20d0163_10) – [86](#i6f250a91cd464a04873e5851a20d0163_103), was approved by the Board and signed on its behalf.

By order of the Board

**Julian Baddeley**

Group Company Secretary

13 May 2026

Company number: 04031152

---

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| **National Grid plc** Annual Report and Accounts 2025/26 | **137** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Consolidated income statement**<br>for the years ended 31 March | **Consolidated income statement**<br>for the years ended 31 March | **Consolidated income statement**<br>for the years ended 31 March |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Notes | **2026**<br>**£m**<br>| 2025<br>£m<br>| 2024<br>£m<br>|
| **Continuing operations**  |  |  |  |  |
| *Revenue* | 2(a),3 | **17687** | 18378 | 19850 |
| Impairment losses on financial assets | 4 | **(243)** | (200) | (179) |
| Other operating costs | 4 | **(12502)** | (13244) | (15208) |
| Other operating income |  | **489** |  | 12 |
| *Operating profit* | 2(b) | **5431** | 4934 | 4475 |
| Finance income | 6 | **380** | 450 | 248 |
| Finance costs | 6 | **(1705)** | (1807) | (1712) |
| Share of post-tax results of joint ventures and associates | 16 | **76** | 73 | 37 |
| *Profit before tax* | 2(b) | **4182** | 3650 | 3048 |
| Tax | 7 | **(939)** | (821) | (831) |
| Profit after tax from continuing operations |  | **3243** | 2829 | 2217 |
| Profit after tax from discontinued operations | 10 | **—** | 76 | 74 |
| **Total profit for the year** |  | **3243** | 2905 | 2291 |
| Attributable to: |  |  |  |  |
| Equity shareholders of the parent |  | **3241** | 2902 | 2290 |
| Non-controlling interests |  | **2** | 3 | 1 |
| **Earnings per share (pence)** |  |  |  |  |
| Basic earnings per share (continuing) | 8 | **65.5** | 60.0 | 55.5 |
| Diluted earnings per share (continuing) | 8 | **65.2** | 59.8 | 55.3 |
| Basic earnings per share (continuing and discontinued) | 8 | **65.5** | 61.6 | 57.4 |
| Diluted earnings per share (continuing and discontinued) | 8 | **65.2** | 61.4 | 57.1 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **138** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Consolidated statement of comprehensive income**<br>for the years ended 31 March | **Consolidated statement of comprehensive income**<br>for the years ended 31 March | **Consolidated statement of comprehensive income**<br>for the years ended 31 March |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2026** | 2025 | 2024 |
|  | Notes | **£m** | £m | £m |
| **Profit after tax from continuing operations** |  | **3243** | 2829 | 2217 |
| Profit after tax from discontinued operations |  | **—** | 76 | 74 |
| **Total profit for the year** |  | **3243** | 2905 | 2291 |
| Other comprehensive income from continuing operations |  |  |  |  |
| *Items from continuing operations that will never be reclassified to profit or loss:* |  |  |  |  |
| Remeasurement gains/(losses) on pension assets and post-retirement benefit obligations | 25 | **132** | (106) | (218) |
| Net gains/(losses) in respect of cash flow hedging of capital expenditure |  | **22** | (16) | (37) |
| Tax on items that will never be reclassified to profit or loss | 7 | **(44)** | 27 | 59 |
| **Total items from continuing operations that will never be reclassified to profit or loss** |  | **110** | (95) | (196) |
| *Items from continuing operations that may be reclassified subsequently to profit or loss:* |  |  |  |  |
| Retranslation of net assets offset by net investment hedge |  | **(348)** | (352) | (335) |
| Exchange differences reclassified to the consolidated income statement on disposal | 10 | **76** |  |  |
| Net (losses)/gains in respect of cash flow hedges |  | **(120)** | 218 | 240 |
| Net gains/(losses) in respect of cost of hedging |  | **36** | (52) | 26 |
| Net gains on investment in debt instruments measured at fair value through other comprehensive income |  | **8** | 1 | 21 |
| Tax on items that may be reclassified subsequently to profit or loss | 7 | **21** | (40) | (66) |
| **Total items from continuing operations that may be reclassified subsequently to profit or loss** |  | **(327)** | (225) | (114) |
| Other comprehensive loss |  | **(217)** | (320) | (310) |
| Other comprehensive (loss)/income for the year from discontinued operations, net of tax | 10 | **—** | (10) | 10 |
| **Other comprehensive loss** |  | **(217)** | (330) | (300) |
| Total comprehensive income for the year from continuing operations |  | **3026** | 2509 | 1907 |
| Total comprehensive income for the year from discontinued operations | 10 | **—** | 66 | 84 |
| **Total comprehensive income for the year** |  | **3026** | 2575 | 1991 |
| Attributable to: |  |  |  |  |
| *Equity shareholders of the parent* |  |  |  |  |
| From continuing operations |  | **3022** | 2508 | 1906 |
| From discontinued operations |  | **—** | 66 | 84 |
|  |  | **3022** | 2574 | 1990 |
| *Non-controlling interests*  |  |  |  |  |
| From continuing operations |  | **4** | 1 | 1 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **139** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Consolidated statement of changes in equity**<br>for the years ended 31 March | **Consolidated statement of changes in equity**<br>for the years ended 31 March | **Consolidated statement of changes in equity**<br>for the years ended 31 March |  |  |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Notes | Share <br>capital<br>£m<br>| Share <br>premium account<br>£m<br>| Retained <br>earnings<br>£m<br>| Other equity <br>reserves<sup>1</sup><br>£m<br>| Total shareholders'<br>equity<br>£m<br>| Non- <br>controlling interests<br>£m<br>| Total <br>equity<br>£m<br>|
| At 31 March 2023 |  | 488 | 1302 | 31608 | (3860) | 29538 | 24 | 29562 |
| Profit for the year |  |  |  | 2290 |  | 2290 | 1 | 2291 |
| Other comprehensive loss for the year |  |  |  | (168) | (132) | (300) |  | (300) |
| Total comprehensive income/(loss) for the year |  |  |  | 2122 | (132) | 1990 | 1 | 1991 |
| Equity dividends |  |  |  | (1718) |  | (1718) |  | (1718) |
| Scrip dividend-related share issue<sup>2</sup> |  | 5 | (6) |  |  | (1) |  | (1) |
| Issue of treasury shares |  |  |  | 21 |  | 21 |  | 21 |
| Transactions in own shares |  |  | 2 | (6) |  | (4) |  | (4) |
| Share-based payments |  |  |  | 37 |  | 37 |  | 37 |
| Tax on share-based payments |  |  |  | 2 |  | 2 |  | 2 |
| Cash flow hedges transferred to the statement of financial position, net of tax |  |  |  |  | 2 | 2 |  | 2 |
| At 1 April 2024 |  | 493 | 1298 | 32066 | (3990) | 29867 | 25 | 29892 |
| Profit for the year |  |  |  | 2902 |  | 2902 | 3 | 2905 |
| Other comprehensive loss for the year |  |  |  | (80) | (248) | (328) | (2) | (330) |
| Total comprehensive income/(loss) for the year |  |  |  | 2822 | (248) | 2574 | 1 | 2575 |
| Rights Issue | 27 | 135 |  |  | 6704 | 6839 |  | 6839 |
| Transfer between reserves | 27 |  |  | 6704 | (6704) |  |  |  |
| Equity dividends |  |  |  | (1529) |  | (1529) |  | (1529) |
| Scrip dividend-related share issue<sup>2</sup> |  | 10 | (10) |  |  |  |  |  |
| Issue of treasury shares |  |  |  | 18 |  | 18 |  | 18 |
| Transactions in own shares |  |  | 4 | (11) |  | (7) |  | (7) |
| Other movements in non-controlling interests |  |  |  |  |  |  | (3) | (3) |
| Share-based payments |  |  |  | 37 |  | 37 |  | 37 |
| Tax on share-based payments |  |  |  | (1) |  | (1) |  | (1) |
| Cash flow hedges transferred to the statement of financial position, net of tax |  |  |  |  | 5 | 5 |  | 5 |
| At 1 April 2025 |  | 638 | 1292 | 40106 | (4233) | 37803 | 23 | 37826 |
| Profit for the year |  |  |  | 3241 |  | 3241 | 2 | 3243 |
| Other comprehensive income/(loss) for the year |  |  |  | 93 | (312) | (219) | 2 | (217) |
| Total comprehensive income/(loss) for the year |  |  |  | 3334 | (312) | 3022 | 4 | 3026 |
| Equity dividends |  |  |  | (1623) |  | (1623) |  | (1623) |
| Scrip dividend-related share issue<sup>2</sup> |  | 9 | (9) |  |  |  |  |  |
| Issue of treasury shares |  |  |  | 40 |  | 40 |  | 40 |
| Transactions in own shares |  |  | 2 | (3) |  | (1) |  | (1) |
| Other movements in non-controlling interests |  |  |  |  |  |  | 4 | 4 |
| Share-based payments |  |  |  | 45 |  | 45 |  | 45 |
| Tax on share-based payments |  |  |  | 10 |  | 10 |  | 10 |
| Cash flow hedges transferred to the statement of financial position, net of tax |  |  |  |  | 3 | 3 |  | 3 |
| **At 31 March 2026** |  | **647** | **1285** | **41909** | **(4542)** | **39299** | **31** | **39330** |

---

1. For further details of other equity reserves, see note 28.

2. Included within the share premium account are costs associated with scrip dividends.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **140** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Consolidated statement of financial position**<br>as at 31 March | **Consolidated statement of financial position**<br>as at 31 March | **Consolidated statement of financial position**<br>as at 31 March |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2026** | 2025 |
|  | Notes | **£m** | £m |
| *Non-current assets* |  |  |  |
| Goodwill | 11 | **9417** | 9532 |
| Other intangible assets | 12 | **3879** | 3564 |
| Property, plant and equipment | 13 | **81520** | 74091 |
| Other non-current assets | 14 | **1384** | 959 |
| Pensions and other post-retirement benefit assets | 25 | **2507** | 2489 |
| Financial and other investments | 15 | **842** | 798 |
| Investments in joint ventures and associates | 16 | **624** | 608 |
| Derivative financial assets | 17 | **623** | 369 |
| Total non-current assets |  | **100796** | 92410 |
| *Current assets* |  |  |  |
| Inventories | 18 | **559** | 557 |
| Trade and other receivables | 19 | **3867** | 4092 |
| Current tax assets |  | **16** | 11 |
| Financial and other investments  | 15 | **2453** | 5753 |
| Derivative financial assets  | 17 | **215** | 113 |
| Cash and cash equivalents | 20 | **375** | 1178 |
| Assets held for sale | 10 | **—** | 2628 |
| Total current assets |  | **7485** | 14332 |
| **Total assets** |  | **108281** | 106742 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **2026** | 2025 |
|  | Notes | **£m** | £m |
| *Current liabilities* |  |  |  |
| Borrowings | 21 | **(3900)** | (4662) |
| Derivative financial liabilities | 17 | **(268)** | (381) |
| Trade and other payables | 22 | **(5049)** | (4472) |
| Contract liabilities | 23 | **(110)** | (96) |
| Current tax liabilities |  | **(45)** | (219) |
| Provisions | 26 | **(425)** | (357) |
| Liabilities held for sale | 10 | **—** | (434) |
| Total current liabilities |  | **(9797)** | (10621) |
| *Non-current liabilities* |  |  |  |
| Borrowings | 21 | **(42855)** | (42877) |
| Derivative financial liabilities  | 17 | **(750)** | (821) |
| Other non-current liabilities | 24 | **(1114)** | (876) |
| Contract liabilities | 23 | **(2699)** | (2418) |
| Deferred tax liabilities | 7 | **(9040)** | (8038) |
| Pensions and other post-retirement benefit obligations | 25 | **(360)** | (573) |
| Provisions | 26 | **(2336)** | (2692) |
| Total non-current liabilities |  | **(59154)** | (58295) |
| **Total liabilities** |  | **(68951)** | (68916) |
| **Net assets** |  | **39330** | 37826 |
| *Equity* |  |  |  |
| Share capital | 27 | **647** | 638 |
| Share premium account |  | **1285** | 1292 |
| Retained earnings |  | **41909** | 40106 |
| Other equity reserves | 28 | **(4542)** | (4233) |
| **Total shareholders' equity** |  | **39299** | 37803 |
| Non-controlling interests |  | **31** | 23 |
| **Total equity** |  | **39330** | 37826 |

---

The consolidated financial statements set out on pages 137 – 211 were approved by the Board of

Directors on 13 May 2026 and were signed on its behalf by:

**Zoë Yujnovich**

Chief Executive

**Andy Agg** 

Chief Financial Officer

**National Grid plc**

Registered number: 4031152

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **141** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Consolidated cash flow statement**<br>for the years ended 31 March  | **Consolidated cash flow statement**<br>for the years ended 31 March  | **Consolidated cash flow statement**<br>for the years ended 31 March  |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2026** | 2025 | 2024 |
|  | Notes | **£m** | £m | £m |
| *Cash flows from operating activities* |  |  |  |  |
| Total operating profit from continuing operations | 2(b) | **5431** | 4934 | 4475 |
| Adjustments for: |  |  |  |  |
| Gain on sale of investments |  | **(393)** | (188) |  |
| Other fair value movements |  | **(31)** | 66 | (16) |
| Depreciation, amortisation and impairment |  | **2247** | 2479 | 2061 |
| Share-based payments |  | **45** | 37 | 37 |
| Changes in working capital |  | **720** | 40 | (147) |
| Changes in provisions |  | **(127)** | (287) | 840 |
| Changes in pensions and other post-retirement <br>benefit obligations<br>|  | **(31)** | (90) | 31 |
| Cash generated from operations – continuing operations |  | **7861** | 6991 | 7281 |
| Tax paid |  | **(32)** | (183) | (342) |
| **Net cash inflow from operating activities –** <br>**continuing operations**<br>|  | **7829** | 6808 | 6939 |
| *Cash flows from investing activities* |  |  |  |  |
| Purchases of intangible assets |  | **(586)** | (526) | (549) |
| Purchases of property, plant and equipment |  | **(9989)** | (8780) | (6904) |
| Disposals of property, plant and equipment |  | **68** | 26 | 52 |
| Investments in joint ventures and associates |  | **(94)** | (396) | (332) |
| Dividends received from joint ventures, associates <br>and other investments<br>|  | **105** | 126 | 176 |
| Disposal of interest in National Grid Renewables<sup>1</sup> | 10 | **1473** |  |  |
| Disposal of interest in Grain LNG<sup>1</sup> | 10 | **1336** |  |  |
| Disposal of interest in the UK Electricity System Operator<sup>1</sup> |  | **—** | 577 |  |
| Disposal of interest in the UK Gas Transmission business<sup>1</sup> | 10 | **—** | 686 | 681 |
| Disposal of financial and other investments |  | **67** | 85 | 102 |
| Acquisition of financial investments |  | **(67)** | (122) | (81) |
| Contributions to National Grid Renewables and Emerald <br>Energy Venture LLC<br>|  | **—** |  | (19) |
| Net movements in short-term financial investments |  | **3285** | (2606) | (1141) |
| Interest received | 29(b) | **231** | 332 | 148 |
| Cash inflows on derivatives | 29(b) | **20** | 11 | 123 |
| Cash outflows on derivatives | 29(b) | **(6)** | (6) |  |
| Insurance claim from loss of property, plant and equipment |  | **—** |  | 143 |
| **Net cash flow used in investing activities –** <br>**continuing operations**<br>|  | **(4157)** | (10593) | (7601) |
| **Net cash inflow from investing activities –** <br>**discontinued operations**<br>|  | **—** | 22 | 102 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2026** | 2025 | 2024 |
|  | Notes | **£m** | £m | £m |
| *Cash flows from financing activities* |  |  |  |  |
| Proceeds of Rights Issue | 27 | **—** | 7001 |  |
| Transaction fees related to Rights Issue | 27 | **—** | (162) |  |
| Proceeds from issue of treasury shares |  | **40** | 18 | 20 |
| Transactions in own shares |  | **(1)** | (7) | (4) |
| Proceeds received from loans | 29(b) | **4172** | 3237 | 5563 |
| Repayment of loans | 29(b) | **(2961)** | (2861) | (1701) |
| Payments of lease liabilities | 29(b) | **(145)** | (130) | (118) |
| Net movements in short-term borrowings  | 29(b) | **(2225)** | 925 | 544 |
| Cash inflows on derivatives | 29(b) | **93** | 62 | 86 |
| Cash outflows on derivatives | 29(b) | **(38)** | (106) | (58) |
| Interest paid | 29(b) | **(1932)** | (1920) | (1627) |
| Dividends paid to shareholders | 9 | **(1623)** | (1529) | (1718) |
| **Net cash flow (used in)/from financing activities –** <br>**continuing operations**<br>|  | **(4620)** | 4528 | 987 |
| **Net cash flow used in financing activities –** <br>**discontinued operations**<br>|  | **—** |  |  |
| **Net (decrease)/increase in cash and cash** <br>**equivalents**<br>| 29(b) | **(948)** | 765 | 427 |
| Reclassification to held for sale  | 10,29(b) | **153** | (123) | (30) |
| Exchange movements | 29(b) | **(8)** | (23) | (1) |
| Cash and cash equivalents at start of year |  | **1178** | 559 | 163 |
| **Cash and cash equivalents at end of year** | 20 | **375** | 1178 | 559 |

---

1. Balances consist of cash proceeds received, net of cash disposed.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **142** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements** | **Notes to the consolidated financial statements** | **Notes to the consolidated financial statements** |  |  |  |

---

**1. Basis of preparation and recent accounting developments**

**Accounting policies describe our approach to recognising and measuring transactions** <br>**and balances in the year. The accounting policies applicable across the financial statements** <br>**are shown below, whereas accounting policies that are specific to a component of the** <br>**financial statements have been incorporated into the relevant note.**<br>**This section also shows areas of judgement and key sources of estimation uncertainty in** <br>**these financial statements. In addition, we have summarised new International Accounting** <br>**Standards Board (IASB) accounting standards, amendments and interpretations** <br>**and whether these are effective for this year end or in later years, explaining how** <br>**significant changes are expected to affect our reported results.**<br>

![](nggtf-20260331_g391.gif)

National Grid's principal activities involve the transmission and distribution of electricity in Great Britain and

of electricity and gas in northeastern US. The Company is a public limited liability company incorporated

and domiciled in England and Wales, with its registered office at 1–3 Strand, London, WC2N 5EH.

The Company, National Grid plc, which is the ultimate parent of the Group, has its primary listing on

the London Stock Exchange and is also quoted on the New York Stock Exchange.

These consolidated financial statements were approved for issue by the Board on 13 May 2026.

These consolidated financial statements have been prepared in accordance with IFRS<sup>®</sup> Accounting

Standards (IFRSs) as issued by the IASB. They are prepared on the basis of all IFRSs that are

mandatory for the period ended 31 March 2026 and in accordance with the Companies Act 2006.

The comparative financial information has also been prepared on this basis.

The consolidated financial statements have been prepared on a historical cost basis, except for the

recording of pension assets and liabilities, the revaluation of derivative financial instruments and certain

commodity contracts and certain financial assets and liabilities measured at fair value.

These consolidated financial statements are presented in pounds sterling, which is also the functional

currency of the Company.

The notes to the financial statements have been prepared on a continuing basis unless otherwise stated.

**A. Going concern**

As part of the Directors' consideration of the appropriateness of adopting the going concern basis

of accounting in preparing these financial statements, the Directors have assessed the Principal Risks

alongside potential downside business cash flow scenarios impacting the Group's operations. The

Directors specifically considered both a base case and reasonable worst-case scenario for business

cash flows.

The main cash flow impacts identified in the reasonable worst-case scenario are:

–adverse impacts of higher spend on our capital expenditure programme;

–adverse impact from timing across the Group (i.e. a net under-recovery of allowed revenues

or reductions in over-collections) and slower collections of outstanding receivables;

–higher operating and financing costs than expected, including non-delivery of planned efficiencies

across the Group; and

–the potential impact of further significant storms in the US.

As part of its analysis, the Board also considered the following potential levers at their discretion

to improve the position identified by the analysis if the debt capital markets are not accessible:

–the payment of dividends to shareholders;

–significant changes in the phasing of the Group's capital expenditure programme, with elements

of non-essential works and programmes delayed; and

–a number of further reductions in operating expenditure across the Group.

Having considered the reasonable worst-case scenario and the further levers at the Board's discretion,

the Group continues to have headroom against the Group's committed facilities identified in note 33 to

the financial statements.

In addition to the above, the ability to raise new and extend existing financing was separately included

in the analysis, and the Directors noted £4.2 billion of new long-term senior debt had been raised in the

year from 1 April 2025 to 31 March 2026 as evidence of the Group's ability to continue to have access

to the debt capital markets if needed.

We have considered the impact of recent geopolitical developments, including the escalation of conflict in

the Middle East, which has contributed to increased market volatility and higher energy prices. While these

conditions could increase the cost of new debt and introduce short term execution volatility, we have

continued to observe access to funding and availability of committed liquidity during this period, consistent

with our recent issuance activity and funding plan; including a $0.7 billion bond issued in March 2026

and a $0.9 billion loan executed in April 2026. Consequently, we believe that, despite a more uncertain

external environment, the Group retains the ability to access debt capital markets as required to support

its financing needs over the going concern period.

Based on the above, the Directors have concluded the Group is well placed to manage its financing and

other business risks satisfactorily and have a reasonable expectation that the Group will have adequate

resources to continue in operation for at least 12 months from the signing date of these consolidated

financial statements. They therefore consider it appropriate to adopt the going concern basis of

accounting in preparing the financial statements.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **143** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**1. Basis of preparation and recent accounting developments cont.**

**B. Basis of consolidation**

The consolidated financial statements incorporate the results, assets and liabilities of the Company

and its subsidiaries, together with a share of the results, assets and liabilities of joint operations.

A subsidiary is defined as an entity controlled by the Group. Control is achieved where the Group is

exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability

to affect those returns through its power over the entity.

The Group accounts for joint ventures and associates using the equity method of accounting, where the

investment is carried at cost plus post-acquisition changes in the share of net assets of the joint venture

or associate, less any provision for impairment. Losses in excess of the consolidated interest in joint

ventures and associates are not recognised, except where the Company or its subsidiaries have made

a commitment to make good those losses.

Where necessary, adjustments are made to bring the accounting policies used in the individual financial

statements of the Company, subsidiaries, joint operations, joint ventures and associates in line with

those used by the Group in its consolidated financial statements under IFRS. Intercompany transactions

are eliminated.

The results of subsidiaries, joint operations, joint ventures and associates acquired or disposed of during

the year are included in the consolidated income statement from the effective date of acquisition or up

to the effective date of disposal, as appropriate.

Acquisitions are accounted for using the acquisition method, where the purchase price is allocated to

the identifiable assets acquired and liabilities assumed on a fair value basis and the remainder recognised

as goodwill.

**C. Foreign currencies**

Transactions in currencies other than the functional currency of the Company or subsidiary concerned

are recorded at the rates of exchange prevailing on the date of the transactions. At each reporting date,

monetary assets and liabilities that are denominated in foreign currencies are retranslated at closing

exchange rates. Non-monetary assets are not retranslated unless they are carried at fair value.

Gains and losses arising on the retranslation of monetary assets and liabilities are included in the income

statement, except where the application of hedge accounting requires inclusion in other comprehensive

income (see note 32(e)).

On consolidation, the assets and liabilities of operations that have a functional currency different from the

Company's functional currency of pounds sterling, principally our US operations that have a functional

currency of US dollars, are translated at exchange rates prevailing at the reporting date. Income and expense

items are translated at the average exchange rates for the period where these do not differ materially from

rates at the date of the transaction. Exchange differences arising are recognised in other comprehensive

income and transferred to the consolidated translation reserve within other equity reserves (see note 28).

**D. Areas of judgement and key sources of estimation uncertainty** 

The preparation of financial statements requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and

the reported amounts of revenue and expenses during the reporting period. Actual results could differ

from these estimates. Information about such judgements and estimations is in the notes to the financial

statements, and the key areas are summarised below.

An area of judgement that has the most significant effect on the amounts recognised in the financial

statements is:

–the judgement that, notwithstanding legislation enacted and targets committing the states of New York

and Massachusetts to achieving net zero greenhouse gas emissions by 2050, these do not shorten the

remaining useful economic lives (UELs) of our US gas network assets, which we consider will have an

expected use and utility beyond 2050 (see other areas of estimation uncertainty below and note 13).

Key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial year are:

–the future cash flows and real discount rates applied in determining the US environmental provisions,

in particular relating to two Superfund sites and certain other legacy Manufacturing Gas Plant (MGP)

sites (see note 26); and

–the valuation of liabilities for pensions and other post-retirement benefits (see note 25).

In order to illustrate the impact that changes in assumptions for the valuation of pension liabilities and

cash flows for environmental provisions could have on our results and financial position, we have included

sensitivity analysis in note 35.

Other areas of estimation uncertainty

A further area of estimation uncertainty pertains to the estimates made regarding the UELs of our

gas network assets due to uncertainty over the pace of delivery of the energy transition and the multiple

pathways by which it could be delivered. Our estimates consider anticipated changes in customer

behaviour and developments in new technology, the potential to decarbonise fuel through the use of

renewable natural gas and green hydrogen, and the feasibility and affordability of increased electrification

(see note 13 for details and sensitivity analysis).

**E. Impact of climate change and the transition to net zero**

In preparing these financial statements for the year ended 31 March 2026, management has taken into

account the Group's commitments regarding its transition to net zero and the impact of climate change.

The Group has a published climate transition plan which sets out its targets to achieve this commitment

by 2050, in line with the Paris Agreement. Management has also identified a number of significant climate-

related risks and opportunities. Changes to the Group's commitments and the impact of climate change

may have a material impact on the currently reported amounts of the Group's assets and liabilities and on

similar assets and liabilities that may be recognised in future reporting periods, as set out above with

respect to the judgement and other areas of estimation uncertainty regarding the UELs of our US gas

network assets. Other climate and transition impacts are further detailed below.

Repairs to property, plant and equipment and climate adaptation activities

The Group's network assets recorded within property, plant and equipment (PP&E) are at risk of physical

impacts from extreme weather events such as major storms which may be accentuated by increased

frequency of weather incidents and changing long-term climate trends, thereby leading to asset damage.

Major storm costs in the US, net of deductibles and disallowances, incurred by the Group are recoverable

as revenue in future periods under our rate plans but the associated repair costs are expensed as incurred

as other operating costs under IFRS.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **144** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**1. Basis of preparation and recent accounting developments cont.**

**E. Impact of climate change and the transition to net zero cont.**

Impairment of property, plant and equipment and goodwill

Included within the Group's plant and machinery (see note 13) are £267 million of oil- and gas-fired

electricity generation units with approximately 3,800 MW of electric generation capacity located in

Long Island, New York. While the Group retains ownership of these assets, it sells all of the capacity,

energy in response to dispatch requests, and any related ancillary services provided by the generating

facilities to the Long Island Power Authority (LIPA) via a Power Supply Agreement running until 2028.

The maximum UEL for these units ends in 2040, which aligns to the target set by the state of New York

to achieve decarbonised power generation by 2040. However, there is a risk that the UEL of certain,

or all, of the units may be shortened, depending on the progress of decarbonisation activities in Long

Island. The Group believes there are no material accounting judgements in respect of the generation

assets and the UELs have not been accelerated in the year.

The UELs of our assets related to our commercial operations in LNG at Providence, Rhode Island are

informed by the recovery periods used for ratemaking purposes and the majority of the UELs are covered

by fixed price service contracts. The net book value of these assets will be immaterial by 2050. Accordingly,

the Group believes there are no material accounting judgements in respect of the UELs of the LNG assets

as of 31 March 2026.

The net zero pathway may also impact our US gas networks which in turn may affect the recoverable

amount of our New York and New England cash-generating units (CGUs). In assessing the recoverability

of our CGUs (see note 11), we calculate the value-in-use based on projections that incorporate our best

estimates of future cash flows and assumptions pertaining to the net zero plans of the jurisdictions that

we operate in. In respect of our New York and New England CGUs, our forecast cash flow duration used

in our impairment testing is five years. We apply a terminal growth rate informed by expected long-term

economic inflation and the discount rate used takes into consideration the potential impact of net zero

plans on our gas business. Accordingly, the impact of certain variables that will play out in the medium

to long term as a result of the anticipated transition to decarbonised power generation are not anticipated

to have an impact on the recoverable amount of our New York and New England CGUs.

Decommissioning provisions

Provisions to decommission significant portions of our regulated transmission and distribution assets

are not recognised where no legal obligations exist, and a realistic alternative exists to incurring costs

to decommission assets at the end of their life. Included within the Group's decommissioning provisions

as at 31 March 2026 (see note 26) is £38 million relating to legal requirements to remove asbestos upon

major renovation or demolition of our oil- and gas-fired electricity generation structures and facilities

located in Long Island, New York. As noted above, the progress of decarbonisation activities in Long

Island may bring forward the decommissioning of these assets, thereby increasing the present value of

associated decommissioning provisions. In the current year, there have been no material changes to the

expected timing of decommissioning expenditures. Currently, the expected timing of decommissioning

expenditures has not materially been brought forward but management will continue to review the

facts and circumstances.

Sensitivity to commodity contract derivatives

The Group has contracts associated with the forward purchase of gas and enters into derivative financial

instruments linked to commodity prices, including gas options and swaps which are used to manage

market price volatility (see note 17(b)). As at 31 March 2026, the Group's gas commodity contract

derivatives are primarily short-term and, accordingly, we do not anticipate a risk as a result of the

transition to net zero.

**F. Accounting policy choices**

IFRS provides certain options available within accounting standards. Choices we have made, and

continue to make, include the following:

–Presentational formats: we use the nature of expense method for our income statement and aggregate

our statement of financial position to net assets and total equity.

–Financial instruments: we normally opt to apply hedge accounting in most circumstances where this is

permitted (see note 32(e)).

**G. New IFRS accounting standards and interpretations effective for the year ended 31 March 2026** 

The Group adopted the following amendments to standards which have had no material impact on the

Group's results or financial statement disclosures:

–amendments to IAS 21 'Lack of exchangeability'.

**H. New IFRS accounting standards and interpretations not yet adopted**

The following new accounting standards and amendments to existing standards have been issued but

are not yet effective:

–IFRS 18 'Presentation and Disclosure in Financial Statements';

–IFRS 9 and IFRS 7 'Amendments to the Classification and Measurement of Financial Instruments';

–Amendments to IFRS 9 and IFRS 7 'Contracts Referencing Nature-dependent Electricity';

–Annual Improvements to IFRS Accounting Standards – Volume 11; and

–IFRS 19 'Subsidiaries without Public Accountability: Disclosures'.

The Group is currently assessing the impact of the above standards, but they are not expected to have

a material impact other than in respect of IFRS 18.

IFRS 18 replaces IAS 1 and the Group will apply the new standard from 1 April 2027, with retrospective

application. The Group is in the process of assessing the impact of IFRS 18 and anticipates changes to

certain presentational and disclosure-related matters in its consolidated financial statements. The adoption

of IFRS 18 will not affect the Group's profit after tax; however, it will result in changes to the presentation

of the primary financial statements and to certain disclosures. In particular, income and expenses will be

grouped into five categories in the Consolidated income statement, namely the operating, investing,

financing, discontinued operations and income tax categories. There will also be an additional mandatory

subtotal for 'Profit before financing and income taxes' and the 'useful structured summary' concept will

necessitate certain changes to line items presented in the Consolidated income statement, although the

overall impact is not expected to be significant. Management-defined performance measures will also

require disclosure in a single note. Preparatory work is currently underway to support adoption, including

updates to reporting systems and the chart of accounts.

The Group has not adopted any other standard, amendment or interpretation that has been issued but

is not yet effective.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **145** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**2. Segmental analysis**

**This note sets out the financial performance for the year split into the different parts of the business (operating segments). The performance of these operating segments is monitored** <br>**and managed on a day-to-day basis. Revenue and the results of the business are analysed by operating segment, based on the information the Board of Directors uses internally for** <br>**the purposes of evaluating the performance of each operating segment and determining resource allocation between them. The Board is National Grid's chief operating decision maker** <br>**(as defined by IFRS 8 'Operating Segments') and as a matter of course, the Board considers multiple profitability measures by segment, being 'adjusted profit' and 'underlying profit'.** <br>**Adjusted profit excludes exceptional items and remeasurements (as defined in note 5) and is used by management and the Board to monitor financial performance as it is considered that** <br>**it aids the comparability of our reported financial performance from year to year. Underlying profit, as presented in the Annual Report and Accounts, represents adjusted profit and also** <br>**excludes the effects of timing, major storm costs and deferred tax expenses in our UK Electricity Transmission and UK Electricity Distribution businesses. The measure of profit disclosed** <br>**in this note and the primary profitability benchmark considered by the chief operating decision maker is operating profit before exceptional items and remeasurements, adjusted profit,** <br>**as this is the measure that is most consistent with the IFRS results reported within these financial statements.**<br>

![](nggtf-20260331_g392.gif)

The results of our five principal businesses are reported to the Board of Directors and are accordingly treated as reportable operating segments. All other operating segments are reported to the Board of Directors

on an aggregated basis. The following table describes the main activities for each reportable operating segment:

---

| | |
|:---|:---|
| UK Electricity Transmission | The high-voltage electricity transmission networks in England and Wales. This includes our Accelerated Strategic Transmission Investment projects to connect more clean, <br>low-carbon power to the transmission network in England and Wales.<br>|
| UK Electricity Distribution | The electricity distribution networks of NGED in the East Midlands, West Midlands and South West of England and South Wales. |
| New England | Electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New England. |
| New York | Electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New York. |
| National Grid Ventures | Comprises our electricity interconnectors in the UK, our electricity generation business in the US, all commercial operations in LNG at Providence, Rhode Island in the US and <br>the Isle of Grain in the UK, and our investment in NG Renewables, our renewables business in the US. While NGV operates outside our regulated core business, the electricity <br>interconnectors in the UK are subject to indirect regulation by Ofgem regarding the level of returns they can earn. The Group sold its interest in NG Renewables on 29 May 2025 <br>and in Grain LNG on 28 November 2025 (see note 10). <br>|

---

Included within the comparative years are the results of the UK Electricity System Operator which also represented a separate operating segment. The Group completed the disposal of the ESO to the UK

Government in the prior year.

Other activities that do not form part of any of the segments in the above table primarily relate to our UK property business together with insurance and corporate activities in the UK and US and the Group's

investments in technology and innovation companies through National Grid Partners.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **146** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**2. Segmental analysis cont.**

**(a) Revenue**

Revenue primarily represents the sales value derived from the generation, transmission and distribution of energy, together with the sales value derived from the provision of other services to customers. Refer to note 3

for further details.

Sales between operating segments are priced considering the regulatory and legal requirements to which the businesses are subject. The analysis of revenue by geographical area is on the basis of destination. There

are no material sales between the UK and US geographical areas.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
|  | **Total** <br>**sales**<br>**£m**<br>| **Sales**<br>**between**<br>**segments**<br>**£m**<br>| **Sales**<br>**to third**<br>**parties**<br>**£m**<br>| Total <br>sales<br>£m<br>| Sales <br>between<br>segments<br>£m<br>| Sales <br>to third <br>parties<br>£m<br>| Total <br>sales<br>£m<br>| Sales<br>between<br>segments<br>£m<br>| Sales <br>to third <br>parties<br>£m<br>|
| Operating segments – continuing operations: |  |  |  |  |  |  |  |  |  |
| UK Electricity Transmission | **2898** | **(87)** | **2811** | 2619 | (135) | 2484 | 2735 | (40) | 2695 |
| UK Electricity Distribution | **1937** | **—** | **1937** | 2424 | (3) | 2421 | 1795 | (5) | 1790 |
| UK Electricity System Operator | **—** | **—** | **—** | 1029 | (17) | 1012 | 3788 | (35) | 3753 |
| New England | **4174** | **—** | **4174** | 4306 |  | 4306 | 3948 |  | 3948 |
| New York | **7618** | **—** | **7618** | 6689 |  | 6689 | 6094 |  | 6094 |
| National Grid Ventures | **1098** | **(41)** | **1057** | 1397 | (47) | 1350 | 1389 | (57) | 1332 |
| Other | **97** | **(7)** | **90** | 122 | (6) | 116 | 244 | (6) | 238 |
| **Total revenue from continuing operations** | **17822** | **(135)** | **17687** | 18586 | (208) | 18378 | 19993 | (143) | 19850 |
| Split by geographical areas – continuing operations: |  |  |  |  |  |  |  |  |  |
| UK |  |  | **5472** |  |  | 6707 |  |  | 9063 |
| US |  |  | **12215** |  |  | 11671 |  |  | 10787 |
| **Total revenue from continuing operations** |  |  | **17687** |  |  | 18378 |  |  | 19850 |

---

The principal revenues of the UK Electricity Transmission segment arise from the provision of electricity transmission services and are invoiced to, and collected from, National Energy System Operator (NESO).

Amounts are invoiced and settled in equal monthly instalments throughout the financial year. No other single customer contributed 10% or more of the Group's revenue in any of the years presented.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **147** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**2. Segmental analysis cont.**

**(b) Operating profit** 

A reconciliation of the operating segments' measure of profit to profit before tax from continuing operations

is provided below. Further details of the exceptional items and remeasurements are provided in note 5.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Total operating profit/(loss)** <br>**before exceptional items** <br>**and remeasurements** | **Total operating profit/(loss)** <br>**before exceptional items** <br>**and remeasurements** | **Total operating profit/(loss)** <br>**before exceptional items** <br>**and remeasurements** | **Exceptional items** <br>**and remeasurements** <br>**(see note 5)** | **Exceptional items** <br>**and remeasurements** <br>**(see note 5)** | **Exceptional items** <br>**and remeasurements** <br>**(see note 5)** | **Total operating profit/(loss)** <br>**after exceptional items** <br>**and remeasurements** | **Total operating profit/(loss)** <br>**after exceptional items** <br>**and remeasurements** | **Total operating profit/(loss)** <br>**after exceptional items** <br>**and remeasurements** |
|  | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m | **£m** | £m | £m | **£m** | £m | £m |
| Operating segments – <br>continuing operations:<br>|  |  |  |  |  |  |  |  |  |
| UK Electricity <br>Transmission<br>| **1605** | 1277 | 1677 | **—** |  | (3) | **1605** | 1277 | 1674 |
| UK Electricity <br>Distribution<br>| **1122** | 1610 | 993 | **—** | (12) | (18) | **1122** | 1598 | 975 |
| UK Electricity <br>System Operator<br>| **—** | (364) | 880 | **—** | 151 | (498) | **—** | (213) | 382 |
| New England | **960** | 982 | 643 | **(13)** | 26 | (2) | **947** | 1008 | 641 |
| New York | **1172** | 1023 | 860 | **12** | 246 | (498) | **1184** | 1269 | 362 |
| National Grid <br>Ventures<br>| **327** | 380 | 469 | **388** | (375) | 89 | **715** | 5 | 558 |
| Other | **(142)** | (143) | (60) | **—** | 133 | (57) | **(142)** | (10) | (117) |
| **Total Group** | **5044** | 4765 | 5462 | **387** | 169 | (987) | **5431** | 4934 | 4475 |
| Split by geographical <br>area – continuing <br>operations:<br>|  |  |  |  |  |  |  |  |  |
| UK | **2948** | 2775 | 3923 | **484** | 257 | (487) | **3432** | 3032 | 3436 |
| US | **2096** | 1990 | 1539 | **(97)** | (88) | (500) | **1999** | 1902 | 1039 |
| **Total Group** | **5044** | 4765 | 5462 | **387** | 169 | (987) | **5431** | 4934 | 4475 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Profit/(loss) before tax** <br>**before exceptional items** <br>**and remeasurements** | **Profit/(loss) before tax** <br>**before exceptional items** <br>**and remeasurements** | **Profit/(loss) before tax** <br>**before exceptional items** <br>**and remeasurements** | **Exceptional items** <br>**and remeasurements** <br>**(see note 5)** | **Exceptional items** <br>**and remeasurements** <br>**(see note 5)** | **Exceptional items** <br>**and remeasurements** <br>**(see note 5)** | **Profit/(loss) before tax after** <br>**exceptional items** <br>**and remeasurements** | **Profit/(loss) before tax after** <br>**exceptional items** <br>**and remeasurements** | **Profit/(loss) before tax after** <br>**exceptional items** <br>**and remeasurements** |
|  | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m | **£m** | £m | £m | **£m** | £m | £m |
| Reconciliation to profit <br>before tax:<br>|  |  |  |  |  |  |  |  |  |
| Operating profit <br>from continuing <br>operations<br>| **5044** | 4765 | 5462 | **387** | 169 | (987) | **5431** | 4934 | 4475 |
| Share of post-tax <br>results of joint <br>ventures <br>and associates<br>| **76** | 75 | 101 | **—** | (2) | (64) | **76** | 73 | 37 |
| Finance income | **378** | 449 | 244 | **2** | 1 | 4 | **380** | 450 | 248 |
| Finance costs | **(1649)** | (1810) | (1723) | **(56)** | 3 | 11 | **(1705)** | (1807) | (1712) |
| **Total Group** | **3849** | 3479 | 4084 | **333** | 171 | (1036) | **4182** | 3650 | 3048 |

---

The following items are included in the total operating profit by segment:

---

| | | | |
|:---|:---|:---|:---|
| **Depreciation, amortisation and impairment**<sup>1</sup> | **2026** | 2025 | 2024 |
| **Depreciation, amortisation and impairment**<sup>1</sup> | **£m** | £m | £m |
| Operating segments: |  |  |  |
| UK Electricity Transmission | **(550)** | (540) | (521) |
| UK Electricity Distribution | **(271)** | (249) | (223) |
| UK Electricity System Operator | **—** |  | (61) |
| New England | **(493)** | (469) | (420) |
| New York | **(769)** | (731) | (658) |
| National Grid Ventures | **(151)** | (173) | (166) |
| Other | **(13)** | (13) | (12) |
| **Total** | **(2247)** | (2175) | (2061) |
| Asset type: |  |  |  |
| Property, plant and equipment | **(1929)** | (1878) | (1769) |
| Non-current intangible assets | **(318)** | (297) | (292) |
| **Total** | **(2247)** | (2175) | (2061) |

---

1. Depreciation, amortisation and impairment relates to property, plant and equipment and other intangible assets. The charge is stated net

of depreciation and amortisation capitalised.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **148** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**2. Segmental analysis cont.**

**(c) Capital investment**

Capital investment represents additions to property, plant and equipment, prepayments to suppliers to

secure production capacity in relation to our capital projects, non-current intangibles and additional equity

investments in joint ventures and associates. Capital investments exclude additions for assets or

businesses from the point they are classified as held for sale.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| Operating segments: |  |  |  |
| UK Electricity Transmission | **4372** | 2999 | 1912 |
| UK Electricity Distribution | **1617** | 1426 | 1247 |
| UK Electricity System Operator | **—** |  | 85 |
| New England | **2043** | 1751 | 1673 |
| New York | **3428** | 3289 | 2654 |
| National Grid Ventures | **109** | 378 | 662 |
| Other | **7** | 4 | 2 |
| **Total** | **11576** | 9847 | 8235 |
| Asset type: |  |  |  |
| Property, plant and equipment | **9924** | 8894 | 7124 |
| Non-current intangible assets | **693** | 478 | 481 |
| Equity investments in joint ventures and associates | **27** | 116 | 332 |
| Capital expenditure prepayments | **932** | 359 | 298 |
| **Total** | **11576** | 9847 | 8235 |

---

**(d) Geographical analysis of non-current assets**

Non-current assets by geography comprise goodwill, other intangible assets, property, plant and

equipment, investments in joint ventures and associates and other non-current assets.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| Split by geographical area: |  |  |  |
| UK | **47551** | 42623 | 40065 |
| US | **49273** | 46131 | 44270 |
|  | **96824** | 88754 | 84335 |
| Reconciliation to total non-current assets: |  |  |  |
| Pension assets | **2507** | 2489 | 2407 |
| Financial and other investments | **842** | 798 | 880 |
| Derivative financial assets | **623** | 369 | 324 |
| **Non-current assets** | **100796** | 92410 | 87946 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **149** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**3. Revenue**

![](nggtf-20260331_g393.gif)

**Revenue arises in the course of ordinary activities and principally comprises:**<br>**–transmission services;**<br>**–distribution services; and**<br>**–generation services.**<br>**Transmission services, distribution services and certain other services (excluding** <br>**rental income) fall within the scope of IFRS 15 'Revenue from Contracts with Customers',** <br>**whereas generation services (which solely relate to the contract with LIPA in the US)** <br>**are accounted for under IFRS 16 'Leases' as rental income, also presented within revenue.** <br>**Revenue is recognised to reflect the transfer of goods or services to customers at an** <br>**amount that reflects the consideration to which the Group expects to be entitled to in** <br>**exchange for those goods or services and excludes amounts collected on behalf of third** <br>**parties and value added tax. The Group recognises revenue when it transfers control** <br>**over a product or service to a customer.**<br>**Revenue in respect of regulated activities is determined by regulatory agreements that** <br>**set the price to be charged for services in a given period based on pre-determined allowed** <br>**revenues. Variances in service usage can result in actual revenue collected exceeding** <br>**(over-recoveries) or falling short (under-recoveries) of allowed revenues. Where regulatory** <br>**agreements allow the recovery of under-recoveries or require the return of over-recoveries,** <br>**the allowed revenue for future periods is typically adjusted. In these instances, no assets** <br>**or liabilities are recognised for under- or over-recoveries respectively, because the** <br>**adjustment relates to future customers and services that have not yet been delivered.** <br>**Revenue in respect of non-regulated activities includes the sale of capacity on our** <br>**interconnectors, which is determined at auctions and capacity market income. Capacity is** <br>**sold in either day, month, quarter or year-ahead tranches. The price charged is determined** <br>**by market fundamentals rather than regulatory agreement. The interconnectors are subject** <br>**to regulation with regard to the levels of returns they are allowed to earn. Where amounts** <br>**fall below this range they receive top-up revenues and where amounts exceed this range** <br>**they must pass back the excess. In these instances, assets or liabilities are recognised for** <br>**the top-up or pass-back respectively.**<br>

Below, we include a description of principal activities, by reportable segment, from which the Group

generates its revenue. For more detailed information about our segments, see note 2.

**(a) UK Electricity Transmission**

The UK Electricity Transmission segment principally generates revenue by providing electricity

transmission services in England and Wales. Our business operates as a monopoly regulated by Ofgem,

which has established price control mechanisms that set the amount of annual allowed returns our

business can earn (along with the Scottish and Offshore transmission operators amongst others).

The transmission of electricity encompasses the following principal services:

–the supply of high-voltage electricity – revenue is recognised based on usage. Our performance

obligation is satisfied over time as our customers make use of our network. We bill monthly in advance

and our payment terms are up to 60 days. Price is determined prior to our financial year end with

reference to the regulated allowed returns and estimated annual volumes; and

–construction work (principally for connections) – revenue is recognised over time, as we provide access

to our network. Customers can either pay over the useful life of the connection or up front. Where the

customer pays up front, revenues are deferred as a contract liability and released over the life of the

asset.

For other construction where there is no consideration for any future services (for example diversions),

revenues are recognised as the construction work is completed.

**(b) UK Electricity Distribution**

The UK Electricity Distribution segment principally generates revenue by providing electricity distribution

services in the Midlands and South West of England and South Wales. Similar to UK Electricity

Transmission, UK Electricity Distribution operates as a monopoly in the jurisdictions that it operates

in and is regulated by Ofgem.

The distribution of electricity encompasses the following principal services:

–electricity distribution – revenue is recognised based on usage by customers (over time), based upon

volumes and price. The price control mechanism that determines our annual allowances is similar to

UK Electricity Transmission. Revenues are billed monthly and payment terms are typically within

14 days; and

–construction work (principally for connections) – revenue is recognised over time as we provide access

to our network. Where the customer pays up front, revenues are deferred as a contract liability and

released over the life of the asset.

For other construction where there is no consideration for any future services, revenues are recognised

as the construction work is completed.

**(c) New England**

The New England segment principally generates revenue by providing electricity and gas supply

and distribution services and high-voltage electricity transmission services in New England. Supply and

distribution services are regulated by the Massachusetts Department of Public Utilities (MADPU) and

transmission services are regulated by the Federal Energy Regulatory Commission (FERC), both of

whom regulate the rates that can be charged to customers.

The supply and distribution of electricity and gas and the provision of electricity transmission facilities

encompasses the following principal services:

–electricity and gas supply and distribution and electricity transmission – revenue is recognised based

on usage by customers (over time). Revenues are billed monthly and payment terms are 30 days; and

–construction work (principally for connections) – revenue is recognised over time as we provide

access to our network. Where the customer pays up front, revenues are deferred as a contract liability

or customer contributions (where they relate to government entities) and released over the life of

the connection.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **150** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**3. Revenue cont.**

**(d) New York**

The New York segment principally generates revenue by providing electricity and gas supply and

distribution services and high-voltage electricity transmission services in New York. Supply and distribution

services are regulated by the New York Public Service Commission (NYPSC) and transmission services

are regulated by the FERC, both of which regulate the rates that can be charged to customers.

The supply and distribution of electricity and gas and the provision of electricity transmission facilities

encompasses the following principal services:

–electricity and gas supply and distribution and electricity transmission – revenue is recognised based

on usage by customers (over time). Revenues are billed monthly and payment terms are 30 days; and

–construction work (principally for connections) – revenue is recognised over time as we provide

access to our network. Where the customer pays up front, revenues are deferred as a contract liability

or customer contributions (where they relate to government entities) and released over the life of

the connection.

**(e) National Grid Ventures**

National Grid Ventures generates revenue from electricity interconnectors, LNG at the Isle of Grain in the

UK and Providence, Rhode Island in the US, NG Renewables and rental income.

The Group recognises revenue from transmission services through interconnectors and LNG importation

at the Isle of Grain and Providence by means of customers' use of capacity and volumes. Revenue is

recognised over time and is billed monthly. Payment terms are up to 30 days. The Group disposed of its

interest in Grain LNG in November 2025 (see note 10).

Electricity generation revenue is earned from the provision of energy services and supply capacity to

produce energy for the use of customers of LIPA through a power supply agreement, where LIPA receives

all of the energy and capacity from the asset until at least 2028. The arrangement is treated as an operating

lease within the scope of the leasing standard where we act as lessor, with rental income being recorded

as other revenue, which forms part of total revenue. Lease payments (capacity payments) are recognised

on a straight-line basis and variable lease payments are recognised as the energy is generated.

Other revenue in the scope of IFRS 15 principally includes sales of renewables projects from NG Renewables

to Emerald Energy Venture LLC (Emerald), which was jointly controlled by National Grid and Washington

State Investment Board (WSIB). The Group disposed of its interest in NG Renewables, together with

Emerald, in May 2025 (see note 10). NG Renewables developed wind and solar generation assets in

the US, while Emerald had a right of first refusal to buy, build and operate those assets. Revenue was

recognised as it was earned.

Other revenue, recognised in accordance with standards other than IFRS 15, primarily comprises

adjustments in respect of the interconnector cap and floor and Use of Revenue regimes constructed

by Ofgem for certain wholly owned interconnector subsidiaries. Under the cap and floor regime, where

an interconnector expects to exceed its total five-year cap, a provision and reduction in revenue is

recognised in the current reporting period (see note 26). Where an interconnector does not expect to

reach its five-year floor, either an asset will be recognised where a future inflow of economic benefits is

considered virtually certain, or a contingent asset will be disclosed where the future inflow is concluded

to be probable. Under the Use of Revenue framework, any revenues in excess of an agreed incentive

level must be passed on as savings to consumers. Where the obligation to transfer excess revenues

arises, a payable and reduction in revenue is recognised in the current reporting period.

**(f) Other**

Revenue in Other relates to our UK commercial property business. Revenue is predominantly recognised in

accordance with standards other than IFRS 15 and comprises property sales by our UK commercial property

business. Property sales are recorded when the sale is legally completed.

**(g) UK Electricity System Operator**

The Group disposed of the UK Electricity System Operator on 1 October 2024. Prior to its disposal

and the formation of the NESO, the UK Electricity System Operator earned revenue for balancing supply

and demand of electricity on Great Britain's electricity transmission system, where it acted as principal.

Balancing services are regulated by Ofgem and revenue payable by generators and suppliers of electricity

was recognised as the service was provided.

The UK Electricity System Operator also collected revenues on behalf of transmission operators,

principally National Grid Electricity Transmission plc and the Scottish and Offshore transmission operators,

from users (electricity suppliers) who connect to or use the transmission system. As the UK Electricity

System Operator acted as an agent in this capacity, transmission network revenues were recorded net

of payments to transmission operators.

**(h) Disaggregation of revenue**

In the following tables, revenue is disaggregated by primary geographical market and major service lines.

The table below reconciles disaggregated revenue with the Group's reportable segments (see note 2).

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Revenue for the year** <br>**ended 31 March 2026**<br>| **UK Electricity** <br>**Transmission**<br>**£m**<br>| **UK Electricity** <br>**Distribution**<br>**£m**<br>| **New** <br>**England**<br>**£m**<br>| **New** <br>**York**<br>**£m**<br>| **National** <br>**Grid** <br>**Ventures**<br>**£m**<br>| **Other**<br>**£m**<br>| **Total**<br>**£m**<br>|
| *Revenue under IFRS 15* |  |  |  |  |  |  |  |
| Transmission | **2597** | **—** | **55** | **355** | **713** | **—** | **3720** |
| Distribution | **—** | **1859** | **4061** | **7204** | **—** | **—** | **13124** |
| Other<sup>1</sup> | **29** | **73** | **9** | **17** | **20** | **4** | **152** |
| **Total IFRS 15 revenue** | **2626** | **1932** | **4125** | **7576** | **733** | **4** | **16996** |
| *Other revenue* |  |  |  |  |  |  |  |
| Generation | **—** | **—** | **—** | **—** | **364** | **—** | **364** |
| Other<sup>2</sup> | **185** | **5** | **49** | **42** | **(40)** | **86** | **327** |
| **Total other revenue** | **185** | **5** | **49** | **42** | **324** | **86** | **691** |
| **Total revenue from** <br>**continuing operations**<br>| **2811** | **1937** | **4174** | **7618** | **1057** | **90** | **17687** |

---

1. The UK Electricity Distribution other IFRS 15 revenue principally relates to engineering recharges, which are the recovery of costs incurred

for construction work requested by customers, such as the rerouting of existing network assets.

2. Other revenue, recognised in accordance with accounting standards other than IFRS 15, includes property sales by our UK commercial

property business, rental income, income arising in connection with the Transition Services Agreements following the sale of the ESO,

and an adjustment to NGV revenue in respect of the interconnector cap and floor and Use of Revenue regimes constructed by Ofgem.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **151** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**3. Revenue cont.**

**(h) Disaggregation of revenue cont.** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Geographical split for the year** <br>**ended 31 March 2026**<br>| **UK Electricity** <br>**Transmission**<br>**£m**<br>| **UK Electricity** <br>**Distribution**<br>**£m**<br>| **New** <br>**England**<br>**£m**<br>| **New** <br>**York**<br>**£m**<br>| **National** <br>**Grid** <br>**Ventures**<br>**£m**<br>| **Other**<br>**£m**<br>| **Total**<br>**£m**<br>|
| *Revenue under IFRS 15* |  |  |  |  |  |  |  |
| UK | **2626** | **1932** | **—** | **—** | **713** | **—** | **5271** |
| US | **—** | **—** | **4125** | **7576** | **20** | **4** | **11725** |
| **Total IFRS 15 revenue** | **2626** | **1932** | **4125** | **7576** | **733** | **4** | **16996** |
| *Other revenue* |  |  |  |  |  |  |  |
| UK | **185** | **5** | **—** | **—** | **(61)** | **72** | **201** |
| US | **—** | **—** | **49** | **42** | **385** | **14** | **490** |
| **Total other revenue** | **185** | **5** | **49** | **42** | **324** | **86** | **691** |
| **Total revenue from** <br>**continuing operations**<br>| **2811** | **1937** | **4174** | **7618** | **1057** | **90** | **17687** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Revenue for the year <br>ended 31 March 2025<br>| UK Electricity <br>Transmission<br>£m<br>| UK Electricity <br>Distribution<br>£m<br>| UK <br>Electricity <br>System <br>Operator<br>£m<br>| New<br>England<br>£m<br>| New<br>York<br>£m<br>| National <br>Grid <br>Ventures<br>£m<br>| Other<br>£m<br>| Total<br>£m<br>|
| *Revenue under IFRS 15* |  |  |  |  |  |  |  |  |
| Transmission<sup>1</sup> | 2265 |  | 46 | 85 | 252 | 879 | 1 | 3528 |
| Distribution |  | 2327 |  | 4193 | 6371 |  |  | 12891 |
| System Operator  |  |  | 966 |  |  |  |  | 966 |
| Other<sup>2</sup> | 29 | 90 |  | 9 | 16 | 171 | 3 | 318 |
| **Total IFRS 15 revenue** | 2294 | 2417 | 1012 | 4287 | 6639 | 1050 | 4 | 17703 |
| *Other revenue* |  |  |  |  |  |  |  |  |
| Generation |  |  |  |  |  | 384 |  | 384 |
| Other<sup>3</sup> | 190 | 4 |  | 19 | 50 | (84) | 112 | 291 |
| **Total other revenue** | 190 | 4 |  | 19 | 50 | 300 | 112 | 675 |
| **Total revenue from** <br>**continuing operations**<br>| 2484 | 2421 | 1012 | 4306 | 6689 | 1350 | 116 | 18378 |

---

1. The UK Electricity System Operator transmission revenue generated in the period up until its disposal represented transmission revenues

collected, net of payments made to transmission owners.

2. The UK Electricity Distribution other IFRS 15 revenue principally relates to engineering recharges, which are the recovery of costs incurred

for construction work requested by customers, such as the rerouting of existing network assets. Within NGV, the other IFRS 15 revenue

principally relates to revenue generated from our NG Renewables business.

3. Other revenue, recognised in accordance with accounting standards other than IFRS 15, includes property sales by our UK commercial

property business, rental income, income arising in connection with the Transition Services Agreements following the sales of NECO, the

UK Gas Transmission business and the ESO, and an adjustment to NGV revenue in respect of the interconnector cap and floor and Use

of Revenue regimes constructed by Ofgem.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Geographical split for the year <br>ended 31 March 2025<br>| UK <br>Electricity <br>Transmission<br>£m<br>| UK <br>Electricity <br>Distribution<br>£m<br>| UK <br>Electricity <br>System <br>Operator<br>£m<br>| New<br>England<br>£m<br>| New<br>York<br>£m<br>| National <br>Grid <br>Ventures<br>£m<br>| Other<br>£m<br>| Total<br>£m<br>|
| *Revenue under IFRS 15* |  |  |  |  |  |  |  |  |
| UK | 2294 | 2417 | 1012 |  |  | 889 | 1 | 6613 |
| US |  |  |  | 4287 | 6639 | 161 | 3 | 11090 |
| **Total IFRS 15 revenue** | 2294 | 2417 | 1012 | 4287 | 6639 | 1050 | 4 | 17703 |
| *Other revenue* |  |  |  |  |  |  |  |  |
| UK | 190 | 4 |  |  |  | (111) | 11 | 94 |
| US |  |  |  | 19 | 50 | 411 | 101 | 581 |
| **Total other revenue** | 190 | 4 |  | 19 | 50 | 300 | 112 | 675 |
| **Total revenue from** <br>**continuing operations**<br>| 2484 | 2421 | 1012 | 4306 | 6689 | 1350 | 116 | 18378 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Revenue for the year <br>ended 31 March 2024<br>| UK <br>Electricity <br>Transmission<br>£m<br>| UK <br>Electricity <br>Distribution<br>£m<br>| UK <br>Electricity <br>System <br>Operator<br>£m<br>| New<br>England<br>£m<br>| New<br>York<br>£m<br>| National <br>Grid <br>Ventures<br>£m<br>| Other<br>£m<br>| Total<br>£m<br>|
| *Revenue under IFRS 15* |  |  |  |  |  |  |  |  |
| Transmission<sup>1</sup> | 2591 |  | (10) | 73 | 493 | 869 |  | 4016 |
| Distribution |  | 1712 |  | 3786 | 5500 |  |  | 10998 |
| System Operator |  |  | 3763 |  |  |  |  | 3763 |
| Other<sup>2</sup> | 25 | 73 |  | 8 | 15 | 168 | 4 | 293 |
| **Total IFRS 15 revenue** | 2616 | 1785 | 3753 | 3867 | 6008 | 1037 | 4 | 19070 |
| *Other revenue* |  |  |  |  |  |  |  |  |
| Generation |  |  |  |  |  | 360 |  | 360 |
| Other<sup>3</sup> | 79 | 5 |  | 81 | 86 | (65) | 234 | 420 |
| **Total other revenue** | 79 | 5 |  | 81 | 86 | 295 | 234 | 780 |
| **Total revenue from** <br>**continuing operations**<br>| 2695 | 1790 | 3753 | 3948 | 6094 | 1332 | 238 | 19850 |

---

1. The UK Electricity System Operator transmission revenue generated in the year represents transmission revenues collected, net of

payments made to transmission owners.

2. The UK Electricity Transmission and UK Electricity Distribution other IFRS 15 revenue principally relates to engineering recharges, which

are the recovery of costs incurred for construction work requested by customers, such as the rerouting of existing network assets. Within

NGV, the other IFRS 15 revenue principally relates to revenue generated from our NG Renewables business.

3. Other revenue, recognised in accordance with accounting standards other than IFRS 15, includes property sales by our UK commercial

property business, rental income, income arising in connection with the Transition Services Agreements following the sales of The

Narragansett Electric Company (NECO) and the UK Gas Transmission business, and a provision and adjustment to NGV revenue in

respect of the interconnector cap and floor and Use of Revenue regimes constructed by Ofgem.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **152** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**3. Revenue cont.**

**(h) Disaggregation of revenue cont.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Geographical split for the year <br>ended 31 March 2024<br>| UK <br>Electricity <br>Transmission<br>£m<br>| UK <br>Electricity <br>Distribution<br>£m<br>| UK <br>Electricity <br>System <br>Operator<br>£m<br>| New<br>England<br>£m<br>| New<br>York<br>£m<br>| National <br>Grid <br>Ventures<br>£m<br>| Other<br>£m<br>| Total<br>£m<br>|
| *Revenue under IFRS 15* |  |  |  |  |  |  |  |  |
| UK | 2616 | 1785 | 3753 |  |  | 878 | 1 | 9033 |
| US |  |  |  | 3867 | 6008 | 159 | 3 | 10037 |
| **Total IFRS 15 revenue** | 2616 | 1785 | 3753 | 3867 | 6008 | 1037 | 4 | 19070 |
| *Other revenue* |  |  |  |  |  |  |  |  |
| UK | 79 | 5 |  |  |  | (76) | 22 | 30 |
| US |  |  |  | 81 | 86 | 371 | 212 | 750 |
| **Total other revenue** | 79 | 5 |  | 81 | 86 | 295 | 234 | 780 |
| **Total revenue from** <br>**continuing operations**<br>| 2695 | 1790 | 3753 | 3948 | 6094 | 1332 | 238 | 19850 |

---

Contract liabilities (see note 23) represent revenue to be recognised in future periods relating to

contributions in aid of construction of £2,809 million (2025: £2,514 million; 2024: £2,246 million). Revenue

is recognised over the life of the asset. The asset lives for connections in UK Electricity Transmission, UK

Electricity Distribution, New England and New York are up to 40 years, 69 years, 51 years and 51 years

respectively. The weighted average amortisation period over which revenue for contract liabilities is

recognised is 26 years.

Future revenues in relation to unfulfilled performance obligations amount to £1.4 billion (2025: £1.5 billion;

2024: £6.1 billion). £1.4 billion (2025: £1.5 billion; 2024: £1.9 billion) relates to connection contracts in UK

Electricity Transmission which will be recognised as revenue over a weighted average of 25 years.

The amount of revenue recognised for the year ended 31 March 2026 from performance obligations

satisfied (or partially satisfied) in previous periods, mainly due to changes in the estimate of the stage of

completion, is £nil (2025: £nil; 2024: £nil).

![](nggtf-20260331_g394.gif)

**4. Other operating costs**

**Below we have presented separately certain items included in our operating costs from** <br>**continuing operations. These include a breakdown of payroll costs (including disclosure** <br>**of amounts paid to key management personnel) and fees paid to our external auditors.** <br>

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| Depreciation, amortisation and impairment¹ | **2247** | 2175 | 2061 |
| Payroll costs | **1992** | 2143 | 2043 |
| Purchases of electricity | **1489** | 1429 | 1497 |
| Purchases of gas | **2091** | 1578 | 1289 |
| Property and other taxes | **1443** | 1402 | 1279 |
| UK electricity balancing costs | **—** | 1143 | 2486 |
| Impairment of joint venture | **—** | 303 |  |
| Other<sup>2</sup> | **3240** | 3071 | 4553 |
| Other operating costs | **12502** | 13244 | 15208 |
| Impairment losses on financial assets | **243** | 200 | 179 |
| **Total operating costs from continuing operations** | **12745** | 13444 | 15387 |
| Operating costs from continuing operations include: |  |  |  |
| Inventory consumed | **454** | 506 | 408 |
| Research and development expenditure | **38** | 43 | 32 |

---

1. Depreciation, amortisation and impairment relates to property, plant and equipment and other intangible assets. The charge is stated net

of depreciation and amortisation capitalised.

2. Included within Other are the costs incurred for the ongoing upkeep, repair, and management of infrastructure and assets necessary to

ensure reliable energy delivery and operational efficiency.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **153** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**4. Other operating costs cont.**

**(a) Payroll costs**

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| Wages and salaries<sup>1</sup> | **3515** | 3497 | 3206 |
| Social security costs | **313** | 279 | 256 |
| Defined contribution scheme costs | **152** | 144 | 129 |
| Defined benefit pension costs | **73** | 114 | 96 |
| Share-based payments | **45** | 37 | 37 |
| Severance costs (excluding pension costs) | **16** | 10 | 12 |
|  | **4114** | 4081 | 3736 |
| Less: payroll costs capitalised | **(2122)** | (1938) | (1693) |
| **Total payroll costs from continuing operations** | **1992** | 2143 | 2043 |

---

1. Included within wages and salaries are US other post-retirement benefit costs of £27 million (2025: £25 million; 2024: £26 million).

For further information, refer to note 25.

**(b) Number of employees**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **31 March** <br>**2026**<br>| **Monthly** <br>**average** <br>**2026**<br>| 31 March <br>2025<br>| Monthly <br>average <br>2025<br>| 31 March <br>2024<br>| Monthly <br>average <br>2024<br>|
| UK | **14554** | **14105** | 13477 | 13919 | 13956 | 13439 |
| US | **18472** | **18286** | 18177 | 17888 | 17469 | 17406 |
| **Total number** <br>**of employees** <br>**(continuing operations)**<br>| **33026** | **32391** | 31654 | 31807 | 31425 | 30845 |

---

**(c) Key management compensation**

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| Short-term employee benefits | **11** | 8 | 7 |
| Share-based payments | **7** | 4 | 5 |
| **Total key management compensation** | **18** | 12 | 12 |

---

Key management compensation relates to the Board, including the Executive Directors and Non-executive

Directors, for the years presented.

**(d) Auditor's remuneration**

Auditor's remuneration is presented below in accordance with the requirements of the Companies Act

2006 and the principal accountant fees and services disclosure requirements of Item 16C of Form 20-F:

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| **Audit fees payable to the Parent Company's auditor and** <br>**their associates in respect of:**<br>|  |  |  |
| Audit of the Parent Company's individual and consolidated <br>financial statements<sup>1</sup><br>| **2.6** | 2.8 | 2.8 |
| The auditing of accounts of any associate of the Company | **8.6** | 8.7 | 8.8 |
| Other services supplied<sup>2</sup> | **6.9** | 7.2 | 7.3 |
|  | **18.1** | 18.7 | 18.9 |
| **Total other services**<sup>3</sup> |  |  |  |
| All other fees: |  |  |  |
| Other assurance services<sup>4</sup> | **1.5** | 1.0 | 4.0 |
| Other non-audit services not covered above | **0.1** |  |  |
|  | **1.6** | 1.0 | 4.0 |
| **Total auditor's remuneration** | **19.7** | 19.7 | 22.9 |

---

1. Audit fees in each year represent fees for the audit of the Company's financial statements for the years ended 31 March 2026, 2025

and 2024.

2. Other services supplied represent fees payable for services in relation to other statutory filings or engagements that are required to be

carried out by the auditor. In particular, this includes fees for reports under section 404 of the US Public Company Accounting Reform

and Investor Protection Act of 2002 (Sarbanes-Oxley Act), audit reports on regulatory returns and the review of interim financial

statements for the six-month periods ended 30 September 2025, 2024 and 2023 respectively.

3. There were no tax compliance or tax advisory fees and no audit-related fees as described in Item 16C(b) of Form 20-F.

4. In all years, principally relates to assurance services provided in relation to comfort letters for debt issuances and reporting accountant

services. The years ended 31 March 2026 and 31 March 2025 also includes fees for ESG reporting assurance.

The Audit & Risk Committee considers and makes recommendations to the Board, to be put to

shareholders for approval at each AGM, in relation to the appointment, reappointment, removal and

oversight of the Company's independent auditor. The Committee, under authority granted at the AGM,

also considers and approves the audit fees on behalf of the Board in accordance with the Competition

and Markets Authority Audit Order 2014.

Certain services are prohibited from being performed by the external auditor under the Sarbanes-Oxley

Act and the FRC's 2024 Revised Ethical Standard. Of the above services, none were prohibited.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **154** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**5. Exceptional items and remeasurements**

![](nggtf-20260331_g395.gif)

**To monitor our segmental financial performance, we use an adjusted profit measure that** <br>**excludes exceptional items and remeasurements. We exclude certain income and expenses** <br>**from adjusted profit because, if included, these items could distort understanding of our** <br>**performance for the year and the comparability between periods. This note analyses these** <br>**items, which are included in our results for the year but are excluded from adjusted profit.**<br>

**Exceptional items and remeasurements from continuing operations**

---

| | | | |
|:---|:---|:---|:---|
| | **2026** | 2025 | 2024 |
| | **£m** | £m | £m |
| *Included within operating profit* |  |  |  |
| Exceptional items: |  |  |  |
| Net loss on disposal of NG Renewables | **(96)** |  |  |
| Net gain on the sale of Grain LNG | **489** |  |  |
| Transaction, separation and integration costs<sup>1</sup> | **(17)** | (65) | (44) |
| Changes in environmental provisions | **—** | 146 | (496) |
| Net gain on the sale of the ESO | **—** | 187 |  |
| Provision for UK electricity balancing costs | **—** | 151 | (498) |
| Impairment of joint venture | **—** | (303) |  |
| Major transformation programme | **—** | (74) |  |
| Cost efficiency programme | **—** |  | (65) |
| IFA fire | **—** |  | 92 |
|  | **376** | 42 | (1011) |
| Remeasurements – commodity contract derivatives | **11** | 127 | 24 |
|  | **387** | 169 | (987) |

---

1. Transaction, separation and integration costs represent the aggregate of distinct activities undertaken by the Group in the years presented.

Details of remeasurements, tax exceptional items and the tax effect of exceptional items and

remeasurements are also provided in this note.

---

| | | | |
|:---|:---|:---|:---|
| | **2026** | 2025 | 2024 |
| | **£m** | £m | £m |
| Included within operating profit | **387** | 169 | (987) |
| *Included within finance income and costs* |  |  |  |
| Remeasurements: |  |  |  |
| Net gains on financial assets at fair value through profit and loss | **2** | 1 | 4 |
| Net (losses)/gains on financing derivatives | **(56)** | 3 | 11 |
|  | **(54)** | 4 | 15 |
| *Included within share of post-tax results of joint ventures and* <br>*associates*<br>|  |  |  |
| Remeasurements: |  |  |  |
| Net losses on financial instruments | **—** | (2) | (64) |
| **Total included within profit before tax** | **333** | 171 | (1036) |
| *Included within tax* |  |  |  |
| Tax on exceptional items | **8** | 76 | 159 |
| Tax on remeasurements | **8** | (36) | (7) |
|  | **16** | 40 | 152 |
| **Total exceptional items and remeasurements after tax** | **349** | 211 | (884) |
| *Analysis of total exceptional items and remeasurements after tax* |  |  |  |
| Exceptional items after tax | **384** | 118 | (852) |
| Remeasurements after tax | **(35)** | 93 | (32) |
| **Total exceptional items and remeasurements after tax** | **349** | 211 | (884) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **155** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**5. Exceptional items and remeasurements cont.**

**Exceptional items**

Management uses an exceptional items framework that has been discussed and approved by the Audit

& Risk Committee. This follows a three-step process which considers the nature of the event, the financial

materiality involved and any particular facts and circumstances. In considering the nature of the event,

management focuses on whether the event is within the Group's control and how frequently such an

event typically occurs. With respect to restructuring costs, these represent additional expenses incurred

that are not related to the normal business and day-to-day activities. These can take place over multiple

reporting periods given the scale of the Group, the nature and complexity of the transformation initiatives

and due to the impact of strategic transactions. In determining the facts and circumstances, management

considers factors such as ensuring consistent treatment between favourable and unfavourable

transactions, the precedent for similar items, the number of periods over which costs will be spread or

gains earned, and the commercial context for the particular transaction. The exceptional items framework

was last updated in March 2022.

Items of income or expense that are considered by management for designation as exceptional items

include significant restructurings, write-downs or impairments of non-current assets, significant changes

in environmental or decommissioning provisions, integration of acquired businesses, gains or losses on

disposals of businesses or investments and significant debt redemption costs as a consequence of

transactions such as significant disposals or issues of equity, and the related tax, as well as deferred

tax arising on changes to corporation tax rates. Costs arising from efficiency and transformation

programmes include redundancy costs. Redundancy costs are charged to the consolidated income

statement in the year in which a commitment is made to incur the costs and the main features of the

restructuring plan have been announced to affected employees.

Set out below are details of the transactions against which we have considered the application of our

exceptional items framework in each of the years for which results are presented.

**2026**

Net loss on disposal of NG Renewables

In the year the Group recognised a net loss of £96 million (before tax) on the disposal of its interest in

National Grid Renewables Development LLC (NG Renewables) to Brookfield Asset Management for cash

consideration of £1,531 million ($2,061 million) (see note 10). The receipt of cash has been recognised

within net cash used in investing activities within the consolidated cash flow statement.

Net gain on disposal of Grain LNG

In the year the Group recognised a net gain of £489 million on the disposal of its interest in Grain LNG to

a consortium of multinational energy company, Centrica plc and energy transition infrastructure investment

firm, Energy Capital Partners LLC, part of Bridgepoint Group plc for expected consideration of £1,375 million,

which includes an estimate for an adjustment to the consideration under the Sale and Purchase

Agreement (see note 10). The receipt of cash has been recognised within net cash used in investing

activities within the consolidated cash flow statement.

Transaction, separation and integration costs

In May 2024, we announced the sale of NG Renewables and Grain LNG as part of our strategic focus

on becoming a leading pureplay networks business. Both disposals were completed in the current year,

and the transaction costs were included in gain or loss on disposal (see note 10). Separation costs

of £17 million were incurred in relation to the disposals of NG Renewables and Grain LNG. The costs

incurred primarily related to professional fees and employee costs. These costs have been classified

as exceptional in accordance with our exceptional items policy. While the costs incurred in isolation

are not sufficiently material to warrant classification as an exceptional item, when taken in aggregate

with the respective disposals, the impact to the consolidated income statement incurred over both

years is sufficiently material to be classified as exceptional in line with our policy. The total cash outflow

for the year was £44 million.

Changes in environmental provisions

In the US, we recognise environmental provisions related to the remediation of the Gowanus Canal,

Newtown Creek and the former manufacturing gas plant facilities previously owned or operated by

the Group or its predecessor companies. The sites are subject to both state and federal environmental

remediation laws in the US. Potential liability for the historical contamination may be imposed on

responsible parties jointly and severally, without regard to fault, even if the activities were lawful when

they occurred. The provisions and the Group's share of estimated costs are re-evaluated at each

reporting period. In the year, following discussions with the Environmental Protection Agency on the

scope and design of remediation activities related to the Gowanus and Newtown Creek, we have re-

evaluated our estimates of total costs and recognised a net movement in the associated provision of £nil.

Under the terms of our rate plans, we are entitled to recovery of environmental clean-up costs from rate

payers in future reporting periods. Such recoveries through overall allowed revenues are not classified

as exceptional in the future periods that they occur due to the extended duration over which such costs

are recovered and the immateriality of the recoveries in any given year.

Major transformation programme

Following the appointment of a new Chief Executive Officer in November 2025, strategic priorities were

updated and as a result the transformation programme launched in 2024 has been reshaped. The costs

expected to be incurred in aggregate going forward no longer meet the quantitative threshold to be

classified as exceptional.

**2025**

Changes in environmental provisions

In the prior year, following discussions with the New York State Department of Environmental

Conservation and the Environmental Protection Agency on the scope and design of remediation activities

related to certain of our responsible sites, we re-evaluated our estimates of total costs and recognised a

net decrease of £64 million in relation to our provisions. Under the terms of our rate plans, we are entitled

to recovery of environmental clean-up costs from rate payers in future reporting periods. Such recoveries

through overall allowed revenues are not classified as exceptional in the future periods that they occur due

to the extended duration over which such costs are recovered and the immateriality of the recoveries in

any given year.

In the year ended 31 March 2025, the real discount rate applied to the Group's environmental provisions

was also revised to 2.0% to reflect the substantial and sustained change in US Government bond yield

curves (see note 26). The principal impact of this rate increase was a £82 million decrease in our US

environmental provisions. The weighted average remaining duration of our cash flows was around 10 years.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **156** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**5. Exceptional items and remeasurements cont.**

**Exceptional items cont.**

Net gain on disposal of the ESO

In the year ended 31 March 2025, the Group completed the disposal of the ESO to the UK Government

for consideration of £673 million. As a result, the Group derecognised net assets of £486 million, resulting

in a gain of £187 million. The receipt of cash was recognised within net cash used in investing activities

within the consolidated cash flow statement.

Provision for UK electricity balancing costs

In the year ended 31 March 2024, the ESO's operating profit increased due to a substantial over-recovery

of allowed revenues received under its regulatory framework. Under IFRS a corresponding liability is not

recognised for the return of over-recoveries as this relates to future customers and services that have not

yet been delivered. Following legislation to enable the separation of the ESO and the formation of the

NESO, the Group recognised a liability of £498 million in the year ended 31 March 2024 representing the

element of the over-recovery that was expected to be settled through the sale process. In the prior year,

the liability was remeasured at £347 million to reflect the final amount of over-recovered revenues that

transferred through with the ESO on disposal on 1 October 2024.

Impairment of joint venture

In the prior year, we agreed with our joint venture partner, RWE Renewables, that our investment in

Community Offshore Wind, LLC will pause project development for the time being. The Group determined

that the investment has negligible value and an impairment of £303 million was recognised (see note 16).

Transaction, separation and integration costs

In the year ended 31 March 2025, transaction and separation costs of £26 million were incurred in

relation to the planned disposal of NG Renewables and £8 million in relation to the planned disposal of

Grain LNG. The costs incurred primarily related to professional fees and employee costs. In remeasuring

the NG Renewables disposal group to fair value less costs to sell in accordance with IFRS 5, the Group

also recognised a £31 million impairment loss. These costs were classified as exceptional in accordance

with our exceptional items policy. While the costs incurred in isolation were not sufficiently material to

warrant classification as an exceptional item, when taken in aggregate with the respective disposals, the

impact to the consolidated income statement incurred over both years would be sufficiently material to be

classified as exceptional in line with our policy. The total cash outflow for the year was £6 million.

Major transformation programme

Following the announcement of our strategic priorities in May 2024, the Group entered into a new

four-year transformation programme designed to implement our refreshed strategy to be a pre-eminent

pureplay networks business. In the prior year, the Group incurred £74 million of costs in relation to the

programme. The costs recognised primarily related to technology implementation costs, employee

costs and professional fees incurred in delivering the programme. While the costs incurred since the

commencement of the programme did not meet the quantitative threshold to be classified as exceptional

on a standalone basis, when taken in aggregate with the costs expected to be incurred over the duration

of the programme, we concluded that the costs should be classified as exceptional in line with our

exceptional items policy. The total cash outflow for the period was £62 million.

**2024**

Provision for UK electricity balancing costs

As described above, during the year ended 31 March 2024 the ESO's operating profit increased due

to a substantial over-recovery of allowed revenues received under its regulatory framework. The Group

recognised a liability for the over-recovered revenues which were forecasted to transfer through the

sales process.

Changes in environmental provisions

In the year ended 31 March 2024, following discussions with the New York State Department of

Environmental Conservation and the Environmental Protection Agency on the scope and design of

remediation activities related to certain of our responsible sites, we re-evaluated our estimates of total

costs and increased our US environmental provision by £496 million. Under the terms of our rate plans,

we are entitled to recovery of environmental clean-up costs from rate payers in future reporting periods.

Transaction, separation and integration costs

Separation costs of £11 million were incurred in relation to the disposal of NECO, £6 million in relation

to the disposal of the UK Gas Transmission business and £27 million in connection with the integration

of NGED. The costs incurred primarily related to professional fees, relocation costs and employee costs.

The costs were classified as exceptional in accordance with our exceptional items policy. While the

transaction, separation and integration costs incurred during the year did not meet the quantitative

threshold to be classified as exceptional on a standalone basis, when taken in aggregate with the

£340 million of costs in previous periods, the costs qualified for exceptional treatment in line with our

exceptional items policy. The total cash outflow for the period was £33 million. The Group is entitled

to cost recovery in relation to the separation of the ESO. Accordingly, these costs were not classified

as exceptional.

Cost efficiency programme

During the year ended 31 March 2024, the Group incurred £65 million of costs in relation to the major

cost efficiency programme announced in November 2021, that targeted at least £400 million savings

per annum across the Group by the end of three years. The costs recognised in the period primarily

related to redundancy provisions, employee costs and professional fees incurred in delivering the

programme. While the costs incurred during the year did not meet the quantitative threshold to be

classified as exceptional on a standalone basis, when taken in aggregate with the £142 million of costs

incurred since the announcement of the programme, the costs qualified for exceptional treatment in line

with our exceptional items policy. The total cash outflow for the year was £53 million. The cost efficiency

programme completed in the year ended 31 March 2024.

Fire at IFA converter station

In September 2021, a fire at the IFA1 converter station in Sellindge, Kent caused significant damage to

infrastructure on site. In the period, the Group recognised net insurance claims of £92 million, which were

recognised as exceptional in line with our exceptional items policy and consistent with related claims in the

preceding year. The total cash inflow in the period in relation to the insurance proceeds was £92 million.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **157** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**5. Exceptional items and remeasurements cont.**

**Remeasurements**

Remeasurements comprise unrealised gains or losses recorded in the consolidated income statement

arising from changes in the fair value of certain of our financial assets and liabilities accounted for at fair

value through profit and loss (FVTPL). Once the fair value movements are realised (for example, when

the derivative matures), the previously recognised fair value movements are then reversed through

remeasurements and recognised within earnings before exceptional items and remeasurements. These

assets and liabilities include commodity contract derivatives and financing derivatives to the extent that

hedge accounting is not available or is not fully effective.

The unrealised gains or losses reported in profit and loss on certain additional assets and liabilities treated

at FVTPL are also classified within remeasurements. These relate to financial assets (which fail the 'solely

payments of principal and interest test' under IFRS 9), the money market fund investments used by Group

Treasury for cash management purposes and the net foreign exchange gains and losses on borrowing

activities. These are offset by foreign exchange gains and losses on financing derivatives measured at fair

value. In all cases, these fair values increase or decrease because of changes in foreign exchange,

commodity or other financial indices over which we have no control.

We report unrealised gains or losses relating to certain discrete classes of financial assets accounted

for at FVTPL within adjusted profit. These comprise our portfolio of investments made by National Grid

Partners and our investment in Sunrun Neptune 2016 LLC (both within NGV). The performance of these

assets (including changes in fair value) is included in our assessment of adjusted profit for the relevant

business units.

Remeasurements excluded from adjusted profit are made up of the following categories:

i.Net gains/(losses) on commodity contract derivatives represent mark-to-market movements on certain

physical and financial commodity contract obligations in the US and UK. These contracts primarily

relate to the forward purchase of energy for supply to customers, or to the economic hedging thereof,

that are required to be measured at fair value and that do not qualify for hedge accounting. Under the

existing rate plans in the US, commodity costs are recoverable from customers although the timing of

recovery may differ from the pattern of costs incurred;

ii.Net gains/(losses) on financing derivatives comprise gains and losses arising on derivative financial

instruments, net of interest accrued, used for the risk management of interest rate and foreign

exchange exposures and the offsetting foreign exchange losses and gains on the associated borrowing

activities. These exclude gains and losses for which hedge accounting has been effective and have

been recognised directly in the consolidated statement of other comprehensive income or are offset

by adjustments to the carrying value of debt (see notes 17 and 32). Net foreign exchange gains and

losses on financing derivatives used for the risk management of foreign exchange exposures are offset

by foreign exchange losses and gains on borrowing activities; and

iii.Net gains/(losses) on financial assets measured at FVTPL comprise gains and losses on the investment

funds held by our insurance captives which are categorised as FVTPL (see note 15).

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **158** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**6. Finance income and costs**

**This note details the interest income generated by our financial assets and interest expense incurred on our financial liabilities, primarily our financing portfolio (including our financing** <br>**derivatives). It also includes the net interest on our pensions and other post-retirement assets.**<br>

![](nggtf-20260331_g396.gif)

Finance income and costs remeasurements include unrealised gains and losses on certain assets and liabilities treated at FVTPL. The effective interest income and interest expense and dividends on these items

are included in finance income and finance costs before remeasurements respectively.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2026** | 2025 | 2024 |
|  | Notes | **£m** | £m | £m |
| *Finance income* |  |  |  |  |
| Net interest income on pensions and other post-retirement benefit obligations | 25 | **114** | 98 | 100 |
| Interest income on financial instruments: |  |  |  |  |
| Bank deposits and other financial assets |  | **263** | 341 | 139 |
| Dividends received on equities held at fair value through other comprehensive income (FVOCI) |  | **—** | 1 | 1 |
| Net gains on FVTPL financial assets |  | **2** | 1 | 4 |
| Other income |  | **1** | 9 | 4 |
| **Finance income** |  | **380** | 450 | 248 |
| *Finance costs* |  |  |  |  |
| Interest expense on financial liabilities held at amortised cost: |  |  |  |  |
| Bank loans and overdrafts |  | **(115)** | (110) | (140) |
| Other borrowings<sup>1</sup> |  | **(1591)** | (1553) | (1424) |
| Interest on derivatives |  | **(229)** | (285) | (277) |
| Unwinding of discount on provisions and other payables |  | **(123)** | (130) | (102) |
| Other interest |  | **(15)** | (26) | (31) |
| Derivatives designated as hedges for hedge accounting² |  | **(24)** | 4 | 13 |
| Derivatives not designated as hedges for hedge accounting² |  | **(32)** | (1) | (2) |
| Less: interest capitalised³ |  | **424** | 294 | 251 |
| **Finance costs**<sup>4</sup> |  | **(1705)** | (1807) | (1712) |
| **Net finance costs from continuing operations** |  | **(1325)** | (1357) | (1464) |

---

1. Includes interest expense on lease liabilities (see note 13 for details).

2. Includes a net foreign exchange loss on borrowing and investment activities of £711 million (2025: £241 million gain; 2024: £271 million gain) offset by foreign exchange gains and losses on financing derivatives measured at fair value and the impacts of hedge accounting.

3. Interest on funding attributable to assets in the course of construction in the current year was capitalised at a rate of 4.4% (2025: 4.3%; 2024: 4.7%). In the UK, capitalised interest qualifies for a current year tax deduction with tax relief claimed of £65 million (2025: £39 million;

2024: £39 million). In the US, capitalised interest is added to the cost of property, plant and equipment, and qualifies for tax depreciation allowances.

4. Finance costs include principal accretion on inflation-linked liabilities of £168 million (2025: £152 million; 2024: £208 million).

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **159** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**7. Tax**

![](nggtf-20260331_g397.gif)

**Tax is payable in the territories where we operate, mainly the UK and the US. This note** <br>**gives further details of the total tax charge and tax liabilities, including current and deferred** <br>**tax. Current tax charge is the tax payable on this year's taxable profits. Deferred tax is an** <br>**accounting adjustment to provide for tax that is expected to arise in the future due to** <br>**differences in the accounting and tax bases.**<br>

The tax charge for the period is recognised in the income statement, the statement of comprehensive

income or directly in the statement of changes in equity, according to the accounting treatment of the

related transaction. The tax charge comprises both current and deferred tax.

Current tax assets and liabilities are measured at the amounts expected to be recovered from or paid

to the tax authorities. The tax rates and tax laws used to compute the amounts are those that have been

enacted or substantively enacted by the reporting date.

The Group operates internationally in territories with different and complex tax codes. Management

exercises judgement in relation to the level of provision required for uncertain tax outcomes. Where there

are tax positions not yet agreed with the tax authorities, different interpretations of legislation could lead to

a range of outcomes. Judgements are made for each position having regard to particular circumstances

and advice obtained.

Deferred tax is provided for, using the balance sheet liability method and is recognised on temporary

differences between the carrying amount of assets and liabilities in the financial statements and the

corresponding tax bases.

Deferred tax liabilities are generally recognised on all taxable temporary differences and deferred tax

assets are recognised to the extent that it is probable that taxable profits will be available against which

deductible temporary differences can be utilised. However, deferred tax assets and liabilities are not

recognised if the temporary differences arise from the initial recognition of goodwill or from the initial

recognition of other assets and liabilities in a transaction (other than a business combination) that

affects neither the accounting nor the taxable profit or loss.

Deferred tax liabilities are recognised on taxable temporary differences arising on investments in

subsidiaries and joint arrangements except where the Company is able to control the reversal of

the temporary difference and it is probable that the temporary difference will not reverse in the

foreseeable future.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability

is settled or the asset is realised, based on the tax rates and tax laws that have been enacted or

substantively enacted by the reporting date.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent

that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred

tax asset to be recovered. Unrecognised deferred tax assets are reassessed at each reporting date and

are recognised to the extent that it has become probable that future taxable profits will allow the deferred

tax asset to be recovered.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax

assets against current tax liabilities and when they relate to income taxes levied by the same tax authority,

and the Company and its subsidiaries intend to settle their current tax assets and liabilities on a net basis.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **160** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**7. Tax cont.**

The tax charge for the year can be analysed as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| *Current tax:* |  |  |  |
| UK corporation tax at 25% (2025: 25%; 2024: 25%) | **9** | 66 | 410 |
| UK corporation tax adjustment in respect of prior years | **(4)** | (36) | (36) |
|  | **5** | 30 | 374 |
| Overseas corporation tax | **9** | 47 | 82 |
| Overseas corporation tax adjustment in respect of prior years | **(168)** | (39) | (90) |
|  | **(159)** | 8 | (8) |
| **Total current tax from continuing operations** | **(154)** | 38 | 366 |
| *Deferred tax:* |  |  |  |
| UK deferred tax | **642** | 524 | 388 |
| UK deferred tax adjustment in respect of prior years | **(7)** | 25 | 43 |
|  | **635** | 549 | 431 |
| Overseas deferred tax | **289** | 195 | (40) |
| Overseas deferred tax adjustment in respect of prior years | **169** | 39 | 74 |
|  | **458** | 234 | 34 |
| **Total deferred tax from continuing operations** | **1093** | 783 | 465 |
| **Total tax charge from continuing operations** | **939** | 821 | 831 |

---

**Tax charged/(credited) to the consolidated statement of comprehensive income and equity**

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| *Current tax:* |  |  |  |
| Share-based payments | **(1)** | (1) | (2) |
| *Deferred tax:* |  |  |  |
| Investments at fair value through other comprehensive income | **—** |  | 1 |
| Cash flow hedges, cost of hedging and own credit reserve | **(16)** | 36 | 56 |
| Remeasurements of pension assets and post-retirement <br>benefit obligations<br>| **39** | (23) | (50) |
| Share-based payments | **(9)** | 2 |  |
|  | **13** | 14 | 5 |
| Total tax recognised in the statements of comprehensive income <br>from continuing operations<br>| **23** | 13 | 7 |
| Total tax relating to share-based payments recognised directly <br>in equity from continuing operations<br>| **(10)** | 1 | (2) |
|  | **13** | 14 | 5 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **161** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**7. Tax cont.**

The tax charge for the year for continuing operations, is lower (2025: lower tax charge; 2024: higher tax charge) than at the standard rate of corporation tax in the UK of 25% (2025: 25%; 2024: 25%):

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| **Profit before tax from continuing operations** | **4182** | 3650 | 3048 |
| Profit before tax from continuing operations multiplied by UK corporation tax rate of 25% (2025: 25%; 2024: 25%) | **1046** | 913 | 762 |
| Effect of: |  |  |  |
| Adjustments in respect of prior years<sup>1</sup> | **(10)** | (11) | (9) |
| Expenses not deductible for tax purposes | **58** | 40 | 155 |
| Non-taxable income<sup>2</sup> | **(150)** | (107) | (43) |
| Adjustment in respect of foreign tax rates | **14** | 4 | (20) |
| Deferred tax impact of change in UK tax rate | **—** |  |  |
| Adjustment in respect of post-tax profits of joint ventures and associates included within profit before tax | **(19)** | (18) | (9) |
| Other<sup>3</sup> | **—** |  | (5) |
| **Total tax charge from continuing operations** | **939** | 821 | 831 |
|  | **%** | % | % |
| **Effective tax rate – continuing operations** | **22.5** | 22.5 | 27.3 |

---

1. The prior year adjustments are primarily due to agreement of prior period tax returns.

2. Includes tax on chargeable disposals after the offset of capital losses. The gains on disposal of Grain LNG in the current year and the ESO in the prior year were both subject to the Substantial Shareholding Exemption.

3. Other primarily comprises the movement in the deferred tax asset on previously unrecognised capital losses, claims for land remediation relief and claims for Research & Development credit.

**Factors that may affect future tax charges**

The main UK corporation tax rate is 25% and deferred tax balances as at 31 March 2026 have been calculated at 25%.

There are currently no legislative federal tax proposals being considered in the US that would impact National Grid. Therefore, the income tax balances as of 31 March 2026 have been calculated at the prevailing

tax rates based on the current tax laws.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **162** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

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**7. Tax cont.**

**Tax included within the statement of financial position**

The following are the major deferred tax assets and liabilities recognised, and the movements thereon,

during the current and prior reporting periods:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Regulatory <br>licences<br>£m<br>| Accelerated<br>tax<br>depreciation <br>£m<br>| Share-<br>based <br>payments <br>£m<br>| Pensions <br>and other <br>post-<br>retirement <br>benefits <br>£m<br>| Financial <br>instruments <br>£m<br>| Other net <br>temporary <br>differences<sup>1</sup><br>£m<br>| Total <br>£m<br>|
| *Deferred tax liabilities/*<br>*(assets)*<br>|  |  |  |  |  |  |  |
| At 1 April 2024 | 429 | 8816 | (25) | 461 | (275) | (1887) | 7519 |
| Exchange adjustments <br>and other<sup>2</sup><br>|  | (147) |  | (5) |  | 57 | (95) |
| Charged/(credited) to <br>income statement<br>|  | 925 | (3) | 58 | 62 | (256) | 786 |
| (Credited)/charged to <br>other comprehensive <br>income and equity<br>|  |  | 2 | (23) | 38 |  | 17 |
| Disposals |  | (60) |  |  |  | (5) | (65) |
| Reclassification to held <br>for sale (note 10)<br>|  | (122) |  |  |  | (2) | (124) |
| At 1 April 2025 | 429 | 9412 | (26) | 491 | (175) | (2093) | 8038 |
| Exchange adjustments <br>and other<sup>2</sup><br>|  | (144) |  | (4) |  | 51 | (97) |
| Charged/(credited) to <br>income statement<br>|  | 1158 | (5) | 6 | 24 | (88) | 1095 |
| (Credited)/charged to <br>other comprehensive <br>income and equity<br>|  |  | (9) | 39 | (14) |  | 16 |
| Disposals |  | (12) |  |  |  |  | (12) |
| **At 31 March 2026** | **429** | **10414** | **(40)** | **532** | **(165)** | **(2130)** | **9040** |

---

1. The deferred tax asset of £2,130 million as at 31 March 2026 (2025: £2,093 million) in respect of other net temporary differences relates

to losses of £456 million (2025: £298 million), US contract and lease liabilities of £632 million (2025: £603 million), US environmental

provisions of £558 million (2025: £575 million), US bad debt provision of £161 million (2025: £155 million) and other short-term temporary

differences of £323 million (2025: £462 million).

2. Exchange adjustments and other primarily comprises foreign exchange arising on translation of the US dollar deferred tax balances.

Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and

there is an intention to settle the balances net. The deferred tax balances (after offset) for statement of

financial position purposes consist solely of deferred tax liabilities of £9,040 million (2025: £8,038 million).

Deferred tax assets in respect of some capital losses as well as trading losses and non-trade deficits have

not been recognised as their future recovery is uncertain or not currently anticipated. The total deferred

tax assets not recognised are as follows:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Capital losses | **2482** | 2484 |
| Trading losses | **9** | 9 |

---

The capital losses arose in the UK on disposal of certain businesses or assets. They are available to carry

forward indefinitely but can only be offset against future capital gains.

At 31 March 2026 and 31 March 2025, there were no recognised deferred tax liabilities for taxes that

would be payable on the unremitted earnings of the Group's subsidiaries or its associates as there are

no significant corporation tax consequences of the Group's UK, US or overseas subsidiaries or associates

paying dividends to their parent companies. There are also no significant income tax consequences for

the Group from the payment of dividends by the Group to its shareholders.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **163** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**8. Earnings per share (EPS)**

![](nggtf-20260331_g398.gif)

**EPS is the amount of profit after tax attributable to each ordinary share. Basic EPS is** <br>**calculated as profit after tax for the year attributable to equity shareholders divided by the** <br>**weighted average number of shares in issue during the year. Diluted EPS shows what the** <br>**impact would be if all outstanding share options were exercised and treated as ordinary** <br>**shares at year end. The weighted average number of shares is increased by additional** <br>**shares issued as scrip dividends and reduced by shares repurchased by the Company** <br>**during the year. The earnings per share calculations are based on profit after tax attributable** <br>**to equity shareholders of the Company which excludes non-controlling interests.**<br>

**(a) Basic EPS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Earnings** | **EPS** | Earnings | EPS | Earnings | EPS |
|  | **2026** | **2026** | 2025 | 2025 | 2024 | 2024 |
|  | **£m** | **pence** | £m | pence | £m | pence |
| **Earnings from continuing** <br>**operations**<br>| **3241** | **65.5** | 2826 | 60.0 | 2216 | 55.5 |
| **Earnings from discontinued** <br>**operations**<br>| **—** | **—** | 76 | 1.6 | 74 | 1.9 |
| **Total earnings** | **3241** | **65.5** | 2902 | 61.6 | 2290 | 57.4 |
|  |  | **2026** |  | 2025 |  | 2024 |
|  |  | **millions** |  | millions |  | millions |
| Weighted average number <br>of ordinary shares – basic<br>|  | **4946** |  | 4707 |  | 3991 |

---

**(b) Diluted EPS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Earnings** | **EPS** | Earnings | EPS | Earnings | EPS |
|  | **2026** | **2026** | 2025 | 2025 | 2024 | 2024 |
|  | **£m** | **pence** | £m | pence | £m | pence |
| **Earnings from continuing** <br>**operations**<br>| **3241** | **65.2** | 2826 | 59.8 | 2216 | 55.3 |
| **Earnings from discontinued** <br>**operations**<br>| **—** | **—** | 76 | 1.6 | 74 | 1.8 |
| **Total earnings** | **3241** | **65.2** | 2902 | 61.4 | 2290 | 57.1 |
|  |  | **2026** |  | 2025 |  | 2024 |
|  |  | **millions** |  | millions |  | millions |
| Weighted average number <br>of ordinary shares – diluted<br>|  | **4971** |  | 4729 |  | 4008 |

---

**(c) Reconciliation of basic to diluted average number of shares**

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **millions** | millions | millions |
| Weighted average number of ordinary shares – basic | **4946** | 4707 | 3991 |
| Effect of dilutive potential ordinary shares – employee share plans | **25** | 22 | 17 |
| Weighted average number of ordinary shares – diluted | **4971** | 4729 | 4008 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **164** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**9. Dividends**

Interim dividends are recognised when they become payable to the Company's shareholders. Final

dividends are recognised when they are approved by shareholders.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
|  | **Pence** <br>**per** <br>**share**<br>| **Cash** <br>**dividend** <br>**£m**<br>| **Scrip** <br>**dividend**<br>**£m**<br>| Pence <br>per share<br>| Cash <br>dividend <br>£m<br>| Scrip <br>dividend<br>£m<br>| Pence <br>per share<br>| Cash <br>dividend <br>£m<br>| Scrip <br>dividend<br>£m<br>|
| Final dividend <br>in respect of the <br>prior year<br>| **30.88** | **894** | **617** | 39.12 | 811 | 643 | 37.60 | 1325 | 56 |
| Interim dividend <br>in respect of the <br>current year<br>| **16.35** | **729** | **80** | 15.84 | 718 | 59 | 19.40 | 393 | 320 |
|  | **47.23** | **1623** | **697** | 54.96 | 1529 | 702 | 57.00 | 1718 | 376 |

---

The Directors are proposing a final dividend for the year ended 31 March 2026 of 32.14p per share

that would absorb approximately £1,598 million of shareholders' equity (assuming all amounts are

settled in cash). It will be paid on 23 July 2026 to shareholders who are on the register of members

at 29 May 2026 (subject to shareholders' approval at the AGM). A scrip dividend will be offered as

an alternative.

**10. Assets held for sale and discontinued operations**

![](nggtf-20260331_g399.gif)

**The results and cash flows of significant assets or businesses sold during the year** <br>**are shown separately from our continuing operations and presented within discontinued** <br>**operations in the income statement and cash flow statement. Assets and businesses** <br>**are classified as held for sale when their carrying amounts are expected to be recovered** <br>**through sale rather than through continuing use. They only meet the held for sale condition** <br>**when the assets are ready for immediate sale in their present condition, management is** <br>**committed to the sale and it is highly probable that the sale will complete within one year.** <br>**Depreciation ceases on assets and businesses when they are classified as held for sale** <br>**and the assets and businesses are impaired if the proceeds less sale costs fall short** <br>**of the carrying value.**<br>

**National Grid Renewables** 

On 24 February 2025, the Group agreed to sell NG Renewables, its US onshore renewables business,

to Brookfield Asset Management. The disposal subsequently completed on 29 May 2025 for consideration

of £1,531 million ($2,061 million). As NG Renewables did not represent a separate major line of business

or geographical operation, it did not meet the criteria for classification as discontinued operations and

therefore the results for the period until disposal are not separately disclosed on the face of the

income statement.

Financial information relating to the loss arising on the disposal of NG Renewables is set out below:

---

| | |
|:---|:---|
|  | **£m** |
| Goodwill | 51 |
| Property, plant and equipment | 438 |
| Investment in joint venture | 906 |
| Trade and other receivables | 141 |
| Cash and cash equivalents | 58 |
| Financial investments | 41 |
| Other assets | 66 |
| *Total assets on disposal* | **1701** |
| Borrowings | (2) |
| Other liabilities | (159) |
| *Total liabilities on disposal* | **(161)** |
| **Net assets on disposal** | **1540** |
| Satisfied by: |  |
| Proceeds | 1531 |
| **Total consideration** | **1531** |
| Less: |  |
| Disposal-related costs | (11) |
| **Loss on disposal before tax and reclassification of foreign currency** <br>**translation reserve**<br>| **(20)** |
| Reclassification of foreign currency translation reserve¹ | (76) |
| Tax | 5 |
| **Post-tax loss on disposal** | **(91)** |

---

1. The reclassification of the foreign currency translation reserve attributable to NG Renewables comprises a loss of £84 million relating to

the retranslation of NG Renewables' operations offset by a gain of £8 million relating to borrowings, cross-currency swaps and foreign

exchange forward contracts used to hedge the Group's net investment in NG Renewables.

NG Renewables generated a loss after tax of £14 million for the period until 29 May 2025 (2025: £60 million

loss; 2024: £65 million loss).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **165** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**10. Assets held for sale and discontinued operations cont.**

**Grain LNG** 

On 14 August 2025, the Group agreed to sell Grain LNG, its UK LNG asset, to a consortium of

multinational energy companies, Centrica plc and energy transition infrastructure investment firm,

Energy Capital Partners LLC, part of Bridgepoint Group plc. The disposal subsequently completed on

28 November 2025. As Grain LNG did not represent a separate major line of business or geographical

operation, it did not meet the criteria for classification as discontinued operations and therefore the

results for the period until disposal are not separately disclosed on the face of the income statement.

The Group has recognised a £124 million liability as an adjustment to the consideration under the Sale

and Purchase Agreement for post closing capital project obligations based on management's best estimate

of the expected outflow. Given the inherent complexity of the project, and the number of parties involved,

the Group has considered a range of potential outcomes, including the risk that costs could exceed our

estimates. The Group has concluded the risk of a materially adverse impact to our operations, cash flows

or financial position is remote.

Financial information relating to the gain arising on the disposal of Grain LNG is set out below:

---

| | |
|:---|:---|
|  | **£m** |
| Other intangible assets | 27 |
| Property, plant and equipment | 962 |
| Trade and other receivables | 27 |
| Cash and cash equivalents | 163 |
| Other assets | 20 |
| *Total assets on disposal* | **1199** |
| Borrowings | (135) |
| Other liabilities | (196) |
| *Total liabilities on disposal* | (331) |
| **Net assets on disposal** | **868** |
| Satisfied by: |  |
| Proceeds | 1375 |
| **Total consideration** | **1375** |
| Less: |  |
| Disposal-related costs | (18) |
| **Gain on disposal** | **489** |

---

Grain LNG generated a profit after tax of £89 million for the period until 28 November 2025 (2025:

£120 million; 2024: £114 million).

**The UK Gas Transmission business** 

In July 2024, the Group sold its remaining 20% equity interest in the UK Gas Transmission business

(held through its holding in GasT TopCo Limited). This interest had been classified as held for sale from

31 January 2023 until the date of disposal, as detailed in the Annual Report and Accounts for the year

ended 31 March 2025. The total sales proceeds were £686 million and the gain on disposal, after

transaction costs, was £25 million.

The disposal of the Group's remaining interest in GasT TopCo Limited was the final stage of the plan to

dispose of the UK Gas Transmission business first announced in 2021. As a result, the gain on disposal

and any remeasurements pertaining to the financial derivatives noted above are shown separately from

the continuing business for all periods presented on the face of the income statement as a discontinued

operation. This is also reflected in the statement of comprehensive income, as well as earnings per share

(EPS) being shown split between continuing and discontinued operations.

The summary income statements for the years ended 31 March 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | £m | £m |
| *Operating profit* |  |  |
| Finance income | 5 | 17 |
| Finance costs<sup>1</sup> | 47 | 62 |
| *Profit before tax* | 52 | 79 |
| Tax | (1) | (1) |
| *Profit after tax from discontinued operations* | 51 | 78 |
| Gain/(loss) on disposal | 25 | (4) |
| **Total profit after tax from discontinued operations** | 76 | 74 |

---

1. Finance costs included the remeasurement of the Further Acquisition Agreement option and the Remaining Acquisition Agreement, as

detailed in the Annual Report and Accounts for the year ended 31 March 2025.

The summary statements of comprehensive income for the years ended 31 March 2025 and 2024 are

as follows:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | £m | £m |
| **Profit after tax from discontinued operations** | 76 | 74 |
| *Other comprehensive (loss)/income from discontinued operations* |  |  |
| Items from discontinued operations that may be reclassified subsequently to <br>profit or loss:<br>|  |  |
| Net (losses)/gains on investments in debt instruments measured at fair value <br>through other comprehensive income<br>| (13) | 13 |
| Tax on items that may be reclassified subsequently to profit or loss | 3 | (3) |
| **Total (losses)/gains from discontinued operations that may be** <br>**reclassified subsequently to profit or loss**<br>| (10) | 10 |
| **Other comprehensive (loss)/income for the year, net of tax from** <br>**discontinued operations**<br>| (10) | 10 |
| **Total comprehensive income for the year from discontinued** <br>**operations**<br>| 66 | 84 |

---

Details of the cash flows relating to discontinued operations are set out within the consolidated cash

flow statement.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **166** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**11. Goodwill**

![](nggtf-20260331_g400.gif)

**Goodwill represents the excess of what we paid to acquire businesses over the fair value** <br>**of their net assets at the acquisition date. We assess whether goodwill is recoverable by** <br>**performing an impairment review annually or more frequently if events or changes in** <br>**circumstances indicate a potential impairment.**<br>

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and

liabilities of the foreign entity and translated at the closing exchange rate. Goodwill is allocated to CGUs,

or groups of CGUs, and this allocation is made to those CGUs that are expected to benefit from the

acquisition in which the goodwill arose.

Impairment is recognised where there is a difference between the carrying value of the CGU and the

estimated recoverable amount of the CGU to which that goodwill has been allocated. Any impairment

is recognised immediately in the income statement and is not subsequently reversed. Any impairment

loss is first allocated to the carrying value of the goodwill and then to the other assets within the CGU.

Recoverable amount is defined as the higher of fair value less costs to sell and estimated value-in-use

at the date the impairment review is undertaken. Value-in-use represents the present value of expected

future cash flows, discounted using a pre-tax discount rate that reflects current market assessments

of the time value of money and the risks specific to the asset for which the estimates of future cash

flows have not been adjusted.

---

| | |
|:---|:---|
|  | Total<br>£m<br>|
| Net book value at 1 April 2024 | 9729 |
| Exchange adjustments | (117) |
| Reclassification to held for sale (note 10) | (80) |
| Net book value at 1 April 2025 | 9532 |
| Exchange adjustments | (115) |
| **Net book value at 31 March 2026** | **9417** |

---

There was no significant accumulated impairment charge as at 31 March 2026 or 31 March 2025.

**Impairment review of goodwill and indefinite-lived intangibles**

Goodwill and indefinite-lived intangibles (see note 12) are reviewed annually for impairment and the

recoverability is assessed by comparing the carrying amount of our operations with the expected

recoverable amount on a value-in-use basis which uses pre-financing and pre-tax cash flow projections

based on the Group's financial plans, approved by the Directors. See below for a summary of which

operations our goodwill and indefinite-lived intangibles are allocated to.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
| **CGU or group of CGUs** | **£m** | £m |
| **Goodwill:** |  |  |
| National Grid Ventures – US | **97** | **100** |
| New England | **1471** | **1506** |
| New York | **3128** | **3205** |
| UK Electricity Distribution<sup>1</sup> | **4721** | **4721** |
| **Total goodwill** | **9417** | **9532** |
| Indefinite-lived intangibles (regulatory licences related <br>to UK Electricity Distribution):<br>|  |  |
| West Midlands | **518** | **518** |
| East Midlands | **519** | **519** |
| South Wales | **257** | **257** |
| South West | **420** | **420** |
| **Total indefinite-lived intangibles** | **1714** | **1714** |

---

1. This is a combination of the West Midlands, East Midlands, South Wales and South West CGUs, reflecting the level at which the goodwill

is monitored.

In each assessment, the value-in-use has been calculated assuming a stable regulatory framework and

is based on projections that incorporate our best estimates of future cash flows, including costs, changes

in commodity prices, future rates and growth. Such projections reflect our current regulatory agreements

and allow for future agreements and recovery of investment, including those related to achieving the net

zero plans of the jurisdictions that we operate in. Our plans have proved to be reliable guides in the past

and the Directors believe the estimates are appropriate.

**(a) Cash flow periods, terminal value and discount rate assumptions**

We select cash flow durations longer than five years, when our forecasts are considered reliable. The cash

flow durations selected reflect our knowledge and understanding of the regulatory environments in which

we operate, and most significantly, where markets have legislated decarbonisation commitments by 2050,

we may utilise longer cash flow forecasts that reflect the investment required to deliver those commitments

before applying a terminal value at the point those commitments are due to be fulfilled and market growth

is expected to stabilise. For our regulated UK ED operations, we consider cash flow durations that run

until 2050, reflecting the expected investment required in the network, in excess of economy-wide

long-term growth rates in order to deliver the energy transition. Total expenditure forecasts, comprising

capital and operating expenditure, are estimated with reference to the Group's strategic modelling and

expectations around a reasonable energy transition based upon the policies and commitments in place

today. Cash flows related to uncommitted future restructurings and enhancement capital expenditure

(beyond activity to reinforce the network and build new connections) are excluded from the projections.

For our regulated US operations (New York and New England CGUs), we use a five-year cash flow

forecast. For our National Grid Ventures operations, we typically model cash flows extending out to

the end of each project's operational life based on the long-term horizon of our projects.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **167** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**11. Goodwill cont.**

**(a) Cash flow periods, terminal value and discount rate assumptions cont.**

For our UK ED business, a nominal terminal growth rate of 1.6% (2025: 1.8%) is assumed upon

the terminal year cash flows, reflecting management's best view, based on market and operational

experience, of the expected long-term growth in the relevant market. For our regulated US operations

we apply a growth rate of 2.4% (2025: 2.3%). This has been determined with regard to data on industry

growth projections, specifically related to the energy transition, and projected growth in real Gross

Domestic Product (GDP) for the territory within which the CGU is based.

Pre-tax cash flows are discounted by applying a pre-tax discount rate reflecting the time value of money

and the risks specific to the group of assets. In practice, the post-tax discount rate for the group of

assets in question is derived from a post-tax weighted average cost of capital. The assumptions used

in the calculation of the weighted average cost of capital are benchmarked to externally available data.

The determined discount rate is independent of the entity's capital structure and reflects a market

participant's view of a risk adjusted discount rate specific to the CGU or group of CGUs. The post-tax

discount rate is then grossed up to a pre-tax discount rate that is applied to pre-tax cash flows. The

pre-tax discount rates used for the year ended 31 March 2026 were as follows: UK ED Group 5.2%

(2025: 5.4%); UK ED distribution network operators 5.2% (2025: 5.3%); New York 5.1% (2025: 6.3%);

New England 5.0% (2025: 6.2%); and National Grid Ventures – US 5.3% (2025: 6.7%).

**(b) Key inputs and sensitivity analysis**

In assessing the carrying value of goodwill and licences, we have sensitised our forecasts to factor

in adjustments to key inputs to each model. While regulatory licences are tested for impairment before

we test goodwill, we consider the sensitivity for goodwill attributable to UK ED and our regulated

US operations and those related to licences separately below.

Goodwill – UK ED, regulated US operations (New York and New England) and National Grid

Ventures – US

While key assumptions underpinning the goodwill valuations will change over time, the Directors

consider that no reasonably foreseeable change would result in an impairment of goodwill. This is in

view of the long-term nature of the key assumptions, including those used in determining an appropriate

discount rate, and specifically the risk-free rate and total market return, the margin by which the estimated

value-in-use exceeds the carrying amount and the nature of the regulatory regimes that UK ED and our

regulated US businesses operate under.

Indefinite-lived regulatory licences – UK ED

No reasonably possible changes to inputs to the impairment test performed over the South West,

East Midlands, West Midlands and South Wales Distribution Network Operator licences were identified

as resulting in an impairment.

![](nggtf-20260331_g401.gif)

**12. Other intangible assets**

**Other intangible assets are the software assets controlled by us and the electricity** <br>**distribution licences which provide us with the right to operate and invest in the relevant** <br>**network that operates as a monopoly in the licensed geographical area. The regulatory** <br>**licences were acquired following the Group's acquisition of NGED.**<br>

Our electricity distribution licences are indefinite-lived intangible assets for which there is no foreseeable

limit to the period over which they are expected to generate net cash inflows. Once granted by Ofgem,

the licence is issued to a licensee on the basis that it remains active into perpetuity. On that basis, the

value attributed to the electricity distribution network licence assets is considered to have an indefinite

useful life. The regulatory licence assets are subject to a review for impairment annually, or more

frequently if events or circumstances indicate a potential impairment (see note 11 for details of

impairment tests performed over indefinite-lived intangible assets). Any impairment is charged to

the income statement as it arises.

Software is recorded at cost less accumulated amortisation and any provision for impairment. Our

software assets are tested for impairment only if there is an indication that their carrying values may

have been impaired. Impairments of assets are calculated as the difference between the carrying value

of the asset and the recoverable amount, if lower. Where such an asset does not generate cash flows

that are independent from other assets, the recoverable amount of the CGU to which that asset belongs

is estimated. Impairments are recognised in the consolidated income statement within other operating

costs. Any assets which suffered impairment in a previous period are reviewed for possible reversal

of the impairment at each reporting date.

Internally generated intangible assets are recognised only if: i) an asset is created that can be identified;

ii) it is probable that the asset created will generate future economic benefits; and iii) the development cost

of the asset can be measured reliably. Where no internally generated intangible asset can be recognised,

development expenditure is recorded as an expense in the period in which it is incurred.

Cloud computing arrangements are reviewed to determine if the Group has control of the software

intangible asset. Control is considered to exist where the Group has the right to take possession of the

software and run it on its own or a third party's computer infrastructure or if the Group has exclusive rights

to use the software such that the supplier is unable to make the software available to other customers.

Costs relating to configuring or customising the software in a cloud computing arrangement are assessed

to determine if there is a separate intangible asset over which the Group has control. If an asset is

identified, it is capitalised and amortised over the useful economic life of the asset. To the extent that no

separate intangible asset is identified, then the costs are either expensed when incurred or recognised as

a prepayment and spread over the term of the arrangement if the costs are concluded to not be distinct.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **168** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**12. Other intangible assets cont.**

**(a) Analysis of other intangible assets**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Regulatory <br>licences<br>£m<br>| Software<br>£m<br>| Assets in the <br>course of <br>construction<br>£m<br>| Total<br>£m<br>|
| Cost at 1 April 2024 | 1714 | 3093 | 392 | 5199 |
| Exchange adjustments |  | (61) | (7) | (68) |
| Additions |  | 16 | 462 | 478 |
| Disposals |  | (7) |  | (7) |
| Reclassifications<sup>1</sup> |  | 376 | (363) | 13 |
| Reclassification to held for sale (note 10) |  | (16) |  | (16) |
| Cost at 1 April 2025 | 1714 | 3401 | 484 | 5599 |
| Exchange adjustments |  | (56) | (8) | (64) |
| Additions |  | 84 | 609 | 693 |
| Disposals |  | (10) |  | (10) |
| Reclassifications¹ |  | 547 | (556) | (9) |
| Cost at 31 March 2026 | 1714 | 3966 | 529 | 6209 |
| Accumulated amortisation at 1 April 2024 |  | (1758) | (10) | (1768) |
| Exchange adjustments |  | 36 |  | 36 |
| Amortisation charge for the year |  | (323) |  | (323) |
| Accumulated amortisation of disposals |  | 7 |  | 7 |
| Reclassifications¹ |  | 2 |  | 2 |
| Reclassification to held for sale (note 10) |  | 11 |  | 11 |
| Accumulated amortisation at 1 April 2025 |  | (2025) | (10) | (2035) |
| Exchange adjustments |  | 25 |  | 25 |
| Amortisation charge for the year |  | (339) |  | (339) |
| Accumulated amortisation of disposals |  | 10 | 10 | 20 |
| Reclassifications¹ |  | (1) |  | (1) |
| Accumulated amortisation at 31 March 2026 |  | (2330) |  | (2330) |
| **Net book value at 31 March 2026²** | **1714** | **1636** | **529** | **3879** |
| Net book value at 31 March 2025 | 1714 | 1376 | 474 | 3564 |

---

1. Reclassifications includes amounts transferred to property, plant and equipment (see note 13).

2. The Group has capitalised £224 million (2025: £271 million) in relation to the Gas Business Enablement system in the US, of which

£224 million (2025: £271 million) is in service and is being amortised over 10 years, with the remainder included within assets in the course

of construction. A further £72 million (2025: £82 million) relates to our UK general ledger system within software and is being amortised

over 10 years.

**(b) Asset useful economic lives**

No amortisation is provided on regulatory licences. Software is amortised over the period we expect to

receive a benefit from the asset. An amortisation expense is charged to the income statement to reflect

the reduced value of the asset over time. Amortisation is calculated by estimating the number of years we

expect the asset to be used (its useful economic life or UEL) and charging the cost of the asset to the

income statement equally over this period.

---

| | |
|:---|:---|
|  | Years |
| Software | 3 to 10 |
| Regulatory licences | Indefinite |

---

**13. Property, plant and equipment**

**Property, plant and equipment are the physical assets controlled by us. The Group's interest** <br>**comprises legally protected statutory or contractual rights of use. Property, plant and** <br>**equipment is recorded at cost, less accumulated depreciation and any impairment losses.** <br>

![](nggtf-20260331_g402.gif)

The cost of property, plant and equipment primarily represents the amount initially paid or the fair value

on the date of acquisition of a business. Cost includes the purchase price of the asset; any payroll and

finance costs incurred which are directly attributable to the construction of property, plant and equipment

together with an appropriate portion of overheads which are directly linked to the capital work performed;

and the cost of any associated asset retirement obligations.

Additions represent the purchase or construction of new assets, including capital expenditure for safety

and environmental assets, and extensions to, enhancements to, or replacement of, existing assets.

All costs associated with projects or activities which have not been fully commissioned at the period

end are classified within assets in the course of construction.

A depreciation expense is charged to the income statement to reflect annual wear and tear and the

reduced value of the asset over time. Depreciation is calculated by estimating the number of years we

expect the asset to be used (its useful economic life or UEL) and charging the cost of the asset to the

income statement equally over this period.

Items within property, plant and equipment are tested for impairment only if there is some indication

that the carrying value of the assets may have been impaired. Impairments of assets are calculated as

the difference between the carrying value of the asset and the recoverable amount, if lower. Where such

an asset does not generate cash flows that are independent from other assets, the recoverable amount

of the cash-generating unit to which that asset belongs is estimated. Impairments are recognised in the

income statement and, if immaterial, are included within the depreciation charge for the year.

We operate an energy networks business and therefore have a significant physical asset base. We

continue to invest in our networks to maintain reliability, create new customer connections and ensure

our networks are flexible, resilient and prepared for the transition to net zero. Our business plan envisages

these additional investments will be funded through a mixture of cash generated from operations and the

issue of new debt and equity.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **169** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**13. Property, plant and equipment cont.**

**(a) Analysis of property, plant and equipment**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Land and<br>buildings<br>£m<br>| Plant and<br>machinery<br>£m<br>| Assets <br>in the <br>course of <br>construction<br>£m<br>| Motor <br>vehicles <br>and office <br>equipment<br>£m<br>| Total<br>£m<br>|
| Cost at 1 April 2024 | 4210 | 74551 | 7022 | 1350 | 87133 |
| Exchange adjustments | (55) | (965) | (91) | (21) | (1132) |
| Additions<sup>1</sup> | 60 | 1172 | 7529 | 220 | 8981 |
| Disposals | (59) | (387) | (9) | (239) | (694) |
| Adjustment for change in discount rate on <br>decommissioning provisions (note 26)<br>|  | 7 |  |  | 7 |
| Reclassifications<sup>2</sup> | 198 | 4583 | (4876) | 83 | (12) |
| Reclassification to held for sale (note 10) | (110) | (1195) | (502) | (19) | (1826) |
| Cost at 1 April 2025 | 4244 | 77766 | 9073 | 1374 | 92457 |
| Exchange adjustments | (55) | (934) | (91) | (20) | (1100) |
| Additions<sup>1</sup> | 108 | 1362 | 8696 | 259 | 10425 |
| Disposals | (47) | (363) | (28) | (164) | (602) |
| Adjustment for change in discount rate on <br>decommissioning provisions (note 26)<br>| (22) | (66) |  |  | (88) |
| Reclassifications<sup>2</sup> | 192 | 5607 | (5834) | 84 | 49 |
| Cost at 31 March 2026 | 4420 | 83372 | 11816 | 1533 | 101141 |
| Accumulated depreciation at 1 April 2024 | (758) | (16730) | (67) | (671) | (18226) |
| Exchange adjustments | 12 | 200 |  | 11 | 223 |
| Depreciation charge for the year<sup>3</sup> | (93) | (1632) | 4 | (203) | (1924) |
| Disposals | 49 | 387 | 9 | 236 | 681 |
| Reclassifications<sup>2</sup> | (32) | 33 | 3 | (5) | (1) |
| Reclassification to held for sale (note 10) | 51 | 817 |  | 13 | 881 |
| Accumulated depreciation at 1 April 2025 | (771) | (16925) | (51) | (619) | (18366) |
| Exchange adjustments | 12 | 197 |  | 11 | 220 |
| Depreciation charge for the year<sup>3</sup> | (96) | (1665) | 2 | (230) | (1989) |
| Disposals | 29 | 361 | 1 | 163 | 554 |
| Reclassifications<sup>2</sup> | 18 | (44) | (16) | 2 | (40) |
| Accumulated depreciation at 31 March 2026 | (808) | (18076) | (64) | (673) | (19621) |
| **Net book value at 31 March 2026** | **3612** | **65296** | **11752** | **860** | **81520** |
| Net book value at 31 March 2025 | 3473 | 60841 | 9022 | 755 | 74091 |

---

1. Additions include right-of-use assets recognised during the year.

2. Represents amounts transferred between categories, (to)/from other intangible assets (see note 12), (to)/from inventories.

3. Depreciation of assets in the course of construction relates to impairment provision adjustments.

**(b) Asset useful economic lives**

No depreciation is provided on freehold land or assets in the course of construction. Other items of

property, plant and equipment are depreciated, on a straight-line basis, at rates estimated to write off

their book values over their estimated UELs. In assessing UELs, consideration is given to any contractual

arrangements and operational requirements relating to particular assets. The assessments of estimated

UELs and residual values of assets are performed annually.

Certain network assets are depreciated using the group method of depreciation, in which a single

composite depreciation rate is applied to a particular class of property, plant and equipment. This method

pools similar assets together, and then depreciates each group as a whole over their respective useful

lives. In the US, the Company conducts independent depreciation studies on a periodic basis as part of

the regulatory ratemaking process to estimate group depreciation rates. These depreciation studies are

subject to review and approval by the US state and federal regulators, with the depreciation expense

recovered through rates charged to customers. Likewise in the UK, the composite depreciation rates are

benchmarked to internal engineering studies and known asset performance lives. Depreciation expense

includes a component for the original cost of assets and a component for estimated cost of future

removal, net of any salvage value at retirement. Upon retirement of components of the Company's

network assets, the original cost of the retired assets, net of salvage value, is charged against

accumulated depreciation, with no gain or loss recognised.

Unless otherwise determined by operational requirements, the depreciation periods for the principal

categories of property, plant and equipment are shown in the table that follows split between the UK

and US, along with the weighted average remaining UEL for each class of property, plant and equipment

(which is calculated by dividing the net book value of that class of asset by the respective annual

depreciation charge).

---

| | | | |
|:---|:---|:---|:---|
|  |  | Years |  |
|  | UK | US | Weighted <br>average <br>remaining<br>UEL<br>|
| Freehold and leasehold buildings | up to 65 | up to 100 | 43 |
| Plant and machinery: |  |  |  |
| Electricity transmission plant and wires | up to 100 | 10 to 85 | 32 |
| Electricity distribution plant | 14 to 99 | 5 to 85 | 46 |
| Electricity generation plant | n/a | 15 to 93 | 8 |
| Interconnector plant and other | 5 to 70 | 5 to 54 | 25 |
| Gas plant – mains, services and regulating equipment | n/a | 20 to 95 | 54 |
| Gas plant – storage | n/a | 20 to 60 | 24 |
| Gas plant – meters | n/a | 14 to 45 | 26 |
| Motor vehicles and office equipment | up to 30 | up to 34 | 3 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **170** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**13. Property, plant and equipment cont.**

**(c) Gas asset lives** 

The role that our US gas networks play in the pathway to achieving the greenhouse gas emissions

reductions targets set in the jurisdictions in which we operate remains subject to uncertainty.

Policymakers in New York and Massachusetts continue to indicate an increase in electrification to meet

their respective decarbonisation targets, while as a Group we are committed in our transition to net zero.

However, developments during the current financial year indicate that, despite some regulation changes

and customer incentive schemes favouring electrification, the pathway to full electrification remains

uncertain due to barriers such as heightened affordability concerns and increased regulatory uncertainty.

As a result, there is a reduced risk that the UELs of certain elements of our gas networks may be

shortened in line with future policy, regulatory frameworks and planning systems aimed to support the

decarbonisation of the energy sector.

In the US, our gas distribution asset lives are assessed as part of detailed depreciation studies completed

as part of each separate rate proceeding. Depreciation studies consider the physical condition of assets

and the expected operational life of an asset. The weighted average remaining UEL for our US gas

distribution fixed asset base is circa 54 years; however, a proportion of our assets are assumed to have

UELs which extend beyond 2080. In assessing these UELs, we consider a range of different pathways

related to our gas assets. These pathways factor in the net zero ambitions of the Group and the jurisdictions

that we operate in, anticipated changes in customer behaviour, developments in new technology, the

feasibility and affordability of electrification, and the ability to decarbonise fuel through the use of renewable

natural gas (RNG) and green hydrogen. On balance of the different pathways considered, we continue

to believe the lives identified by rate proceedings are the best estimate of the assets' UELs given the

need to provide safe, affordable and reliable heating services. We keep this assumption under review

and we continue to actively engage and support our regulators to enable the clean energy transition.

Asset depreciation lives feed directly into our US regulatory recovery mechanisms, such that any

shortening of asset lives and regulatory recovery periods as agreed with regulators should be recoverable

through future rates, subject to agreement, over future periods, as part of wider considerations around

ensuring the continuing affordability of gas in our service territories.

Given the uncertainty described relating to the UELs of our gas assets, below we provide a sensitivity

analysis for the depreciation charge for our New York and New England segments were a shorter UEL

presumed. It should be noted that the net zero pathways which we consider probable all suggest some

role for gas in heating buildings beyond 2050, so our sensitivity analysis for 2050 illustrates an unlikely

worst-case scenario.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Increase in depreciation expense for** <br>**the year ended 31 March 2026** | **Increase in depreciation expense for** <br>**the year ended 31 March 2026** | Increase in depreciation expense for <br>the year ended 31 March 2025 | Increase in depreciation expense for <br>the year ended 31 March 2025 |
|  | **New York** <br>**£m**<br>| **New England**<br>**£m**<br>| New York<br>£m<br>| New England<br>£m<br>|
| UELs limited to 2050 | **277** | **90** | 235 | 78 |
| UELs limited to 2060 | **130** | **37** | 110 | 32 |
| UELs limited to 2070 | **64** | **11** | 54 | 9 |

---

Note that this sensitivity calculation excludes any assumptions regarding the residual value for our asset

base and the effect that shortening asset depreciation lives would be expected to have on our regulatory

recovery mechanisms. In the event that any of the US gas distribution assets are stranded, the Group

would expect to recover the associated costs. While recovery is not guaranteed and is determined by

regulators in the US, there are precedents for stranded asset cost recovery for US utility companies.

**(d) Right-of-use assets**

The Group leases various properties, land, equipment and cars. New lease arrangements entered into

are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset

is available for use by the Group. The right-of-use asset and associated lease liability arising from a lease

are initially measured at the present value of the lease payments expected over the lease term. The lease

payments include fixed payments, any variable lease payments dependent on an index or a rate, and any

break fees or renewal option costs that we are reasonably certain to incur. The discount rate applied is

the rate implicit in the lease or, if that is not available, the incremental rate of borrowing for a similar term

and similar security. The liabilities for the majority of the Group's lease portfolio are calculated using the

incremental borrowing rate. This is determined based on observable data for borrowing rates for the

specific Group entity that has entered into the lease, with specific adjustments for the term of the lease

and any lease-specific risk premium. The lease term takes account of extension options that are at

our option if we are reasonably certain to exercise the option and any lease termination options unless

we are reasonably certain not to exercise the option. Each lease payment is allocated between the liability

and finance cost. The finance cost is charged to the income statement over the lease period using the

effective interest rate method. The right-of-use asset is depreciated over the shorter of the asset's useful

life and the lease term on a straight-line basis. For short-term leases (lease term of 12 months or less)

and leases of low-value assets (such as computers), the Group continues to recognise a lease expense

on a straight-line basis.

The table that follows shows the movements in the net book value of right-of-use assets included within

property, plant and equipment at 31 March 2026 and 31 March 2025, split by category. The associated

lease liabilities are disclosed in note 21.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Land and<br>buildings<br>£m<br>| Plant and<br>machinery<br>£m<br>| Assets <br>in the <br>course of <br>construction<br>£m<br>| Motor <br>vehicles <br>and office <br>equipment<br>£m<br>| Total<br>£m<br>|
| Net book value at 1 April 2024 | 293 | 128 |  | 307 | 728 |
| Exchange adjustments | (6) | (2) |  | (7) | (15) |
| Additions | 39 | 2 |  | 159 | 200 |
| Reclassification to held for sale <br>(note 10)<br>| (2) | (15) |  |  | (17) |
| Disposals |  |  |  | (3) | (3) |
| Depreciation charge for the year | (21) | (12) |  | (87) | (120) |
| Net book value at 31 March 2025 | 303 | 101 |  | 369 | 773 |
| Exchange adjustments | (6) | (2) |  | (6) | (14) |
| Additions | 23 |  |  | 199 | 222 |
| Disposals | (11) |  |  | (2) | (13) |
| Depreciation charge for the year | (24) | (6) |  | (102) | (132) |
| **Net book value at 31 March 2026** | **285** | **93** | **—** | **458** | **836** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **171** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**13. Property, plant and equipment cont.**

**(d) Right-of-use assets cont.**

The following balances have been included in the income statement for the years ended 31 March 2026

and 31 March 2025 in respect of right-of-use assets:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| *Included within net finance income and costs:* |  |  |
| Interest expense on lease liabilities | **(41)** | (40) |
| *Included within revenue:* |  |  |
| Lease income<sup>1</sup> | **385** | 406 |
| *Included within operating expenses:* |  |  |
| Expense relating to short-term and low-value leases | **(27)** | (24) |

---

1. Included within lease income is £364 million (2025: £384 million) of variable lease payments, the majority of which relates to the power

supply arrangement entered into with LIPA (see note 3).

**14. Other non-current assets**

**Other non-current assets include assets that do not fall into specific non-current asset** <br>**categories (such as goodwill or property, plant and equipment) where the benefit to be** <br>**received from the asset is not due to be received until after 31 March 2027.**<br>

![](nggtf-20260331_g403.gif)

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Other receivables¹ | **291** | 299 |
| Non-current tax assets | **20** |  |
| Prepayments² | **1073** | 660 |
|  | **1384** | 959 |

---

1. Primarily comprises amounts due in relation to property sales to The Berkeley Group. These amounts will be fully received by 2031.

2. Included within prepayments are capital expenditure prepayments made to suppliers to secure production capacity for certain of our

capital projects. The associated cash flows for capital expenditure prepayments are included within purchases of property, plant and

equipment within the consolidated cash flow statement.

![](nggtf-20260331_g404.gif)

**15. Financial and other investments**

**The Group holds a range of financial and other investments. These investments include** <br>**short-term money market funds, quoted investments in bonds of other companies,** <br>**investments in our venture capital portfolio (National Grid Partners), and investments** <br>**that cannot be readily used in operations, principally collateral deposited in relation** <br>**to derivatives.**<br>

The classification of each investment held by the Group is determined based on two main factors:

–its contractual cash flows – whether the asset's cash flows are solely payments of the principal and

interest on the financial asset on pre-determined dates or whether the cash flows are determined

by other factors such as the performance of a company; and

–the business model for holding the investments – whether the intention is to hold onto the investment

for the longer term (collect the contractual cash flows) or to sell the asset with the intention of managing

any gain or loss on sale or to manage any liquidity requirements.

The three categories of financial and other investments are as follows:

–Financial assets at amortised cost – debt instruments that have contractual cash flows that are solely

payments of principal and interest, and which are held within a business model whose objective is to

collect contractual cash flows, are held at amortised cost. This category includes our receivables in

relation to deposits and collateral;

–FVOCI debt and other investments – debt investments, such as bonds, that have contractual cash

flows that are solely payments of principal and interest, and which are held within a business model

whose objective is both to collect the contractual cash flows and to sell the debt instruments, are

measured at FVOCI, with gains or losses recognised in the consolidated statement of comprehensive

income instead of through the income statement. On disposal, any gains or losses are recognised

within finance income in the income statement (see note 6). Other investments include insurance

contracts which are held to back the present value of unfunded pension liabilities (see note 25); and

–FVTPL investments – other financial investments are subsequently measured at fair value with any

gains or losses recognised in the income statement (FVTPL). This primarily comprises our money

market funds, insurance company fund investments and corporate venture capital investments held

by National Grid Partners.

Financial and other investments are initially recognised on trade date. Subsequent to initial recognition,

the fair values of financial assets that are quoted in active markets are based on bid prices. When

independent prices are not available, fair values are determined by applying valuation techniques used by

the relevant markets, including observable market data where possible (see note 32(g) for further details).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **172** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**15. Financial and other investments cont.**

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| *Non-current* |  |  |
| FVOCI debt and other investments  | **385** | 384 |
| FVTPL investments | **450** | 407 |
| Financial assets at amortised cost | **7** | 7 |
|  | **842** | 798 |
| *Current* |  |  |
| FVTPL investments | **1914** | 5156 |
| Financial assets at amortised cost | **539** | 597 |
|  | **2453** | 5753 |
|  | **3295** | 6551 |
| Financial and other investments include the following: |  |  |
| Investments in short-term money market funds | **1370** | 4725 |
| Investments held by National Grid Partners | **387** | 346 |
| Investments in Sunrun | **63** | 60 |
| Balances that are restricted or not readily used in operations: |  |  |
| Collateral<sup>1</sup> | **438** | 506 |
| Insurance company and non-qualified plan investments | **676** | 578 |
| Cash surrender value of life insurance policies | **252** | 238 |
| Other investments | **109** | 98 |
|  | **3295** | 6551 |

---

1. The collateral balance includes £404 million (2025: £477 million) of collateral placed with counterparties with whom we have entered into

a credit support annex to the International Swaps and Derivatives Association (ISDA) Master Agreement; £30 million (2025: £24 million)

of restricted amounts allocated for specific projects within National Grid Electricity Transmission plc and National Grid Electricity

Distribution plc; £4 million (2025: £5 million) insurance captive letters of credit.

FVTPL and FVOCI investments are recorded at fair value. The carrying value of current financial assets

at amortised cost approximates their fair values, primarily due to short-dated maturities. The exposure

to credit risk at the reporting date is the fair value of the financial investments. For further information on

our credit risk, refer to note 32(a).

For the purposes of impairment assessment, the investments in bonds are considered to be low risk as

they are investment grade securities; life insurance policies are held with regulated insurance companies;

and deposits, collateral receivable and other financial assets at amortised cost have an average credit

rating on a weighted basis of AA or better at all times based on investment policy. All financial assets

held at FVOCI or amortised cost are therefore considered to have low credit risk and have an immaterial

impairment loss allowance equal to 12-month expected credit losses.

In determining the expected credit losses for these assets, some or all of the following information has

been considered: credit ratings, the financial position of counterparties, the future prospects of the

relevant industries and general economic forecasts.

No FVOCI or amortised cost financial assets have had modified cash flows during the period. There has

been no change in the estimation techniques or significant assumptions made during the year in assessing

the loss allowance for these financial assets. There were no significant movements in the gross carrying

value of financial assets during the year that contribute to changes in the loss allowance. No collateral is

held in respect of any of the financial investments in the above table. No balances are more than 30 days

past due and no balances were written off during the year.

**16. Investments in joint ventures and associates**![](nggtf-20260331_g405.gif)

**Investments in joint ventures and associates represent businesses we do not control but** <br>**over which we exercise joint control or significant influence. They are accounted for using** <br>**the equity method. A joint venture is an arrangement established to engage in economic** <br>**activity, which the Group jointly controls with other parties and has rights to a share of the** <br>**net assets of the arrangement. An associate is an entity which is neither a subsidiary nor** <br>**a joint venture, but over which the Group has significant influence.**<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Associates**<br>**£m**<br>| **Joint**<br>**ventures**<br>**£m**<br>| **Total**<br>**£m**<br>| Associates<br>£m<br>| Joint <br>ventures<br>£m<br>| Total<br>£m<br>|
| Share of net assets <br>at 1 April<br>| **174** | **434** | **608** | 158 | 1262 | 1420 |
| Exchange adjustments | **(17)** | **30** | **13** | (4) | (46) | (50) |
| Additions | **23** | **4** | **27** | 23 | 93 | 116 |
| Share of post-tax results <br>for the year<br>| **15** | **61** | **76** | 11 | 62 | 73 |
| Impairment | **—** | **—** | **—** |  | (303) | (303) |
| Dividends received | **(18)** | **(82)** | **(100)** | (18) | (53) | (71) |
| Disposals | **—** | **—** | **—** | (1) |  | (1) |
| Reclassification to held <br>for sale (note 10)<br>| **—** | **—** | **—** |  | (582) | (582) |
| Other movements | **—** | **—** | **—** | 5 | 1 | 6 |
| **Share of net assets** <br>**at 31 March**<br>| **177** | **447** | **624** | 174 | 434 | 608 |

---

A list of joint ventures and associates, including the name and proportion of ownership, is provided

in note 34. Transactions with and outstanding balances with joint ventures and associates are shown

in note 31. The joint ventures and associates have no significant contingent liabilities to which the Group

is exposed and the Group has no significant contingent liabilities in relation to its interests in the joint

ventures and associates. The Group has capital commitments in relation to its joint ventures and

associates of £526 million (2025: £635 million), which primarily relate to the funding of new capital

investment projects.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **173** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**16. Investments in joint ventures and associates cont.**

The following table describes the Group's material joint ventures and associates at 31 March 2026:

---

| | | |
|:---|:---|:---|
| **Joint venture**<sup>1</sup> | **% stake** |  |
| BritNed Development <br>Limited<sup>1</sup><br>| 50% | BritNed is a joint venture with the Dutch transmission system operator, <br>TenneT, and operates the subsea electricity interconnector between <br>Great Britain and the Netherlands, commissioned in 2011.<br>|
| Nemo Link Limited<sup>1</sup> | 50% | Nemo is a joint venture with the Belgian transmission operator, <br>Elia, and operates the subsea electricity interconnector between <br>Great Britain and Belgium, which became operational in 2019.<br>|

---

1. The joint ventures have reporting periods ending on 31 December with monthly management reporting information provided to the Group.

The Group also held a 51% interest in Emerald Energy Venture, LLC, a joint venture with Washington

State Investment Board which builds and operates wind and solar assets. In the prior year, the Group

classified its interest in Emerald, together with NG Renewables, as held for sale and ceased equity

accounting for its share of results (see note 10). The disposal subsequently completed on 29 May 2025.

In March 2021, the Group entered into an offshore partnership agreement with RWE Renewables to form

Community Offshore Wind, LLC. The purpose of the joint venture is to explore, develop, and eventually

construct and operate renewable facilities in the northeastern US offshore wind market. In February 2022,

the partnership successfully bid in the New York Bight seabed lease auction. The Group's investment in

Community Offshore Wind represents our share of the seabed lease and initial development costs

incurred to date. As of 31 March 2025, the project had not yet reached the construction stage.

In the prior year, an Executive Memorandum was issued by the US Administration on wind power,

temporarily suspending offshore wind leasing, ordering a review of existing leases and directing a review

and pause on permitting. Accordingly, we agreed with RWE Renewables to place a temporary pause on

development of the project. As detailed in the Annual Report and Accounts for the year ended 31 March

2025, we considered the potential impact on our valuation of our investment in Community Offshore

Wind and determined that the investment had a negligible value. Accordingly, the carrying value of the

£303 million investment was fully impaired. The impairment charge was recognised in the NGV operating

segment. Whilst development activity is currently suspended, we continue to consider Community

Offshore Wind could play an important role in New York's future energy strategy. We will reassess the

project development pause should market conditions improve in the future.

Summarised financial information as at 31 March, together with the carrying amount of material

investments, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **BritNed Development** <br>**Limited** | **BritNed Development** <br>**Limited** | **Nemo Link** <br>**Limited** | **Nemo Link** <br>**Limited** |
| | **2026** | 2025 | **2026** | 2025 |
| | **£m** | £m | **£m** | £m |
| *Statement of financial position* |  |  |  |  |
| Non-current assets | **338** | 352 | **448** | 447 |
| Cash and cash equivalents | **65** | 76 | **128** | 118 |
| All other current assets | **59** | 48 | **11** | 8 |
| Non-current liabilities | **(38)** | (51) | **(25)** | (3) |
| Non-current financial liabilities | **(33)** | (32) | **(11)** | (32) |
| Current liabilities | **(44)** | (39) | **(103)** | (109) |
| **Net assets** | **347** | 354 | **448** | 429 |
| **Carrying amount of the Group's investment** | **174** | 177 | **224** | 215 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **BritNed Development** <br>**Limited** | **BritNed Development** <br>**Limited** | **Nemo Link** <br>**Limited** | **Nemo Link** <br>**Limited** |
|  | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m |
| *Income statement* |  |  |  |  |
| Revenue | **151** | 108 | **108** | 102 |
| Depreciation and amortisation | **(16)** | (16) | **(24)** | (23) |
| Other costs | **(20)** | (23) | **(16)** | (16) |
| **Operating profit** | **115** | 69 | **68** | 63 |
| Net interest (expense)/income | **(2)** | (1) | **1** | 1 |
| **Profit before tax** | **113** | 68 | **69** | 64 |
| Income tax expense | **(26)** | (18) | **(17)** | (16) |
| **Profit for the year** | **87** | 50 | **52** | 48 |
| **Group's share of post-tax results for the year** | **44** | 25 | **26** | 24 |

---

The aggregate information of associates and joint ventures that are not individually material is as follows:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Share of post-tax results for the year | **6** | 24 |
| Impairment | **—** | (303) |
| Share of total comprehensive income | **6** | (279) |
| Aggregate carrying value of the Group's interests | **226** | 216 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **174** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**17. Derivative financial instruments**

![](nggtf-20260331_g406.gif)

**Derivatives are financial instruments that derive their value from the price of an underlying** <br>**item such as interest rates, foreign exchange rates, credit spreads, commodities, equities** <br>**or other indices. In accordance with policies approved by the Board, derivatives are** <br>**transacted generally to manage exposures to fluctuations in interest rates, foreign exchange** <br>**rates and commodity prices. Our derivatives balances comprise two broad categories:**<br>**–financing derivatives – these are used to manage our exposure to interest rates and** <br>**foreign exchange rates. Specifically, we use these derivatives to manage our financing** <br>**portfolio, holdings in foreign operations and contractual operational cash flows; and**<br>**–commodity contract derivatives – these are used to manage exposure to price and** <br>**supply risks related to our US customers and UK business. Some forward contracts** <br>**for the purchase of commodities meet the definition of derivatives. We also enter into** <br>**derivative financial instruments linked to commodity prices, including options and swaps,** <br>**which are used to manage market price volatility.**<br>

Derivatives are initially recognised at fair value and subsequently remeasured to fair value at each

reporting date. Changes in fair values are recorded in the period they arise, in either the consolidated

income statement or other comprehensive income. Where the gains or losses recorded in the income

statement arise from changes in the fair value of derivatives to the extent that hedge accounting is

not applied or is not fully effective, these are recorded as remeasurements, detailed in notes 5 and 6.

Where the fair value of a derivative is positive it is carried as a derivative asset, and where negative

as a derivative liability.

The fair value of derivative financial instruments is calculated by taking the present value of future

cash flows, primarily incorporating market observable inputs where available. The various inputs

include foreign exchange spot and forward rates, yield curves of the respective currencies, currency

basis spreads between the respective currencies, interest rate and inflation curves, the forward rate

curves of underlying commodities and, for those positions that are not fully cash collateralised, the

credit quality of the counterparties.

Certain clauses embedded in non-derivative financial instruments or other contracts are presented

as derivatives because they impact the risk profile of their host contracts and they are deemed to

have risks or rewards not closely related to those host contracts.

Further information on how derivatives are valued and used for risk management purposes is presented

in note 32. Information on commodity contracts and other commitments not meeting the definition of

derivatives is presented in note 30.

The fair values of derivatives by category are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assets**<br>**£m**<br>| **Liabilities**<br>**£m**<br>| **Total**<br>**£m**<br>| Assets<br>£m<br>| Liabilities<br>£m<br>| Total<br>£m<br>|
| Current | **215** | **(268)** | **(53)** | 113 | (381) | (268) |
| Non-current | **623** | **(750)** | **(127)** | 369 | (821) | (452) |
|  | **838** | **(1018)** | **(180)** | 482 | (1202) | (720) |
| Financing derivatives | **717** | **(950)** | **(233)** | 375 | (1138) | (763) |
| Commodity contract <br>derivatives<br>| **121** | **(68)** | **53** | 107 | (64) | 43 |
|  | **838** | **(1018)** | **(180)** | 482 | (1202) | (720) |

---

**(a) Financing derivatives**

The fair values of financing derivatives by type are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assets**<br>**£m**<br>| **Liabilities**<br>**£m**<br>| **Total**<br>**£m**<br>| Assets<br>£m<br>| Liabilities<br>£m<br>| Total<br>£m<br>|
| Interest rate swaps | **129** | **(216)** | **(87)** | 98 | (196) | (98) |
| Cross-currency interest rate <br>swaps<br>| **448** | **(528)** | **(80)** | 193 | (766) | (573) |
| Foreign exchange forward <br>contracts¹<br>| **114** | **(120)** | **(6)** | 53 | (81) | (28) |
| Inflation-linked swaps | **26** | **(86)** | **(60)** | 31 | (95) | (64) |
|  | **717** | **(950)** | **(233)** | 375 | (1138) | (763) |

---

1. Included within the foreign exchange forward contracts balance are £19 million (2025: £45 million) of derivative liabilities in relation to the

hedging of capital expenditure.

The maturity profile of financing derivatives is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assets**<br>**£m**<br>| **Liabilities**<br>**£m**<br>| **Total**<br>**£m**<br>| Assets<br>£m<br>| Liabilities<br>£m<br>| Total<br>£m<br>|
| *Current* |  |  |  |  |  |  |
| Less than 1 year | **123** | **(237)** | **(114)** | 19 | (355) | (336) |
|  | **123** | **(237)** | **(114)** | 19 | (355) | (336) |
| *Non-current* |  |  |  |  |  |  |
| In 1 to 2 years | **88** | **(86)** | **2** | 46 | (61) | (15) |
| In 2 to 3 years | **69** | **(45)** | **24** | 41 | (77) | (36) |
| In 3 to 4 years | **34** | **(17)** | **17** | 47 | (73) | (26) |
| In 4 to 5 years | **51** | **(8)** | **43** | 6 | (25) | (19) |
| More than 5 years | **352** | **(557)** | **(205)** | 216 | (547) | (331) |
|  | **594** | **(713)** | **(119)** | 356 | (783) | (427) |
|  | **717** | **(950)** | **(233)** | 375 | (1138) | (763) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **175** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**17. Derivative financial instruments cont.**

**(a) Financing derivatives cont.**

The notional contract amounts of financing derivatives by type are as follows:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Interest rate swaps | **(7113)** | (7763) |
| Cross-currency interest rate swaps | **(16413)** | (16019) |
| Foreign exchange forward contracts | **(11508)** | (7761) |
| Inflation-linked swaps | **(2970)** | (3190) |
|  | **(38004)** | (34733) |

---

**(b) Commodity contract derivatives**

The fair values of commodity contract derivatives by type are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assets**<br>**£m**<br>| **Liabilities**<br>**£m**<br>| **Total**<br>**£m**<br>| Assets<br>£m<br>| Liabilities<br>£m<br>| Total<br>£m<br>|
| *Commodity purchase contracts* <br>*accounted for as derivative contracts*<br>|  |  |  |  |  |  |
| Forward purchases of gas | **—** | **—** | **—** | 3 | (7) | (4) |
| Gas options | **3** | **(3)** | **—** |  |  |  |
| *Derivative financial instruments* <br>*linked to commodity prices*<br>|  |  |  |  |  |  |
| Electricity capacity | **7** | **(10)** | **(3)** | 2 | (17) | (15) |
| Electricity swaps | **110** | **(44)** | **66** | 74 | (38) | 36 |
| Electricity options | **—** | **—** | **—** | 1 | (1) |  |
| Gas swaps | **—** | **(8)** | **(8)** | 15 | (1) | 14 |
| Gas options | **1** | **(3)** | **(2)** | 12 |  | 12 |
|  | **121** | **(68)** | **53** | 107 | (64) | 43 |

---

The maturity profile of commodity contract derivatives is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assets**<br>**£m**<br>| **Liabilities**<br>**£m**<br>| **Total**<br>**£m**<br>| Assets<br>£m<br>| Liabilities<br>£m<br>| Total<br>£m<br>|
| *Current* |  |  |  |  |  |  |
| Less than one year | **92** | **(31)** | **61** | 94 | (26) | 68 |
|  | **92** | **(31)** | **61** | 94 | (26) | 68 |
| *Non-current* |  |  |  |  |  |  |
| In 1 to 2 years | **27** | **(24)** | **3** | 12 | (20) | (8) |
| In 2 to 3 years | **1** | **(11)** | **(10)** | 1 | (12) | (11) |
| In 3 to 4 years | **1** | **(2)** | **(1)** |  | (2) | (2) |
| In 4 to 5 years | **—** | **—** | **—** |  | (2) | (2) |
| More than 5 years | **—** | **—** | **—** |  | (2) | (2) |
|  | **29** | **(37)** | **(8)** | 13 | (38) | (25) |
|  | **121** | **(68)** | **53** | 107 | (64) | 43 |

---

The notional quantities of commodity contract derivatives by type are as follows:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
| Forward purchases of gas<sup>1</sup> | **13m Dth** | 74m Dth |
| Electricity capacity | **4 TWh** | 5 TWh |
| Electricity swaps | **15,514 GWh** | 14,040 GWh |
| Electricity options | **241 GWh** | 334 GWh |
| Gas swaps | **28m Dth** | 30m Dth |
| Gas options | **139m Dth** | 89m Dth |

---

1. Forward gas purchases have terms up to one month (2025: three years). The contractual obligations under these contracts are £21 million

(2025: £46 million).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **176** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**18. Inventories**

**Inventories represent assets that we intend to use in order to generate revenue in the** <br>**short term, either by selling the asset itself (for example fuel stocks) or by using it to fulfil** <br>**a service to a customer or to maintain our network (consumables).**<br>

![](nggtf-20260331_g407.gif)

Inventories are stated at the lower of weighted average cost and net realisable value. Where applicable,

cost comprises direct materials and direct labour costs as well as those overheads that have been directly

incurred in bringing the inventories to their present location and condition.

Emission allowances, principally relating to the emissions of carbon dioxide in the UK and sulphur and

nitrous oxides in the US, are recorded as inventory. They are initially recorded at cost and subsequently

at the lower of cost and net realisable value. A liability is recorded in respect of the obligation to deliver

emission allowances and emission charges are recognised in the income statement in the period

in which emissions are made.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Fuel stocks | **90** | 95 |
| Raw materials and consumables | **357** | 356 |
| Emission allowances | **112** | 106 |
|  | **559** | 557 |

---

There is a provision for obsolescence of £1 million against inventories as at 31 March 2026 (2025: £1 million).

**19. Trade and other receivables**

**Trade and other receivables include amounts which are due from our customers for** <br>**services we have provided, accrued income which has not yet been billed, prepayments** <br>**and other receivables that are expected to be settled within 12 months.**<br>

![](nggtf-20260331_g408.gif)

Trade and other receivables are initially recognised at fair value, except for trade receivables that do not

have a significant financing component which are measured at transaction price, and are subsequently

measured at amortised cost, less any appropriate allowances for estimated irrecoverable amounts.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Trade receivables | **3091** | 3050 |
| Accrued income | **882** | 1083 |
| Provision for impairment of receivables and accrued income | **(603)** | (578) |
| Trade receivables and accrued income, net | **3370** | 3555 |
| Prepayments | **336** | 340 |
| Other receivables | **161** | 197 |
|  | **3867** | 4092 |

---

Trade receivables are non-interest-bearing and generally have a term of up to 60 days. Due to their short

maturities, the fair value of trade and other receivables approximates their carrying value. The maximum

exposure of trade and other receivables to credit risk is the carrying amount reported on the balance sheet.

**Provision for impairment of receivables**

A provision for credit losses is recognised at an amount equal to the expected credit losses that will arise

over the lifetime of the trade receivables and accrued income.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| At 1 April | **578** | 559 |
| Exchange adjustments | **(13)** | (11) |
| Charge for the year, net of recoveries | **243** | 200 |
| Uncollectible amounts written off | **(205)** | (168) |
| Reclassification to held for sale (note 10) | **—** | (2) |
| **At 31 March** | **603** | 578 |

---

The trade receivables balance, accrued income balance and provisions balance split by geography are

as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As at 31 March 2026** | **As at 31 March 2026** | **As at 31 March 2026** | As at 31 March 2025 | As at 31 March 2025 | As at 31 March 2025 |
|  | **UK** | **US** | **Total** | UK | US | Total |
|  | **£m** | **£m** | **£m** | £m | £m | £m |
| Trade receivables | **194** | **2897** | **3091** | 265 | 2785 | 3050 |
| Accrued income | **289** | **593** | **882** | 513 | 570 | 1083 |
| Provision for impairment of <br>receivables and accrued income<br>| **(5)** | **(598)** | **(603)** | (3) | (575) | (578) |
|  | **478** | **2892** | **3370** | 775 | 2780 | 3555 |

---

There are no retail customers in the UK businesses. A provision matrix is not used in the UK, as an

assessment of expected losses on individual debtors is performed and the provision is not material.

In the US, £2,824 million (2025: £2,813 million) of the gross trade receivables and accrued income

balance is attributable to retail customers. For non-retail US customer receivables, a provision matrix

is not used and expected losses are determined on individual debtors.

The provision for retail customer receivables in the US is calculated based on a series of provision

matrices which are prepared by regulated entity and by customer type. The expected loss rates in each

provision matrix are based on historical loss rates adjusted for current and forecast economic conditions

at the balance sheet date. The inclusion of forward-looking information in the provision matrix-setting process

under IFRS 9 results in loss rates that reflect expected future economic conditions and the recognition of

an expected loss on all debtors even where no loss event has occurred.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **177** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**19. Trade and other receivables cont.**

**Provision for impairment of receivables cont.**

In calculating our provision for impairment of receivables at 31 March 2026, we incorporate actual

cash collection levels experienced over a three-year period (placing greater weight on the most recent

study, gradually decreasing for older periods) to determine the expected loss rates per category

of outstanding receivable by operating company. These are benchmarked against provision matrices

run on pre-COVID-19 behaviour and data. Factored into our analysis are expected cash collections

based on the collection activities in New England and New York, as well as the outlook for the wider

macroeconomic environment. The resulting rates are summarised in the provision matrix shown below.

Based on our review, we recognised a charge of £243 million (2025: £200 million), which represents

our best estimate based on the information available. We based our review on certain macroeconomic

factors, including unemployment levels, inflation, average commodity rate changes and our experience

regarding debtor recoverability.

The average expected loss rates and gross balances for the retail customer receivables in our US operations

are set out below.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | 2025 | 2025 |
|  | **%** | **£m** | % | £m |
| Accrued income  | **4** | **554** | 5 | 546 |
| 0 – 30 days past due | **4** | **1040** | 5 | 1033 |
| 30 – 60 days past due | **15** | **288** | 16 | 313 |
| 60 – 90 days past due | **23** | **158** | 24 | 154 |
| 3 – 6 months past due | **30** | **174** | 31 | 172 |
| 6 – 12 months past due | **37** | **181** | 38 | 186 |
| Over 12 months past due | **59** | **429** | 53 | 409 |
|  |  | **2824** |  | 2813 |

---

US retail customer receivables are not collateralised. Trade receivables are written off when regulatory

requirements are met. Write-off policies vary between jurisdictions as they are aligned with the local

regulatory requirements, which differ between regulators. There were no significant amounts written off

during the period that were still subject to enforcement action. Our internal definition of default is aligned

with that of the individual regulators in each jurisdiction.

For further information on our wholesale and retail credit risk, refer to note 32(a).

![](nggtf-20260331_g409.gif)

**20. Cash and cash equivalents**

**Cash and cash equivalents include cash balances, together with short-term investments** <br>**with an original maturity of three months or less that are readily convertible to cash.** <br>

The carrying amounts of cash and cash equivalents approximate their fair values.

Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits

are made for periods varying between one day and three months, depending on the immediate cash

requirements, and earn interest at the respective short-term deposit rates.

Cash and cash equivalents held in currencies other than sterling have been converted into sterling

at year-end exchange rates. For further information on currency exposures, refer to note 32(c).

Cash and cash equivalents at 31 March 2026 include £nil (2025: £nil) that is restricted.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Cash at bank | **375** | 625 |
| Short-term deposits | **—** | 553 |
| **Cash and cash equivalents** | **375** | 1178 |

---

**21. Borrowings**

![](nggtf-20260331_g410.gif)

**We borrow money primarily in the form of bonds and bank loans. These are for a fixed** <br>**term and may have fixed or floating interest rates or are linked to inflation indices. We** <br>**use derivatives to manage risks associated with interest rates, inflation rates and foreign** <br>**exchange. Lease liabilities are also included within borrowings.** <br>**Our price controls and rate plans lead us to fund our networks within a certain ratio** <br>**of debt to equity or regulatory asset value and, as a result, we have issued a significant** <br>**amount of debt. As we continue to invest in our networks, the amount of debt is expected** <br>**to increase over time. To maintain a strong balance sheet and to allow us to access** <br>**capital markets at commercially acceptable interest rates, we balance the amount of** <br>**debt we issue with the value of our assets, and we take account of certain other metrics** <br>**used by credit rating agencies.**<br>

Borrowings, which include interest-bearing and inflation-linked debt, overdrafts and collateral payable,

are initially recorded at fair value. This normally reflects the proceeds received (net of direct issue costs

for liabilities measured at amortised cost). Subsequently, borrowings are stated at amortised cost. Where

a borrowing is held at amortised cost, any difference between the proceeds after direct issue costs and

the redemption value is recognised over the term of the borrowing in the income statement using the

effective interest rate method.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **178** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**21. Borrowings cont.**

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| *Current* |  |  |
| Bank loans | **975** | 488 |
| Bonds | **2780** | 1828 |
| Commercial paper | **—** | 2226 |
| Lease liabilities | **145** | 120 |
|  | **3900** | 4662 |
| *Non-current* |  |  |
| Bank loans | **1045** | 1834 |
| Bonds | **41062** | 40334 |
| Lease liabilities | **748** | 709 |
|  | **42855** | 42877 |
| **Total borrowings** | **46755** | 47539 |

---

Total borrowings are repayable as follows:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Less than 1 year | **3900** | 4662 |
| In 1 to 2 years | **2513** | 3283 |
| In 2 to 3 years | **4369** | 2458 |
| In 3 to 4 years | **2322** | 4281 |
| In 4 to 5 years | **3138** | 2261 |
| More than 5 years: |  |  |
| By instalments | **264** | 337 |
| Other than by instalments | **30249** | 30257 |
|  | **46755** | 47539 |

---

The fair value of borrowings, excluding lease liabilities, at 31 March 2026 was £42,505 million

(2025: £43,137 million). Where market values were available, the fair value of borrowings (Level 1)

was £35,727 million (2025: £34,639 million). Where market values were not available, the fair value

of borrowings (Level 2) was £6,778 million (2025: £8,498 million) and calculated by discounting cash

flows at prevailing interest rates. The notional amount outstanding of the debt portfolio at 31 March 2026

was £46,113 million (2025: £46,739 million).

Collateral is placed with or received from any derivative counterparty where we have entered into a

credit support annex to the ISDA Master Agreement once the current mark-to-market valuation of the

trades between the parties exceeds an agreed threshold. Included in current bank loans is £47 million

(2025: £49 million) in respect of cash received under collateral agreements. For further details of our

borrowing facilities, refer to note 33. For further details of our bonds in issue, please refer to the debt

investor section of our website. Unless included herein, the information on our website is unaudited.

**Lease liabilities**

Lease liabilities are initially measured at the present value of the lease payments expected over the lease

term. The discount rate applied is the rate implicit in the lease or, if that is not available, the incremental

rate of borrowing for a similar term and similar security. The lease term takes account of exercising any

extension options that are at our option if we are reasonably certain to exercise the option as well as any

lease termination options, unless we are reasonably certain not to exercise the option. Each lease

payment is allocated between the liability and finance cost. The finance cost is charged to the income

statement over the lease period using the effective interest rate method. The associated right-of-use

assets are disclosed in note 13.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Gross lease liabilities are repayable as follows: |  |  |
| Less than 1 year | **172** | 143 |
| 1 to 5 years | **491** | 425 |
| More than 5 years | **456** | 494 |
|  | **1119** | 1062 |
| Less: finance charges allocated to future periods | **(226)** | (233) |
|  | **893** | 829 |
| The present value of lease liabilities are as follows: |  |  |
| Less than 1 year | **145** | 120 |
| 1 to 5 years | **407** | 347 |
| More than 5 years | **341** | 362 |
|  | **893** | 829 |

---

**22. Trade and other payables**

**Trade and other payables include amounts owed to suppliers, tax authorities and other** <br>**parties which are due to be settled within 12 months. The total also includes deferred** <br>**amounts, some of which represent monies received from customers but for which we have** <br>**not yet delivered the associated service. These amounts are recognised as revenue when** <br>**the service is provided.**<br>

![](nggtf-20260331_g411.gif)

Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Trade payables | **3374** | 2965 |
| Deferred payables | **423** | 401 |
| Customer contributions<sup>1</sup> | **30** | 32 |
| Social security and other taxes | **95** | 131 |
| Other payables<sup>2</sup> | **1127** | 943 |
|  | **5049** | 4472 |

---

1. Relates to amounts received from government-related entities for connecting to our networks, where we have obligations remaining under

the contract.

2. Included within Other payables are employee benefit accruals.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **179** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**23. Contract liabilities**

**Contract liabilities primarily relate to the advance consideration received from customers** <br>**for construction contracts, mainly in relation to connections, for which revenue is** <br>**recognised over the life of the asset.**<br>

![](nggtf-20260331_g412.gif)

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Current | **110** | 96 |
| Non-current | **2699** | 2418 |
|  | **2809** | 2514 |

---

Significant changes in the contract liabilities balances during the period are as follows:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| As at 1 April | **2514** | 2246 |
| Exchange adjustments | **(28)** | (28) |
| Revenue recognised that was included in the contract liability balance at the <br>beginning of the period<br>| **(97)** | (129) |
| Increases due to cash received, excluding amounts recognised as revenue <br>during the period<br>| **420** | 425 |
| At 31 March | **2809** | 2514 |

---

**24. Other non-current liabilities**

![](nggtf-20260331_g413.gif)

**Other non-current liabilities include deferred income and customer contributions which will** <br>**not be recognised as income until after 31 March 2027. It also includes other payables that** <br>**are not due until after that date.**<br>

Other non-current liabilities are initially recognised at fair value and subsequently measured at amortised cost.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Deferred income | **6** | 6 |
| Customer contributions<sup>1</sup> | **401** | 403 |
| Other payables² | **707** | 467 |
|  | **1114** | 876 |

---

1. Relates to amounts received from government-related entities for connecting to our networks, where we have obligations remaining under

the contract.

2. Included within other payables are payments due in respect of the IFA1 interconnector in accordance with the Use of Revenue regime,

and the IFA2 and North Sea Link interconnector in accordance with the interconnector cap and floor regime constructed by Ofgem.

The fair value of Other payables approximates their carrying value.

**25. Pensions and other post-retirement benefits**

**All of our employees are eligible to participate in a pension plan. We have defined** <br>**contribution (DC) and defined benefit (DB) pension plans in the UK and the US. In the US,** <br>**we also provide post-retirement benefits to eligible employees in the form of healthcare** <br>**cover and life insurance. The fair value of associated plan assets and present value** <br>**of DB obligations are updated annually in accordance with IAS 19 'Employee Benefits'.** <br>**We separately present our UK and US pension plans to show the geographical split.** <br>**Below we provide a more detailed analysis of the amounts recorded in the primary** <br>**financial statements and the actuarial assumptions used to value the DB obligations.**<br>

![](nggtf-20260331_g414.gif)

**UK pension plans**

Defined contribution plan

UK employees are eligible to join the National Grid UK Retirement Plan (NGUKRP), a section of a Master

Trust arrangement managed by Legal & General. National Grid pays contributions into the NGUKRP to

provide DC benefits on behalf of its employees, generally providing a double match of member

contributions up to a maximum Company contribution of 12% of salary.

Investment risks are borne by the member and there is no legal or constructive obligation on National Grid

to pay additional contributions in the instance that investment performance is poor. Payments to this DC

plan are charged as an expense as they fall due.

Defined benefit plans

National Grid operates various DB pension arrangements in the UK. These include Section A of the

National Grid UK Pension Scheme (NGUKPS), three sections of the industry-wide Electricity Supply

Pension Scheme (ESPS), a legacy scheme (WPUPS), a DB section within WPPS and some unfunded

pension obligations. These plans each hold assets in separate Trustee administered funds and are

managed by Trustee companies with boards consisting of company and member appointed Directors.

These plans are all closed to new members, except for the ESPS schemes in very rare circumstances.

The arrangements are subject to independent actuarial funding valuations carried out by the Trustees

every three years. Following consultation and agreement with the Company, the qualified actuary certifies

the employers' contributions which, together with the specified contributions payable by the employees

and proceeds from the plans' assets, are expected to be sufficient to fund the benefits payable. The latest

full actuarial valuations for each of the DB plans were carried out at 31 March 2025, with one of the plans

showing a funding shortfall at the valuation date. This shortfall will be funded via recovery plan payments

from the Company of £18 million per annum from 1 April 2026. The Company also funds the cost of

future benefit accrual (over and above member contributions) for each of the DB plans, with the aggregate

level of ongoing contributions (excluding recovery plan payments) over the year to 31 March 2026 totalling

£93 million (2025: £100 million). For some of the DB plans, the Company also pays contributions in

respect of the costs of plan administration.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **180** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**25. Pensions and other post-retirement benefits cont.**

**UK pension plans cont.**

Defined benefit plans cont.

The Company has also established security arrangements with two of its DB plans. For National Grid

Electricity Group (NGEG) of ESPS, the Company provides contingent security in the form of surety bonds,

letters of credit or cash payments which are implemented if certain trigger events occur in respect of

National Grid Electricity Transmission plc. This security would become payable to the scheme on certain

company-related events, such as loss of licence or insolvency, however the amount payable is currently

capped at £nil for the next three years given the strong funding position of the scheme. In respect of

Section A of NGUKPS, there is a guarantee in place which is enforceable on insolvency or on failure to

pay pension obligations to Section A and can be claimed against National Grid plc, National Grid Holdings

One plc or Lattice Group Limited.

In July 2025, the Trustees of NGUKPS completed a further bulk annuity transaction with Rothesay

covering approximately £0.9 billion of pensioner liabilities, meaning broadly three quarters of scheme

liabilities have now been insured. This transaction reflected National Grid's continued strategy to insure

pension risk when affordable and efficient to do so.

**US pension plans**

The US pension plans are governed by the Retirement Plan Committee (RPC), a fiduciary committee. The

RPC is structured in accordance with US laws governing retirement plans under the Employee Retirement

Income Security Act (ERISA) and comprises appointed employees of the Company.

Defined contribution plan

National Grid has a DC pension plan which allows employee as well as Company contributions. Non-union

employees hired after 1 January 2011, as well as most new hire union employees, receive a core

contribution into the DC plan ranging from 3% to 9% of salary, irrespective of the employee's contribution

into the plan. Most employees also receive a matching contribution that varies between 25% and 50%

of employee contributions up to a maximum Company contribution of 8%. The assets of the plans are

held in trusts and administered by the RPC.

Defined benefit plans

National Grid sponsors four non-contributory qualified DB pension plans, which provide vested non-union

employees hired before 1 January 2011, and vested eligible union employees, with retirement benefits

within prescribed limits as defined by the US Internal Revenue Service. National Grid also provides non-

qualified DB pension arrangements for a closed group of current and former employees with designated

company investments set aside to fund these obligations. Benefits under the DB plans generally reflect

age, years of service and compensation, and are paid in the form of an annuity or lump sum. The Company

funds the DB plans by contributing no less than the minimum amount required, but no more than the

maximum tax-deductible amount allowed under US Internal Revenue Service regulations. The range of

contributions determined under these regulations can vary significantly depending upon the funded status

of the plans. At present, there is some flexibility in the amount that is contributed on an annual basis.

In general, the Company's policy for funding the US pension plans is to contribute the amounts collected

in rates and capitalised in the rate base during the year, to the extent that the funding is no less than the

minimum amount required. For the current financial year, these contributions amounted to approximately

£19 million (2025: £27 million).

During the year, some of our US DB pension plans undertook annuity buyout transactions in which

a portion of existing retiree pension payments were transferred to a reputable insurance company in

exchange for single bulk premium payments. As a result, all associated financial, governance and

administrative responsibilities for those payments were transferred to the selected insurer.

**US other post-retirement benefits**

National Grid provides post-retirement healthcare and life insurance benefits to eligible employees.

Eligibility is based on certain age and length of service requirements and, in most cases, retirees

contribute to the cost of their healthcare coverage. In the US, there is no governmental requirement to

pre-fund post-retirement healthcare and life insurance plans. However, in general, the Company's policy

for funding the US retiree healthcare and life insurance plans is to contribute amounts collected in rates

and capitalised in the rate base during the year. For the current financial year, these contributions

amounted to £8 million (2025: £10 million).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **181** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**25. Pensions and other post-retirement benefits cont.**

**Actuarial assumptions**

On retirement, members of DB plans receive benefits whose value is dependent on factors such as

salary and length of pensionable service. National Grid's obligation in respect of DB pension plans is

calculated separately for each DB plan by projecting the estimated amount of future benefit payments

that employees have earned for their pensionable service in the current and prior periods. These future

benefit payments are discounted to determine the present value of the liabilities.

Advice is taken from independent actuaries relating to the appropriateness of the key assumptions

applied, including life expectancy, expected salary and pension increases, and inflation. Comparatively

small changes in the assumptions used may have a significant effect on the amounts recognised in

the consolidated income statement, the consolidated statement of other comprehensive income and

the net asset or liability recognised in the consolidated statement of financial position. The sensitivities

to significant risks are disclosed in note 35. Remeasurements of pension assets and post-retirement

benefit obligations are recognised in full in the period in which they occur in the consolidated statement

of other comprehensive income.

The Company has applied the following financial assumptions in assessing DB liabilities:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US pensions** | **US other post-retirement** <br>**benefits** | **US other post-retirement** <br>**benefits** | **US other post-retirement** <br>**benefits** |
|  | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 |
|  | **%** | % | % | **%** | % | % | **%** | % | % |
| Discount rate – past <br>service<br>| **6.00** | 5.73 | 4.87 | **5.60** | 5.50 | 5.15 | **5.60** | 5.50 | 5.15 |
| Discount rate – future <br>service<br>| **6.35** | 5.95 | 4.92 | **5.60** | 5.50 | 5.15 | **5.60** | 5.50 | 5.15 |
| Rate of increase in RPI <br>– past service<br>| **3.17** | 2.99 | 3.05 | **n/a** | n/a | n/a | **n/a** | n/a | n/a |
| Rate of increase in RPI <br>– future service<br>| **3.06** | 2.85 | 2.92 | **n/a** | n/a | n/a | **n/a** | n/a | n/a |
| Salary increases | **3.32** | 3.08 | 3.10 | **4.50** | 4.50 | 4.50 | **4.50** | 4.50 | 4.50 |
| Initial healthcare cost <br>trend rate<br>| **n/a** | n/a | n/a | **n/a**  | n/a | n/a | **7.10** | 7.80 | 7.10 |
| Ultimate healthcare <br>cost trend rate<br>| **n/a** | n/a | n/a | **n/a**  | n/a | n/a | **4.50** | 4.50 | 4.50 |

---

For UK pensions, single equivalent financial assumptions are shown above for presentational purposes,

although full yield curves have been used in our calculations. The discount rate is determined by reference

to high-quality UK corporate bonds at the reporting date. The rate of increase in salaries has been set

using a promotional scale where appropriate. The rates of increases stated are not indicative of historical

increases awarded or a guarantee of future increase, but merely an appropriate assumption used in

assessing DB liabilities. Our DB plans in the UK provide for pension increases that are generally linked

to the Retail Price Index (RPI), subject to relevant caps and floors.

Discount rates for US pension liabilities have been determined by reference to appropriate yields on high-

quality US corporate bonds at the reporting date based on the duration of plan liabilities. The healthcare

cost trend rate is expected to reach the ultimate trend rate by 2037 (2025: 2033).

The table below sets out the projected life expectancies adopted for the UK and US pension arrangements:

---

| |
|:---|
| *Assumed life expectation for a* <br>*retiree aged 65*<br>|
| Males |
| Females |
| In 20 years: |
| Males |
| Females |

---

The weighted average duration of the DB obligation for each category of plan is 10 years for UK pension

plans, 11 years for US pension plans and 11 years for US other post-retirement benefit plans. The table

below summarises the split of DB obligations by status for each category of plan:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US other** <br>**post-retirement benefits** | **US other** <br>**post-retirement benefits** |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **%** | % | **%** | % | **%** | % |
| Active members | **10** | 11 | **42** | 40 | **30** | 28 |
| Deferred members | **7** | 7 | **10** | 10 | **—** |  |
| Pensioner members | **83** | 82 | **48** | 50 | **70** | 72 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **182** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**25. Pensions and other post-retirement benefits cont.**

**Amounts recognised in the consolidated statement of financial position**

The geographical split of pensions and other post-retirement benefits is as shown below:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US other** <br>**post-retirement benefits** | **US other** <br>**post-retirement benefits** | **Total** | **Total** |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m | **£m** | £m | **£m** | £m |
| Present value of funded obligations | **(9319)** | (9424) | **(4009)** | (4508) | **(1770)** | (2222) | **(15098)** | (16154) |
| Fair value of plan assets | **10441** | 10603 | **4608** | 5180 | **2731** | 2658 | **17780** | 18441 |
|  | **1122** | 1179 | **599** | 672 | **961** | 436 | **2682** | 2287 |
| Present value of unfunded obligations | **(51)** | (51) | **(186)** | (196) | **(10)** |  | **(247)** | (247) |
| Other post-employment liabilities | **—** |  | **—** |  | **(44)** | (47) | **(44)** | (47) |
|  | **1071** | 1128 | **413** | 476 | **907** | 389 | **2391** | 1993 |
| Restrictions on asset recognised | **—** |  | **—** |  | **(244)** | (77) | **(244)** | (77) |
| **Net defined benefit asset** | **1071** | 1128 | **413** | 476 | **663** | 312 | **2147** | 1916 |
| Represented by: |  |  |  |  |  |  |  |  |
| Liabilities | **(51)** | (51) | **(186)** | (196) | **(123)** | (326) | **(360)** | (573) |
| Assets | **1122** | 1179 | **599** | 672 | **786** | 638 | **2507** | 2489 |
|  | **1071** | 1128 | **413** | 476 | **663** | 312 | **2147** | 1916 |

---

The extent to which pension assets have been recognised in the UK and in the US reflects legal and actuarial advice that we have taken regarding recognition of surpluses under IFRIC 14. In the UK, the Group has

an unconditional right to a refund in the event of a winding up. In the US, surplus assets of a plan may be used to pay for future benefits expected to be earned under that plan.

At 31 March 2026, the Group has an irrecoverable surplus of £244 million (2025: £77 million) related to one OPEB plan. The economic benefit from reductions in future contributions to the plan is not sufficient to

cover the surplus and this plan does not have an unconditional right to a refund of surplus assets in the event of a winding up without incurring significant tax charges.

**Amounts recognised in the income statement and statement of other comprehensive income**

The expense or income arising from all Group retirement benefit arrangements recognised in the Group income statements is shown below:

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| *Included within operating costs* |  |  |  |
| Administration costs | **27** | 22 | 22 |
| *Included within payroll costs* |  |  |  |
| Defined benefit plan costs: |  |  |  |
| Current service cost<sup>1</sup> | **123** | 138 | 143 |
| Past service cost – augmentations and redundancies | **2** | 1 | 9 |
| Gains on settlement | **(25)** |  | (30) |
|  | **100** | 139 | 122 |
| *Included within finance income and costs* |  |  |  |
| Net interest income adjusted for change to irrecoverable surplus | **(114)** | (98) | (100) |
| **Total expense included in income statement** | **13** | 63 | 44 |
| Exchange losses | **(14)** | (20) | (6) |
| Remeasurement gains/(losses) of pension assets and post-retirement benefit obligations | **287** | (29) | (218) |
| Adjustments for restrictions on the defined benefit asset | **(155)** | (77) |  |
| **Total gain/(loss) included in the statement of other comprehensive income** | **118** | (126) | (224) |

---

1. Of the current service cost, £33 million (2025: £34 million; 2024: £35 million) has been capitalised to property, plant and equipment.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **183** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**25. Pensions and other post-retirement benefits cont.**

**Amounts recognised in the income statement and statement of other comprehensive income cont.**

The geographical split of pensions and other post-retirement benefits is shown below:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US pensions** | **US other post-retirement benefits** | **US other post-retirement benefits** | **US other post-retirement benefits** |
|  | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m | **£m** | £m | £m | **£m** | £m | £m |
| *Included within operating costs* |  |  |  |  |  |  |  |  |  |
| Administration costs | **19** | 14 | 13 | **6** | 6 | 7 | **2** | 2 | 2 |
| *Included within payroll costs* |  |  |  |  |  |  |  |  |  |
| Defined benefit plan costs: |  |  |  |  |  |  |  |  |  |
| Current service cost | **34** | 45 | 45 | **62** | 68 | 72 | **27** | 25 | 26 |
| Past service cost – augmentations and redundancies | **2** | 1 | 9 | **—** |  |  | **—** |  |  |
| Gains on settlement | **—** |  |  | **(25)** |  | (30) | **—** |  |  |
|  | **36** | 46 | 54 | **37** | 68 | 42 | **27** | 25 | 26 |
| *Included within finance income and costs* |  |  |  |  |  |  |  |  |  |
| Net interest income adjusted for change to irrecoverable surplus | **(58)** | (68) | (84) | **(22)** | (19) | (13) | **(34)** | (11) | (3) |
| **Total (income)/expense included in income statement** | **(3)** | (8) | (17) | **21** | 55 | 36 | **(5)** | 16 | 25 |
| Exchange losses | **—** |  |  | **(7)** | (10) | (5) | **(7)** | (10) | (1) |
| Remeasurement (losses)/gains of pension assets and post-retirement benefit obligations | **(156)** | (257) | (474) | **(54)** | 106 | 99 | **497** | 122 | 157 |
| Adjustments for restrictions on the defined benefit asset | **—** |  |  | **—** |  |  | **(155)** | (77) |  |
| **Total (loss)/gain included in the statement of other comprehensive income** | **(156)** | (257) | (474) | **(61)** | 96 | 94 | **335** | 35 | 156 |

---

**Reconciliation of the net defined benefit asset**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US other** <br>**post-retirement benefits** | **US other** <br>**post-retirement benefits** | **Total** | **Total** |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m | **£m** | £m | **£m** | £m |
| Opening net defined benefit asset | **1128** | 1261 | **476** | 408 | **389** | 145 | **1993** | 1814 |
| Income/(cost) recognised in the income statement before adjustment for irrecoverable surplus | **3** | 8 | **(21)** | (55) | **16** | (16) | **(2)** | (63) |
| Remeasurement and foreign exchange effects recognised in the statement of other comprehensive income | **(156)** | (257) | **(61)** | 96 | **491** | 112 | **274** | (49) |
| Employer contributions | **93** | 112 | **19** | 27 | **8** | 143¹ | **120** | 282 |
| Other movements | **3** | 4 | **—** |  | **3** | 5 | **6** | 9 |
|  | **1071** | 1128 | **413** | 476 | **907** | 389 | **2391** | 1993 |
| Restrictions on the defined benefit asset | **—** |  | **—** |  | **(244)** | (77) | **(244)** | (77) |
| **Closing net defined benefit asset** | **1071** | 1128 | **413** | 476 | **663** | 312 | **2147** | 1916 |

---

1. In addition to the regular employer contributions that are described above, the Company made a one-off contribution of £133 million to the OPEB schemes in the prior year.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **184** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**25. Pensions and other post-retirement benefits cont.**

**Changes in the present value of defined benefit obligations (including unfunded obligations)**

The table below shows the movement in defined benefit obligations across our DB plans over the year.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US other** <br>**post-retirement benefits** | **US other** <br>**post-retirement benefits** | **Total** | **Total** |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m | **£m** | £m | **£m** | £m |
| Opening defined benefit obligations | **(9475)** | (10521) | **(4704)** | (4912) | **(2222)** | (2434) | **(16401)** | (17867) |
| Current service cost | **(34)** | (45) | **(62)** | (68) | **(27)** | (25) | **(123)** | (138) |
| Interest cost | **(452)** | (533) | **(241)** | (246) | **(92)** | (120) | **(785)** | (899) |
| Actuarial (losses)/gains – experience | **(40)** | (41) | **(88)** | (4) | **(5)** | 116 | **(133)** | 71 |
| Actuarial gains/(losses) – demographic assumptions | **(98)** | (74) | **—** | (22) | **419** | 19 | **321** | (77) |
| Actuarial gains/(losses) – financial assumptions | **11** | 989 | **31** | 156 | **(15)** | 36 | **27** | 1181 |
| Past service cost – augmentations and redundancies | **(2)** | (1) | **—** |  | **—** |  | **(2)** | (1) |
| Liabilities extinguished on settlements | **—** |  | **468** |  | **—** |  | **468** |  |
| Medicare subsidy received | **—** |  | **—** |  | **(37)** | (31) | **(37)** | (31) |
| Employee contributions | **(5)** | (5) | **—** |  | **—** |  | **(5)** | (5) |
| Benefits paid | **725** | 756 | **280** | 282 | **142** | 165 | **1147** | 1203 |
| Exchange adjustments | **—** |  | **121** | 110 | **57** | 52 | **178** | 162 |
| **Closing defined benefit obligations** | **(9370)** | (9475) | **(4195)** | (4704) | **(1780)** | (2222) | **(15345)** | (16401) |

---

**Changes in the value of plan assets**

The table below shows the movement in pension assets across our DB plans over the year.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **UK pensions** | **UK pensions** | **US pensions** | **US pensions** | **US other** <br>**post-retirement benefits** | **US other** <br>**post-retirement benefits** | **Total** | **Total** |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m | **£m** | £m | **£m** | £m |
| Opening fair value of plan assets | **10603** | 11782 | **5180** | 5320 | **2658** | 2631 | **18441** | 19733 |
| Interest income | **510** | 601 | **263** | 265 | **137** | 131 | **910** | 997 |
| Return on plan assets (less than)/in excess of interest<sup>1</sup> | **(29)** | (1131) | **3** | (24) | **98** | (49) | **72** | (1204) |
| Administration costs | **(19)** | (14) | **(6)** | (6) | **(2)** | (2) | **(27)** | (22) |
| Assets distributed on settlements | **—** |  | **(443)** |  | **—** |  | **(443)** |  |
| Employer contributions | **93** | 112 | **19** | 27 | **8** | 143 | **120** | 282 |
| Employee contributions | **5** | 5 | **—** |  | **—** |  | **5** | 5 |
| Benefits paid | **(722)** | (752) | **(280)** | (282) | **(105)** | (134) | **(1107)** | (1168) |
| Exchange adjustments | **—** |  | **(128)** | (120) | **(63)** | (62) | **(191)** | (182) |
| **Closing fair value of plan assets** | **10441** | 10603 | **4608** | 5180 | **2731** | 2658 | **17780** | 18441 |
| **Actual return on plan assets** | **481** | (530) | **266** | 241 | **235** | 82 | **982** | (207) |
| **Expected contributions to plans in the following year** | **55** | 89 | **28** | 19 | **10** |  | **93** | 108 |

---

1. For the year ended 31 March 2026 this included actuarial losses of £60 million resulting from the purchase of a bulk annuity policy with Rothesay.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **185** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**25. Pensions and other post-retirement benefits cont.**

**Asset allocations**

The allocation of assets by asset class is set out below. Within these asset allocations there is significant diversification across regions, asset managers, currencies and bond categories.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| UK pensions | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| UK pensions | **Quoted** | **Unquoted** | **Total** | Quoted | Unquoted | Total | Quoted | Unquoted | Total |
| UK pensions | **£m** | **£m** | **£m** | £m | £m | £m | £m | £m | £m |
| Equities | **842** | **103** | **945** | 716 | 123 | 839 | 576 | 153 | 729 |
| Corporate bonds | **1018** | **—** | **1018** | 1338 | (1) | 1337 | 1910 |  | 1910 |
| Government securities and liability-driven investments | **—** | **3378** | **3378** |  | 3938 | 3938 |  | 5259 | 5259 |
| Property<sup>1</sup> | **—** | **403** | **403** |  | 451 | 451 |  | 679 | 679 |
| Diversified alternatives | **412** | **231** | **643** | 381 | 428 | 809 | 669 | 572 | 1241 |
| Bulk annuity policies | **—** | **4059** | **4059** |  | 3239 | 3239 |  | 2060 | 2060 |
| Longevity swap | **—** | **—** | **—** |  |  |  |  | (94) | (94) |
| Cash and cash equivalents | **—** | **—** | **—** | 1 |  | 1 | 3 |  | 3 |
| Other (including net current assets and liabilities) | **—** | **(5)** | **(5)** |  | (11) | (11) |  | (5) | (5) |
|  | **2272** | **8169** | **10441**<sup>2</sup> | 2436 | 8167 | 10603<sup>2</sup> | 3158 | 8624 | 11782<sup>2</sup> |

---

1. The allocation in property includes £284 million (2025: £294 million, 2024: £288 million) of investments in forestry funds.

2. The fair value of plan assets set out above includes employer-related investment exposure of £nil (2025: £nil, 2024: £44 million). The investment strategies for some of the DB plans use repurchase agreements to increase market exposure of their liability-driven investments, with the fair

value of these instruments totalling approximately £2.5 billion at 31 March 2026 (2025: £2.9 billion, 2024: £2.7 billion).

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| US pensions | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| US pensions | **Quoted** | **Unquoted** | **Total** | Quoted | Unquoted | Total | Quoted | Unquoted | Total  |
| US pensions | **£m** | **£m** | **£m** | £m | £m | £m | £m | £m | £m |
| Equities | **—** | **848** | **848** |  | 887 | 887 | 99 | 1224 | 1323 |
| Corporate bonds | **1682** | **339** | **2021** | 1955 | 401 | 2356 | 1987 | 403 | 2390 |
| Government securities | **621** | **460** | **1081** | 737 | 467 | 1204 | 360 | 444 | 804 |
| Property | **—** | **163** | **163** |  | 196 | 196 |  | 237 | 237 |
| Diversified alternatives | **—** | **357** | **357** |  | 384 | 384 | 54 | 502 | 556 |
| Cash and cash equivalents | **130** | **—** | **130** | 152 |  | 152 | 9 |  | 9 |
| Other (including net current assets and liabilities) | **4** | **4** | **8** | (2) | 3 | 1 | 1 |  | 1 |
|  | **2437** | **2171** | **4608** | 2842 | 2338 | 5180 | 2510 | 2810 | 5320 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| US other post-retirement benefits | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| US other post-retirement benefits | **Quoted** | **Unquoted** | **Total** | Quoted | Unquoted | Total | Quoted | Unquoted | Total |
| US other post-retirement benefits | **£m** | **£m** | **£m** | £m | £m | £m | £m | £m | £m |
| Equities | **36** | **553** | **589** | 31 | 522 | 553 | 37 | 524 | 561 |
| Corporate bonds | **1217** | **161** | **1378** | 1350 | 47 | 1397 | 1351 | 46 | 1397 |
| Government securities | **455** | **1** | **456** | 441 | 1 | 442 | 410 | 1 | 411 |
| Diversified alternatives | **121** | **—** | **121** | 103 |  | 103 | 92 | 9 | 101 |
| Other (including insurance contracts) | **2** | **185** | **187** |  | 163 | 163 |  | 161 | 161 |
|  | **1831** | **900** | **2731** | 1925 | 733 | 2658 | 1890 | 741 | 2631 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **186** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**25. Pensions and other post-retirement benefits cont.**

**Main defined benefit risks**

National Grid underwrites the financial and demographic risks associated with the Group's DB plans.

Although the governing bodies have sole responsibility for setting investment strategies and managing risks,

National Grid closely works with and supports the governing bodies of each plan, to assist them in mitigating

the risks associated with their plans and to ensure that the plans are funded to meet their obligations.

The most significant risks associated with the DB plans are as follows:

---

| | |
|:---|:---|
| **Main risks** | **Description and mitigation** |
| Investment risk | The plans invest in a variety of asset classes, with actual returns likely to differ from the <br>underlying discount rate adopted, impacting on the funding position of the plan through <br>the net balance sheet asset or liability. Each plan seeks to balance the level of <br>investment return required with the risk that it can afford to take, to design the most <br>appropriate investment portfolio.<br>|
| Changes in <br>bond yields<br>| Liabilities will fluctuate as yields change. Volatility of the net balance sheet asset or <br>liability is controlled through liability-matching strategies. The investment strategies <br>allow for the use of synthetic as well as physical assets to be used for hedging.<br>|
| Inflation risk | Changes in inflation will affect current and future pensions but are partially mitigated <br>through investing in inflation-matching assets and hedging instruments as well as bulk <br>annuity policies. The investment strategies allow for the use of synthetic as well as <br>physical assets to be used for hedging.<br>|
| Member <br>longevity<br>| Improvements in life expectancy will lead to pension payments being paid for longer <br>than expected and benefits ultimately being more expensive. This risk has been partly <br>mitigated by the investment in bulk annuity policies for NGEG of ESPS and NGUKPS.<br>|
| Counterparty <br>risk<br>| This is managed by having a diverse range of counterparties and through having a <br>strong collateralisation process. Measurement and management of counterparty risk <br>is delegated to the relevant investment managers. For our bulk annuity policies, various <br>termination provisions were included in the contracts, managing our exposure to <br>counterparty risk. The insurers' operational performance and financial strength are <br>monitored on a regular basis.<br>|
| Default risk | Debt investments are predominantly made in regulated markets in assets considered <br>to be of investment grade. Where investments are made either in non-investment grade <br>assets or outside of regulated markets, investment levels are kept to prudent levels and <br>subject to agreed ranges, to control the risk.<br>|
| Liquidity risk | The pension plans hold sufficient cash to meet benefit requirements, with other <br>investments being held in liquid or realisable assets to meet unexpected cash flow <br>requirements. These could include collateral calls relating to the plans' liability-matching <br>assets which could result from extreme market movements. Should the plans not have <br>sufficient liquidity to meet cash flow requirements, they could be forced to take sub-<br>optimal investment decisions such as selling assets at a reduced price. The plans <br>generally do not borrow money, or act as guarantor, to provide liquidity to other parties.<br>|
| Currency risk | Fluctuations in the value of foreign denominated assets due to exposure to currency <br>exchange rates are managed through currency hedging overlay and currency hedging <br>carried out by some of the investment managers.<br>|

---

In June 2023, the UK High Court issued a ruling in the case of Virgin Media Limited versus NTL Pension

Trustees II Limited and others relating to the validity of certain historical pension changes. A subsequent

appeal was dismissed in July 2024 by the Court of Appeal. The Group has performed its review of past

significant changes made to its UK defined benefit pension arrangements and it has concluded that

there is no financial impact from the ruling of the case.

**Investment strategies**

The Trustees and RPC, after taking advice from professional investment advisors and in consultation

with National Grid, set their key principles, including expected returns, risk and liquidity requirements.

They formulate an investment strategy to manage risk through diversification, taking into account

expected contributions, maturity of the pension liabilities and, in the UK, the strength of the covenant.

These strategies allocate investments between return-seeking assets such as equities and property,

and liability-matching assets such as bulk annuity policies, government securities and corporate bonds

which are intended to protect the funding position.

The approximate investment allocations for our plans at 31 March 2026 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **UK pensions** | **US pensions** | **US other post-**<br>**retirement benefits**<br>|
|  | **%** | **%** | **%** |
| Return-seeking assets | **19** | **30** | **26** |
| Liability-matching assets | **81** | **70** | **74** |

---

The governing bodies generally delegate responsibility for the selection of specific bonds, securities and

other investments to appointed investment managers, who are selected based on the required skills,

expertise in those markets, process and financial security to manage the investments. Their performance

is regularly reviewed against measurable objectives, consistent with each pension plan's long-term

objectives and accepted risk levels.

In the UK, each of our pension plans has Responsible Investment (RI) Policies, which consider ESG

factors and generally incorporate the six UN-backed Principles for Responsible Investment (UNPRI).

While each Trustee board understands its fiduciary responsibility to maximise return on investments

based on an appropriate level of risk, they each also recognise that ESG factors can be material to

financial outcomes and can have a potential impact on the quality and sustainability of long-term

investment returns. The principal defined contribution arrangement in the UK embeds ESG factors

in the investment options offered to members. As well as offering a range of self-select ethical funds,

it directly incorporates its Climate Impact Pledge into the default investment options, which act to align

the funds to a carbon net zero future.

While in the US there is no regulatory requirement to have ESG-specific principles embedded in investment

policies, our investment managers consider ESG principles to inform their decision-making process.

US DC plan members can access ESG investment funds through the mutual fund brokerage window.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **187** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**26. Provisions**

**Provisions are recognised where a legal or constructive obligation exists at the reporting** <br>**date, as a result of a past event, where the outflow of economic benefit is probable and** <br>**where the amount of the obligation can be reliably estimated.** <br>

![](nggtf-20260331_g415.gif)

Provisions are recognised for the costs of environmental remediation; decommissioning costs for certain

assets that we are required to remove at the end of their useful economic lives; restructuring costs; and

for certain other situations where the above thresholds are met.

Long-term provisions are measured based on management's best estimates of the likely cash flows,

discounted at an appropriate discount rate. The unwinding of the discount is included within the income

statement within finance costs. Short-term provisions are measured at the expected cash outflow and

are not discounted.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Environmental<br>£m<br>| Decommissioning<br>£m<br>| Other<br>£m<br>| Total<br>provisions<br>£m<br>|
| At 1 April 2024 | 2418 | 353 | 338 | 3109 |
| Exchange adjustments | (47) | (5) | (1) | (53) |
| Additions | 60 | 45 | 211 | 316 |
| Unused amounts reversed | (126) | (8) | (16) | (150) |
| Adjustment for change in discount rate<sup>1</sup> | (82) | 7 |  | (75) |
| Unwinding of discount | 105 | 13 | 5 | 123 |
| Utilised | (139) | (6) | (58) | (203) |
| Reclassification to held for sale (note 10) | (17) |  | (1) | (18) |
| At 31 March 2025 | 2172 | 399 | 478 | 3049 |
| Exchange adjustments | (49) | (4) | (4) | (57) |
| Additions | 59 | 43 | 200 | 302 |
| Unused amounts reversed | (53) | (50) | (26) | (129) |
| Adjustment for change in discount rate | (2) | (88) |  | (90) |
| Unwinding of discount | 101 | 12 | 3 | 116 |
| Utilised | (135) | (4) | (113) | (252) |
| Reclassifications to other payables (note 24) |  |  | (178) | (178) |
| **At 31 March 2026** | **2093** | **308** | **360** | **2761** |

---

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Current | **425** | 357 |
| Non-current | **2336** | 2692 |
|  | **2761** | 3049 |

---

1. In the prior year, US environmental provisions decreased by £82 million as a result of the change in the real discount rate from 1.5%

to 2.0%.

**Environmental provisions**

We recognise environmental provisions for the estimated restoration and remediation costs relating to

a number of sites owned and managed by subsidiary undertakings, together with certain US sites that

National Grid no longer owns. The environmental provision is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Discounted**<br>**£m**<br>| **Real** <br>**undiscounted**<br>**£m**<br>| **Real** <br>**discount** <br>**rate**<br>| Discounted<br>£m<br>| Real <br>undiscounted<br>£m<br>| Real <br>discount <br>rate<br>|
| UK sites | **82** | **91** | **1.4%** | 107 | 115 | 1.0% |
| US sites | **2011** | **2340** | **2.0%** | 2065 | 2440 | 2.0% |
|  | **2093** | **2431** |  | 2172 | 2555 |  |

---

Remediation expenditure in the US is expected to be incurred until 2079, of which the majority relates

to two Superfund sites (being sites where hazardous substances are present as a result of the historical

operations of manufacturing gas plants previously owned or operated by the Group or its predecessor

companies in Brooklyn, New York). The weighted average duration of the forecasted cash flows is 9 years.

Under the terms of our rate plans, we are entitled to recovery of environmental clean-up costs from

rate payers.

Remediation expenditure in the UK relates to old gas manufacturing sites and also to electricity

transmission sites. Cash flows are expected to be incurred until 2070.

The real undiscounted amount is management's best estimate of the actual cash flows that will be

required. The provisions are calculated based on these cash flows discounted at the appropriate real

discount rate for the jurisdiction, which is determined using the relevant government bond yield curve

and the weighted average life of the provisions.

Numerous estimation uncertainties affect the calculation of these provisions, including the impact of and

possibility of changes to regulatory requirements, the accuracy of site surveys, unexpected contaminants,

the scope of remediation work, transportation costs, the impact of alternative technologies, the expected

timing, cost and duration of cash flows, and changes in the real discount rate. These provisions incorporate

our best estimate of the financial effect of these uncertainties, but future changes in any of the assumptions

could materially impact the calculation of the provision.

Changes in the provision arising from revised estimates, discount rates or changes in the expected

timing of expenditure are recognised in the income statement. A sensitivity of the impact of changes

to the US environmental provision real discount rate and changes in estimated future cash flows is shown

in note 35. The facts and circumstances relating to particular cases are evaluated regularly in determining

whether an environmental provision should be revised (see note 30).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **188** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**26. Provisions cont.**

**Decommissioning provisions**

We recognise provisions for decommissioning costs for various assets we are required to remove at

the end of their lives, including the safe removal of asbestos for certain of our generation units and the

restoration of seabeds in respect of our interconnectors. Provisions to decommission significant portions

of our regulated transmission and distribution assets are not recognised where no legal obligations

exist and where a realistic alternative exists to incurring costs to decommission the assets at the end

of their lives.

An initial estimate of decommissioning costs attributable to property, plant and equipment is recorded

as part of the cost of the related property, plant and equipment. Changes in the provision arising from

revised estimates, discount rates or changes in the expected timing of expenditure that relates to

property, plant and equipment are recorded as adjustments to their carrying value and depreciated

prospectively over their remaining estimated useful economic lives. Expenditure is expected to be

incurred until 2116.

**Other provisions**

Included within other provisions at 31 March 2026 are the following amounts:

–£167 million (2025: £172 million) of estimated liabilities in respect of past events insured by

subsidiary undertakings and policy excesses incurred by operating companies. Estimates are

based on experience from previous years. We expect that cash flows will be incurred until 2055;

–£nil (2025: £159 million) of estimated liabilities in respect of interconnector excess revenues are

recognised at the reporting date, as the first assessment period of the interconnector cap and floor

regime for IFA2 and North Sea Link (see note 3(e)) concluded on 31 March 2026. Based on the

respective interconnectors' performance against their cumulative caps, the liability has been finalised

at £178 million and has been reclassified to other payables within non-current liabilities (see note 24).

Cash outflows will be required to settle these liabilities by the financial year ending 31 March 2028; and

–£80 million (2025: £39 million) in respect of emissions provisions, expected to be utilised by 2027

through the delivery of emission allowances.

![](nggtf-20260331_g416.gif)

**27. Share capital**

**Ordinary share capital represents the total number of shares issued which are publicly** <br>**traded. We also disclose the number of treasury shares the Company holds, which are** <br>**shares that the Company has bought itself, predominantly to actively manage and settle** <br>**employee share option and reward plan liabilities.**<br>

Share capital is accounted for as an equity instrument. An equity instrument is any contract that includes a

residual interest in the consolidated assets of the Company after deducting all its liabilities and is recorded at

the proceeds received, net of direct issue costs, with an amount equal to the nominal amount of the shares

issued included in the share capital account and the balance recorded in the share premium account.

---

| | | |
|:---|:---|:---|
|  | Allotted, called-up and fully paid | Allotted, called-up and fully paid |
|  | Shares <br>million<br>| Nominal value <br>£m<br>|
| At 1 April 2024 | 3967 | 493 |
| Rights Issue | 1085 | 135 |
| Issued during the year in lieu of dividends<sup>1</sup> | 81 | 10 |
| At 31 March 2025 | 5133 | 638 |
| Issued during the year in lieu of dividends<sup>1</sup> | 66 | 9 |
| **At 31 March 2026** | **5199** | **647** |

---

1. The issue of shares under the scrip dividend programme is considered to be a bonus issue under the terms of the Companies Act 2006,

and the nominal value of the shares is charged to the share premium account.

The share capital of the Company consists of ordinary shares of 12<sup>204</sup>⁄473 pence nominal value each

including ADSs. The ordinary shares and ADSs (each of which represents five ordinary shares) allow

holders to receive dividends and vote at general meetings of the Company. The Company holds treasury

shares but may not exercise any rights over these shares, including the entitlement to vote or receive

dividends. There are no restrictions on the transfer or sale of ordinary shares.

In line with the provisions of the Companies Act 2006, the Company has amended its Articles of Association

and ceased to have authorised share capital.

The Company conducts a share forfeiture programme following the completion of a tracing and notification

exercise to any shareholders who have not had contact with the Company over the past 12 years, in

accordance with the provisions set out in the Company's Articles of Association. Under the share forfeiture

programme, the shares and dividends associated with shares of untraced members have been forfeited,

with the resulting proceeds transferred to the Company to use in line with the Company's strategy in

relation to corporate responsibility. During the financial year, the Company received £2 million (2025:

£5 million) of proceeds from the sale of untraced shares and derecognised £1 million (2025: £3 million)

of liabilities related to unclaimed dividends, which are reflected in share premium and the income

statement respectively.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **189** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**27. Share capital cont.**

**Rights Issue**

In June 2024, the Company completed a Rights Issue to support the future capital investment plans

of the Group. The Company raised £6,839 million (net of expenses of £162 million) through the issue

of 1,085 million new ordinary shares at 645 pence each on the basis of 7 new ordinary shares for every

24 existing ordinary shares. The issue price represented a discount of 33% to the closing ex-dividend

share price on 23 May 2024, the announcement date of the Rights Issue. The structure of the Rights

Issue gave rise to a merger reserve, representing the net proceeds of the Rights Issue less the nominal

value of the new shares issued. Following the receipt of the cash proceeds through the structure,

the excess of the net proceeds over the nominal value of the share capital issued was considered

realised and transferred from the merger reserve to retained earnings.

**Treasury shares**

At 31 March 2026, the Company held 226 million (2025: 235 million) of its own shares. The market

value of these shares as at 31 March 2026 was £2,863 million (2025: £2,377 million).

For the benefit of employees and in connection with the operation of the Company's various share

plans, the Company made the following transactions in respect of its own shares during the year

ended 31 March 2026:

–During the year, 5 million (2025: 9 million) treasury shares were gifted to National Grid Employee

Share Trusts and 5 million (2025: 3 million) treasury shares were reissued in relation to employee

share schemes, in total representing 0.2% (2025: 0.2%) of the ordinary shares in issue as at 31 March

2026. The nominal value of these shares was £1 million (2025: £1 million) and the total proceeds

received were £40 million (2025: £18 million).

–During the year, the Company made payments totalling £3 million (2025: £11 million) to National

Grid Employee Share Trusts to enable the Trustees to make purchases of National Grid plc shares

to settle share awards in relation to all employee share plans and discretionary reward plans. The

cost of such purchases is deducted from retained earnings in the period that the transaction occurs.

The maximum number of ordinary shares held in Treasury during the year was 235 million (2025: 247 million),

representing 4.5% (2025: 4.8%) of the ordinary shares in issue as at 31 March 2026 and having a nominal

value of £29 million (2025: £31 million).

![](nggtf-20260331_g417.gif)

**28. Other equity reserves**

**Other equity reserves are different categories of equity as required by accounting standards** <br>**and represent the impact of a number of our historical transactions or fair value movements** <br>**on certain financial instruments that the Company holds.**<br>

Other equity reserves comprise the translation reserve (see note 1C), cash flow hedge reserve and

the cost of hedging reserve (see note 32), debt instruments at fair value through other comprehensive

income reserve (FVOCI debt) (see note 15), the capital redemption reserve and the merger reserve.

The merger reserve arose as a result of the application of merger accounting principles under the then

prevailing UK GAAP, which under IFRS 1 was retained for mergers that occurred prior to the IFRS

transition date. Under merger accounting principles, the difference between the carrying amount of

the capital structure of the acquiring vehicle and that of the acquired business was treated as a merger

difference and included within reserves. The merger reserve represents the difference between the

carrying value of subsidiary undertaking investments and their respective capital structures following

the Lattice demerger from BG Group plc and the 1999 Lattice refinancing.

The cash flow hedge reserve will either amortise as the committed future cash flows from borrowings are

paid, be capitalised in fixed assets, or amortise as committed future cash flows from revenue are received

(as described in note 32). See note 15 for further detail on FVOCI debt and note 32 in respect of cost of

hedging reserve.

As the amounts included in other equity reserves are not attributable to any of the other classes of equity

presented, they have been disclosed as a separate classification of equity.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **190** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**28. Other equity reserves cont.**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Translation<br>£m<br>| Cash flow <br>hedge<br>£m<br>| Cost of <br>hedging<br>£m<br>| FVOCI <br>debt <br>£m<br>| Capital <br>redemption<br>£m<br>| Merger<br>£m<br>| Total<br>£m<br>|
| At 1 April 2023 | 1306 | (61) | (38) | 79 | 19 | (5165) | (3860) |
| Exchange adjustments<sup>1</sup> | (335) |  |  |  |  |  | (335) |
| Net gains taken to equity |  | 16 | 37 | 34 |  |  | 87 |
| Transferred to profit or loss |  | 224 | (11) |  |  |  | 213 |
| Net losses in respect of cash flow <br>hedging of capital expenditure<br>|  | (37) |  |  |  |  | (37) |
| Tax |  | (50) | (6) | (4) |  |  | (60) |
| Cash flow hedges transferred to the <br>statement of financial position, net of tax<br>|  | 2 |  |  |  |  | 2 |
| At 1 April 2024 | 971 | 94 | (18) | 109 | 19 | (5165) | (3990) |
| Exchange adjustments<sup>1</sup> | (352) |  |  |  |  |  | (352) |
| Net gains/(losses) taken to equity |  | 30 | (46) | (12) |  |  | (28) |
| Transferred to profit or loss |  | 188 | (6) |  |  |  | 182 |
| Rights Issue |  |  |  |  |  | 6704 | 6704 |
| Transfer to retained earnings |  |  |  |  |  | (6704) | (6704) |
| Net losses in respect of cash flow <br>hedging of capital expenditure<br>|  | (16) |  |  |  |  | (16) |
| Tax |  | (50) | 13 | 3 |  |  | (34) |
| Cash flow hedges transferred to the <br>statement of financial position, net of tax<br>|  | 5 |  |  |  |  | 5 |
| At 1 April 2025 | 619 | 251 | (57) | 100 | 19 | (5165) | (4233) |
| Exchange adjustments¹ | (348) |  |  |  |  |  | (348) |
| Exchange differences reclassified to <br>the consolidated income statement <br>on disposal<sup>2</sup><br>| 76 |  |  |  |  |  | 76 |
| Net gains taken to equity |  | 368 | 40 | 7 |  |  | 415 |
| Transferred to profit or loss |  | (489) | (4) |  |  |  | (493) |
| Net gains in respect of cash flow <br>hedging of capital expenditure<br>|  | 22 |  |  |  |  | 22 |
| Tax |  | 25 | (9) |  |  |  | 16 |
| Cash flow hedges transferred to the <br>statement of financial position, net of tax<br>|  | 3 |  |  |  |  | 3 |
| **At 31 March 2026** | **347** | **180** | **(30)** | **107** | **19** | **(5165)** | **(4542)** |

---

1. The exchange adjustments recorded in the translation reserve comprise a loss of £380 million (2025: loss of £408 million; 2024: loss

of £397 million) relating to the translation of foreign operations, offset by a gain of £32 million (2025: gain of £56 million; 2024: gain

of £62 million) relating to borrowings, cross-currency swaps and foreign exchange forward contracts used to hedge the net investment

in non sterling-denominated subsidiaries.

2. The reclassification of the foreign currency translation reserve relates to the disposal of NG Renewables and comprises a loss of £84 million

relating to the retranslation of NG Renewables' operations offset by a gain of £8 million relating to borrowings, cross-currency swaps and

foreign exchange forward contracts used to hedge the Group's net investment in NG Renewables.

**29. Net debt**

![](nggtf-20260331_g418.gif)

**We define net debt as the amount of borrowings and financing derivatives less cash and** <br>**current financial investments.**<br>

**(a) Composition of net debt**

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| Cash and cash equivalents (see note 20) | **375** | 1178 | 559 |
| Current financial investments (see note 15) | **2453** | 5753 | 3699 |
| Borrowings (see note 21) | **(46755)** | (47539) | (47072) |
| Financing derivatives<sup>1</sup> (see note 17) | **(233)** | (763) | (793) |
|  | **(44160)** | (41371) | (43607) |

---

1. The financing derivatives balance included in net debt excludes the commodity derivatives (see note 17)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **191** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**29. Net debt cont.**

**(b) Analysis of changes in net debt**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Notes | Borrowings<br>£m<br>| Financing derivatives <br>used to hedge debt<br>£m<br>| Total liabilities from <br>financing activities<br>£m<br>| Cash<br>and cash<br>equivalents<br>£m<br>| Financial<br>investments<br>£m<br>| Other financing <br>derivatives <br>£m<br>| Total<sup>1</sup><br>£m<br>|
| At 1 April 2025 |  | (47539) | (733) | (48272) | 1178 | 5753 | (30) | (41371) |
| Net decrease in cash and cash equivalents |  |  |  |  | (948) |  |  | (948) |
| *Included within financing cash flows:* |  |  |  |  |  |  |  |  |
| Proceeds received from loans |  | (4172) |  | (4172) |  |  |  | (4172) |
| Repayment of loans |  | 2961 |  | 2961 |  |  |  | 2961 |
| Payments of lease liabilities |  | 145 |  | 145 |  |  |  | 145 |
| Net movements in short-term borrowings |  | 2225 |  | 2225 |  |  |  | 2225 |
| Cash inflows on derivatives |  |  | (93) | (93) |  |  |  | (93) |
| Cash outflows on derivatives |  |  | 38 | 38 |  |  |  | 38 |
| Interest paid |  | 1659 | 273 | 1932 |  |  |  | 1932 |
| Non-net debt financing cash flows |  | (33) |  | (33) |  |  |  | (33) |
| *Included within investing cash flows:* |  |  |  |  |  |  |  |  |
| Net movements in short-term financial investments |  |  |  |  |  | (3285) |  | (3285) |
| Cash inflows on derivatives |  |  |  |  |  |  | (20) | (20) |
| Cash outflows on derivatives |  |  |  |  |  |  | 6 | 6 |
| Derivative cash flows included in capital expenditure |  |  |  |  |  |  | 5 | 5 |
| Interest received |  |  |  |  |  | (231) |  | (231) |
| Derivative cash flows included in revenue |  |  |  |  |  |  | 1 | 1 |
| Fair value gains and losses |  | 118 | 549 | 667 |  | 5 |  | 672 |
| Foreign exchange movements |  | (190) |  | (190) | (8) | (17) |  | (215) |
| Interest (charges)/income | 6 | (1706) | (246) | (1952) |  | 230 | 17 | (1705) |
| Other non-cash movements<sup>2</sup> |  | (223) |  | (223) |  |  |  | (223) |
| Reclassification to held for sale<sup>3</sup> |  |  |  |  | 153 | (2) |  | 151 |
| **At 31 March 2026** |  | **(46755)** | **(212)** | **(46967)** | **375** | **2453** | **(21)** | **(44160)** |
| Balances at 31 March 2026 comprise: |  |  |  |  |  |  |  |  |
| Non-current assets |  |  | 587 | 587 |  |  | 7 | 594 |
| Current assets |  |  | 77 | 77 | 375 | 2453 | 46 | 2951 |
| Current liabilities |  | (3900) | (191) | (4091) |  |  | (46) | (4137) |
| Non-current liabilities |  | (42855) | (685) | (43540) |  |  | (28) | (43568) |
|  |  | **(46755)** | **(212)** | **(46967)** | **375** | **2453** | **(21)** | **(44160)** |

---

1. The net debt balance at 31 March 2026 includes accrued interest of £459 million.

2. Other non-cash movements primarily comprise additions to lease liabilities.

3. Reclassification to held for sale represents the disposals of NG Renewables and Grain LNG (see note 10).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **192** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**29. Net debt cont.**

**(b) Analysis of changes in net debt cont.**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Notes | Borrowings<br>£m<br>| Financing derivatives <br>used to hedge debt<br>£m<br>| Total liabilities from <br>financing activities<br>£m<br>| Cash<br>and cash<br>equivalents<br>£m<br>| Financial<br>investments<br>£m<br>| Other financing <br>derivatives <br>£m<br>| Total¹<br>£m<br>|
| At 1 April 2024 |  | (47072) | (764) | (47836) | 559 | 3699 | (29) | (43607) |
| Net increase in cash and cash equivalents |  |  |  |  | 765 |  |  | 765 |
| *Included within financing cash flows:* |  |  |  |  |  |  |  |  |
| Proceeds received from loans |  | (3237) |  | (3237) |  |  |  | (3237) |
| Repayment of loans |  | 2861 |  | 2861 |  |  |  | 2861 |
| Payments of lease liabilities |  | 130 |  | 130 |  |  |  | 130 |
| Net movements in short-term borrowings |  | (925) |  | (925) |  |  |  | (925) |
| Cash inflows on derivatives |  |  | (62) | (62) |  |  |  | (62) |
| Cash outflows on derivatives |  |  | 106 | 106 |  |  |  | 106 |
| Interest paid |  | 1608 | 312 | 1920 |  |  |  | 1920 |
| Non-net debt financing cash flows |  | (8) |  | (8) |  |  |  | (8) |
| *Included within investing cash flows:* |  |  |  |  |  |  |  |  |
| Net movements in short-term financial investments |  |  |  |  |  | 2606 |  | 2606 |
| Cash inflows on derivatives |  |  |  |  |  |  | (11) | (11) |
| Cash outflows on derivatives |  |  |  |  |  |  | 6 | 6 |
| Derivative cash flows included in capital expenditure |  |  |  |  |  |  | 9 | 9 |
| Interest received |  |  |  |  |  | (332) |  | (332) |
| Derivative cash flows included in revenue |  |  |  |  |  |  | (8) | (8) |
| Fair value gains and losses |  | (26) | (30) | (56) |  | 1 | (7) | (62) |
| Foreign exchange movements |  | 866 |  | 866 | (23) | (25) |  | 818 |
| Interest (charges)/income | 6 | (1663) | (295) | (1958) |  | 338 | 10 | (1610) |
| Other non-cash movements<sup>2</sup> |  | (207) |  | (207) |  |  |  | (207) |
| Reclassification to held for sale<sup>3</sup> | 10 | 134 |  | 134 | (123) | (534) |  | (523) |
| **At 31 March 2025** |  | **(47539)** | **(733)** | **(48272)** | **1178** | **5753** | **(30)** | **(41371)** |

---

1. The net debt balance at 31 March 2025 includes accrued interest of £477 million.

2. Other non-cash movements primarily comprise additions to lease liabilities.

3. Reclassification to held for sale represents the closing net debt position of NG Renewables and Grain LNG and the disposal of the ESO (see note 10).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **193** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**29. Net debt cont.**

**(b) Analysis of changes in net debt cont.** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Notes | Borrowings<br>£m<br>| Financing derivatives <br>used to hedge debt<br>£m<br>| Total liabilities from <br>financing activities<br>£m<br>| Cash<br>and cash<br>equivalents<br>£m<br>| Financial<br>investments<br>£m<br>| Other financing <br>derivatives <br>£m<br>| Total<sup>1</sup><br>£m<br>|
| At 1 April 2023 |  | (42985) | (793) | (43778) | 163 | 2605 | 37 | (40973) |
| Net increase in cash and cash equivalents |  |  |  |  | 427 |  |  | 427 |
| *Included within financing cash flows:* |  |  |  |  |  |  |  |  |
| Proceeds received from loans |  | (5563) |  | (5563) |  |  |  | (5563) |
| Repayment of loans |  | 1701 |  | 1701 |  |  |  | 1701 |
| Payments of lease liabilities |  | 118 |  | 118 |  |  |  | 118 |
| Net movements in short-term borrowings |  | (544) |  | (544) |  |  |  | (544) |
| Cash inflows on derivatives |  |  | (86) | (86) |  |  |  | (86) |
| Cash outflows on derivatives |  |  | 58 | 58 |  |  |  | 58 |
| Interest paid |  | 1330 | 297 | 1627 |  |  |  | 1627 |
| Non-net debt financing cash flows |  | (18) |  | (18) |  |  |  | (18) |
| *Included within investing cash flows:* |  |  |  |  |  |  |  |  |
| Net movements in short-term financial investments |  |  |  |  |  | 1141 |  | 1141 |
| Cash inflows on derivatives |  |  |  |  |  |  | (123) | (123) |
| Cash outflows on derivatives |  |  |  |  |  |  |  |  |
| Derivative cash flows included in capital expenditure |  |  |  |  |  |  | 5 | 5 |
| Interest received |  |  |  |  |  | (148) |  | (148) |
| Derivative cash flows included in revenue |  |  |  |  |  |  | (11) | (11) |
| Fair value gains and losses  |  | (69) | 40 | (29) |  | 4 | 60 | 35 |
| Foreign exchange movements |  | 718 |  | 718 | (1) | (49) |  | 668 |
| Interest (charges)/income | 6 | (1564) | (284) | (1848) |  | 152 | 7 | (1689) |
| Other non-cash movements<sup>2</sup> |  | (209) | 4 | (205) |  |  | (4) | (209) |
| Reclassification to held for sale<sup>3</sup> |  | 13 |  | 13 | (30) | (6) |  | (23) |
| **At 31 March 2024** |  | **(47072)** | **(764)** | **(47836)** | **559** | **3699** | **(29)** | **(43607)** |

---

1. The net debt balance at 31 March 2024 includes accrued interest of £490 million.

2. Other non-cash movements primarily comprise additions to lease liabilities.

3. Reclassification to held for sale represents the closing net debt position of the ESO (see note 10).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **194** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**30. Commitments and contingencies**

![](nggtf-20260331_g419.gif)

**Commitments are those amounts that we are contractually required to pay in the future as** <br>**long as the other party meets its obligations. These commitments primarily relate to energy** <br>**purchase agreements and contracts for the purchase of assets which, in many cases,** <br>**extend over a long period of time. Contingent assets are disclosed where the Group** <br>**concludes that an inflow of economic benefits is probable.** <br>

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| *Future capital expenditure* |  |  |
| Contracted for but not provided | **7085** | 5017 |
| *Energy purchase commitments*<sup>1</sup> |  |  |
| Less than 1 year | **1527** | 1265 |
| In 1 to 2 years | **1360** | 1259 |
| In 2 to 3 years | **1343** | 1147 |
| In 3 to 4 years | **1191** | 1011 |
| In 4 to 5 years | **1031** | 927 |
| More than 5 years | **10305** | 8271 |
|  | **16757** | 13880 |

---

1. Energy purchase commitments relate to contractual commitments to purchase electricity or gas that are used to satisfy physical delivery

requirements to our customers or for energy that we use ourselves (i.e. normal purchase, sale or usage) and hence are accounted for as

ordinary purchase contracts (see note 32(f)). Details of commodity contract derivatives that do not meet the normal purchase, sale or

usage criteria, and hence are accounted for as derivative contracts, are shown in note 17(b).

Through the ordinary course of our operations, we are party to various litigation, claims and investigations,

including Ofgem's investigation into the North Hyde substation incident. These investigations are ongoing.

The potential maximum penalty for a licence breach following an Ofgem investigation is 10% of turnover.

We continue to monitor this position and engage with ongoing investigations. We do not expect the

ultimate resolution of any proceedings, including the Ofgem investigation, to have a material adverse

effect on our results of operations, cash flows or financial position. A description of the Group's post-

closing capital project obligations in relation to the Grain LNG disposal is provided in note 10.

**Contingent liabilities**

The Group is subject to national and local laws governing the clean-up of sites used previously in its

operations. These laws and associated regulations require the Group to take future actions to remediate

the effects on the environment of the release of chemicals and other substances. Such contingencies

may exist for various sites, including manufactured gas plants, power stations and water courses that

were impacted by those activities. The ultimate costs of these clean-ups involve estimation uncertainty

as work may be impacted by changing regulations and additional work may be required once sites

have been fully surveyed. The estimated clean-up costs have been provided for in note 26 based upon

management's best estimate of the likely future cash flows. While the amounts of future possible costs

that are not provided for could be material to the Group's results in the period when they are recognised,

it is not possible to reliably estimate the amounts involved at this time. As environmental remediation

costs are recoverable through the Group's rate-setting processes, the Group does not expect these

costs to have a material impact on its liquidity.

**31. Related party transactions**

**Related parties include joint ventures, associates, investments and key management** <br>**personnel.**<br>

![](nggtf-20260331_g420.gif)

The following significant transactions with related parties were in the normal course of business. Amounts

receivable from and payable to related parties are due on normal commercial terms.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| Sales: Goods and services supplied to joint ventures<sup>1</sup> | **36** | 153 | 221 |
| Sales: Goods and services supplied to associates | **1** | 1 | 1 |
| Sales: Goods and services supplied to subsidiary of an associate<sup>1</sup> | **—** | 51 | 70 |
| Purchases: Goods and services received from joint ventures | **—** |  | 6 |
| Purchases: Goods and services received from associates<sup>2</sup> | **—** | 29 | 4 |
| Purchases: Goods and services received from subsidiaries <br>of an associate<br>| **—** |  | 1 |
| Purchases: Goods and services received from a pension plan | **2** |  |  |
| Interest received from joint ventures  | **—** | 6 |  |
| Interest paid to joint ventures  | **1** | 2 |  |
| Receivables from joint ventures<sup>3</sup> | **4** | 323 | 80 |
| Receivables from associates | **—** | 1 |  |
| Receivables from subsidiaries of an associate | **—** |  | 8 |
| Payables to joint ventures | **11** | 15 |  |
| Payables to associates | **—** |  | 1 |
| Dividends received from joint ventures<sup>4</sup> | **83** | 62 | 152 |
| Dividends received from associates<sup>5</sup> | **18** | 39 | 117 |

---

1. During the year, £3 million of sales were made to Emerald Energy Venture LLC (2025: £114 million; 2024: £126 million), £11 million

(2025: £12 million; 2024: £71 million) of sales were made to Nemo Link Limited and £nil (2025: £51 million; 2024: £70 million) of sales

were made to National Gas Transmission Plc up until its disposal.

2. Includes decommissioning expense in relation to associates.

3. Amounts receivable from joint ventures include £nil (2025: £320 million; 2024: £77 million) from Emerald Energy Venture LLC.

4. Includes dividends of £54 million (2025: £22 million; 2024: £116 million) received from BritNed Development Limited and £26 million

(2025: £26 million; 2024: £17 million) from Nemo Link Limited.

5. Includes dividends received during the year from New York Transco LLC of £18 million (2025: £17 million; 2024: £12 million). In the

prior year, dividends of £22 million were received up to the disposal of GasT TopCo Limited (2024: £102 million).

Details of investments in principal subsidiary undertakings, joint ventures and associates are disclosed

in note 34, and information relating to pension fund arrangements is disclosed in note 25. For details

of Directors' and key management remuneration, refer to note 4(c).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **195** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management**

![](nggtf-20260331_g421.gif)

**Our activities expose us to a variety of financial risks, including credit risk, liquidity risk,** <br>**capital risk, currency risk, interest rate risk, inflation risk and commodity price risk. Our risk** <br>**management programme focuses on the unpredictability of financial markets and seeks to** <br>**minimise potential volatility of financial performance from these risks. We use financial** <br>**instruments, including derivative financial instruments, to manage these risks.**<br>

Risk management related to financing activities is carried out by a central treasury department under

policies approved by the Audit & Risk Committee of the Board. The objective of the treasury department

is to manage funding and liquidity requirements, including managing associated financial risks, to within

acceptable boundaries. The Audit & Risk Committee provides written principles for overall risk management

and written policies covering the following specific areas: foreign exchange risk, interest rate risk, credit

risk, liquidity risk, use of derivative financial instruments and non-derivative financial instruments, and

investment of excess liquidity. The Audit & Risk Committee has delegated authority to administer the

commodity price risk policy and credit policy for US-based commodity transactions to the Energy

Procurement Risk Management Committee and the National Grid USA Board of Directors.

We have exposure to the following risks, which are described in more detail below:

–credit risk;

–liquidity risk;

–currency risk;

–interest rate risk;

–commodity price risk;

–fair value risk; and

–capital risk.

Where appropriate, derivatives and other financial instruments used for hedging currency and interest

rate risk exposures are formally designated as fair value, cash flow or net investment hedges as defined

in IFRS 9. Hedge accounting allows the timing of the profit or loss impact of qualifying hedging instruments

to be recognised in the same reporting period as the corresponding impact of hedged exposures.

To qualify for hedge accounting, documentation is prepared specifying the risk management objective

and strategy, the component transactions and methodology used for measurement of effectiveness.

Hedge accounting relationships are designated in line with risk management activities further described

below. The categories of hedging entered into are as follows:

–currency risk arising from our forecast foreign currency transactions (capital expenditure or revenues)

is designated in cash flow hedges;

–currency risk arising from our net investments in foreign operations is designated in net investment

hedges; and

–currency and interest rate risk arising from borrowings are designated in cash flow or fair value hedges.

Critical terms of hedging instruments and hedged items are transacted to match on a 1:1 ratio by notional

values. Hedge ineffectiveness can nonetheless arise from inherent differences between derivatives and

non-derivative instruments and other market factors, including credit, correlations, supply and demand,

and market volatilities. Ineffectiveness is recognised in the remeasurements component of finance income

and costs (see note 6). Hedge accounting is discontinued when a hedging relationship no longer qualifies

for hedge accounting.

Certain hedging instrument components are treated separately as costs of hedging with the gains and

losses deferred in a component of other equity reserves and released systematically into profit or loss

to correspond with the timing and impact of hedged exposures, or released in full to finance costs upon

an early discontinuation of a hedging relationship.

Refer to sections (c) currency risk and (d) interest rate risk below for further details on hedge accounting.

**(a) Credit risk**

We are exposed to the risk of loss resulting from counterparties' default on their commitments, including

failure to pay or make a delivery on a contract. This risk is inherent in our commercial business activities.

Exposure arises from derivative financial instruments, deposits with banks and financial institutions, trade

receivables and committed transactions with wholesale and retail customers.

Treasury credit risk

Counterparty risk arises from the investment of surplus funds and from the use of derivative financial

instruments. As at 31 March 2026, the following limits were in place for investments and derivative

financial instruments held with banks and financial institutions:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Maximum limit<br>£m<br>| Utilisation of <br>maximum limit <br>£m<br>| Long-term limit<br>£m<br>| Utilisation of <br>long-term limit<br>£m<br>|
| Triple 'A' G7 sovereign entities (AAA) | 3308 |  | 2481 |  |
| Triple 'A' vehicles (AAA) | 500 | 275 |  |  |
| Triple 'A' range institutions and <br>non-G7 sovereign entities (AAA)<br>| 3008 |  | 2256 |  |
| Double 'A+' G7 sovereign entities (AA+) | 3008 |  | 2256 |  |
| Double 'A' range institutions (AA) | 1,805 to 2,406 | 0 to 358 | 1,353 to 1,805 | 0 to 340  |
| Single 'A' range institutions (A) | 602 to 1,203 | 0 to 676 | 451 to 902 | 0 to 424  |

---

The maximum limit applies to all transactions, including long-term transactions. The long-term limit applies

to transactions which mature in more than 12 months' time.

As at 31 March 2026 and 2025, we had a number of exposures to individual counterparties. In accordance

with our treasury policies, counterparty credit exposure utilisations are monitored daily against the

counterparty credit limits. Counterparty credit ratings and market conditions are reviewed continually, with

limits being revised and utilisation adjusted, if appropriate. Management does not expect any significant

losses from non-performance by these counterparties. Investments associated with insurance and

employee benefit trusts, such as the investments held at FVOCI, sit outside of treasury credit risk and

are managed to individual mandates aligned to their regulated purpose.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **196** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(a) Credit risk cont.**

Commodity credit risk

The credit policy for UK- and US-based commodity transactions is owned by the Audit & Risk Committee

of the Board, which establishes controls and procedures to determine, monitor and minimise the credit

exposure to counterparties.

Wholesale and retail credit risk

Our principal commercial exposure is in the US, where we are required to supply electricity and gas under

state regulations. Our policies and practices are designed to limit credit exposure by collecting security

deposits prior to providing utility services, or after utility services have commenced if certain applicable

regulatory requirements are met. Collection activities are managed on a daily basis. Sales to retail

customers are usually settled in cash, cheques, electronic bank payments or by using major credit cards.

We are committed to measuring, monitoring, minimising and recording counterparty credit risk in our

wholesale business. The utilisation of credit limits is regularly monitored, and collateral is collected against

these accounts when necessary. See note 19 for further details.

Offsetting financial assets and liabilities

The following tables set out our financial assets and liabilities which are subject to offset and to enforceable

master netting arrangements or similar agreements. The tables show the amounts which are offset and

reported net in the statement of financial position. Amounts which cannot be offset under IFRS, but which

could be settled net under terms of master netting arrangements if certain conditions arise, and with

collateral received or pledged, are presented to show National Grid's net exposure.

Financial assets and liabilities on different transactions would only be reported net in the balance sheet

if the transactions were with the same counterparty, a currently enforceable legal right of offset exists

and the cash flows were intended to be settled on a net basis.

Amounts which do not meet the criteria for offsetting on the statement of financial position, but could be

settled net in certain circumstances, principally relate to derivative transactions under ISDA agreements,

where each party has the option to settle amounts on a net basis in the event of default of the other party.

Commodity contract derivatives that have not been offset on the balance sheet may be settled net in

certain circumstances under ISDA or North American Energy Standards Board (NAESB) agreements.

The Group has no offsetting arrangements in relation to bank account balances and bank overdrafts

as at 31 March 2026 (2025: £nil).

The gross amounts offset for trade payables and receivables, which are subject to general terms

and conditions, are insignificant.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Related amounts**<br>**available to be offset but** <br>**not offset in statement** <br>**of financial position** | **Related amounts**<br>**available to be offset but** <br>**not offset in statement** <br>**of financial position** |  |
| **At 31 March 2026** | **Gross**<br>**carrying**<br>**amounts**<br>**£m**<br>| **Gross**<br>**amounts**<br>**offset**<br>**£m**<br>| **Net amount**<br>**presented in**<br>**statement of**<br>**financial**<br>**position**<br>**£m**<br>| **Financial** <br>**instruments**<br>**£m**<br>| **Cash**<br>**collateral**<br>**received/**<br>**pledged**<br>**£m**<br>| **Net amount**<br>**£m**<br>|
| *Assets* |  |  |  |  |  |  |
| Financing derivatives | **717** | **—** | **717** | **(413)** | **(27)** | **277** |
| Commodity contract <br>derivatives<br>| **121** | **—** | **121** | **(33)** | **(24)** | **64** |
|  | **838** | **—** | **838** | **(446)** | **(51)** | **341** |
| *Liabilities* |  |  |  |  |  |  |
| Financing derivatives | **(950)** | **—** | **(950)** | **413** | **361** | **(176)** |
| Commodity contract <br>derivatives<br>| **(68)** | **—** | **(68)** | **33** | **—** | **(35)** |
|  | **(1018)** | **—** | **(1018)** | **446** | **361** | **(211)** |
|  | **(180)** | **—** | **(180)** | **—** | **310** | **130** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Related amounts <br>available to be offset but <br>not offset in statement <br>of financial position | Related amounts <br>available to be offset but <br>not offset in statement <br>of financial position |  |
| At 31 March 2025 | Gross <br>carrying<br>amounts<br>£m<br>| Gross<br>amounts<br>offset<br>£m<br>| Net amount<br>presented in<br>statement of<br>financial<br>position<br>£m<br>| Financial <br>instruments<br>£m<br>| Cash<br>collateral<br>received/<br>pledged<br>£m<br>| Net amount<br>£m<br>|
| *Assets* |  |  |  |  |  |  |
| Financing derivatives | 375 |  | 375 | (296) | (12) | 67 |
| Commodity contract <br>derivatives<br>| 107 |  | 107 | (20) |  | 87 |
|  | 482 |  | 482 | (316) | (12) | 154 |
| *Liabilities* |  |  |  |  |  |  |
| Financing derivatives | (1138) |  | (1138) | 296 | 462 | (380) |
| Commodity contract <br>derivatives<br>| (64) |  | (64) | 20 | (7) | (51) |
|  | (1202) |  | (1202) | 316 | 455 | (431) |
|  | (720) |  | (720) |  | 443 | (277) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **197** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(b) Liquidity risk**

Our policy is to determine our liquidity requirements by the use of both short-term and long-term cash

flow forecasts. These forecasts are supplemented by a financial headroom analysis which is used to

assess funding requirements for at least a 24-month period and maintain adequate liquidity for

a continuous 12-month period.

We believe our contractual obligations, including those shown in commitments and contingencies in

note 30, can be met from existing cash and investments, operating cash flows and other financing that we

reasonably expect to be able to secure in the future, together with the use of committed facilities if required.

Our debt agreements and banking facilities contain covenants, including those relating to the periodic

and timely provision of financial information by the issuing entity, restrictions on disposals and financial

covenants, such as restrictions on the level of subsidiary indebtedness. Failure to comply with these

covenants, or to obtain waivers of those requirements, could in some cases trigger a right, at the lender's

discretion, to require repayment of some of our debt and may restrict our ability to draw upon our facilities

or access the capital markets.

The following is a payment profile of our financial liabilities and derivatives:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At 31 March 2026** | **Less than** <br>**1 year**<br>**£m**<br>| **1 to 2** <br>**years**<br>**£m**<br>| **2 to 3** <br>**years**<br>**£m**<br>| **More than**<br>**3 years**<br>**£m**<br>| **Total**<br>**£m**<br>|
| *Non-derivative financial liabilities* |  |  |  |  |  |
| Borrowings, excluding lease liabilities | **(3217)** | **(2417)** | **(4289)** | **(35279)** | **(45202)** |
| Interest payments on borrowings<sup>1</sup> | **(1645)** | **(1533)** | **(1426)** | **(15433)** | **(20037)** |
| Lease liabilities | **(172)** | **(158)** | **(136)** | **(653)** | **(1119)** |
| Other non-interest-bearing liabilities | **(4501)** | **(707)** | **—** | **—** | **(5208)** |
| *Derivative financial liabilities* |  |  |  |  |  |
| Financing derivatives – receipts<sup>2</sup> | **5298** | **4237** | **1818** | **2657** | **14010** |
| Financing derivatives – payments<sup>2</sup> | **(5637)** | **(4559)** | **(1943)** | **(3294)** | **(15433)** |
| Commodity contract derivatives – receipts<sup>2</sup> | **4** | **3** | **1** | **—** | **8** |
| Commodity contract derivatives – payments<sup>2</sup> | **(31)** | **(11)** | **(3)** | **(1)** | **(46)** |
| *Derivative financial assets* |  |  |  |  |  |
| Financing derivatives – receipts<sup>2</sup> | **5536** | **4436** | **1458** | **4417** | **15847** |
| Financing derivatives – payments<sup>2</sup> | **(5412)** | **(4242)** | **(1429)** | **(4189)** | **(15272)** |
| Commodity contract derivatives – receipts<sup>2</sup> | **90** | **25** | **—** | **—** | **115** |
| Commodity contract derivatives – payments<sup>2</sup> | **(39)** | **(41)** | **(31)** | **(21)** | **(132)** |
|  | **(9726)** | **(4967)** | **(5980)** | **(51796)** | **(72469)** |

---

1. The interest on borrowings is calculated based on borrowings held at 31 March without taking account of future issues. Floating rate

interest is estimated using a forward interest rate curve as at 31 March. Payments are included on the basis of the earliest date on which

the Company can be required to settle.

2. The receipts and payments line items for derivatives comprise gross undiscounted future cash flows, after considering any contractual

netting that applies within individual contracts. Where cash receipts and payments within a derivative contract are settled net, and the

amount to be received/(paid) exceeds the amount to be paid/(received), the net amount is presented within derivative receipts/(payments).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| At 31 March 2025 | Less than <br>1 year<br>£m<br>| 1 to 2 <br>years<br>£m<br>| 2 to 3 <br>years<br>£m<br>| More than <br>3 years<br>£m<br>| Total<br>£m<br>|
| *Non-derivative financial liabilities* |  |  |  |  |  |
| Borrowings, excluding lease liabilities | (4111) | (3159) | (2404) | (36381) | (46055) |
| Interest payments on borrowings<sup>1</sup> | (1552) | (1497) | (1397) | (16707) | (21153) |
| Lease liabilities | (143) | (131) | (117) | (671) | (1062) |
| Other non-interest-bearing liabilities | (3908) | (467) |  |  | (4375) |
| *Derivative financial liabilities* |  |  |  |  |  |
| Financing derivatives – receipts<sup>2</sup> | 4236 | 3179 | 4710 | 2822 | 14947 |
| Financing derivatives – payments<sup>2</sup> | (4777) | (3514) | (5072) | (3380) | (16743) |
| Commodity contract derivatives – receipts<sup>2</sup> | 9 | 5 | 1 |  | 15 |
| Commodity contract derivatives – payments<sup>2</sup> | (67) | (36) | (29) | (43) | (175) |
| *Derivative financial assets* |  |  |  |  |  |
| Financing derivatives – receipts<sup>2</sup> | 1907 | 4032 | 2598 | 1460 | 9997 |
| Financing derivatives – payments<sup>2</sup> | (1897) | (3970) | (2467) | (1369) | (9703) |
| Commodity contract derivatives – receipts<sup>2</sup> | 84 | 8 |  |  | 92 |
| Commodity contract derivatives – payments<sup>2</sup> | (16) | (6) | (3) |  | (25) |
|  | (10235) | (5556) | (4180) | (54269) | (74240) |

---

1. The interest on borrowings is calculated based on borrowings held at 31 March without taking account of future issues. Floating rate

interest is estimated using a forward interest rate curve as at 31 March. Payments are included on the basis of the earliest date on which

the Company can be required to settle.

2. The receipts and payments line items for derivatives comprise gross undiscounted future cash flows, after considering any contractual

netting that applies within individual contracts. Where cash receipts and payments within a derivative contract are settled net, and the

amount to be received/(paid) exceeds the amount to be paid/(received), the net amount is presented within derivative receipts/(payments).

**(c) Currency risk**

National Grid operates internationally with mainly pound sterling as the functional currency for the UK

companies and US dollar for the US businesses. Currency risk arises from three major areas: funding

activities, capital investment and related revenues, and holdings in foreign operations. This risk is

managed using financial instruments including derivatives as approved by policy, typically cross-currency

interest rate swaps, foreign exchange swaps and forwards.

Funding activities – we borrow in various debt markets across the world. Foreign currency funding gives

rise to risk of volatility in the amount of functional currency cash to be repaid. This risk is reduced by

swapping principal and interest back into the functional currency of the issuer. All foreign currency debt

and transactions are hedged except where they provide a natural offset to assets elsewhere in the Group.

Capital investment and related revenues – capital projects often incur costs or generate revenues in a

foreign currency, most often euro transactions done by the UK business. Our policy for managing foreign

exchange transaction risk is to hedge contractually committed foreign currency cash flows over a

prescribed minimum size, typically by buying euro forwards to hedge future expenditure and selling euro

forwards to hedge future revenues. For hedges of forecast cash flows, our policy is to hedge a proportion

of highly probable cash flows.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **198** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(c) Currency risk cont.**

Holdings in foreign operations – we are exposed to fluctuations on the translation into pounds sterling

of our foreign operations. The policy for managing this translation risk is to issue foreign currency debt

or to replicate foreign debt using derivatives that pay cash flows in the currency of the foreign operation.

The primary managed exposure arises from dollar denominated assets and liabilities held by our US

operations, with a smaller euro exposure in respect of joint venture investments.

Derivative financial instruments were used to manage foreign currency risk as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | **2026** | **2026** |
|  | **Sterling**<br>**£m**<br>| **Euro**<br>**£m**<br>| **Dollar**<br>**£m**<br>| **Other**<br>**£m**<br>| **Total**<br>**£m**<br>|
| Cash and cash equivalents | **287** | **2** | **86** | **—** | **375** |
| Financial investments | **1769** | **—** | **684** | **—** | **2453** |
| Borrowings | **(12161)** | **(13552)** | **(19469)** | **(1573)** | **(46755)** |
| **Pre-derivative position** | **(10105)** | **(13550)** | **(18699)** | **(1573)** | **(43927)** |
| Derivative effect | **(7984)** | **15022** | **(9141)** | **1870** | **(233)** |
| **Net debt position** | **(18089)** | **1472** | **(27840)** | **297** | **(44160)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 | 2025 |
|  | Sterling<br>£m<br>| Euro<br>£m<br>| Dollar<br>£m<br>| Other<br>£m<br>| Total<br>£m<br>|
| Cash and cash equivalents | 1047 |  | 131 |  | 1178 |
| Financial investments | 5129 |  | 624 |  | 5753 |
| Borrowings | (13913) | (12968) | (19217) | (1441) | (47539) |
| **Pre-derivative position** | (7737) | (12968) | (18462) | (1441) | (40608) |
| Derivative effect | (8539) | 13886 | (7755) | 1645 | (763) |
| **Net debt position** | (16276) | 918 | (26217) | 204 | (41371) |

---

The exposure to dollars largely relates to our net investment hedge activities and exposure to euros largely

relates to hedges for our future non-sterling capital expenditure and associated revenues.

The currency exposure on other financial instruments is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | **2026** | **2026** |
|  | **Sterling**<br>**£m**<br>| **Euro**<br>**£m**<br>| **Dollar**<br>**£m**<br>| **Other**<br>**£m**<br>| **Total**<br>**£m**<br>|
| Trade and other receivables | **353** | **—** | **2318** | **—** | **2671** |
| Other non-current assets | **223** | **—** | **68** | **—** | **291** |
| Trade and other payables | **(1868)** | **—** | **(2633)** | **—** | **(4501)** |
| Other non-current liabilities | **(360)** | **—** | **(347)** | **—** | **(707)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 | 2025 |
|  | Sterling<br>£m<br>| Euro<br>£m<br>| Dollar<br>£m<br>| Other<br>£m<br>| Total<br>£m<br>|
| Trade and other receivables | 424 |  | 2272 |  | 2696 |
| Other non-current assets | 243 |  | 56 |  | 299 |
| Trade and other payables | (1359) |  | (2549) |  | (3908) |
| Other non-current liabilities | (171) |  | (296) |  | (467) |

---

The carrying amounts of other financial instruments are denominated in the above currencies, which

in most instances are the functional currency of the respective subsidiaries. Our exposure to dollars is

due to activities in our US subsidiaries. We do not have any other significant exposure to currency risk

on these balances.

Hedge accounting for currency risk

Where available, derivatives transacted for hedging are designated for hedge accounting. Economic

offset is qualitatively determined because the critical terms (currency and volume) of the hedging

instrument match the hedged exposure. If a forecast transaction was no longer expected to occur,

the cumulative gain or loss previously reported in equity would be transferred to the income statement.

This has not occurred in the current or comparative years.

Cash flow hedging of currency risk of capital expenditure and revenue are designated as either hedging

the exposure to movements in the spot or forward translation risk. Gains and losses on hedging

instruments arising from undesignated forward points and foreign currency basis spreads are excluded

from designation and are recognised immediately in profit or loss, along with any hedge ineffectiveness.

On recognition of the hedged purchase or sale in the financial statements, the associated hedge gains

and losses, deferred in the cash flow hedge reserve in other equity reserves, are transferred out of

reserves and included with the recognition of the underlying transaction. Where a non-financial asset

or a non-financial liability results from a forecast transaction or firm commitment being hedged, the

amounts deferred in reserves are included directly in the initial measurement of that asset or liability.

Net investment hedging is also designated as hedging the exposure to movements in spot translation

rates only: spot-related gains and losses on hedging instruments are presented in the cumulative

translation reserve within other equity reserves to offset gains or losses on translation of the hedged

balance sheet exposure. Any ineffectiveness is recognised immediately in the income statement.

Amounts deferred in the cumulative translation reserve with respect to net investment hedges are

subsequently recognised in the income statement in the event of disposal of the overseas operations

concerned. Any remaining amounts deferred in the cost of hedging reserve are also released to the

income statement over the life of the hedging instrument.

Hedges of foreign currency funding are designated as cash flow hedges or fair value hedges of forward

exchange risk (hedging both currency and interest rate risk together, where applicable). Gains and losses

arising from foreign currency basis spreads are excluded from designation and are treated as a cost

of hedging, deferred initially in other equity reserves and released into profit or loss over the life of the

hedging relationship. Hedge accounting for funding is described further in the interest rate risk section

that follows.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **199** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(d) Interest rate risk**

National Grid's interest rate risk arises from our long-term borrowings. Our interest rate risk management

policy is to seek to minimise total financing costs (being interest costs and changes in the market value

of debt). Hedging instruments principally consist of interest rate and cross-currency swaps that are used

to translate foreign currency debt into functional currency and to adjust the proportion of fixed rate and

floating rate in the borrowings portfolio to within a range set by the Audit & Risk Committee of the Board.

The benchmark interest rates hedged are currently based on Secured Overnight Financing Rate (SOFR)

for USD and Sterling Overnight Index Average (SONIA) for GBP.

We also consider inflation risk and hold some inflation-linked borrowings. We believe that these provide

a partial economic offset to the inflation risk associated with our UK inflation-linked revenues.

The table in note 21 sets out the carrying amount, by contractual maturity, of borrowings that are

exposed to interest rate risk before taking into account interest rate swaps.

Net debt was managed using derivative financial instruments to hedge interest rate risk as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | **2026** | **2026** |
|  | **Fixed rate**<br>**£m**<br>| **Floating**<br>**rate**<br>**£m**<br>| **Inflation**<br>**linked**<br>**£m**<br>| **Other**<sup>1</sup><br>**£m**<br>| **Total**<br>**£m**<br>|
| Cash and cash equivalents | **85** | **290** | **—** | **—** | **375** |
| Financial investments | **—** | **2419** | **—** | **34** | **2453** |
| Borrowings² | **(41460)** | **(836)** | **(4459)** | **—** | **(46755)** |
| **Pre-derivative position** | **(41375)** | **1873** | **(4459)** | **34** | **(43927)** |
| Derivative effect | **5042** | **(5215)** | **(60)** | **—** | **(233)** |
| **Net debt position** | **(36333)** | **(3342)** | **(4519)** | **34** | **(44160)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 | 2025 |
|  | Fixed rate<br>£m<br>| Floating<br>rate<br>£m<br>| Inflation<br>linked<br>£m<br>| Other<sup>1</sup><br>£m<br>| Total<br>£m<br>|
| Cash and cash equivalents | 131 | 1047 |  |  | 1178 |
| Financial investments |  | 5719 |  | 34 | 5753 |
| Borrowings² | (39847) | (3061) | (4631) |  | (47539) |
| **Pre-derivative position** | (39716) | 3705 | (4631) | 34 | (40608) |
| Derivative effect | 3841 | (4540) | (64) |  | (763) |
| **Net debt position** | (35875) | (835) | (4695) | 34 | (41371) |

---

1. Represents financial instruments which are not directly affected by interest rate risk, such as investments in equity or other similar financial

instruments.

2. Commercial paper is presented as floating rate as it has short-term maturities between 1–7 months and is regularly refinanced at current

market rates.

Hedge accounting for interest rate risk

Borrowings paying variable or floating rates expose National Grid to cash flow interest rate risk, partially

offset by cash held at variable rates. Where a hedging instrument results in paying a fixed rate, it is

designated as a cash flow hedge because it has reduced the cash flow volatility of the hedged borrowing.

Changes in the fair value of the derivative are initially recognised in other comprehensive income as gains

or losses in the cash flow hedge reserve, with any ineffective portion recognised immediately in the

income statement.

Borrowings paying fixed rates expose National Grid to fair value interest rate risk. Where the hedging

instrument pays a floating rate, it is designated as a fair value hedge because it has reduced the fair

value volatility of the borrowing. Changes in the fair value of the derivative and changes in the fair value

of the hedged item in relation to the risk being hedged are both adjusted on the balance sheet and

offset in the income statement to the extent the fair value hedge is effective, with the residual difference

remaining as ineffectiveness.

Both types of hedges are designated as hedging the currency and interest rate risk arising from changes

in forward points. Amounts accumulated in the cash flow hedge reserve (cash flow hedges only) and the

deferred cost of hedging reserve (both cash flow and fair value hedges) are reclassified from reserves to

the income statement on a systematic basis as hedged interest expense is recognised. Adjustments

made to the carrying value of hedged items in fair value hedges are similarly released to the income

statement to match the timing of the hedged interest expense.

When hedge accounting is discontinued, any remaining cumulative hedge accounting balances continue

to be released to the income statement to match the impact of outstanding hedged items. Any remaining

amounts deferred in the cost of hedging reserve are released immediately to the income statement

as finance costs.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **200** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(e) Hedge accounting**

In accordance with the requirements of IFRS 7, certain additional information about hedge accounting is disaggregated by risk type and hedge designation type in the tables below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended 31 March 2026** | **Fair value hedges of**<br>**foreign currency and/or**<br>**interest rate risk**<br>**£m**<br>| **Cash flow hedges of foreign** <br>**currency and/or interest rate** <br>**risk**<br>**£m**<br>| **Cash flow hedges of foreign** <br>**currency risk**<br>**£m**<br>| **Net investment hedges**<br>**£m**<br>|
| **Consolidated statement of comprehensive income** |  |  |  |  |
| Net gains/(losses) in respect of: |  |  |  |  |
| Cash flow hedges | **—** | **378** | **12** | **—** |
| Cost of hedging | **10** | **29** | **—** | **1** |
| Net investment hedges | **—** | **—** | **—** | **32** |
| Transferred to profit or loss in respect of: |  |  |  |  |
| Cash flow hedges | **—** | **(484)** | **(5)** | **—** |
| Cost of hedging | **1** | **(1)** | **—** | **(4)** |
| Reclassification of foreign currency translation reserve¹ | **—** | **—** | **—** | **(8)** |
| **Consolidated statement of changes in equity** |  |  |  |  |
| Other equity reserves – cost of hedging balances | **(14)** | **(25)** | **—** | **—** |
| **Consolidated statement of financial position** |  |  |  |  |
| Borrowings – carrying value of hedging instruments |  |  |  |  |
| Liabilities – non-current | **—** | **—** | **—** | **(1694)** |
| Derivatives – carrying value of hedging instruments<sup>2</sup> |  |  |  |  |
| Assets – current | **9** | **20** | **2** | **7** |
| Assets – non-current | **62** | **424** | **4** | **2** |
| Liabilities – current | **(118)** | **(23)** | **(12)** | **(2)** |
| Liabilities – non-current | **(458)** | **(103)** | **(15)** | **(14)** |
| **Profiles of the significant timing, price and rate information of hedging instruments** |  |  |  |  |
| Maturity range | **Jun 26 – Apr 2045** | **Jun 26 – Apr 2042** | **Apr 2026 – Jun 2031** | **Jun 2026 – Jan 2034** |
| Spot foreign exchange range: |  |  |  |  |
| GBP:USD | **n/a** | **1.30 – 1.66** | **1.26 – 1.36** | **1.29 – 1.36** |
| GBP:EUR | **1.11 – 1.24** | **1.08 – 1.19** | **1.11 – 1.19** | **1.15 – 1.16** |
| EUR:USD | **1.05 – 1.15** | **1.06 – 1.15** | **n/a** | **n/a** |
| Interest rate range: |  |  |  |  |
| GBP | **SONIA -261bps/+374bps** | **0.976% – 7.410%** | **n/a** | **n/a** |
| USD | **SOFR +118bps/+223bps** | **2.755% – 5.989%** | **n/a** | **n/a** |

---

1. The reclassification of the net investment hedge on the disposal of NG Renewables has been included within Other operating costs.

2. The use of derivatives may entail a derivative transaction qualifying for more than one hedge type designation under IFRS 9. Therefore, the derivative amounts in the table above are grossed up by hedge type, whereas they are presented net at an instrument level in the statement

of financial position.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **201** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(e) Hedge accounting cont.**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Year ended 31 March 2025 | Fair value hedges of<br>foreign currency and/or<br>interest rate risk<br>£m<br>| Cash flow hedges of <br>foreign currency and/or <br>interest rate risk<br>£m<br>| Cash flow hedges of <br>foreign currency risk<br>£m<br>| Net investment hedges<br>£m<br>|
| **Consolidated statement of comprehensive income** |  |  |  |  |
| Net gains/(losses) in respect of: |  |  |  |  |
| Cash flow hedges |  | 26 | (12) |  |
| Cost of hedging | (14) | (36) |  | 4 |
| Net investment hedges |  |  |  | 56 |
| Transferred to profit or loss in respect of: |  |  |  |  |
| Cash flow hedges |  | 182 | 6 |  |
| Cost of hedging | 1 | (3) |  | (4) |
| **Consolidated statement of changes in equity** |  |  |  |  |
| Other equity reserves – cost of hedging balances | (24) | (54) |  | 3 |
| **Consolidated statement of financial position** |  |  |  |  |
| Borrowings – carrying value of hedging instruments |  |  |  |  |
| Liabilities – non-current |  |  |  | (1734) |
| Derivatives – carrying value of hedging instruments<sup>1</sup> |  |  |  |  |
| Assets – current |  | 1 | 3 | 6 |
| Assets – non-current | 32 | 194 | 1 |  |
| Liabilities – current | (253) | (50) | (6) | (2) |
| Liabilities – non-current | (397) | (183) | (41) | (1) |
| **Profiles of the significant timing, price and rate information of hedging instruments** |  |  |  |  |
| Maturity range | Jan 2026 – Sep 2044 | Jun 2025 – Nov 2040 | Apr 2025 – Jun 2031 | Apr 2025 – Jan 2034 |
| Spot foreign exchange range: |  |  |  |  |
| GBP:USD | n/a | 1.30 – 1.66 | 1.25 – 1.30 | 1.26 – 1.29 |
| GBP:EUR | 1.11 – 1.24 | 1.08 – 1.19 | 1.11 – 1.21 | 1.19 – 1.21  |
| EUR:USD | 1.05 – 1.15 | 1.06 – 1.15 | n/a | n/a |
| Interest rate range: |  |  |  |  |
| GBP | SONIA -260bps/+374bps | 0.976% – 7.410% | n/a | n/a |
| USD | SOFR +83bps/+223bps | 2.095% – 5.989% | n/a | n/a |

---

1. The use of derivatives may entail a derivative transaction qualifying for more than one hedge type designation under IFRS 9. Therefore, the derivative amounts in the table above are grossed up by hedge type, whereas they are presented net at an instrument level in the statement

of financial position.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **202** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(e) Hedge accounting cont.**

The following tables show the effects of hedge accounting on financial position and year-to-date performance for each type of hedge.

(i) Fair value hedges of foreign currency and interest rate risk on recognised borrowings:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at 31 March 2026** |  | **Balance of fair value hedge adjustments in borrowings** | **Balance of fair value hedge adjustments in borrowings** | **Change in value used for calculating ineffectiveness** | **Change in value used for calculating ineffectiveness** |  |
|  | **Hedging instrument notional** | **Continuing hedges** | **Discontinued hedges** | **Hedged item** | **Hedging instrument** | **Hedge ineffectiveness** |
| **Hedge type** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| Foreign currency and interest rate risk on borrowings<sup>1</sup> | **(8098)** | **660** | **(21)** | **(104)** | **97** | **(7)** |

---

1. The carrying value of the hedged borrowings is £7,767 million, of which £314 million is current and £7,453 million is non-current.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| As at 31 March 2025 |  | Balance of fair value hedge adjustments in borrowings | Balance of fair value hedge adjustments in borrowings | Change in value used for calculating ineffectiveness | Change in value used for calculating ineffectiveness |  |
|  | Hedging instrument notional | Continuing hedges | Discontinued hedges | Hedged item | Hedging instrument | Hedge ineffectiveness |
| Hedge type | £m | £m | £m | £m | £m | £m |
| Foreign currency and interest rate risk on borrowings<sup>1</sup> | (6767) | 756 | (25) | 106 | (94) | 12 |

---

1. The carrying value of the hedged borrowings was £6,414 million, of which £118 million was current and £6,296 million was non-current.

(ii) Cash flow hedges of foreign currency and interest rate risk:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at 31 March 2026** |  | **Balance in cash flow hedge reserve** | **Balance in cash flow hedge reserve** | **Change in value used for calculating ineffectiveness** | **Change in value used for calculating ineffectiveness** |  |
|  | **Hedging instrument notional** | **Continuing hedges** | **Discontinued hedges** | **Hedged item** | **Hedging instrument** | **Hedge ineffectiveness** |
| **Hedge type** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| Foreign currency and interest rate risk on borrowings <br>and forecast cash flows<br>| **(13762)** | **258** | **—** | **(359)** | **356** | **(3)** |
| Foreign currency risk on forecast cash flows | **(2715)** | **(22)** | **—** | **(21)** | **21** | **—** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| As at 31 March 2025 |  | Balance in cash flow hedge reserve | Balance in cash flow hedge reserve | Change in value used for calculating ineffectiveness | Change in value used for calculating ineffectiveness |  |
|  | Hedging instrument notional | Continuing hedges | Discontinued hedges | Hedged item | Hedging instrument | Hedge ineffectiveness |
| Hedge type | £m | £m | £m | £m | £m | £m |
| Foreign currency and interest rate risk on borrowings and <br>forecast cash flows<br>| (14769) | 376 |  | (33) | 27 | (6) |
| Foreign currency risk on forecast cash flows | (1907) | (43) |  | 12 | (12) |  |

---

(iii) Net investment hedges of foreign currency risk:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at 31 March 2026** |  | **Balance in translation reserve** | **Balance in translation reserve** | **Change in value used for calculating ineffectiveness** | **Change in value used for calculating ineffectiveness** |  |
|  | **Hedging instrument notional** | **Continuing hedges** | **Discontinued hedges** | **Hedged item** | **Hedging instrument** | **Hedge ineffectiveness** |
| **Hedge type** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| Currency risk on foreign operations | **(3210)** | **76** | **(2520)** | **(32)** | **32** | **—** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| As at 31 March 2025 |  | Balance in translation reserve | Balance in translation reserve | Change in value used for calculating ineffectiveness | Change in value used for calculating ineffectiveness |  |
|  | Hedging instrument notional | Continuing hedges | Discontinued hedges | Hedged item | Hedging instrument | Hedge ineffectiveness |
| Hedge type | £m | £m | £m | £m | £m | £m |
| Currency risk on foreign operations | (2641) | 55 | (2523) | (56) | 56 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **203** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(f) Commodity price risk**

We purchase electricity and gas to supply our customers in the US and to meet our own energy needs.

Substantially all our costs of purchasing electricity and gas for supply to customers are recoverable at an

amount equal to cost. The timing of recovery of these costs can vary between financial periods leading to

an under- or over-recovery within any particular year that can lead to large fluctuations in the income

statement. We follow approved policies to manage price and supply risks for our commodity activities.

Our energy procurement risk management policy and delegations of authority govern our US commodity

trading activities for energy transactions. The purpose of this policy is to ensure we transact within pre-

defined risk parameters and only in the physical and financial markets where we or our customers have a

physical market requirement. In addition, state regulators require National Grid to manage commodity risk

and cost volatility prudently through diversified pricing strategies. In some jurisdictions we are required to

file a plan outlining our strategy to be approved by regulators. In certain cases, we might receive guidance

with regard to specific hedging limits.

Energy purchase contracts for the forward purchase of electricity or gas that are used to satisfy physical

delivery requirements to customers, or for energy that the Group uses itself, meet the expected purchase

or usage requirements of IFRS 9. They are, therefore, not recognised in the financial statements until they

are realised. Disclosure of commitments under such contracts is made in note 30.

US states have introduced a variety of legislative requirements with the aim of increasing the proportion

of our electricity that is derived from renewable or other forms of clean energy. Annual compliance filings

regarding the level of Renewable Energy Certificates (and other similar environmental certificates) are

required by the relevant department of utilities. In response to the legislative requirements, National Grid

has entered into long-term, typically fixed-price, energy supply contracts to purchase both renewable

energy and environmental certificates. We are entitled to recover all costs incurred under these contracts

through customer billing.

Under IFRS, where these supply contracts are not accounted for as leases, they are considered to

comprise two components, being a forward purchase of power at spot prices and a forward purchase

of environmental certificates at a variable price (being the contract price less the spot power price).

With respect to our current contracts, neither of these components meets the requirement to be accounted

for as a derivative. The environmental certificates are currently required for compliance purposes, and at

present there are no liquid markets for these attributes. Furthermore, this component meets the expected

purchase or usage exemption of IFRS 9. We expect to enter into an increasing number of these contracts

in order to meet our compliance requirements in the short to medium term. In future, if and when liquid

markets develop, and to the extent that we are in receipt of environmental certificates in excess of our

required levels, this exemption may cease to apply and we may be required to account for forward

purchase commitments for environmental certificates as derivatives at fair value through profit and loss.

In the UK, financial transactions have been traded to manage exposures on the North Sea Link

interconnector. These bilateral transactions are cash-settled against the relevant day-ahead prices in

order to manage the risk associated with the sale of physical capacity on the link. The mark-to-market

exposure of any open positions is calculated based on futures products in the GB and Nordic markets.

**(g) Fair value analysis**

Included in the statement of financial position are financial instruments which are measured at fair value.

These fair values can be categorised into hierarchy levels that are representative of the inputs used in

measuring the fair value. The best evidence of fair value is a quoted price in an actively traded market.

In the event that the market for a financial instrument is not active, a valuation technique is used.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 | 2025 |
|  | **Level 1**<br>**£m**<br>| **Level 2**<br>**£m**<br>| **Level 3**<br>**£m**<br>| **Total**<br>**£m**<br>| Level 1<br>£m<br>| Level 2<br>£m<br>| Level 3<br>£m<br>| Total<br>£m<br>|
| *Assets* |  |  |  |  |  |  |  |  |
| Investments held at FVTPL | **1914** | **—** | **450** | **2364** | 5156 |  | 407 | 5563 |
| Investments held at FVOCI<sup>1</sup> | **—** | **385** | **—** | **385** |  | 384 |  | 384 |
| Financing derivatives | **—** | **691** | **26** | **717** |  | 344 | 31 | 375 |
| Commodity contract derivatives | **—** | **111** | **10** | **121** |  | 102 | 5 | 107 |
|  | **1914** | **1187** | **486** | **3587** | 5156 | 830 | 443 | 6429 |
| *Liabilities* |  |  |  |  |  |  |  |  |
| Financing derivatives | **—** | **(864)** | **(86)** | **(950)** |  | (1043) | (95) | (1138) |
| Commodity contract derivatives | **—** | **(55)** | **(13)** | **(68)** |  | (39) | (25) | (64) |
|  | **—** | **(919)** | **(99)** | **(1018)** |  | (1082) | (120) | (1202) |
|  | **1914** | **268** | **387** | **2569** | 5156 | (252) | 323 | 5227 |

---

1. Investments held includes instruments which meet the criteria of IFRS 9 or IAS 19.

---

| | |
|:---|:---|
| Level 1: | Financial instruments with quoted prices for identical instruments in active markets. |
| Level 2: | Financial instruments with quoted prices for similar instruments in active markets or quoted <br>prices for identical or similar instruments in inactive markets, and financial instruments <br>valued using models where all significant inputs are based directly or indirectly on <br>observable market data.<br>|
| Level 3: | Financial instruments valued using valuation techniques where one or more significant inputs <br>are based on unobservable market data.<br>|

---

Our Level 1 financial investments and liabilities held at fair value are valued using quoted prices from liquid

markets and primarily comprise investments in short-term money market funds.

Our Level 2 financial investments held at fair value primarily include bonds with a tenor greater than one

year and are valued using quoted prices for similar instruments in active markets or quoted prices for

identical or similar instruments in inactive markets. Alternatively, they are valued using models where all

significant inputs are based directly or indirectly on observable market data.

Our Level 2 financing derivatives include cross-currency, interest rate and foreign exchange derivatives.

We value these by discounting all future cash flows by externally sourced market yield curves at the

reporting date, taking into account the credit quality of both parties. These derivatives can be priced using

liquidly traded interest rate curves and foreign exchange rates, and therefore we classify our vanilla trades

as Level 2 under the IFRS 13 framework.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **204** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(g) Fair value analysis cont.** 

Our Level 2 US commodity contract derivatives include over-the-counter gas and power swaps as well

as forward physical gas deals. We value our contracts based on market data obtained from the New York

Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE), where monthly prices are available.

We discount based on externally sourced market yield curves at the reporting date, taking into account

the credit quality of both parties and liquidity in the market. Our commodity contracts can be priced using

liquidly traded swaps. Therefore, we classify our vanilla trades as Level 2 under the IFRS 13 framework.

Our Level 3 financing derivatives include inflation-linked swaps, where the market is illiquid. In valuing

these instruments, we use in-house valuation models and obtain external valuations to support each

reported fair value.

Our Level 3 UK commodity contract derivatives consist of UK electricity capacity swaps.

Our Level 3 US commodity contract derivatives primarily consist of our forward purchases of electricity

and gas that we value using proprietary models. Derivatives are classified as Level 3 where significant

inputs into the valuation technique are neither directly nor indirectly observable (including our own

data, which are adjusted, if necessary, to reflect the assumptions market participants would use in

the circumstances).

Our Level 3 financial investments include equity investments accounted for at fair value through profit

and loss. These equity holdings are part of our corporate venture capital portfolio held by National Grid

Partners and comprise a series of relatively small, early-stage non-controlling minority interest unquoted

investments where prices or valuation inputs are unobservable. Nineteen equity investments (out of 42)

are fair valued based on the latest transaction price (a price within the last 12 months), either being the

price we paid for the investments, marked to a latest round of funding and adjusted for our preferential

rights or based on an internal model. In addition, we have 23 investments without a transaction in the

last 12 months that underwent an internal valuation process using the Black-Scholes Merton Option

Pricing Model (OPM Backsolve). Between 12 and 18 months, a blend between OPM Backsolve and

other techniques is utilised, such as proxy group revenue multiples, discounted cash flow, comparable

company analysis and probability weighted expected return approach, in order to triangulate a valuation.

After 18 months, the valuation is based on these alternative methods as the last fundraising price is no

longer a reliable basis for valuation.

Our Level 3 financial investments also include our investment in Sunrun Neptune 2016 LLC, which is

accounted for at fair value through profit and loss. The investment is fair valued by discounting expected

cash flows using a weighted average cost of capital specific to Sunrun Neptune 2016 LLC.

The changes in value of our Level 3 financial instruments are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Financing** <br>**derivatives** | **Financing** <br>**derivatives** | **Commodity** <br>**contract**<br>**derivatives** | **Commodity** <br>**contract**<br>**derivatives** | **Other**<sup>3</sup> | **Other**<sup>3</sup> | **Total** | **Total** |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m | **£m** | £m | **£m** | £m |
| At 1 April | **(64)** | (64) | **(20)** | (13) | **407** | 483 | **323** | 406 |
| Net gains/(losses) for the year<sup>1,2</sup> | **4** |  | **51** | (41) | **21** | (77) | **76** | (118) |
| Purchases | **—** |  | **—** |  | **30** | 45 | **30** | 45 |
| Settlements | **—** |  | **(34)** | 25 | **(8)** | (44) | **(42)** | (19) |
| Reclassifications/transfers <br>out of Level 3⁴<br>| **—** |  | **—** | 9 | **—** |  | **—** | 9 |
| **At 31 March** | **(60)** | (64) | **(3)** | (20) | **450** | 407 | **387** | 323 |

---

1. Gain of £4 million (2025: £nil) is attributable to financing derivatives held at the end of the reporting period and has been recognised

in finance costs in the consolidated income statement.

2. Includes a loss of £2 million (2025: £6 million loss) attributable to commodity contract derivative financial instruments held at the end

of the reporting period and has been recognised in other operating costs in the consolidated income statement.

3. Other comprises our investments in Sunrun Neptune 2016 LLC and the investments made by National Grid Partners, which are accounted

for at fair value through profit and loss. Net gains and losses are recognised within revenue in the consolidated income statement.

4.£nil (2025: £9 million) of US Commodity contract derivatives were reclassified out of Level 3 to Level 2 in the period due to

improved observability of the fair value of these instruments.

The impacts on a post-tax basis of reasonably possible changes in significant Level 3 assumptions

are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Financing** <br>**derivatives** | **Financing** <br>**derivatives** | **Commodity** <br>**contract** <br>**derivatives** | **Commodity** <br>**contract** <br>**derivatives** | **Other**<sup>3</sup> | **Other**<sup>3</sup> |
|  | **2026** | 2025 | **2026** | 2025 | **2026** | 2025 |
|  | **£m** | £m | **£m** | £m | **£m** | £m |
| 10% increase in commodity prices<sup>1</sup> | **—** |  | **(6)** | 8 | **—** |  |
| 10% decrease in commodity prices<sup>1</sup> | **—** |  | **6** | (7) | **—** |  |
| +10% market area price change | **—** |  | **(11)** |  | **—** |  |
| -10% market area price change | **—** |  | **9** |  | **—** |  |
| +20 basis points change in Limited Price Inflation <br>(LPI) market curve²<br>| **(32)** | (33) | **—** |  | **—** |  |
| -20 basis points change in LPI market curve² | **30** | 33 | **—** |  | **—** |  |
| +20 basis points increase between RPI <br>and Consumer Price Index (CPI)<br>| **26** | 31 | **—** |  | **—** |  |
| -20 basis points decrease between RPI and CPI | **(25)** | (29) | **—** |  | **—** |  |
| +100 basis points change in discount rate | **—** |  | **—** |  | **(6)** | (6) |
| -100 basis points change in discount rate | **—** |  | **—** |  | **7** | 7 |
| +10% change in venture capital price | **—** |  | **—** |  | **29** | 26 |
| -10% change in venture capital price | **—** |  | **—** |  | **(29)** | (26) |

---

1. Level 3 commodity price sensitivity is included within the sensitivity analysis disclosed in note 35.

2. A reasonably possible change in assumption of other Level 3 derivative financial instruments is unlikely to result in a material change in fair values.

3. The investments acquired in the period were on market terms, and sensitivity is considered insignificant at 31 March 2026.

The impacts disclosed above were considered on a contract-by-contract basis, with the most significant

unobservable inputs identified.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **205** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**32. Financial risk management cont.**

**(h) Capital risk management**

The capital structure of the Group consists of shareholders' equity, as disclosed in the consolidated

statement of changes in equity, and net debt (note 29). National Grid's objectives when managing capital

are: to safeguard our ability to continue as a going concern; to remain within regulatory constraints of our

regulated operating companies; and to maintain an efficient mix of debt and equity funding, thus achieving

an optimal capital structure and cost of capital. We regularly review and manage the capital structure as

appropriate in order to achieve these objectives.

Maintaining appropriate credit ratings for our operating and holding companies is an important aspect

of our capital risk management strategy and balance sheet efficiency. We monitor our balance sheet

efficiency using several metrics, including funds from operations (FFO)/adjusted net debt, retained cash

flow (RCF)/adjusted net debt, regulatory gearing and interest cover. For the year ended 31 March 2026,

these metrics for the Group were 13.0% (2025: 13.7%), 9.3% (2025: 9.8%), 61% (2025: 61%) and

4.0x (2025: 3.8x), respectively. We believe these are consistent with the current credit ratings for National

Grid plc in respect of the main companies of the Group, based on guidance from the rating agencies.

We monitor the RAV gearing within National Grid Electricity Transmission plc (NGET) and the four

distribution network operators of National Grid Electricity Distribution plc (NGED). This is calculated

as net debt expressed as a percentage of RAV, and indicates the level of debt employed to fund our

UK-regulated businesses. It is compared with the level of RAV gearing specified by Ofgem for the

respective notional companies, 55% for NGET and 60% for the four NGED distribution network operators.

We also monitor net debt as a percentage of rate base for our US operating companies, comparing this

with the allowed rate base gearing inherent within each of our agreed rate plans, typically around 50%.

As part of the Group's debt financing arrangements, we are subject to a number of financial covenants

associated with existing borrowings and facility arrangements:

–subsidiary indebtedness relating to both non-US and US subsidiaries is required to be limited.

As at 31 March 2026 the lowest applicable limit of total subsidiary indebtedness in absolute terms

was £45 billion for non-US subsidiaries and $45 billion for US subsidiaries, and headroom on both

of these limits exceed £12 billion;

–the Articles of Association of National Grid plc limit Group total borrowings less cash and short-term

investments in absolute terms to £70 billion. As at 31 March 2026, headroom on the limit exceeds

£25 billion; and

–net debt to RAV gearing covenants limit gearing to 85% of RAV for each NGED operating company.

As at 31 March 2026, headroom on this covenant exceeds 30 percentage points for all impacted

companies based on the covenant definition of net debt. The carrying value of the bonds under this

covenant restriction is £2,889 million (2025: £3,005 million).

We consider the risk of breaching these covenants as remote given the level of headroom present.

The majority of our regulated operating companies in the US and the UK are subject to certain restrictions

on the payment of dividends by administrative order, contract and/or licence. The types of restrictions that

a company may have that would prevent a dividend being declared or paid unless they are met include

the following:

–the requirement to notify by certification regulators and certain lenders;

–dividends must be approved in advance by the relevant US state regulatory commission;

–the subsidiary must have one or two recognised rating agency credit ratings of at least investment

grade depending on contractual requirements;

–the securities of National Grid plc must maintain an investment grade credit rating, and if that rating is

the lowest investment grade bond rating it cannot have a negative watch/review for downgrade notice

by a credit rating agency;

–dividends must be limited to cumulative retained earnings, including pre-acquisition retained earnings

and in line with relevant company legislation;

–the subsidiary must not carry out any activities other than those permitted by the licences;

–the subsidiary must not create any cross-default obligations or give or receive any intra-group

cross-subsidies;

–the percentage of equity compared with total capital of the subsidiary must remain above certain levels; and

–in relation to each of the NGED operating companies, the percentage of debt relative to the RAV must

remain below 85%.

These restrictions are subject to alteration in the US as and when a new rate case or rate plan is agreed

with the relevant regulatory bodies for each operating company and, in the UK, through the normal licence

review process.

As most of our business is regulated, at 31 March 2026 the majority of our net assets are subject to some

of the restrictions noted above. These restrictions are not considered to be significantly onerous, nor do

we currently expect they will prevent the planned payment of dividends in the future in line with our

dividend policy.

All the above requirements are monitored on a regular basis in order to ensure compliance. The Group

has complied with all externally imposed capital requirements to which it is subject.

**33. Borrowing facilities**

![](nggtf-20260331_g422.gif)

**To support our liquidity requirements and provide backup to commercial paper and other** <br>**borrowings, we agree committed credit facilities with financial institutions over and above** <br>**the value of borrowings that may be required. These committed credit facilities are undrawn.**<br>

An analysis of the maturity of our undrawn committed facilities as at 31 March 2026 is shown below:

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Undrawn committed borrowing facilities expiring: |  |  |
| Less than 1 year | **—** |  |
| In 1 to 2 years | **5408** |  |
| In 2 to 3 years | **604** | 5982 |
| In 3 to 4 years | **1745** | 105 |
| In 4 to 5 years | **—** | 1745 |
| More than 5 years | **250** |  |
|  | **8007** | 7832 |

---

Of the unused facilities at 31 March 2026, £7,968 million (2025: £7,792 million) is available for liquidity

purposes, while £39 million (2025: £40 million) is available as backup to specific US borrowings. Since

31 March 2026, £5,158 million of facilities due to mature in one to two years have been extended by

an additional year and have a new expiry date of 1 June 2028.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **206** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**34. Subsidiary undertakings, joint arrangements and associates** 

**While we present consolidated results in these financial statements as if we were one company, our legal structure is such that there are a number of different operating and holding** <br>**companies that contribute to the overall result. This structure has evolved through acquisitions as well as regulatory requirements to have certain activities within separate legal entities.**<br>

![](nggtf-20260331_g423.gif)

**Subsidiary undertakings**

A list of the Group's subsidiaries as at 31 March 2026 is given below. The entire share capital of subsidiaries is held within the Group except where the Group's ownership percentages are shown. These percentages

give the Group's ultimate interest and therefore allow for the situation where subsidiaries are owned by partly owned intermediate subsidiaries. Where subsidiaries have different classes of shares, this is largely for

historical reasons, and the effective percentage holdings given represent both the Group's voting rights and equity holding. Unless otherwise indicated against the company name, the share class held by the Group

in each undertaking is through ordinary shares (also referred to as common stock in certain countries). Where an alternative share class applies (including where there is no share capital), this is identified using the

following annotations: [a] Limited by Guarantee; [b] Membership interest; [c] Common stock and Preference shares; [d] Partnership interest. Shares in National Grid (US) Holdings Limited, National Grid Luxembourg

SARL, NGG Finance plc and NG Holdings Two PTE. Ltd are held directly by National Grid plc. All other holdings in subsidiaries are owned by other subsidiaries within the Group. All subsidiaries are consolidated in

the Group's financial statements. The Group does not have any branches.

Principal Group companies are identified in **bold**. These companies are incorporated and principally operate in the countries under which they are shown. All entities incorporated in the US are taxed in the US

on their worldwide income other than where indicated in the footnotes below. Other entities are tax resident in their jurisdiction of incorporation other than where indicated in the footnotes below.

**Incorporated in England and Wales**

**Registered office:** 

1–3 Strand, London, WC2N 5EH, UK

Birch Sites Limited

Carbon Sentinel Limited

Icelink Interconnector Limited

Lattice Group Limited

NatgridTW1 Limited

**National Grid (US) Holdings Limited**

**National Grid (US) Investments 4 Limited**

**National Grid (US) Partner 1 Limited**

National Grid Carbon Limited

National Grid Commercial Holdings Limited

National Grid Continental Limited

National Grid Distributed Energy Limited

National Grid Electricity Group Trustee Limited

**National Grid Electricity Transmission plc**

National Grid Energy Metering Limited

**National Grid Holdings Limited**

**National Grid Holdings One plc**

National Grid Hydrogen Limited

National Grid IFA 2 Limited

National Grid Interconnector Holdings Limited

National Grid Interconnectors Limited

National Grid International Limited

National Grid Lion Link Limited

National Grid Nautilus Limited

National Grid North Sea Link Limited

National Grid Offshore Limited

National Grid Partners Limited

National Grid Plus Limited

National Grid Property Holdings Limited

National Grid Twelve Limited

National Grid Twenty Eight Limited

National Grid Twenty Seven Limited

National Grid UK Limited

National Grid Ventures Limited

National Grid Viking Link Limited

National Grid William Limited

NGG Finance plc

Ngrid Intellectual Property Limited

Port Greenwich Limited

**Registered Address:** 

Avonbank, Feeder Road, Bristol, BS2 0TB, United Kingdom

Central Networks Trustees Limited [a]

Kelston Properties 2 Limited

National Grid Electricity Distribution (East Midlands) plc

National Grid Electricity Distribution (South Wales) plc

National Grid Electricity Distribution (South West) plc

National Grid Electricity Distribution (West Midlands) plc

National Grid Electricity Distribution Generation Limited

**National Grid Electricity Distribution Holdings Limited**

National Grid Electricity Distribution Investments Limited

National Grid Electricity Distribution Midlands Limited

**National Grid Electricity Distribution Network Holdings Limited**

**National Grid Electricity Distribution plc**

National Grid Electricity Distribution Property Investments Limited

National Grid Helicopters Limited

National Grid Telecoms Limited

South Wales Electricity Share Scheme Trustees Limited

Western Power Pension Trustee Limited

WPD WEM Holdings Limited

WPD WEM Limited

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **207** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**34. Subsidiary undertakings, joint arrangements and associates cont.**

**Registered Address:** 

Netley Old Hall Farm, Dorrington, Shrewsbury, United Kingdom, SY5 7JY

Sheet Road Management Company Limited (51%)

**Registered Address:** 

Shire Hall, PO Box 9, Warwick, CV34 4RL, United Kingdom

Warwick Technology Park Management Company (No.2) Limited (60.56%)

**In liquidation**

**Registered Address:** 

C/O Interpath Ltd, 10 Fleet Place, London, EC4M 7RB

NGC Employee Shares Trustee Limited

**Incorporated in the US**

**Registered Address:** 

Corporation Service Company, 251 Little Falls Drive, Wilmington DE 19808, United States

Doorstep Community LLC [b]

Granite State Power Link LLC [b]

KeySpan CI Midstream Limited

KeySpan Energy Services Inc.

KeySpan International Corporation

KeySpan MHK, Inc.

KeySpan Midstream, Inc.

KSI Contracting, LLC [b]

KSI Electrical, LLC [b]

KSI Mechanical, LLC [b]

Metrowest Realty LLC [b]

National Grid Development Holdings Corp.

National Grid Glenwood Energy Center LLC [b]

National Grid LNG LLC [b]

**National Grid North America Inc.**

National Grid Partners LLC [b]

National Grid Port Jefferson Energy Center LLC [b]

National Grid Renewables, LLC [b]

National Grid Services Inc.

National Grid US LLC [b]

**National Grid USA [c]**

NGNE LLC [b]

NGV H2 Generation LLC [b]

NGV H2 Holdings LLC [b]

NGV OSW Holdings, LLC [b]

NGV US Distributed Energy Inc.

NGV US Transmission Inc.

NGV US, LLC [b]

Niagara Mohawk Energy, Inc.

North East Transmission Co., Inc.

Opinac North America, Inc.

Philadelphia Coke Co., Inc.

**Registered Address:** 

Corporation Service Company, 80 State Street, Albany NY 12207-2543, United States

Grid NY LLC [b]

KeySpan Energy Corporation

KeySpan Gas East Corporation [c]

KeySpan Plumbing Solutions, Inc.

Land Management & Development, Inc.

Landwest, Inc.

National Grid Electric Services LLC [b]

National Grid Energy Trading Services LLC [b]

National Grid Engineering & Survey Inc.

National Grid Generation LLC [b]

National Grid Generation Ventures LLC [b]

National Grid IGTS Corp.

National Grid Partners Inc.

**Niagara Mohawk Holdings, Inc.**

**Niagara Mohawk Power Corporation [c]**

NM Properties, Inc.

Port of the Islands North, LLC [b]

The Brooklyn Union Gas Company [c]

Upper Hudson Development, Inc.

**Registered Address:** 

Corporation Service Company, 84 State Street, Boston MA 02109, United States

Boston Gas Company

EUA Energy Investment Corporation

**Massachusetts Electric Company [c]**

Nantucket Electric Company

National Grid NE Holdings 2 LLC [b]

National Grid USA Service Company, Inc.

NEES Energy, Inc.

New England Energy Incorporated

New England Hydro Finance Company, Inc. (53.704%)

New England Hydro-Transmission Electric Company, Inc. (53.704%)

New England Power Company [c]

Transgas Inc.

Wayfinder Group, Inc.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **208** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**34. Subsidiary undertakings, joint arrangements and associates cont.**

**Registered Address:** 

Corporation Trust Company, 1209 Orange Street, Wilmington DE 19801, United States

Mystic Steamship Corporation

**Registered Address:** 

100 Bank Street, Suite 630, Burlington, Chittenden County VT 05401, United States

National Grid Insurance USA Ltd

**Registered Address:** 

Corporation Service Company, 10 Ferry Street S313, Concord NH 03301, United States

Broken Bridge Corp.

New England Electric Transmission Corporation

New England Hydro-Transmission Corporation (53.704%)

**Registered Address:** 

Corporation Service Company, 222 Jefferson Boulevard, Suite 200, Warwick RI 02888, United States

Newport America Corporation

**Incorporated in the Isle of Man**

**Registered office:** 

Third Floor, St George's Court, Upper Church Street, Douglas, IM1 1EE, Isle of Man, UK

National Grid Insurance Company (Isle of Man) Limited

**Incorporated in Luxembourg**

**Registered office:** 

412F, Route d'Esch, L-2086, Luxembourg, Grand Duchy of Luxembourg

**National Grid Luxembourg SARL**

**Incorporated in Singapore**

**Registered office:**

9 Raffles Place, #26-01, Republic Plaza, Singapore 048619

NG Holdings Two PTE. Ltd\*

\*Entity is tax resident in the UK

**Joint ventures**

A list of the Group's joint ventures as at 31 March 2026 is given below. All joint ventures are included in

the Group's financial statements using the equity method of accounting.

Incorporated in England and Wales

---

| | | |
|:---|:---|:---|
| **Company Name** | **Registered Office Address** | **Comments** |
| BritNed Development <br>Limited (50%)<br>| 1–3 Strand, London, <br>WC2N 5EH, UK. <br>| National Grid Interconnector Holdings <br>Limited owns 284,500,000 €0.20 <br>C Ordinary shares and one £1.00 <br>Ordinary A share.<br>|
| National Places LLP <br>(50%)<br>| C/O Bdo Llp 5 Temple Square, <br>Temple Street, Liverpool, <br>L2 5RH, UK.<br>| In liquidation. |
| Nemo Link Limited (50%) | 1–3 Strand, London, <br>WC2N 5EH, UK. <br>| National Grid Interconnector Holdings <br>Limited owns 121,140,801 €1.00 <br>Ordinary shares.<br>|

---

Incorporated in the US

---

| | |
|:---|:---|
| **Company Name** | **Registered Office Address** |
| Community Offshore Wind, LLC <br>(27.27%) [b]<br>| The Corporation Trust Company, Corporation Trust Center, <br>1209 Orange Street, Wilmington DE 19801, USA.<br>|
| LI Energy Storage System, LLC <br>(50%) [b]<br>| Corporation Service Company, 251 Little Falls Drive, Wilmington, <br>DE 19808, USA.<br>|
| LI Solar Generation, LLC (50%) [b] | Corporation Service Company, 251 Little Falls Drive, Wilmington, <br>DE 19808, USA.<br>|

---

**Joint operations**

A list of the Group's incorporated joint operations as at 31 March 2026 is given below. All joint operations

are included in the Group's financial statements under IFRS 11 Joint arrangements.

Incorporated in England and Wales

---

| | | |
|:---|:---|:---|
| **Company Name** | **Registered Office Address** | **Comments** |
| Eastern Green Link 1 <br>Limited (50%)<br>| 1–3 Strand, London, <br>WC2N 5EH, UK.<br>| National Grid Electricity Transmission plc <br>owns 50 £1.00 A Ordinary shares.<br>|
| Eastern Green Link 2 <br>Limited (50%)<br>| No.1 Forbury Place, 43 Forbury <br>Road, Reading, RG1 3JH, UK.<br>| National Grid Electricity Transmission plc <br>owns 250,000 £1.00 B Ordinary shares.<br>|
| Eastern Green Link 3 <br>Limited (50%)<br>| No.1 Forbury Place, 43 Forbury <br>Road, Reading, RG1 3JH, UK.<br>| National Grid Electricity Transmission plc <br>owns 250,000 £1.00 B Ordinary shares.<br>|
| Eastern Green Link 4 <br>Limited (50%)<br>| 1–3 Strand, London, <br>WC2N 5EH, UK.<br>| National Grid Electricity Transmission plc <br>owns 50 £1.00 A Ordinary shares.<br>|
| NGET/SPT Upgrades <br>Limited (50%)<br>| 1–3 Strand, London, <br>WC2N 5EH, UK.<br>| National Grid Electricity Transmission plc <br>owns 50 £1.00 A Ordinary shares.<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **209** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**34. Subsidiary undertakings, joint arrangements and associates cont.**

**Associates**

A list of the Group's associates as at 31 March 2026 is given below. Unless otherwise stated, all

associates are included in the Group's financial statements using the equity method of accounting.

Incorporated in England and Wales

---

| | | |
|:---|:---|:---|
| **Company Name** | **Registered Office Address** | **Comments** |
| Joint Radio Company <br>Limited (25%)<br>| Friars House, Manor House <br>Drive, Coventry, CV1 2TE, UK.<br>| National Grid Electricity Transmission plc <br>owns one £0.50 A Ordinary share.<br>|

---

Incorporated in the US

---

| | |
|:---|:---|
| **Company Name** | **Registered Office Address** |
| Clean Line Energy Partners LLC <br>(32%) [b]<br>| The Corporation Trust Company, Corporation Trust Center, 1209 <br>Orange Street, Wilmington DE 19801, USA.<br>|
| Connecticut Yankee Atomic Power <br>Company (19.5%)<br>| c/o Shae Hemingway, 362 Injun Hollow Road, East Hampton CT <br>06424-3099, USA.<br>|
| Direct Global Power Inc. (26%) | The Corporation Trust Company, 1209 Orange Street, Wilmington <br>DE 19801, USA.<br>|
| Energy Impact Fund LP (9.41%) [d] | Harvard Business Services, Inc., 16192 Coastal Highway, Lewes <br>DE 19958, USA.<br>|
| KHB Venture LLC (33.33%) [b] | c/o de maximis, inc., 135 Beaver Street, 4th Floor, Waltham MA <br>02452, USA.<br>|
| Maine Yankee Atomic Power <br>Company (24%)<br>| Joseph D Fay, 321 Old Ferry Road, Wiscasset ME 04578, USA. |
| New York Transco LLC (28.3%) [b] | Corporation Service Company, 80 State Street, Albany NY <br>12207-2543, USA.<br>|
| Yankee Atomic Electric Company <br>(34.5%)<br>| Karen Sucharzewski, 49 Yankee Road, Rowe MA 01367, USA. |

---

**Other investments**

A list of the Group's other investments as at 31 March 2026 is given below.

Incorporated in England and Wales

---

| | |
|:---|:---|
| **Company Name** | **Registered Office Address** |
| Energis plc (33.06%) <br>– (in liquidation)<br>| 1 More London Place, London SE1 2AF, UK. |
| Electralink Limited (27.04%) | Third Floor, Northumberland House, 303–306 High Holborn, <br>London, WC1V 7JZ, UK.<br>|

---

Our interests and activities are held or operated through the subsidiaries, joint arrangements or associates

as disclosed above. These interests and activities are established in – and subject to the laws and

regulations of – these jurisdictions.

The following UK subsidiaries will take advantage of the audit exemption set out within section 479A of

the Companies Act 2006 supported by guarantees issued by National Grid plc over their liabilities for the

year ended 31 March 2026:

---

| | |
|:---|:---|
| **Company name** | **Company number** |
| National Grid Holdings Limited | 3096772 |
| National Grid International Limited | 2537092 |
| National Grid (US) Holdings Limited | 2630496 |
| National Grid (US) Investments 4 Limited | 3867128 |
| National Grid (US) Partner 1 Limited | 4314432 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **210** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**35. Sensitivities**

![](nggtf-20260331_g424.gif)

**In order to give a clearer picture of the impact on our results or financial position of** <br>**potential changes in significant estimates and assumptions, the following sensitivities** <br>**are presented. These sensitivities are based on assumptions and conditions prevailing** <br>**at the year end and should be used with caution. The effects provided are not necessarily** <br>**indicative of the actual effects that would be experienced because our actual exposures** <br>**are constantly changing.**<br>

The sensitivities in the tables below show the potential impact in the income statement (and consequential

impact on net assets) for a reasonably possible range of different variables, each of which has been

considered in isolation (i.e. with all other variables remaining constant). There are a number of these

sensitivities which are mutually exclusive, and therefore if one were to happen another would not, meaning

a total showing how sensitive our results are to these external factors is not meaningful.

The sensitivities included in the tables below broadly have an equal and opposite effect if the sensitivity

increases or decreases by the same amount unless otherwise stated.

**(a) Sensitivities on areas of estimation uncertainty**

The table below sets out the sensitivity analysis for certain areas of estimation uncertainty set out

in note 1D. These estimates are those that have a significant risk of resulting in a material adjustment

to the carrying values of assets and liabilities in the next year. This includes the impact of changes

in assumptions on the net assets recognised at the balance sheet date and the amount charged to

the income statement for the following year. Note that the sensitivity analysis for the useful economic

lives of our gas network assets is included in note 13.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assumptions** <br>**used**<br>| **Income** <br>**statement** <br>**£m**<br>| **Net**<br>**assets**<br>**£m**<br>| Assumptions <br>used<br>| Income<br>statement <br>£m<br>| Net <br>assets<br>£m<br>|
| Pensions and other post-<br>retirement benefit liabilities <br>(pre-tax):<br>|  |  |  |  |  |  |
| UK discount rate change¹ | **1%** | **15** | **880** | 1% | 20 | 920 |
| US discount rate change¹ | **1%** | **16** | **671** | 1% | 18 | 784 |
| UK inflation rate change² | **1%** | **5** | **648** | 1% | 6 | 701 |
| UK long-term rate of <br>increase in salaries change<br>| **1%** | **2** | **37** | 1% | 1 | 52 |
| US long-term rate of <br>increase in salaries change<br>| **1%** | **2** | **41** | 1% | 3 | 46 |
| UK change to life <br>expectancy at age 65<sup>3</sup><br>| **one year** | **—** | **317** | one year  |  | 320 |
| US change to life <br>expectancy at age 65<br>| **one year** | **1** | **137** | one year | 2 | 181 |
| Assumed US healthcare <br>cost trend rates change <br>| **1%** | **15** | **195** | 1% | 19 | 245 |
| US environmental provision: |  |  |  |  |  |  |
| Change in the real <br>discount rate<br>| **1%** | **148** | **148** | 1% | 155 | 155 |
| Change in estimated <br>future cash flows<br>| **20%** | **402** | **402** | 20% | 413 | 413 |

---

1. A change in the discount rate is likely to be driven by changes in bond yields and, as such, would be expected to be offset to a significant

degree by a change in the value of the bond assets held by the plans. In the UK, there would also be a £329 million (2025: £288 million)

net assets offset from the buy-in policies, where the accounting value of the buy-in asset is set equal to the associated liabilities.

2. The projected impact resulting from a change in RPI reflects the associated effect on escalation rates for pensions in payment and in

deferment and future salary increases. The buy-in policies would have a £235 million (2025: £211 million) net assets offset to the above.

3. In the UK, the buy-in policies would have a £154 million (2025: £109 million) net assets offset to the above.

Pensions and other post-retirement benefits assumptions

Sensitivities have been prepared to show how the defined benefit obligations and forecast amounts

charged to the income statement for the following year could potentially be impacted by changes in the

relevant actuarial assumptions that were reasonably possible as at 31 March 2026. In preparing sensitivities,

the potential impact has been calculated by applying the change to each assumption in isolation and

assuming all other assumptions remain unchanged. This is with the exception of RPI in the UK where

the corresponding change to increases to pensions in payment, increases to pensions in deferment

and increases in salary are recognised.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **211** | Strategic Report | Corporate Governance | **Financial Statements** | Additional Information |
| **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** | **Notes to the consolidated financial statements cont.** |  |  |  |

---

**35. Sensitivities cont.**

**(b) Sensitivities on financial instruments**

We are further required to show additional sensitivity analysis under IFRS 7 and this is shown separately

in the following table due to the additional assumptions that are made in order to produce meaningful

sensitivity disclosures. The analysis is prepared assuming the amount of liability outstanding at the

reporting date was outstanding for the whole year.

Our net debt as presented in note 29 is sensitive to changes in market variables, primarily being UK and

US interest rates, the UK inflation rate and the dollar to sterling exchange rate. These impact the valuation

of our borrowings, deposits and derivative financial instruments. The analysis illustrates the sensitivity of

our financial instruments to reasonable possible changes in these market variables.

The following main assumptions were made in calculating the sensitivity analysis for continuing operations:

–the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives portfolio,

and the proportion of financial instruments in foreign currencies are all constant and on the basis of

the hedge designations in place at 31 March 2026 and 2025 respectively;

–the statement of financial position sensitivity to interest rates relates to items presented at their fair

values: derivative financial instruments; and our investments measured at FVTPL and FVOCI. Further

debt and other deposits are carried at amortised cost and so their carrying value does not change

as interest rates move;

–the sensitivity of interest expense to movements in interest rates is calculated on net floating rate

exposures on debt, deposits and derivative instruments;

–changes in the carrying value of derivatives from movements in interest rates of designated cash

flow hedges are assumed to be recorded fully within equity; and

–changes in the carrying value of derivative financial instruments designated as net investment hedges

from movements in interest rates are presented in equity as costs of hedging, with a one-year release

to the income statement. The impact of movements in the dollar to sterling exchange rate is recorded

directly in equity.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assumptions** <br>**used**<br>| **Income**<br>**statement**<br>**£m**<br>| **Other** <br>**equity**<br>**reserves**<br>**£m**<br>| Assumptions <br>used<br>| Income<br>statement<br>£m<br>| Other equity<br>reserves<br>£m<br>|
| Financial risk (post tax): |  |  |  |  |  |  |
| UK inflation change¹ | **1%** | **33** | **—** | 1% | 35 |  |
| UK interest rates change | **1%** | **14** | **352** | 1% | 13 | 376 |
| US interest rates change | **1%** | **11** | **151** | 1% | 18 | 134 |
| US dollar exchange <br>rate change²<br>| **10%** | **64** | **276** | 10% | 69 | 225 |

---

1. Excludes sensitivities to LPI curve. Further details on sensitivities are provided in note 32(g).

2. The other equity reserves impact does not reflect the exchange translation in our US subsidiaries' net assets. It is estimated this would

change by £1,887 million (2025: £1,730 million) in the opposite direction if the dollar exchange rate changed by 10%.

Our commodity contract derivatives are sensitive to price risk. Additional sensitivities in respect to

commodity price risk and to our derivative fair values are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2026** | **2026** | 2025 | 2025 | 2025 |
|  | **Assumptions** <br>**used**<br>| **Income**<br>**statement**<br>**£m**<br>| **Net**<br>**assets**<br>**£m**<br>| Assumptions <br>used<br>| Income<br>statement<br>£m<br>| Net<br>assets<br>£m<br>|
| Commodity price risk <br>(post tax):<br>|  |  |  |  |  |  |
| Increase in commodity <br>prices<br>| **10%** | **56** | **56** | 10%  | 62 | 62 |
| Decrease in commodity <br>prices<br>| **10%** | **(57)** | **(57)** | 10%  | (61) | (61) |
| Assets and liabilities carried <br>at fair value (post tax):<br>|  |  |  |  |  |  |
| Fair value change in <br>derivative financial <br>instruments¹<br>| **10%** | **(18)** | **(18)** | 10% | (57) | (57) |
| Fair value change in <br>commodity contract <br>derivative liabilities<br>| **10%** | **4** | **4** | 10% | 3 | 3 |

---

1. The effect of a 10% change in fair value assumes no hedge accounting.

**36. Post balance sheet events**

On 13 April 2026, National Grid North America Inc. entered into a 10-year loan of $864.9 million, with the

proceeds received on 21 April 2026. As the loan was entered into after the reporting date, it has not been

reflected in the consolidated statement of financial position as at 31 March 2026.

---

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| **Notes to the Company financial statements cont.** | **Notes to the Company financial statements cont.** | **Notes to the Company financial statements cont.** |  |  |  |

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| **Notes to the Company financial statements cont.** | **Notes to the Company financial statements cont.** | **Notes to the Company financial statements cont.** |  |  |  |

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![Additional info divider v3.jpg](nggtf-20260331_g425.jpg)

Additional

information

---

| | |
|:---|:---|
| **[220](#i39c083f7223e44388d99dfa58a33ab00_352)** | **The business in detail** |
| **[220](#i39c083f7223e44388d99dfa58a33ab00_352)** | UK regulation |
| **[223](#ie2721c93955940ef945161451362ca3c_28106)** | US regulation |

---

---

| | |
|:---|:---|
| **[226](#i39c083f7223e44388d99dfa58a33ab00_355)** | **Internal control and risk factors** |
| **[226](#i39c083f7223e44388d99dfa58a33ab00_355)** | Disclosure controls |
| **[226](#i39c083f7223e44388d99dfa58a33ab00_355)** | Internal control over financial reporting  |
| **[226](#i39c083f7223e44388d99dfa58a33ab00_355)** | Risk factors |

---

---

| | |
|:---|:---|
| **[233](#i39c083f7223e44388d99dfa58a33ab00_358)** | **Other disclosures** |
| **[233](#i39c083f7223e44388d99dfa58a33ab00_358)** | Change of control provisions |
| **[233](#i39c083f7223e44388d99dfa58a33ab00_358)** | Code of Ethics |
| **[233](#i39c083f7223e44388d99dfa58a33ab00_358)** | Conflicts of interest |
| **[233](#i39c083f7223e44388d99dfa58a33ab00_358)** | Corporate governance practices: differences from NYSE <br>listing standards<br>|
| **[234](#i015b41c1e6644a14a564cd019dcf4d56_17150)** | Directors' indemnity and Directors' and Officers' liability <br>insurance<br>|
| **[234](#i015b41c1e6644a14a564cd019dcf4d56_17154)** | Unions |
| **[234](#i015b41c1e6644a14a564cd019dcf4d56_17143)** | Human rights and modern slavery |
| **[234](#i015b41c1e6644a14a564cd019dcf4d56_17143)** | Our people |
| **[235](#i015b41c1e6644a14a564cd019dcf4d56_17145)** | Unresolved SEC staff comments |
| **[235](#i015b41c1e6644a14a564cd019dcf4d56_17146)** | Property, plant, equipment and borrowings |
| **[235](#i015b41c1e6644a14a564cd019dcf4d56_17152)** | UK Listing Rule 6.6.1 R cross-reference table |
| **[235](#i015b41c1e6644a14a564cd019dcf4d56_17147)** | Political donations and expenditure |
| **[235](#i015b41c1e6644a14a564cd019dcf4d56_17151)** | Material contracts |
| **[235](#i015b41c1e6644a14a564cd019dcf4d56_17153)** | Research, development and innovation activity |

---

---

| | |
|:---|:---|
| **[236](#i39c083f7223e44388d99dfa58a33ab00_361)** | **Other unaudited financial information** |

---

---

| | |
|:---|:---|
| **[248](#i39c083f7223e44388d99dfa58a33ab00_364)** | **Commentary on consolidated financial statements** |

---

---

| | |
|:---|:---|
| **[250](#i39c083f7223e44388d99dfa58a33ab00_367)** | **Shareholder information** |
| **[251](#i31b6aae3be9e4df1aabbf2a5344cb727_37562)** | Articles of Association |
| **[252](#i31b6aae3be9e4df1aabbf2a5344cb727_37563)** | Depositary payments to the Company |
| **[252](#i31b6aae3be9e4df1aabbf2a5344cb727_37551)** | Documents on display |
| **[252](#i31b6aae3be9e4df1aabbf2a5344cb727_37552)** | Events after the reporting period |
| **[252](#i31b6aae3be9e4df1aabbf2a5344cb727_37559)** | Exchange controls |
| **[252](#i31b6aae3be9e4df1aabbf2a5344cb727_37555)** | Share information |
| **[253](#i31b6aae3be9e4df1aabbf2a5344cb727_37564)** | Material interests in shares |
| **[253](#i31b6aae3be9e4df1aabbf2a5344cb727_37560)** | Shareholder analysis |
| **[253](#i31b6aae3be9e4df1aabbf2a5344cb727_37556)** | Taxation |
| **[255](#i31b6aae3be9e4df1aabbf2a5344cb727_37561)** | UK stamp duty and stamp duty reserve tax (SDRT) |
| **[255](#i31b6aae3be9e4df1aabbf2a5344cb727_37550)** | All-employee share plans |

---

---

| | |
|:---|:---|
| **[256](#i39c083f7223e44388d99dfa58a33ab00_370)** | **Definitions and glossary of terms** |

---

---

| | |
|:---|:---|
| **[262](#i39c083f7223e44388d99dfa58a33ab00_373)** | **Cautionary statement** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **220** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **The business in detail** | **The business in detail** | **The business in detail** |  |  |  |

---

UK regulation

**Regulators**

Our licences to participate in transmission, distribution and interconnection activities are established under

the Electricity Act 1989. These require us to develop, maintain and operate economic and efficient

networks and to facilitate competition in the supply of electricity in GB. They also give us statutory powers,

including the right to bury our pipes or cables under public highways and the ability to use compulsory

powers to purchase land so we can conduct our business.

Our licensed activities are regulated by Ofgem, which has a statutory duty under the Electricity Act 1989

to protect the interests of consumers. To protect consumers from the ability of companies to set unduly

high prices, Ofgem has established price controls that limit the amount of revenue such regulated

businesses can earn. In setting price controls, Ofgem must have regard to the need to secure that licence

holders are able to finance their obligations under the Electricity Act 1989. This should give us a level of

revenue for the duration of the price control that is sufficient to meet our statutory duties and licence

obligations with a reasonable return on our investments. Licensees and other affected parties can appeal

price controls or within period licence modifications which have errors, including in respect of

financeability.

Each of our UK ET and UK ED businesses operate under separate price controls, which cover our roles

as Transmission Owner (TO) and Distribution Network Operator (DNO). UK ET fulfils the TO function for

electricity and UK ED fulfils the DNO activities.

The transmission and distribution businesses follow the RIIO (Revenue = Incentives + Innovation +

Outputs) framework established by Ofgem. There are multiple price controls under this framework,

including:

–RIIO-T1 (electricity transmission, April 2013 – March 2021)

–RIIO-T2 (electricity transmission, April 2021 – March 2026)

–RIIO-T3 (electricity transmission, April 2026 – March 2031)

–RIIO-ED1 (electricity distribution, April 2015 – March 2023)

–RIIO-ED2 (electricity distribution, April 2023 – March 2028)

TOs and DNOs in the UK are natural monopolies and, to ensure value for money for consumers, UK ET and

UK ED are regulated by Ofgem. The operations are regulated under the respective transmission and

distribution licences which set the requirements that UK ET and UK ED need to deliver for their customers.

In addition to the base level of revenue which the TOs and DNOs are allowed to earn, there are incentives to

innovate and deliver various outputs relating to customer service, network performance, the environment,

connections, DSO activities and efficiency. The achievement or not of targets in relation to these activities

can result in rewards or penalties.

In addition to two regulated network price controls, there is also a tariff cap and floor price control applied

to regulation of our electricity interconnector interests.

**RIIO price controls** 

Under RIIO, the outputs we deliver are explicitly articulated and our allowed revenues are linked to their

delivery, although some outputs and deliverables have only a reputational impact, penalty only

mechanism, or are linked to legislation. These outputs reflect what our stakeholders have told us they

want us to deliver and were determined through an extensive consultation process, which gave

stakeholders a greater opportunity to influence the decisions.

Using information we have submitted and, along with independent assessments, Ofgem determines the

efficient level of expected costs necessary for these deliverables to be achieved. Under RIIO, this is known

as 'totex', which is a component of total allowable expenditure and is broadly the sum of what was

defined in previous price controls as operating expenditure (opex) and capital expenditure (capex).

A number of assumptions are necessary in setting allowances for the outputs that we will deliver, including

the volumes of work that will be needed and the price of the various external inputs required to achieve

them. Consequently, there are a number of uncertainty mechanisms within the RIIO framework designed

to protect consumers and network companies by avoiding the need to set allowances when future needs

and costs are uncertain.

Where we under- or over-spend the allowed totex for reasons that are not covered by uncertainty

mechanisms, there is a 'sharing' factor. This means we share the under- or over-spend with customers

through an adjustment to allowed revenues in future years. This sharing factor provides an incentive for

us to provide the outputs efficiently, as we are able to keep a portion of savings we make, with the

remainder benefitting our customers. Likewise, it provides a level of protection for us if we need to spend

more than allowances. Alongside this, there are several specific areas where companies can submit

further claims for new allowances within the period, for instance to enable net zero.

Under RIIO, there are also number of Output Delivery Incentives (ODIs) to incentivise us to deliver

favourable outcomes for consumers. The ODI package has been enhanced in RIIO-T3 versus RIIO-T2 to

further incentivise us to deliver timely delivery and innovation to benefit consumers, while maintaining the

focus on reliability and customer focus.

Allowed revenue to fund totex costs is split between RIIO 'fast' and 'slow' money categories using

specified ratios that are fixed for the duration of the price control. Fast money represents the amount of

totex we are able to recover in the year of expenditure. Slow money is added to our RAV – effectively the

regulatory IOU.

For more details on the sharing factors under RIIO for our transmission businesses, please see the table

on page [222](#i018d13a65be249589efb8e954dd91a63_6-0-1-1-954526).

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **221** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **The business in detail cont.** | **The business in detail cont.** | **The business in detail cont.** |  |  |  |

---

**Regulation of UK ED: The RIIO-ED2 price control**

RIIO-ED2, covering the period 1 April 2023 – 31 March 2028, is the second electricity distribution price

control to be set under the RIIO model. It builds on from the framework established in the first price

control, RIIO-ED1, that ran for eight years from 1 April 2015 to 31 March 2023.

Our RIIO-ED2 business plan was co-created with our stakeholders, through our largest ever stakeholder

consultation process with the broadest range of representatives. In order to enable us to actively drive the

nation's move to decarbonisation, our RIIO-ED2 business plan has been designed to achieve four crucial

outcomes for our customers:

–Affordability: We aim to continue to deliver high standards of safety, reliability and customer service

that customers have come to expect from us, while keeping our portion of consumer bills affordable.

–Sustainability: We will support the UK's ambitions to achieve net zero carbon emissions by 2050,

driving crucial changes in energy usage and customer green behaviour. We will set the benchmark by

achieving net zero in our own operations by 2043 (excluding Scope 3 emissions) and we will work

towards ensuring the network is ready to enable local authorities to achieve similar ambitions in

their regions. We will also actively work with the industry and government to achieve Clean Power 2030,

within which at least 95% of the country's generation will come from clean sources including

renewables. This will see both UK ET and UK ED actively engaging with areas of reform to ensure that

the grid is decarbonised in a sustainable way.

–Connectability: We will strive to ensure that a lack of network capacity is not a barrier for our

customers. We will ensure that the network can cater for the increasing demand of low-carbon

technologies and renewable energy over RIIO-ED2, while recognising that the generation mix needs to

be balanced to retain resilience for security of supply. We will actively work with Ofgem and the industry

to reform the connections processes, including continuing engagement on a review of the end-to-end

connections journey. This will ensure that the connections process meets customers needs, while

enabling investment ahead of the need to support decarbonisation.

–Vulnerability: We will aim to deliver a first class programme of inclusive support. This will include

offering smart energy action plans for vulnerable customers each year, ensuring no one is left behind in

a smart future. We will also strive to more than double our ground breaking fuel poverty support to help

at least 113,000 fuel poor customers save £60 million on their energy bills over RIIO-ED2.

**Regulation of UK ET: The RIIO-T2 price control**

The RIIO-T2 price control built on the framework established for RIIO-T1, introduced a range of new

mechanisms to facilitate the transition to net zero, continued support for innovation, and incentivised us to

deliver outputs with ambitious targets aligned to our customers' and stakeholders' requirements.

The Independent User Group (IUG) includes a cross-section of the energy industry and represents the

interests of consumers, environmental and public interest groups, as well as large-scale and small-scale

customers. It was established in July 2018, acting as our critical liaison, to ensure stakeholders are at the

heart of our decision-making processes and our plan is fully reflective of customers', consumers' and

other stakeholders' requirements.

The IUG's enduring role in RIIO-T2 focused on challenging business plans, enhancing transparency and

performance against commitments, and acting as a critical liaison on strategy, culture and key

stakeholder-related areas.

**Regulation of UK ET: The RIIO-T3 price control**

RIIO-T3 is Ofgem's five-year price control for electricity transmission running from April 2026 to March

2031, setting both the funding and regulatory framework under which NGET delivers and operates the

onshore transmission network. The framework is designed to enable a major expansion of the grid to

support decarbonisation and growth, while protecting consumers through ex-ante scrutiny of costs,

defined outputs on reliability, connections and sustainability.

Funding is primarily set through ex-ante allowances covering baseline operational expenditure and a large

programme of capital investment, supplemented by in-period funding mechanisms, such as re-openers

and pipeline arrangements to unlock additional funding as the need and scope of major projects become

clearer. NGET's allowed revenue is adjusted for actual performance through a package of financial

incentives, including efficiency incentives on total expenditure, output-based incentives, for example on

reliability, timely delivery of major projects and connections, and quality of service measures, alongside

innovation funding streams. Together, these mechanisms are intended to give NGET a "fair opportunity"

to earn its allowed return by delivering outputs efficiently and on time, while exposing it to downside risk

where performance falls short of consumers' expectations, all within a licence framework that is central to

delivery and financeability under RIIO-T3.

**Competition in onshore transmission**

We continue to support onshore competition where it can deliver benefits to consumers. The wider

landscape has shifted significantly since competition in onshore networks was first considered, and

continues to do so, particularly around the move to centralised network planning arrangements. We think

it is crucial that the competition framework is designed in the right way to incentivise innovation on design,

ensure timely and robust delivery and deliver benefits to customers. We are working closely with NESO,

DESNZ and Ofgem to support the development of the competition framework, ensuring that this is aligned

with the wider landscape, and to support identification of a suitable pipeline of projects.

**Interconnectors regulation**

Interconnectors primarily derive their revenues from sales of capacity to users who wish to move power

between market areas with different prices.

Under UK legislation, interconnection businesses must be separate from the transmission businesses.

There is a range of different regulatory models available for interconnector projects. These involve various

levels of regulatory intervention, ranging from fully merchant (where the project is fully reliant on sales of

interconnector capacity) to cap and floor.

The cap and floor regime is now the regulated route for interconnector investment in GB and may be

sought by project developers who do not qualify for, or do not wish to apply for, exemptions from UK and

European legislation which would facilitate a merchant development.

Offshore Hybrid Assets (OHA) combine interconnection with offshore wind. Ofgem established an OHA

pilot scheme and decided that an adjusted version of the cap and floor regulatory regime should apply to

those projects that receive approval within that scheme. The variations to the interconnector cap and floor

regime reflect the differing risks and characteristics of OHAs. In November 2024, Ofgem initially approved

the LionLink project between GB and the Netherlands, developed by National Grid Ventures with TenneT

Netherlands, for a pilot OHA regulatory regime.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **222** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **The business in detail cont.** | **The business in detail cont.** | **The business in detail cont.** |  |  |  |

---

Key parameters from Ofgem's RIIO-ED2 determination for UK ED and RIIO-T2 and RIIO-T3 determination for UK ET

---

| | | | |
|:---|:---|:---|:---|
|  | **UK ED (ED2)** | **UK ET (T2)** | **UK ET (T3)** |
| Allowed Return on Equity (RoE)<sup>1</sup> | 5.28 – 5.59% (real, relative to CPIH) at 60% gearing | 4.25 – 5.20% (real, relative to CPIH) at 55% gearing (4.52 <br>– 5.59% at 60% gearing)<br>| 5.70% (real, relative to CPIH) at 55% gearing (6.12% at <br>60% gearing)<br>|
| Allowed debt funding | Calculated and updated each year using 17-year trailing <br>average of iBoxx Utilities 10+ year index, plus 25bps <br>additional cost of borrowing, 55bps calibration <br>adjustments, plus 6bps infrequent issuer premium for <br>West Midlands, South Wales and South West<br>| Calculated and updated each year using an extending <br>'trombone-like' trailing average of iBoxx Utilities 10+ year <br>index (increased from 10 years for 2021/22 to 14 years for <br>2025/26), plus 25bps additional borrowing costs<br>| Implementation of a RAV weighting of the benchmark <br>index beginning from the start of RIIO-1<br>Calculated and updated each year using a 14-year <br>'trombone-like' trailing average of iBoxx GBP A and iBoxx <br>BBB non-financial 10+ year index, plus 26bps additional <br>borrowing costs, plus 43bps calibration adjustments<br>Implementation of a nominal allowance for fixed rate debt <br>(index-linked debt assumption 10%)<br>|
| Depreciation of RAV | Straight-line 45-year depreciation | Straight-line over 45 years for post-2021 RAV additions, <br>with pre-2021 RAV additions as per RIIO-T1<br>| Straight-line over 45 years for post-2021 RAV additions, <br>with pre-2021 RAV additions as per RIIO-T1<br>|
| Notional gearing | 60% | 55% | 55% |
| Split between fast/slow money | Capitalisation rate 1 slow money 77% – 79% <br>Capitalisation rate 2 slow money 85%<br>| Fast: RIIO-T2 baseline 22%;<br>RIIO-T2 uncertainty mechanisms 15%<br>Slow: RIIO-T2 baseline 78%; <br>TO uncertainty mechanisms 85%<br>| Fast: RIIO-T3 baseline 30%;<br>RIIO-T3 uncertainty mechanisms 15%<br>Slow: RIIO-T3 baseline 70%;<br>TO uncertainty mechanisms 85%<br>|
| Sharing factor | 50% | 33% | 25% sharing up to 5% of over/under-spend<br>10% sharing at 5%-20% over/under-spend<br>5% sharing beyond 20% over/under-spend<br>|
| Allowed totex (cumulative for <br>the five years of RIIO-ED2, <br>RIIO-T2 and of RIIO-T3) <br>| £5.5 billion in 2020/21 prices | £5.8 billion in 2018/19 prices | £5.0 billion in 2023/24 prices |

---

1. The cost of equity in RIIO-ED2 is subject to annual adjustments that are calculated using the Capital Asset Pricing Model, through indexation of the 'risk-free rate' parameter. The range shown above is Ofgem's estimate of the allowed RoE over the five years of RIIO-ED2, as updated in

the RIIO-ED2 Price Control Financial Model published in December 2023. The cost of equity in RIIO-T2 was subject to annual adjustments calculated using the Capital Asset Pricing Model, through indexation of the 'risk-free rate' parameter. The range shown above is Ofgem's estimate

of the allowed RoE over the five years of RIIO-T2, as updated in the RIIO-T2 Price Control Financial Model published in January 2024. The cost of equity in RIIO-T3 is also subject to annual adjustments that are calculated using the Capital Asset Pricing Model, through indexation of the

'risk-free rate' parameter. 5.70% is the cost of equity for the first year of RIIO-T3 (2026/27) and Ofgem have not yet provided their estimate of the 'risk free rate' for the remainder of the period.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **223** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **The business in detail cont.** | **The business in detail cont.** | **The business in detail cont.** |  |  |  |

---

US regulation

**Regulators** 

In the US, public utilities' retail transactions are regulated by state utility commissions which serve as

economic regulators, approving cost recovery and authorised rates of return. The state commissions

establish the retail rates to recover the cost of transmission and distribution services within their

jurisdictions. They also serve the public interest by making sure utilities provide safe and reliable services

at just and reasonable prices. The commissions establish service standards and approve public utility

mergers and acquisitions. State commissions are also asked to approve a variety of programmes and

costs related to state energy and climate goals.

At the federal level, FERC regulates wholesale transactions for utilities, such as interstate transmission and

wholesale electricity sales, including rates for these services. FERC also regulates public utility holding

companies and centralised service companies, including those of our US businesses.

**Regulatory process** 

The US regulatory regime is premised on allowing the utility the opportunity to recover its cost of service

and earn a reasonable return on its investments as determined by each commission. Utilities submit

formal rate filings (rate cases) to the relevant state regulator when additional revenues are necessary to

provide safe, reliable service to customers. Additionally, utilities can be compelled to file a rate case, either

due to complaints filed with the commission or at the commission's own discretion.

The rate case is sometimes negotiated with parties representing customers and other interests. The utility

is required to prove that the requested rate change is just and reasonable, and the requested rate plan

can span multiple years. In the states where we operate, it can typically take 9 to 13 months for the

commission to render a final decision, although, in some instances, rules allow for longer negotiation

periods which may extend the length of the rate case proceeding. Unlike the state processes, FERC, as

the federal regulator, has no specified timeline for adjudicating a rate case; typically, it makes a final

decision retroactively when the case is completed.

Gas and electricity rates are established from a revenue requirement, or cost of service, equal to the

utility's total cost of providing distribution or delivery services to its customers, as approved by the

commission in the rate case. This revenue requirement includes operating expenses, depreciation, taxes,

and a fair and reasonable return on shareholder capital invested in certain components of the utility's

regulated asset base or 'rate base'.

The final revenue requirement and rates for service are approved in the rate case decision. The revenue

requirement is derived from a comprehensive study of the utility's total costs during a representative 12-

month period, referred to as a test year. Each commission has its own rules and standards for

adjustments to the test year. These may include forecast capital investments and operating costs.

**Our rate plans**

Each operating company has a set of rates for service. We have three electricity distribution companies:

(1) Niagara Mohawk Power Corporation, with operations in Upstate New York; (2) Massachusetts

Electric Company; and (3) Nantucket Electric Company, the latter two having operations

in Massachusetts.

We also have four gas distribution companies: (1) Niagara Mohawk Power Corporation, with operations

in Upstate New York; (2) The Brooklyn Union Gas Company, with operations in Downstate New York;

(3) KeySpan Gas East Corporation, with operations in Downstate New York; and (4) Boston Gas

Company, with operations in Massachusetts.

Our distribution companies have revenue decoupling mechanisms that delink their revenues

from the quantity of energy delivered and billed to customers. These mechanisms remove the natural

disincentive utility companies have for promoting and encouraging customer participation in

energy-efficiency programmes that lower energy end-use and distribution volumes.

We bill our customers for their use of electricity and gas services. Customer bills typically cover the cost of

the commodity (electricity or gas delivered) and charges covering our delivery service. Our customers are

allowed to select an unregulated competitive supplier for the commodity component of electricity and gas

utility services.

A substantial proportion of our costs, in particular electricity and gas commodity purchases, are pass-

through costs, fully recoverable from our customers. We recover pass-through costs through making

separate charges to customers, designed to recover those costs with no profit. We adjust the charges

from time to time, often annually to make sure that any over- or under-recovery of these costs is returned

to, or recovered from, our customers. Our rate plans are designed to a specific allowed RoE, by reference

to an allowed operating expense level and rate base. Some rate plans include earnings-sharing

mechanisms that allow us to retain a proportion of the earnings above our allowed RoE, achieved through

improving efficiency, with the balance benefiting customers. In addition, our performance under certain

rate plans is subject to service performance targets. We may be subject to monetary penalties in cases

where we do not meet those targets.

Our FERC-regulated transmission companies use formula rates (instead of periodic stated rate cases) to

set rates annually that recover their cost of service. Through the use of annual true-ups, formula rates

allow us to recover our actual costs incurred and the allowed RoE based on the actual transmission rate

base each year. We must make annual formula rate filings documenting the revenue requirement that

customers can review and challenge.

Revenue for our wholesale transmission businesses in New England and New York is collected from

wholesale transmission customers. These are typically other utilities and include our own New England

electricity distribution businesses. With the exception of Upstate New York, which continues to combine

retail transmission and distribution rates to end-use customers, these wholesale transmission costs are

generally incurred by distribution utilities on behalf of their customers. They are fully recovered as a pass-

through from end-use customers, as approved by each state commission.

Our Long Island generation plants sell capacity to the LIPA under 15-year and 25-year power supply

agreements and within wholesale tariffs approved by FERC.

Through the use of cost-based formula rates, these long-term contracts provide a similar economic effect

to cost-of-service rate regulation.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **224** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **The business in detail cont.** | **The business in detail cont.** | **The business in detail cont.** |  |  |  |

---

One measure used to monitor the performance of our regulated businesses is a comparison of achieved

RoE to allowed RoE. However, this measure cannot be used in isolation, as several factors may prevent

us from achieving the allowed RoE. These include financial market conditions, regulatory lag (e.g. the time

period after a rate or expense is approved for recovery but before we collect the same from customers)

and decisions by the regulator preventing cost recovery in rates from customers.

We work to increase achieved RoE through:

–productivity improvements

–positive performance against incentives or earned savings mechanisms, such as available energy-

efficiency programmes

–filing a new rate case when achieved returns are lower than those the Company could reasonably

expect to attain through a new rate case

**US regulatory revenue requirement**

![24140_Bar_US_Regulatory revenue requirement_3col_RGB.jpg](nggtf-20260331_g426.jpg)

**US regulatory filings** 

The objectives of our rate case filings are to make sure we have the right cost of service and are able to

earn a fair and reasonable rate of return, while providing a safe, reliable and affordable service. To achieve

these objectives and reduce regulatory lag, we have been successful in many cases in obtaining relief,

such as:

–revenue-decoupling mechanisms

–capital trackers

–commodity-related bad debt true-ups

–pension and other post-employment benefit true-ups, separately from base rates

–performance-based frameworks such as incentives and multi-year plans

We explain these terms in the table on page **[225](#ie2721c93955940ef945161451362ca3c_28105)**.

Recent developments in rate filings and the regulatory environment are:

**New York** 

–A joint proposal setting forth a three-year rate plan for Niagara Mohawk was approved by the NYPSC in

August 2025.

–A joint proposal setting forth a three-year rate plan for KEDNY and KEDLI was approved by the NYPSC

in August 2024.

**Massachusetts**

–In November 2023, we made a full rate case filing for Massachusetts Electric Company and Nantucket

Electric Company resulting in a five-year ratemaking plan in September 2024.

–In November 2020, we made a full rate case filing for Boston Gas Company resulting in a five-year

performance-based ratemaking plan in September 2021.

**FERC**

In March 2026, FERC issued an order regarding four long-pending New England Transmission Owners

(NETOs) base RoE complaints. The order set a lower base RoE and requires the NETOs to issue refunds

with interest. National Grid will challenge the decision through the required regulatory and legal

procedures. In April 2026, National Grid, together with other NETOs, filed a request with FERC under

Section 205 of the Federal Power Act proposing a forward-looking base return on equity of 11.39%. The

proposal reflects the application of the FERC current return on equity methodology using updated market

data.

**Massachusetts**

**Massachusetts Electric Company and Nantucket Electric Company rate cases**

On 30 September 2024, the MADPU issued its order on our petition for an increase in electric base

distribution rates for Massachusetts Electric Company and Nantucket Electric Company.

The MADPU approved a five-year rate plan with new rates effective 1 October 2024, an allowed Return on

Equity of 9.35% on an equity ratio of 52.83% and a revenue increase of $90.2 million. The order also

introduced a new regulatory recovery mechanism that provides timely funding for growing capital

investment requirements up to a cap, alongside a performance-based ratemaking recovery mechanism

for operating and maintenance costs. Additionally, it approved a multi-tiered low-income discount rate

along with performance incentives for low-income programme enrolment and distributed energy

resources interconnections.

**Boston Gas Company rate case** 

On 16 January 2026, Boston Gas Company filed its gas rate case with the MADPU. Boston Gas

Company requested, among other things, an increase in distribution revenues by approximately $342

million, including the transfer of recoverable revenue requirement totalling approximately $198 million

associated with Gas System Enhancement Plan investments placed in service between 1 January 2020

through 31 December 2024, resulting in a net revenue increase of approximately $144 million. Boston

Gas Company further proposed a Return on Equity of 10.25% on an equity ratio of 53.85%. Boston Gas

Company also requested continuation of its performance-based ratemaking mechanism, a one-time

Liquefied Natural Gas roll-in, and a MADPU pipeline safety regulatory requirement tracker to recover costs

associated with mandated pipeline safety improvements. If approved, the requested rate increase would

be effective 1 December 2026.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **225** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **The business in detail cont.** | **The business in detail cont.** | **The business in detail cont.** |  |  |  |

---

**New York**

**Downstate New York 2023 rate cases – KEDNY and KEDLI**

KEDNY and KEDLI rate cases approved by the NYPSC on 15 August 2024 updated our allowed revenues

to reflect our cost of service more closely, while maintaining affordable energy for customers. The joint

proposal approved by the NYPSC sets forth a three-year rate plan for KEDNY and KEDLI with overall

annual revenue requirement increases, including $444 million for KEDNY and $246.5 million for KEDLI for

the year ending on 31 March 2025. The joint proposal reflects $1.57 billion in capital investments for

KEDNY and KEDLI in the first rate year to modernise KEDNY and KEDLI's gas infrastructure to implement

safety improvements, enhance reliability and resilience, replace ageing and leak-prone facilities, and

reduce methane emissions. The joint proposal aligns with our 2050 vision to support a sustainable and

affordable path towards a low-carbon energy future. Additionally, the joint proposal includes initiatives to

expand low-income and energy-efficiency programmes, fund renewable natural gas projects, and

enhance customer service.

**Upstate New York 2024 rate cases – NIMO**

On 14 August 2025, the NYPSC approved a three-year rate plan for NIMO that updates electric and gas

revenues to better reflect cost of service, while maintaining affordable energy for customers. The plan

includes levelled increases of $167 million for electric and $57 million for gas in the first rate year and

supports approximately $4.3 billion in electric and $1 billion in gas capital investments to modernise

infrastructure, enhance safety and reliability, and strengthen system resilience. It also incorporates IT

upgrades, storm-response improvements, and targeted investments in battery storage and distributed

energy resources. Consistent with New York's climate mandates and our 2050 vision to support a

sustainable and affordable path towards a low-carbon energy future, the plan advances electrification,

non-pipe alternatives, and emissions-reduction initiatives, while expanding customer affordability

programmes and support for disadvantaged communities.

**Summary of US price controls and rate plans**

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **2022** | **2023** | **2024** | **2025** | **2026** | **2027** | **2028** | **Rate base** <br>**(31 Mar 2026)**<br>| **Equity-to-**<br>**debt** <br>**ratio**<br>| **Allowed** <br>**Return** <br>**on Equity**<br>| **Achieved** <br>**Return** <br>**on Equity** <br>**(31 Mar 2026)**<br>| **Revenue** <br>**decoupling**<sup>†</sup><br>| **Capital** <br>**tracker**<sup>‡</sup><br>| **Commodity-**<br>**related bad** <br>**debt true-up**<sup>§</sup><br>| **Pension/**<br>**OPEB** <br>**true-up**<sup>◊</sup><br>|
| **New York** <br>**Public Service** <br>**Commission** | Niagara Mohawk<sup>1</sup><br>(Upstate, electricity)<br>|  |  |  |  |  |  |  | **$10,000m** | **48:52** | **9.5%** | **8.3%** | ✔ | **P** | **P** | ✔ |
| **New York** <br>**Public Service** <br>**Commission** | Niagara Mohawk <br>(Upstate, gas)<br>|  |  |  |  |  |  |  | **$2,569m** | **48:52** | **9.5%** | **7.5%** | ✔ | **P** | **P** | ✔ |
| **New York** <br>**Public Service** <br>**Commission** | KEDNY (downstate)<sup>2, 5</sup> |  |  |  |  |  |  |  | **$8,025m** | **48:52** | **9.35%** | **9.6%** | ✔ | **P** | **P** | ✔ |
| **New York** <br>**Public Service** <br>**Commission** | KEDLI (downstate)<sup>3, 5</sup> |  |  |  |  |  |  |  | **$4,760m** | **48:52** | **9.35%** | **10.5%** | ✔ | **P** | **P** | ✔ |
| **Massachusetts** <br>**Department of** <br>**Public Utilities** | Massachusetts <br>Electric/Nantucket Electric<br>|  |  |  |  |  |  |  | **$4,399m** | **53:47** | **9.35%** | **8.0%** | ✔ | **P** | ✔ | **n/a** |
| **Massachusetts** <br>**Department of** <br>**Public Utilities** | Massachusetts Gas<sup>5</sup> |  |  |  |  |  |  |  | **$5,867m** | **53:47** | **9.7%** | **9.4%** | ✔ | **P** | ✔ | ✔ |
| **Federal Energy** <br>**Regulatory** <br>**Commission** | Canadian Interconnector/<br>Other<sup>4</sup><br>|  |  |  |  |  |  |  | **$76m** | **65:35** | **11.1%** | **11.1%** | **n/a** | ✔ | **n/a** | ✔ |
| **Federal Energy** <br>**Regulatory** <br>**Commission** | New England Power |  |  |  |  |  |  |  | **$3,271m** | **60:40** | **9.57%** | **10.1%** | **n/a** | ✔ | **n/a** | ✔ |

---

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![](nggtf-20260331_g427.gif)

![](nggtf-20260331_g428.gif)

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1. Both transmission and distribution, excluding stranded costs.

2. KeySpan Energy Delivery New York (The Brooklyn Union Gas Company).

3. KeySpan Energy Delivery Long Island (KeySpan Gas East Corporation).

4. Equity ratio and Return on Equity values are for the Canadian Interconnector only.

5. The chart shows the anticipated date rates are to be in effect.

**† Revenue decoupling**

A mechanism that removes the link between a utility's revenue and sales volume so that the utility is indifferent to

changes in usage. Revenues are reconciled to a revenue target, with differences billed or credited to customers.

This allows the utility to support energy efficiency.

**‡ Capital tracker**

A mechanism that allows the recovery of the revenue requirement of incremental capital investment above that

embedded in base rates, including depreciation and a return on the incremental investment.

**§ Commodity-related bad debt true-up**

A mechanism that allows a utility to reconcile commodity-related bad debt either to actual commodity-related

bad debt or to a specified commodity-related bad debt write-off percentage. For electricity utilities, this

mechanism also includes working capital.

**◊ Pension/OPEB true-up**

A mechanism that reconciles the actual non-capitalised costs of pension and Other Post-Employment Benefits

(OPEB) and the actual amount recovered in base rates. The difference may be amortised and recovered over a

period or deferred for a future rate case.

---

| | | |
|:---|:---|:---|
| Rate filing made | ✔ | Feature in place |
| New rates effective | **P** | Feature partially in place |
| Rate plan ends |  |  |
| Rates continue indefinitely |  |  |
| Multi-year rate plan |  |  |

---

![](nggtf-20260331_g427.gif)

![](nggtf-20260331_g445.gif)

![](nggtf-20260331_g428.gif)

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![](nggtf-20260331_g446.gif)

![](nggtf-20260331_g447.gif)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **226** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Internal control and risk factors** | **Internal control and risk factors** | **Internal control and risk factors** |  |  |  |

---

![](nggtf-20260331_g448.gif)

---

| | | |
|:---|:---|:---|
| **Disclosure controls** <br>Our management, including the Chief Executive and Chief <br>Financial Officer, have evaluated the effectiveness of the design <br>and operation of our disclosure controls and procedures as of 31 <br>March 2026. <br>Our disclosure controls and procedures are designed to provide <br>reasonable assurance of achieving their objectives; however, <br>their effectiveness has limitations, including the possibility of <br>human error and the circumvention or overriding of the controls <br>and procedures.<br>Even effective disclosure controls and procedures provide only <br>reasonable assurance of achieving their objectives. <br>Based on the evaluation, the Chief Executive and Chief Financial <br>Officer concluded that the disclosure controls and procedures are <br>effective to provide reasonable assurance. The information <br>required for disclosure in the reports that we file and submit under <br>the Securities Exchange Act 1934 is recorded, processed, <br>summarised and reported as and when required and that such <br>information is accumulated and communicated to our <br>management, including the Chief Executive and Chief Financial <br>Officer, as appropriate, to allow timely decisions regarding <br>disclosure. <br>| **Internal control over financial reporting** <br>Our management, including the Chief Executive and Chief <br>Financial Officer, have carried out an evaluation of our internal <br>control over financial reporting pursuant to the Disclosure <br>Guidance and Transparency Rules (DTR) and section 404 of the <br>Sarbanes-Oxley Act 2002. As required by section 404, <br>management is responsible for establishing and maintaining an <br>adequate system of internal control over financial reporting (as <br>defined in Rules 13(a) – 5(f) and 15(d) – 15(f) under the Securities <br>Exchange Act 1934).<br>Our internal control over financial reporting is designed to provide <br>reasonable assurance regarding the reliability of financial reporting <br>and the preparation of financial statements for external purposes, <br>in accordance with generally accepted accounting principles. <br>Because of its inherent limitations, internal control over financial <br>reporting may not prevent or detect misstatements. Also, <br>projections of any evaluation of effectiveness to future periods are <br>subject to the risk that controls may become inadequate because <br>of changes in conditions, or that the degree of compliance with the <br>policies or procedures may deteriorate.<br>| Management's evaluation of the effectiveness of the Company's <br>internal control over financial reporting was based on the revised <br>Internal Control – Integrated Framework 2013 issued by the <br>Committee of Sponsoring Organizations of the Treadway <br>Commission. Using this evaluation, management concluded that <br>our internal control over financial reporting was effective as at 31 <br>March 2026.<br>Deloitte LLP, which has audited our consolidated financial <br>statements for the year ended 31 March 2026, has also audited <br>the effectiveness of our internal control over financial reporting.<br>During the year, there were no changes that have materially <br>affected, or are reasonably likely to materially affect, our internal <br>control over financial reporting.<br>**Risk factors** <br>Management of our risks is an important part of our internal <br>control environment, as we describe on pages [226](#i39c083f7223e44388d99dfa58a33ab00_355) to [232](#i200a48bfdf894a7a8bad21b5116911f7_1-0-1-1-954526). <br>In addition to Our Group Principal Risks listed, we face a number <br>of inherent risks that could have a material adverse effect on our <br>business, financial condition, results of operations and reputation, <br>as well as the value and liquidity of our securities. Any investment <br>decision regarding our securities and any forward-looking <br>statements made by us should be considered in light of these risk <br>factors and the cautionary statement set out on page [262](#i39c083f7223e44388d99dfa58a33ab00_373). An <br>overview of the key inherent risks we face is provided on the <br>pages that follow. <br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **227** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Internal control and risk factors cont.** | **Internal control and risk factors cont.** | **Internal control and risk factors cont.** |  |  |  |

---

**Risk factors** 

**Strategic risks**

---

| | |
|:---|:---|
| Law, regulation and political and economic uncertainty  | Law, regulation and political and economic uncertainty  |
| **Changes in law or regulation, or decisions by governmental bodies or regulators and increased political** <br>**and economic uncertainty, could adversely affect us in a material way.**<br>Most of our businesses are utilities or networks subject to regulation by governments and other authorities. <br>Changes in law or regulation or regulatory policy and precedent, and decisions of governmental bodies or <br>regulators in the countries or states in which we operate could materially adversely affect us. Changes to regulatory <br>priorities could likewise affect us. For example, our costs and operating activities may be impacted by US Federal <br>Government actions, including tariffs or its focus on natural gas and pausing of offshore wind leasing, which <br>contrasts with the UK, where the energy transition remains at the forefront of government policy. In both <br>jurisdictions, increasing political focus on issues of affordability could also affect us. In the longer term, significant <br>changes to law or regulation regarding usage of electricity or gas in jurisdictions where we operate or on our <br>operating activities could limit the return expected on investment or regulated assets. More widely, the impacts of <br>international political and economic uncertainty and disruption could also have a material adverse consequence on <br>us. We may fail to deliver any one of our customer, investor and wider stakeholder propositions due to increased <br>political and economic uncertainty. <br>| Decisions or rulings concerning the following (as examples) could have a material adverse impact on our results of <br>operations, cash flows, the financial condition of our businesses and the ability to develop those businesses in the <br>future:<br>–The RIIO (Revenue = Incentives + Innovation + Outputs) framework established by Ofgem, including the <br>implementation of the RIIO-T3 and RIIO-ED2 price controls and upcoming determination of RIIO-ED3 in the UK;<br>–The implementation of and periodic determination of US rate plans;<br>–Whether licences, approvals or agreements to operate or supply are granted, amended or renewed, whether <br>consents for construction projects are granted in a timely manner, or whether there has been any breach of the <br>terms of a licence, approval or regulatory requirement; and<br>–Timely recovery of incurred expenditure or obligations, the ability to pass through commodity costs, a decoupling <br>of energy usage and revenue, and other decisions relating to the impact of general economic conditions on us, <br>our markets and customers, implications of climate change and of advancing energy technologies, whether <br>aspects of our activities are contestable, and the level of permitted revenues and dividend distributions for our <br>businesses.<br>For further information, see pages [220](#i39c083f7223e44388d99dfa58a33ab00_352) to [225](#ie2721c93955940ef945161451362ca3c_28103), which explains our regulatory environment in detail.<br>|
| Climate change commitments and targets  |  |
| **If we fail to meet our regulatory obligations, commitments or targets in relation to climate change and the** <br>**energy transition, our reputation and business may be materially and adversely affected.**<br>We have set ambitious climate performance targets and commitments, including on reductions to greenhouse gas <br>emissions, and we aim to deliver the critical infrastructure necessary to achieve wider climate change objectives. If <br>we are unable to identify and/or deliver upon actions necessary to meet such targets, including due to third-party <br>action or inaction and/or evolving standards, oversight or other requirements, this could undermine our ability to <br>deliver our clean energy transition strategy, subject us to accusations of (or legal challenges related to) <br>greenwashing, damage our reputation and limit our ability to influence future energy policy. Achievement of our <br>climate commitments and targets is subject to risks and uncertainties, many of which are outside of our control <br>and depend on, among other factors, investment and changes in operating practices by other energy sector <br>participants, in particular risks related to generation of electricity by third parties and advances in technology and <br>regulatory requirements that could impact how individuals and households use electricity, as well as regulatory, <br>commercial and social trends (including the impact of energy prices on commercial and household consumption <br>and investment trends) in the jurisdictions where we operate. <br>| These risks and uncertainties include, but are not limited to, the availability and cost of alternative fuels, global <br>electrical charging infrastructure, off-site renewable energy and other materials and components; the outcome of <br>research efforts and future technology developments, including the ability to scale projects and technologies on a <br>commercially competitive basis, such as carbon sequestration, hydrogen blending (and other uses of hydrogen) <br>and/or other related processes; labour-related regulations and requirements that restrict or prohibit our ability to <br>impose requirements on third-party contractors; customer acceptance of sustainable supply chain solutions; and <br>the consummation of an acquisition of, or merger with, another company that has not adopted similar goals or <br>whose progress toward reaching its goals is not as advanced as ours.<br>Failure to achieve or maintain our climate performance targets, credentials and leadership may result in significant <br>reputational harm, damage our relationship with key stakeholders, or result in regulatory enforcement and fines.<br>We measure and report on certain climate-related metrics where required by regulation, as well as for strategic and <br>management purposes. The processes involved in formulating and reporting against our climate and emissions <br>targets are complex, and are subject to significant uncertainties, including with respect to the methodology, <br>collection and verification of data, underlying estimates and assumptions, and the use of third-party information. In <br>particular, it is not possible to rely on historical data as a strong indicator of future trajectories, and the climate <br>scenarios employed in relation to climate metrics (and the models that analyse such scenarios) have limitations that <br>are sensitive to key assumptions and parameters, which are themselves subject to some uncertainty and cannot <br>fully capture all of the potential effects of climate, policy and technology driven outcomes. In addition, climate <br>change and emissions data, models and methodologies are relatively new, rapidly evolving and have not historically <br>been subject to the same or equivalent disclosure standards, historical reference points, benchmarks or globally <br>accepted accounting principles as financial and other information. As a result, such data may subsequently be <br>determined to be erroneous, and implementing systems to meet regulatory requirements may be complex, require <br>significant investment or impose additional demands on management time.<br>If our climate-related practices, reporting, regulatory compliance and performance do not meet investor or other <br>stakeholder expectations, we could be subject to significant fines or penalties and our reputation and consequently <br>our financial performance may be materially and adversely affected. <br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **228** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Internal control and risk factors cont.** | **Internal control and risk factors cont.** | **Internal control and risk factors cont.** |  |  |  |

---

---

| | |
|:---|:---|
| Growth and business development activity | Growth and business development activity |
| **Failure to respond to external market developments and execute our growth strategy may negatively affect** <br>**our performance. Conversely, new businesses or activities that we undertake alone or with partners, or the** <br>**cessation of existing business or activities, may not deliver target outcomes and may expose us to** <br>**additional operational and financial risk.**<br>Failure to grow our core business sufficiently and have viable options for new future business over the longer term, <br>or failure to respond to the threats and opportunities presented by emerging technology or innovation (including for <br>the purposes of adapting our networks to meet the challenges of increasing distributed energy resources), could <br>negatively affect our credibility and reputation and jeopardise the achievement of intended financial returns.<br>Our business development activities (including the delivery of our growth ambition) involve acquisitions, disposals, <br>joint ventures, partnering and organic investment opportunities, such as development activities relating to changes <br>to the energy mix and the integration of distributed energy resources and other advanced technologies. <br>| These are subject to a wide range of both external uncertainties (including the availability of potential investment <br>targets and attractive financing and the impact of competition for onshore transmission in both the UK and US) and <br>internal uncertainties (including actual performance of our existing operating companies and our business planning <br>model assumptions and ability to integrate acquired businesses effectively). As a result, we may suffer <br>unanticipated costs and liabilities and other unanticipated effects.<br>We may also be liable for the past acts, omissions or liabilities of companies or businesses we have acquired or <br>sold, which may be unforeseen or greater than anticipated. In the case of joint ventures, we may have limited <br>control over operations and our joint venture partners may have interests that diverge from our own. We may also <br>be required to seek additional licences or permits in connection with any such activities or initiatives, in particular <br>with respect to transmission lines or renewable or other generation projects, which we may not be able to obtain <br>on the timing, or terms anticipated, or at all. <br>The occurrence of any of these events could have a material adverse impact on our results of operations or <br>financial condition, and could also impact our ability to enter into other transactions.<br>We may also be required to undertake certain acquisitions, investments or divestitures as mandated by regulatory <br>bodies in the regions in which we operate, such as the divestment of NESO in 2024 to the UK Government, <br>pursuant to the UK Energy Act 2023. These could create financial or reputational risks or lead to changes to, or <br>limitations being placed on, regulated activities and potentially, over the longer term, result in impairment of <br>regulated assets and anticipated returns.<br>|
| Business performance | Business performance |
| **Current and future business performance may not meet our expectations or those of our regulators and** <br>**shareholders.**<br>Earnings maintenance and growth from our regulated gas and electricity businesses will be affected by our ability <br>to meet or exceed efficiency and cost targets and service quality standards set by, or agreed with, our regulators.<br>| If we do not meet these targets and standards, or if we are not able to deliver our price controls and rate plans <br>successfully, we may not achieve the expected returns and benefits, our business may be materially adversely <br>affected and our performance, results of operations and reputation may be materially harmed and we may be in <br>breach of regulatory or contractual obligations.<br>|
| Employees and others  | Employees and others  |
| **We may fail to attract, develop and retain employees at all levels with the competencies (including** <br>**leadership and business capabilities), values and behaviours required to deliver our strategy and vision and** <br>**ensure they are engaged to act in our best interests.**<br>Our ability to implement our strategy depends on the capabilities and performance of our employees and <br>leadership at all levels of the business. Our ability to implement our strategy and vision may be negatively affected <br>by the loss of key personnel or an inability to adequately identify and plan for personnel requirements, including to <br>attract, integrate, engage and retain appropriately qualified personnel (including people with the skills to help us <br>deliver across our investment projects). Our ability to implement our strategy and vision may be negatively affected <br>if significant disputes arise with our employees, such as failure to extend or renegotiate, as and when applicable, <br>agreements with relevant trade unions.<br>| As a result, there may be a material adverse effect on our business, financial condition, results of operations and <br>prospects.<br>There is a risk that an employee, or someone acting on our behalf, may breach our internal controls or internal <br>governance framework, or may contravene applicable laws and regulations. This could have an impact on the <br>results of our operations, our reputation and our relationship with our regulators and other stakeholders.<br>|

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **229** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Internal control and risk factors cont.** | **Internal control and risk factors cont.** | **Internal control and risk factors cont.** |  |  |  |

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| | |
|:---|:---|
| **Operational risks** |  |
| Cyber or physical security breaches | Cyber or physical security breaches |
| **Cyber or physical security breaches may impact our ability to operate our networks, initiate the loss of** <br>**critical operating or confidential data and expose us to significant liabilities.**<br>As an owner and operator of critical infrastructure assets, we are subject to cyber and physical threats, including <br>from both internal and external parties who wish to disrupt our operations. In the current geopolitical <br>environment, heightened cyber and physical security threats to national infrastructure remain, and there can be no <br>certainty that our security measures will be sufficient to prevent breaches from wherever they originate.<br>| Malicious attack, sabotage or other intentional acts may also damage our assets (which include critical national <br>infrastructure), systems or data or otherwise significantly affect corporate activities and, as a consequence, have a <br>material adverse impact on our reputation, business, results of operations and financial condition. The third-party <br>technology systems, hardware, software, and technical applications and platforms which we use may also be <br>subject to attempts to disrupt the services they provide to us or used as a conduit to attack us.<br>Unauthorised access to, or deliberate breaches of, our IT systems may also lead to manipulation of our proprietary <br>business data or customer information. Unauthorised access to private customer information may make us liable <br>for a violation of data privacy regulations, which may in turn expose us to significant regulatory fines or liabilities. <br>Even where we establish business continuity controls and security against threats to our systems, these may not <br>be sufficient. As threats related to cyber security develop and grow, we may also find it necessary to make further <br>investments to protect our data and infrastructure, which may impact our results of operations and financial <br>condition.<br>|
| Potentially harmful activities  |  |
| **Aspects of our activities could potentially harm employees, contractors, members of the public or the** <br>**environment.** <br>Various potentially hazardous activities arise in connection with our business. For example, electricity and gas <br>utilities typically use and generate hazardous and potentially hazardous products and by-products. In addition, <br>there may be other aspects of our operations that are not currently regarded or proved to have adverse effects but <br>could become so.<br>A significant safety or environmental incident, a catastrophic failure of our assets or a failure of our safety processes <br>or of our occupational health plans, as well as the breach of our regulatory or contractual obligations or our climate <br>change targets, could materially adversely affect our results of operations and our reputation.<br>Safety is a fundamental priority for us, and we commit significant resources and expenditure to process safety and <br>to monitoring personal safety, occupational health and environmental performance, and to meeting our obligations <br>under negotiated settlements.<br>| We are subject to laws and regulations in the UK and US governing health and safety matters to protect the public <br>and our employees and contractors, who could potentially be harmed by these activities, as well as laws and <br>regulations relating to pollution, the protection of the environment, and the use and disposal of hazardous <br>substances and waste materials, which are subject to change in the future.<br>These expose us to costs and liabilities relating to our operations and properties, including those inherited from <br>predecessor bodies, whether currently or formerly owned by us, and sites used for the disposal of our waste. <br>The cost of future environmental remediation obligations is often inherently difficult to estimate, and uncertainties <br>can include the extent of contamination, the appropriate corrective actions and our share of the liability. We are <br>subject to regulation in relation to climate change and related reporting requirements, which are subject to <br>significant change, and are affected by requirements to reduce our own carbon emissions as well as to enable <br>a reduction in energy use by our customers. If more onerous requirements are imposed on our own operating and <br>reporting requirements or our ability to recover these costs under regulatory frameworks changes, then this could <br>have a material adverse impact on our business, reputation, results of operations and financial position.<br>|
| Infrastructure and systems impacting supply | Infrastructure and systems impacting supply |
| **We may suffer a major network failure or interruption, or may not be able to carry out critical operations** <br>**due to the failure of infrastructure or technology or a lack of supply, including as a result of bulk power** <br>**system failure.** <br>Operational performance could be materially adversely affected by a failure to maintain the health of our assets or <br>networks, inadequate forecasting of demand, inadequate record keeping or control of data, as well as third-party <br>energy generators, including upstream failure or inability to produce adequate or reliable supply. Such events, in <br>turn, could cause us to fail to meet agreed standards of service, incentive and reliability targets, or to be in breach <br>of a licence, approval, regulatory requirement or contractual obligation. Even incidents that do not amount to <br>a breach could result in adverse regulatory and financial consequences, as well as harming our reputation.<br>Where demand for electricity or gas exceeds supply, including where we do not adequately forecast and respond <br>to disruptions in energy supplies, and our balancing mechanisms are not able to mitigate this fully, a lack of supply <br>to consumers may damage our reputation.<br>In addition to these risks, we may be affected by other potential events that are largely outside our control, such as <br>the impact of weather (including as a result of climate change and major storms), unlawful or unintentional acts of <br>third parties, outbreaks of hostilities or terrorist acts, insufficient or unreliable supply, or force majeure.<br>| These items can affect financial performance, and we disclose in our underlying results to reflect, among other <br>items, major storm costs in the US that are recoverable in future periods where these are in excess of $100 million <br>(in aggregate) in the financial year. Severe weather that causes outages or damages infrastructure, together with <br>our actual or perceived response, could materially adversely affect operational and potentially business <br>performance and our reputation. <br>Our insurance coverage may not cover all of the costs and liabilities we incur as the result of any damage or <br>disruptions, including from these types of events outside our control, which in addition to any of the factors <br>mentioned above may materially and adversely impact our business, results of operations and financial condition.<br>|

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **230** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Internal control and risk factors cont.** | **Internal control and risk factors cont.** | **Internal control and risk factors cont.** |  |  |  |

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| | |
|:---|:---|
| Reliance on IT systems  | Reliance on IT systems  |
| **A failure of our information technology infrastructure could adversely impact our business and results of** <br>**operations.**<br>We rely upon the capacity, reliability and security of our IT hardware and software infrastructure and our ability to <br>expand and update this infrastructure, including with the increasing use of AI to meet our business requirements. <br>Our systems may be vulnerable to damage from a variety of attacks or disruptions (including cyber-attacks), natural <br>disasters, failures in hardware or software (including disruption to information systems of supporting technology, <br>the possibility of obsolescence and the risk of serial defects on technology implemented by the Group), power <br>fluctuations, unauthorised access to data and systems, loss or destruction of data (including confidential client <br>information), human error, and other similar disruptions. Not all of these sources of threat are within our control, <br>including fraud or malice on the part of third parties, accidental technological failure, electrical or telecommunication <br>outages, failures of computer servers or other damage to our property or assets, outbreaks of hostilities, or terrorist <br>acts. Further, the use of AI may expose us to additional risk from cyber events and our employees may not have <br>the experience to identify weaknesses in AI generated data. In addition we rely on third parties to support the <br>operation of our IT hardware, software infrastructure and software-as-a-service applications, and cloud services. <br>The security and privacy measures implemented by such third parties may not be sufficient to identify or prevent <br>disruptions or cyber-attacks.<br>| We cannot give assurance that any security measures we have implemented or may in the future implement will be <br>sufficient to identify and prevent or mitigate such disruptions. Maintenance of these IT systems is important for our <br>ongoing service delivery, and investment may be required in the future to further develop our IT capabilities and to <br>protect against disruptions or security breaches.<br>The failure of our IT systems or those of our vendors to perform as anticipated for any reason or any significant <br>breach of security could disrupt our business and result in numerous adverse consequences, including reduced <br>effectiveness and efficiency of operations, inappropriate disclosure of confidential and proprietary information, <br>potentially significant reputational harm, increased overhead costs and loss of important information, and regulatory <br>fines or other liabilities, any of which could have a material adverse effect on our business and results of operations. <br>In addition, significant disruptions or breaches may require remedial steps to be taken, which could require us to <br>incur significant costs. Although we maintain business continuity and/or disaster recovery plans, they may not in all <br>circumstances be effective to timely resolve issues resulting from a disruption.<br>|
| Supply chain disruptions  | Supply chain disruptions  |
| **Supply chain disruption may materially and adversely affect our results of operations.**<br>We may be impacted by supply chain disruptions and shortages of materials, equipment, labour and other <br>resources that are critical to our business operations, including the delivery of major projects. Such disruptions may <br>be further exacerbated by geopolitical tensions including the effects of conflicts in the Middle East and Ukraine and <br>also to other measures such as the imposition of tariffs by the US Federal Government. Long lead times for critical <br>equipment, network components and replacement parts could restrict the availability and delay the construction, <br>maintenance or repair of items that are needed to support our normal operations and may result in prolonged <br>customer outages, which could in turn lead to unrecovered costs for such service interruptions. Demand for <br>electric equipment is increasing due to utilities' efforts to meet clean energy goals, planned capital expenditure <br>projects and in order to prepare for more frequent extreme weather events at a time when manufacturing capacity <br>and supply are decreasing.<br>| Prices of materials, equipment, transportation and other resources have increased as a result of these supply chain <br>disruptions and shortages and may furthermore continue to increase as a result of inflation.<br>A prolonged continuation or a further increase in the severity of supply chain and inflationary pressures could result <br>in additional increases in the cost of certain goods, services and cost of capital, and may lead to projects delays, <br>which may materially and adversely impact our business, results of operations and financial condition.<br>|
| Customers, suppliers and counterparties  | Customers, suppliers and counterparties  |
| **Customers, suppliers and counterparties may not perform their obligations.**<br>Our operations are exposed to the risk that customers, suppliers, banks and other financial institutions, and others <br>with whom we do business, will not satisfy their obligations, which could materially adversely affect our financial <br>position.<br>This risk is significant where our subsidiaries have concentrations of receivables from gas and electricity utilities and <br>their affiliates, as well as industrial customers and other purchasers, and may also arise where customers, including <br>consumers, are unable to pay us as a result of increasing commodity prices or adverse economic conditions <br>impacting affordability.<br>| To the extent that counterparties are contracted with us for physical commodities (gas and electricity) and they <br>experience events that impact their own ability to deliver, we may suffer supply interruption.<br>There is also a risk to us where we invest excess cash or enter into derivatives and other financial contracts with <br>banks or other financial institutions. Banks that provide us with credit facilities may also fail to perform under those <br>contracts.<br>|

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **231** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Internal control and risk factors cont.** | **Internal control and risk factors cont.** | **Internal control and risk factors cont.** |  |  |  |

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| | |
|:---|:---|
| Investment projects  | Investment projects  |
| **Our capital investment projects are subject to a number of risks and uncertainties, including availability of** <br>**supplies and personnel, cost and scheduling oversight, and regulatory requirements, approvals** <br>**and consents.**<br>Our regulated utility businesses are highly capital intensive, and require significant ongoing investments in network <br>infrastructure including generation, transmission and distribution technologies and projects necessary to achieve <br>our own, and wider, environmental goals. <br>The successful completion of any such project depends on, or could be affected by, a variety of factors, including: <br>effective procurement strategies and supplier relationships; availability of qualified construction personnel, both <br>internal and contracted; changes in commodity and other prices, applicable tariffs, and/or availability of supplies, <br>materials and equipment needed for undertaking such projects and maintaining assets once in use; governmental <br>approvals and consents, permitting and planning; clarity in regulatory requirements and expectations, including <br>open engagement with regulators, and relevant stakeholders (including planning authorities and communities) <br>throughout the planning, approval, investment and operational stages; changes in environmental, legislative and <br>regulatory requirements; regulatory cost recovery; inflation, including of labour rates; increases in lead times; and <br>disruptions in supply chain distribution. <br>| Delivery of ASTI projects awarded to National Grid in the UK will require an increase in the annual level of capital <br>investment over the next decade. Our capacity to meet our commitments under the ASTI framework depends on a <br>number of factors, including: the timely progression of awarded projects (including the planning stages and receipt <br>of relevant approvals and consents); avoidance of significant supply chain disruptions and the continued availability <br>of critical components; access to necessary labour and our ability to execute the relevant projects in line with <br>regulatory standards and expectations.<br>We are also undertaking significant capital investments in the US, including various renewable investment projects <br>and leak-prone pipe replacements, further electric sector modernisation plans in Massachusetts, the Propel NY <br>Energy Transmission Project in New York, and investments in furtherance of New York's Climate Leadership and <br>Community Protection Act (CLCPA).<br>Adverse events associated with any of the factors set out above could materially impact our ability to achieve the <br>benefits of such projects, including our ability to comply with licensing and regulatory requirements and to further <br>our own, and the relevant governmental, net zero targets and commitments. <br>|
| Pandemics and epidemics  |  |
| **We face risks related to health epidemics and other outbreaks.** <br>As seen in the context of COVID-19, pandemics and their associated countermeasures may affect countries, <br>communities, supply chains and markets, including the UK and our service territory in the US. The spread of such <br>pandemics could have adverse effects on our workforce, which could affect our ability to maintain our networks <br>and provide service. In addition, disruption of supply chains could adversely affect our systems or networks. <br>Pandemics can also result in extraordinary economic circumstances in our markets which could negatively affect <br>our customers' ability to pay their invoices in the US or the charges payable to the suppliers for transmission and <br>distribution services in the UK. Measures such as the suspension of debt collection and customer termination <br>activities across our service area in response to such pandemics are likely to result in near-term lower customer <br>collections, and could result in increasing levels of bad debt and associated provisions.<br>| The extent to which pandemics may affect our liquidity, business, financial condition, results of operations and <br>reputation will depend on future developments, which are highly uncertain, and will depend on the severity of the <br>relevant pandemic, the scope, duration, cost to us and overall economic impact of actions taken to contain it or <br>treat its effects.<br>|

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **232** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Internal control and risk factors cont.** | **Internal control and risk factors cont.** | **Internal control and risk factors cont.** |  |  |  |

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**Financial risks** 

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| | |
|:---|:---|
| Financing and liquidity  |  |
| **An inability to access capital markets on commercially acceptable terms could affect how we maintain and** <br>**grow our businesses.**<br>We have historically financed our growth through a combination of funding sources, including retained operating <br>cash flows, use of scrip dividend programme and issuances of senior and hybrid debt securities. As part of our <br>upgraded five-year financial framework, we anticipate making at least £70 billion of capital investments between <br>2025/26 and 2030/31, which we expect to finance through a package of funding sources that includes a <br>combination of these sources of liquidity, as well as the net proceeds of the 2024 Rights Issue of around £7 billion, <br>completed in June 2024. As further discussed below, reliance on these sources of liquidity can expose us to the <br>risk of higher financing costs and the imposition of restrictions on our business. <br>Some of the debt we issue is rated by credit rating agencies and changes to these ratings may affect both our <br>borrowing capacity and borrowing costs. In addition, restrictions imposed by regulators, such as limits on debt to <br>equity or regulatory asset values ratios, may also limit how we service the financial requirements of our current <br>businesses or the financing of newly acquired or developing businesses.<br>Financial markets can be subject to periods of volatility, including with respect to interest rates, and shortages <br>of liquidity, for example as a result of unexpected political or economic events (such as the current conflicts in <br>Ukraine and the Middle East). If we were unable to access the capital markets or other sources of finance on <br>commercially acceptable terms, our cost of financing may increase, and the manner in which we implement our <br>strategy may need to be reassessed. Such events could have a material adverse impact on our business, results of <br>operations and prospects.<br>Some of our regulatory agreements and/or specific regulatory entities impose lower limits for the credit ratings that <br>certain companies or securities issued by certain companies within the Group must hold or the amount of equity <br>within their capital structures, including a limit requiring certain entities within the Group or securities issued by them <br>to hold an investment-grade credit rating.<br>| In addition, some of our regulatory arrangements impose restrictions on the way we can operate. These include <br>regulatory requirements for us to maintain adequate financial resources within certain parts of our operating <br>businesses and may restrict the ability of National Grid plc and some of our subsidiaries to engage in certain <br>transactions, including paying dividends, lending cash and levying charges. <br>The inability to meet such requirements, or the occurrence of any such restrictions, may have a material adverse <br>impact on our business and financial condition.<br>Our debt agreements and banking facilities contain covenants, including those relating to the periodic and timely <br>provision of financial information by the borrowing entity, restrictions on disposals and financial covenants, such as <br>restrictions on the level of subsidiary indebtedness and minimum credit rating requirements.<br>Failure to comply with these covenants, or to obtain waivers of those requirements, could in some cases trigger a <br>right, at the lender's discretion, to require repayment of some of our debt and may restrict our ability to draw upon <br>our facilities or access the capital markets.<br>|
| Exchange rates, interest rates and commodity price indices  | Exchange rates, interest rates and commodity price indices  |
| **Changes in foreign currency rates, interest rates or commodity prices could materially impact our earnings** <br>**or financial condition.**<br>We have significant operations in the US and are therefore subject to the exchange rate risks normally associated <br>with non-UK operations, including the need to translate US assets and liabilities, and income and expenses, into <br>sterling (our reporting currency). <br>As part of our ongoing capital expenditure requirements and investment projects, as well as projects planned <br>under the ASTI programme, we are also exposed to currency fluctuations related to the purchase of equipment <br>and components in currencies other than sterling.<br>| In addition, our results of operations and net debt position may be affected because a significant proportion of <br>our borrowings, derivative financial instruments and commodity contracts are affected by changes in interest <br>rates, commodity price indices and exchange rates, in particular the dollar-to-sterling exchange rate. <br>Furthermore, our cash flow may be materially affected as a result of settling hedging arrangements entered into to <br>manage our exchange rate, interest rate and commodity price exposure (such as those relating to the purchase of <br>electricity and gas in the US), or by cash collateral movements relating to derivative market values, which also <br>depend on the sterling or US dollar exchange rate into euro and other currencies.<br>|
| Post-retirement benefits  | Post-retirement benefits  |
| **We may be required to make significant contributions to fund pension and other post-retirement benefits.**<br>We participate in a number of pension schemes that together cover substantially all our employees. In both the UK <br>and US, such schemes include various large defined benefit schemes where the scheme assets are held <br>independently of our own financial resources.<br>In the US, we also have other post-retirement benefit schemes. Estimates of the amount and timing of future <br>funding for the UK and US schemes are based on actuarial assumptions and other factors, including: the actual <br>and projected market performance of the scheme assets; future long-term bond yields; average life expectancies; <br>and relevant legal requirements. <br>| Actual performance of scheme assets may be affected by volatility in debt and equity markets. <br>Changes in these assumptions or other factors may require us to make additional contributions to these pension <br>schemes which, to the extent they are not recoverable under our price controls or state rate plans, could materially <br>adversely affect the results of our operations and financial condition.<br>|

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **233** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other disclosures** | **Other disclosures** | **Other disclosures** |  |  |  |

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![](nggtf-20260331_g449.gif)

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| | | | |
|:---|:---|:---|:---|
| **Index to Directors' Report and other disclosures, as required under the Companies Act 2006** | **Index to Directors' Report and other disclosures, as required under the Companies Act 2006** | **Index to Directors' Report and other disclosures, as required under the Companies Act 2006** | **Index to Directors' Report and other disclosures, as required under the Companies Act 2006** |
| AGM | [252](#i31b6aae3be9e4df1aabbf2a5344cb727_37554) | Events after the reporting period | [252](#i31b6aae3be9e4df1aabbf2a5344cb727_37552) |
| Articles of Association | [251](#i31b6aae3be9e4df1aabbf2a5344cb727_37562) | Financial instruments | 174 – 175 and 217 |
| Audit information | 129 – 136 | Future developments | 12 – 13, 18 – 22 |
| Board of Directors | 91 – 93 | Greenhouse gas emissions | 27 |
| Business model | 12 – 13 | Human rights | 50 and [234](#i015b41c1e6644a14a564cd019dcf4d56_17143) |
| Change of control provisions | [233](#i015b41c1e6644a14a564cd019dcf4d56_17148) | Important events affecting the Company during the year | 14 – 15 |
| Code of Ethics | [233](#i015b41c1e6644a14a564cd019dcf4d56_17141) | Internal control | 30 |
| Unions | [234](#i015b41c1e6644a14a564cd019dcf4d56_17154) | Internal control over financial reporting | [226](#i39c083f7223e44388d99dfa58a33ab00_355) |
| Conflicts of interest | [233](#i015b41c1e6644a14a564cd019dcf4d56_17144) | UK Listing Rule 6.6.1 R cross-reference table | [235](#i015b41c1e6644a14a564cd019dcf4d56_17152) |
| Directors' indemnity | [234](#i015b41c1e6644a14a564cd019dcf4d56_17150) | Material interests in shares  | [253](#i31b6aae3be9e4df1aabbf2a5344cb727_37564) |
| Directors' service contracts and letters of appointment | 123 | Political donations and expenditure | [235](#i015b41c1e6644a14a564cd019dcf4d56_17147) |
| Directors' share interests | 119 | Research, development and innovation activity | [235](#i015b41c1e6644a14a564cd019dcf4d56_17153) |
| Diversity | 99 | Risk management | 30 – 37 |
| Dividends | [250](#i31b6aae3be9e4df1aabbf2a5344cb727_37557) | Share capital | 188 – 189 |

---

**Change of control provisions**

No compensation would be paid for loss of office of Directors on a

change of control of the Company. As at 31 March 2026, the

Company had borrowing facilities of £6.2 billion available and loans of

£0.2 billion with a number of banks, which, on a change of control of

the Company following a takeover bid, may alter or terminate. All of

the Company's share plans contain provisions relating to a change of

control. Outstanding awards and options would normally vest and

become exercisable on a change of control, subject to the

satisfaction of any performance conditions at that time. In the event

of a change of control of the Company, a number of governmental

and regulatory consents or approvals are likely to be required, arising

from laws or regulations of the UK or the US. Such consents or

approvals may also be required for acquisitions of equity securities

that do not amount to a change of control.

No other agreements that take effect, alter or terminate upon a

change of control of the Company following a takeover bid are

considered to be significant in terms of their potential impact on the

business as a whole.

**Code of Ethics** 

The Board has adopted a Code of Ethics. The Group's Code of

Ethics is available on our website nationalgrid.com/about-us/our-

vision-and-values.

**Conflicts of interest**

In accordance with the Companies Act 2006, the Board has a policy

and procedure in place for the disclosure and authorisation

(if appropriate) of actual and potential conflicts of interest. The Board

continues to monitor and note possible conflicts of interest that each

Director may have, including a review on appointment. The Directors

are regularly reminded of their continuing obligations in relation to

conflicts, and are required to review and confirm their external

interests annually.

**Corporate governance practices: differences from** 

**NYSE listing standards**

The Company is listed on the NYSE and is therefore required to

disclose differences in its corporate governance practices adopted as

a UK listed company, compared with those of a US company. The

corporate governance practices of the Company are primarily based

on the requirements of the Code but substantially conform to those

required of US companies listed on the NYSE.

The following is a summary of the significant ways in which the

Company's corporate governance practices differ from those

followed by US companies under section 303A of the Corporate

Governance Standards of the NYSE.

The NYSE rules and the Code apply different tests for the

independence of Board members.

The NYSE rules require a separate nominating/corporate governance

committee composed entirely of independent directors. There is

no requirement for a separate corporate governance committee in

the UK. Under the Company's corporate governance policies,

all Directors on the Board discuss and decide upon governance

issues, and the People & Remuneration Committee makes

recommendations to the Board with regard to certain responsibilities

of a corporate governance committee.

The NYSE rules require listed companies to adopt and disclose

corporate governance guidelines. While the Company reports

compliance with the Code in each Annual Report and Accounts, the

UK requirements do not require the Company to adopt and disclose

separate corporate governance guidelines.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **234** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other disclosures cont.** | **Other disclosures cont.** | **Other disclosures cont.** |  |  |  |

---

The NYSE rules require a separate audit committee composed of at

least three independent members. While the Company's Audit & Risk

Committee exceeds the NYSE's minimum independent Non-

executive Director membership requirements, it should be noted that

the quorum for a meeting of the Audit & Risk Committee, of two

independent Non-executive Directors, is less than the minimum

membership requirements under the NYSE rules.

The NYSE rules require a compensation committee composed

entirely of independent directors, and prescribe criteria to evaluate

the independence of the committee's members and its ability to

engage external compensation advisors. While the Code prescribes

different independence criteria, the Non-executive Directors on the

Company's People & Remuneration Committee have each been

deemed independent by the Board under the NYSE rules. Although

the evaluation criteria for appointment of external advisors differ under

the Code, the People & Remuneration Committee is solely

responsible for the appointment, retention and termination of such

advisors.

**Directors' indemnity and Directors' and Officers'** 

**liability insurance**

The Company has arranged, in accordance with the Companies Act

2006 and the Articles, qualifying third-party indemnities against

financial exposure that Directors may incur in the course of their

professional duties. Equivalent qualifying third-party indemnities were,

and remain, in force for the benefit of those Directors who stood

down from the Board in prior financial years for matters arising when

they were Directors of the Company. Alongside these indemnities,

the Company places Directors' and Officers' liability insurance cover

for each Director. To the extent appropriate and required, similar

indemnities have also been given to Directors of subsidiary and other

associated companies, who also benefit from Directors' and Officers'

liability insurance cover.

**Unions**

We recognise and negotiate with recognised unions in both the US

and UK. It is our policy to maintain well-developed communications

and consultation programmes with the Unions that represent our

employees and there have been no material disruptions to our

operations from labour disputes during the past four years. National

Grid believes that it can conduct its relationships with trade unions

and employees in a satisfactory manner. Further details on the

Company's colleagues can be found on page 47.

**Human rights and modern slavery**

As a responsible business, we take pride in treating all employees

and those working on our behalf fairly to ensure that they thrive in a

respectful, safe, and inclusive environment. Our commitment to

maintaining the highest standards of ethical conduct is reflected in

our robust policies and procedures.

Our Supplier Code of Conduct sets out our expectations for

respecting, protecting and promoting human rights. This aligns with

the UN Guiding Principles on Business and Human Rights, the ten

Principles of the United Nations Global Compact (UNGC), the

International Labour Organization (ILO) core labour standards, the

Ethical Trading Initiative (ETI) Base Code, the UK Modern Slavery Act

2015, the US Victims of Trafficking and Violence Protection Act 2000,

the US Department of State Guiding Principles to Combat Human

Trafficking, and the requirements of the Living Wage Foundation for

UK suppliers. Additionally, our Supplier Code of Conduct adheres to

US wage and hour laws, such as the Fair Labor Standards Act. This

code is reviewed, updated and communicated to our suppliers

annually to ensure continued collaboration and alignment with

evolving best practice.

We have a global Human Rights Policy setting our commitment to

respecting the rights of our workforce and those in our supply chains.

We also produce an annual Modern Slavery Statement that outlines

the actions we take to assess potential risks in our wider operations

and the steps taken to mitigate risks identified. This includes working

collaboratively in our sector with non-government organisations

including the Slave Free Alliance, Action Sustainability and the Supply

Chain Sustainability School, to build awareness and capability within

our supply chain. We publish our Statement on the UK Home Office

Modern Slavery Statement Registry and encourage our UK suppliers

to publish a modern slavery statement, regardless of whether they

have a legal obligation to do so.

We have engaged with Churches, Charities and Local Authorities

(CCLA) Investment Management Limited, which established 'Find it,

Fix it, Prevent it' as a collaborative investor engagement programme

with the aim of using investor leverage to help companies identify,

address and prevent modern slavery in their supply chains. In 2025,

CCLA published their third FTSE 100 benchmarking report, and we

have maintained an 'Evolving Good Practices' assessment.

As a signatory member of the UNGC, we participated in its Business

and Human Rights Accelerator programme to increase our

awareness of key considerations in this area, while also gaining

guidance on how an organisation can develop its strategy for

managing any actual or potential risks associated with modern

slavery.

**Our people**

Our employees are at the heart of what we do, which is why we

participated in the 2025 Workforce Disclosure Initiative (WDI).

National Grid has completed the WDI survey for the past eight years

and we continue to improve transparency and enhance our data

year-on-year, obtaining a scorecard of 88% overall for our 2025

submission, above the utilities sector average.

In the UK, we are committed to paying our employees, trainees, and

contractors working on our behalf at least the Real Living Wage, as

determined by the Living Wage Foundation. In the US, we ensure that

all our employees are paid above statutory minimums.

Our Global recruitment policy is designed to provide equal

opportunities, comply with local legislation, and guarantee that all

employees have the appropriate rights to work.

For contingent workers we use employment agency partners for

attracting temporary workers and uphold the same standards of

employment that we offer our direct employees. Contract managers

actively oversee these agencies, ensuring they meet our rigorous

employment requirements, including relevant screenings, paying the

Real Living Wage in the UK and state legal minimum wage in the US,

and adhering to the 'employer pays' principle, which is a commitment

by employers to cover all costs associated with the recruitment of

workers, rather than passing these costs on to the workers

themselves. This means that no employee should ever have to pay to

become a temporary or permanent worker within our organisation or

supply chain.

We have been actively involved in the Supply Chain Sustainability

School (SCSS) Labour working group and we were the first client

level signatory, alongside many of our main contractors of the People

Matter Charter. The People Matter Charter was created to help

organisations and their supply chain address potential human rights,

safety and inclusion challenges in one workforce strategy. The

Charter has eight commitments that can apply to any organisation, of

any size. This flexibility provides us with a holistic approach to

addressing potential labour issues in the industry. We promote the

Charter with our supply chain to provide them with a framework that

can support their due diligence in their own value chain.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **235** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other disclosures cont.** | **Other disclosures cont.** | **Other disclosures cont.** |  |  |  |

---

**Unresolved SEC staff comments**

There are no unresolved SEC staff comments required to be

reported.

**Property, plant, equipment and borrowings**

This information can be found in note 13 to the financial statements

(Property, plant and equipment) on page 168, and note 21

(Borrowings) on page 177. The Group does not have any

encumbrances on material operational assets. At present,

environmental issues are not preventing our UK and US businesses

from utilising any material operating assets in the course of their

operations. It is inherent in our business that assets may be affected

by environmental issues, see risk factors included on page [229](#ie43ab0fcddb8423da528748743a52203_3-0-1-1-954526) on

potentially harmful activities.

**UK principal offices**

In the UK, our core regulated businesses focus on electricity

transmission and distribution.

–Owned office space: Bristol, Cardiff, Castle Donnington, Plymouth

and Warwick.

–Leased office space: London.

**US principal offices**

In North America, our core regulated businesses focus on

transmission, distribution and retail of gas and electricity.

–Owned office space: Syracuse, Buffalo, Albany, Hicksville and

Melville in New York. Northborough in Massachusetts.

–Leased office space: Waltham and Boston in Massachusetts.

Brooklyn in New York.

**UK Listing Rule 6.6.1 R cross-reference table**

Information required to be disclosed by UK LR 6.6.1 R (starting on

page indicated):

---

| | |
|:---|:---|
| Interest capitalised | Page 158 |
| Publication of unaudited financial information | Page [236](#i39c083f7223e44388d99dfa58a33ab00_361) |
| Details of long-term incentive schemes | Page 110 |
| Waiver of emoluments by a Director | Not applicable |
| Waiver of future emoluments by a Director | Not applicable |
| Non-pre-emptive issues of equity for cash | Not applicable  |
| Item (7) in relation to major subsidiary undertakings |  |
| Parent participation in a placing by a listed <br>subsidiary<br>| Not applicable |

---

---

| | |
|:---|:---|
| Contracts of significance | Page [235](#i015b41c1e6644a14a564cd019dcf4d56_17151) |
| Provision of services by a controlling shareholder | Not applicable |
| Shareholder waivers of dividends | Page [253](#i31b6aae3be9e4df1aabbf2a5344cb727_37549) |
| Shareholder waivers of future dividends | Page [253](#i31b6aae3be9e4df1aabbf2a5344cb727_37549) |
| Agreements with controlling shareholders | Not applicable |

---

**Political donations and expenditure**

At this year's AGM, the Directors will again seek authority from

shareholders, on a precautionary basis, for the Company and its

subsidiaries to make donations to registered political parties and

other political organisations and/or incur political expenditure as such

terms are defined in the Companies Act 2006. In each case,

donations will be in amounts not exceeding £125,000 in aggregate.

The definitions of these terms in the Companies Act 2006 are very

wide. As a result, this can cover bodies such as those concerned

with policy review, law reform and the representation of the business

community (for example, trade organisations). It could include special

interest groups, such as those with environment interests, which the

Company and its subsidiaries might wish to support, even though

these activities are not designed to support or influence support for a

particular party. The Companies Act 2006 states that all-party

parliamentary groups are not political organisations for these

purposes, meaning the authority to be sought from shareholders is

not relevant to interactions with such groups. The Company has no

intention of changing its current practice of not making political

donations or incurring political expenditure within the ordinary

meaning of those words. This authority is, therefore, being sought to

ensure that none of the Company's activities inadvertently infringe

these rules. National Grid made no political donations and did not

incur any political expenditure during the year, as such terms are

defined for the purposes of the Companies Act 2006 and the Political

Parties, Elections and Referendums Act 2000. However, in

accordance with applicable law, National Grid operates voluntary

Federal and New York State employee Political Action Committees

(PACs) that raise funds from certain eligible employees and contribute

them to support political candidates in the United States, as set out in

our Global Corporate Policy on Political Contributions. National Grid

US's affiliated New York and federal PACs made political

contributions in the US totalling $60,800 during the year.

National Grid US's affiliated New York PAC (NYPAC) and National

Grid US's affiliated federal PAC were funded wholly by voluntary

employee contributions. Neither PAC received any corporate

contributions during the past fiscal year.

**Material contracts** 

Each of our Executive Directors has a service agreement and each

Non-executive Director has a letter of appointment. Apart from these,

no contract (other than contracts entered into in the ordinary course

of business) has been entered into by the Group within the two years

immediately preceding the date of this report that is, or may be,

material; or which contains any provision under which any member of

the Group has any obligation or entitlement which is material to the

Group at the date of this report.

**Research, development and innovation activity**

Indications of our activities in the field of research and development

and innovation are provided throughout the Strategic Report and the

Directors' report, including:

–In our business unit sections on pages 18 – 22.

–Within UK ET, we are working towards delivering up to £31 billion

in our RIIO-T3 investment plan, acting as an engine for growth and

powering the country through the shift to a cleaner economy.

–In UK ED, we added an additional 250MVA of capacity to our

distribution network and are on track to deliver an increase in

capital investment of over £100 million.

–In US NY, we delivered approximately $4.6 billion in capital

investment, up $440 million year over year, and remain on track

against our $23 billion five-year capital framework. Under the

approved KEDNY and KEDLI rate plans, we replaced over 220

miles of leak prone pipe to modernise gas infrastructure.

–In US NE, we invested $2.7 billion in 2025/26, $500 million more

than last year, to deliver a smarter, stronger, cleaner electric grid

and to ensure the safety and reliability of our gas system. One of

the ways we improved reliability was by incorporating AI tools,

such as AiDASH which uses satellite imagery and AI to predict and

remove vegetation threats, reducing outages by nearly 30%.

–This year, NGV US announced the world's first 100% hydrogen-

fuelled commercial linear generator at Northport power plant to

demonstrate the capability of H2 generation with a small-scale pilot

project.

Further examples of our innovation activity can be found in

performance against our strategic priorities on pages 16 and 17.

Investment in research and development during the year for the Group

was £38 million (2024/25: £43 million). We only disclose directly

incurred expenditure, and not those amounts our partners contribute to

joint or collaborative projects. Collaborating across the industry

has played a crucial role in our ability to develop new programmes and

deliver value to our stakeholders throughout 2025/26.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **236** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information** | **Other unaudited financial information** | **Other unaudited financial information** |  |  |  |

---

**Alternative performance measures/non-IFRS reconciliations**

Within the Annual Report, a number of financial measures are presented. These measures have been

categorised as alternative performance measures (APMs), as per the European Securities and Markets

Authority (ESMA) guidelines and the Securities and Exchange Commission (SEC) conditions for use of

non-GAAP financial measures.

An APM is a financial measure of historical or future financial performance, financial position, or cash

flows, other than a financial measure defined under IFRS. The Group uses a range of these measures

to provide a better understanding of its underlying performance. APMs are reconciled to the most

directly comparable IFRS financial measure where practicable.

The Group has defined the following financial measures as APMs derived from IFRS: net revenue, the

various adjusted operating profit, earnings and earnings per share metrics detailed in the 'adjusted profit

measures' section below, net debt, funds from operations (FFO), FFO interest cover and retained cash

flow (RCF)/adjusted net debt. For each of these we present a reconciliation to the most directly comparable

IFRS measure. We present 'constant currency' comparative period performance and capital investment

by applying the current year average exchange rate to the relevant US dollar amounts in the comparative

periods presented, to remove the year-on-year impact of foreign exchange translation.

We also have a number of APMs derived from regulatory measures which have no basis under IFRS;

we call these Regulatory Performance Measures (RPMs). They comprise: Group RoE, operating company

RoE, regulated asset base, regulated financial performance, regulatory gearing, asset growth and

regulated asset growth. These measures include the inputs used by utility regulators to set the allowed

revenues for many of our businesses.

We use RPMs to monitor progress against our regulatory agreements and certain aspects of our strategic

objectives. Further, targets for certain of these performance measures are included in the Company's

APP and LTPP 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 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 in

NGET and certain other adjustments).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March 2026** | **Gross** <br>**revenue**<br>**£m**<br>| **Pass-** <br>**through** <br>**costs**<br>**£m**<br>| **Net** <br>**revenue** <br>**£m**<br>| **Timing**<br>**£m**<br>| **Underlying** <br>**net revenue**<br>**£m**<br>|
| UK Electricity Transmission | **2898** | **(391)** | **2507** | **77** | **2584** |
| UK Electricity Distribution | **1937** | **(184)** | **1753** | **116** | **1869** |
| New England | **4174** | **(1451)** | **2723** | **(94)** | **2629** |
| New York | **7618** | **(3113)** | **4505** | **537** | **5042** |
| National Grid Ventures | **1098** | **—** | **1098** | **—** | **1098** |
| Other | **97** | **—** | **97** | **—** | **97** |
| Sales between segments | **(135)** | **—** | **(135)** | **—** | **(135)** |
| **Total** | **17687** | **(5139)** | **12548** | **636** | **13184** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March 2025** | Gross <br>revenue <br>£m<br>| Pass-<br>through <br>costs <br>£m<br>| Net <br>revenue <br>£m<br>| Timing<br>£m<br>| Underlying <br>net revenue<br>£m<br>|
| UK Electricity Transmission | 2619 | (455) | 2164 | 151 | 2315 |
| UK Electricity Distribution | 2424 | (185) | 2239 | (407) | 1832 |
| UK Electricity System Operator | 1029 | (1217) | (188) | 479 | 291 |
| New England | 4306 | (1658) | 2648 | (61) | 2587 |
| New York | 6689 | (2487) | 4202 | 343 | 4545 |
| National Grid Ventures | 1397 |  | 1397 |  | 1397 |
| Other | 122 |  | 122 |  | 122 |
| Sales between segments | (208) |  | (208) |  | (208) |
| **Total** | 18378 | (6002) | 12376 | 505 | 12881 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **237** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March 2024** | Gross <br>revenue <br>£m<br>| Pass-<br>through <br>costs <br>£m<br>| Net <br>revenue <br>£m<br>| Timing<br>£m<br>| Underlying <br>net revenue<br>£m<br>|
| UK Electricity Transmission | 2735 | (225) | 2510 | (363) | 2147 |
| UK Electricity Distribution | 1795 | (233) | 1562 | 159 | 1721 |
| UK Electricity System Operator | 3788 | (2605) | 1183 | (800) | 383 |
| New England | 3948 | (1653) | 2295 | 69 | 2364 |
| New York | 6094 | (2057) | 4037 | 20 | 4057 |
| National Grid Ventures | 1389 |  | 1389 |  | 1389 |
| Other | 244 |  | 244 |  | 244 |
| Sales between segments | (143) |  | (143) |  | (143) |
| **Total** | 19850 | (6773) | 13077 | (915) | 12162 |

---

**Adjusted profit measures**

In considering the financial performance of our business and segments, we use various adjusted profit

measures in order to aid comparability of results year-on-year. The various measures are presented on

pages 69 – 80 and reconciled below.

Adjusted results – these exclude the impact of exceptional items and remeasurements that are treated

as discrete transactions under IFRS and can accordingly be classified as such. This is a measure used

by management that is used to derive part of the incentive target set annually for remunerating certain

Executive Directors, and further details of these items are included in note 5 to the financial statements.

Underlying results – further adapts our adjusted results for continuing operations to take account of

volumetric and other revenue timing differences arising due to 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 certain totex-related allowances in NGET and adjustments or

allowances for pension deficit contributions). For 2025/26, as highlighted below, our underlying results

exclude £636 million (2024/25: £505 million) of timing differences, but did include $52 million (£39 million)

of major storm costs (net of in-year allowances and deductibles) as in the current year these did not exceed

our $100 million threshold to be excluded from underlying results. In 2024/25, we incurred $110 million

(£87 million) of major storm costs (net of in-year allowances) which were excluded from our underlying

results. We expect to recover major storm costs incurred through regulatory mechanisms in the US.

Underlying results also exclude deferred tax in our UK regulated businesses (NGET and NGED). Our UK

regulated revenues contain an allowance for current tax, but not for deferred tax, so excluding the IFRS

deferred tax charge aligns our underlying results APM more closely with our regulatory performance measures.

Constant currency – the adjusted profit measures are also shown on a constant currency basis to show

the year-on-year comparisons excluding any impact of foreign currency translation movements.

**Reconciliation of statutory, adjusted and underlying profits from continuing operations** 

**at actual exchange rates**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March 2026** | **Statutory** <br>**£m** | **Exceptionals and** <br>**remeasurements** <br>**£m** | **Adjusted** <br>**£m** | **Timing** <br>**£m** | **Major** <br>**storm** <br>**costs** <br>**£m** | **Deferred tax** <br>**on underlying** <br>**profits in** <br>**NGET and** <br>**NGED** <br>**£m** | **Underlying** <br>**£m** |  |  |  |  |
| **Year ended 31 March 2026** | **Statutory** <br>**£m** | **Exceptionals and** <br>**remeasurements** <br>**£m** | **Adjusted** <br>**£m** | **Timing** <br>**£m** | **Major** <br>**storm** <br>**costs** <br>**£m** | **Deferred tax** <br>**on underlying** <br>**profits in** <br>**NGET and** <br>**NGED** <br>**£m** | **Underlying** <br>**£m** | UK Electricity Transmission | **1605** | **77** | **1682** |
| UK Electricity Distribution | **1122** | **—** | **1122** | **116** | **—** | **—** | **1238** |  |  |  |  |
| New England | **947** | **13** | **960** | **(94)** | **—** | **—** | **866** |  |  |  |  |
| New York | **1184** | **(12)** | **1172** | **537** | **—** | **—** | **1709** |  |  |  |  |
| National Grid Ventures | **715** | **(388)** | **327** | **—** | **—** | **—** | **327** |  |  |  |  |
| Other | **(142)** | **—** | **(142)** | **—** | **—** | **—** | **(142)** |  |  |  |  |
| **Total operating profit** | **5431** | **(387)** | **5044** | **636** | **—** | **—** | **5680** |  |  |  |  |
| Net finance costs | **(1325)** | **54** | **(1271)** | **—** | **—** | **—** | **(1271)** |  |  |  |  |
| Share of post-tax results of <br>joint ventures and associates<br>| **76** | **—** | **76** | **—** | **—** | **—** | **76** |  |  |  |  |
| **Profit before tax** | **4182** | **(333)** | **3849** | **636** | **—** | **—** | **4485** |  |  |  |  |
| Tax | **(939)** | **(16)** | **(955)** | **(168)** | **—** | **499** | **(624)** |  |  |  |  |
| **Profit after tax** | **3243** | **(349)** | **2894** | **468** | **—** | **499** | **3861** |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **238** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March 2025** | Statutory <br>£m | Exceptionals <br>and <br>remeasurements <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED <br>£m | Underlying <br>£m |  |  |  |  |
| **Year ended 31 March 2025** | Statutory <br>£m | Exceptionals <br>and <br>remeasurements <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED <br>£m | Underlying <br>£m | UK Electricity Transmission | 1277 | 151 | 1428 |
| UK Electricity Distribution | 1598 | 12 | 1610 | (407) |  |  | 1203 |  |  |  |  |
| UK Electricity System <br>Operator<br>| (213) | (151) | (364) | 479 |  |  | 115 |  |  |  |  |
| New England | 1008 | (26) | 982 | (61) | 3 |  | 924 |  |  |  |  |
| New York | 1269 | (246) | 1023 | 343 | 84 |  | 1450 |  |  |  |  |
| National Grid Ventures | 5 | 375 | 380 |  |  |  | 380 |  |  |  |  |
| Other | (10) | (133) | (143) |  |  |  | (143) |  |  |  |  |
| **Total operating profit** | 4934 | (169) | 4765 | 505 | 87 |  | 5357 |  |  |  |  |
| Net finance costs | (1357) | (4) | (1361) |  |  |  | (1361) |  |  |  |  |
| Share of post-tax results of <br>joint ventures and associates<br>| 73 | 2 | 75 |  |  |  | 75 |  |  |  |  |
| **Profit before tax** | 3650 | (171) | 3479 | 505 | 87 |  | 4071 |  |  |  |  |
| Tax | (821) | (40) | (861) | (133) | (23) | 401 | (616) |  |  |  |  |
| **Profit after tax** | 2829 | (211) | 2618 | 372 | 64 | 401 | 3455 |  |  |  |  |

---

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March 2024** | Statutory <br>£m | Exceptionals <br>and <br>remeasurements <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED<br>£m | Underlying <br>£m |  |  |  |  |  |  |
| **Year ended 31 March 2024** | Statutory <br>£m | Exceptionals <br>and <br>remeasurements <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED<br>£m | Underlying <br>£m | UK Electricity Transmission | 1674 | 3 | 1677 | (363) | 1314 |
| UK Electricity Distribution | 975 | 18 | 993 | 159 |  |  | 1152 |  |  |  |  |  |  |
| UK Electricity System <br>Operator<br>| 382 | 498 | 880 | (800) |  |  | 80 |  |  |  |  |  |  |
| New England | 641 | 2 | 643 | 69 | 90 |  | 802 |  |  |  |  |  |  |
| New York | 362 | 498 | 860 | 20 | 136 |  | 1016 |  |  |  |  |  |  |
| National Grid Ventures | 558 | (89) | 469 |  |  |  | 469 |  |  |  |  |  |  |
| Other | (117) | 57 | (60) |  |  |  | (60) |  |  |  |  |  |  |
| **Total operating profit** | 4475 | 987 | 5462 | (915) | 226 |  | 4773 |  |  |  |  |  |  |
| Net finance costs | (1464) | (15) | (1479) |  |  |  | (1479) |  |  |  |  |  |  |
| Share of post-tax results of <br>joint ventures and associates<br>| 37 | 64 | 101 |  |  |  | 101 |  |  |  |  |  |  |
| **Profit before tax** | 3048 | 1036 | 4084 | (915) | 226 |  | 3395 |  |  |  |  |  |  |
| Tax | (831) | (152) | (983) | 227 | (61) | 302 | (515) |  |  |  |  |  |  |
| **Profit after tax** | 2217 | 884 | 3101 | (688) | 165 | 302 | 2880 |  |  |  |  |  |  |

---

**Reconciliation of adjusted and underlying earnings from continuing operations** 

**at constant currency**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| |  | At constant currency | At constant currency | At constant currency | At constant currency | At constant currency | At constant currency |
| | Adjusted <br>at actual <br>exchange <br>rate <br>£m | Constant <br>currency <br>adjustment <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED<br>£m | Underlying<br>£m |
| **Year ended 31 March 2025** | Adjusted <br>at actual <br>exchange <br>rate <br>£m | Constant <br>currency <br>adjustment <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED<br>£m | Underlying<br>£m |
| UK Electricity Transmission | 1277 |  | 1277 | 151 |  |  | 1428 |
| UK Electricity Distribution | 1610 |  | 1610 | (407) |  |  | 1203 |
| UK Electricity System Operator | (364) |  | (364) | 479 |  |  | 115 |
| New England | 982 | (57) | 925 | (57) | 3 |  | 871 |
| New York | 1023 | (58) | 965 | 323 | 79 |  | 1367 |
| National Grid Ventures | 380 |  | 380 |  |  |  | 380 |
| Other | (143) |  | (143) |  |  |  | (143) |
| **Total operating profit** | 4765 | (115) | 4650 | 489 | 82 |  | 5221 |
| Net finance costs | (1361) | 53 | (1308) |  |  |  | (1308) |
| Share of post-tax results of <br>joint ventures and associates<br>| 75 | (2) | 73 |  |  |  | 73 |
| **Profit before tax** | 3479 | (64) | 3415 | 489 | 82 |  | 3986 |
| **Tax** | (861) | 15 | (846) | (130) | (20) | 401 | (595) |
| **Profit after tax** | 2618 | (49) | 2569 | 359 | 62 | 401 | 3391 |
| Attributable to non-controlling <br>interests<br>| (3) |  | (3) |  |  |  | (3) |
| **Earnings** | 2615 | (49) | 2566 | 359 | 62 | 401 | 3388 |
| **Earnings per share (pence)** | 55.6 | (1.1) | 54.5 | 7.7 | 1.3 | 8.5 | 72.0 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **239** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| |  | At constant currency | At constant currency | At constant currency | At constant currency | At constant currency | At constant currency |
| | Adjusted <br>at actual <br>exchange <br>rate <br>£m | Constant <br>currency <br>adjustment <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED<br>£m | Underlying <br>£m |
| **Year ended 31 March 2024** | Adjusted <br>at actual <br>exchange <br>rate <br>£m | Constant <br>currency <br>adjustment <br>£m | Adjusted <br>£m | Timing <br>£m | Major <br>storm<br>costs <br>£m | Deferred tax <br>on underlying <br>profits in <br>NGET and <br>NGED<br>£m | Underlying <br>£m |
| UK Electricity Transmission | 1677 |  | 1677 | (363) |  |  | 1314 |
| UK Electricity Distribution | 993 |  | 993 | 159 |  |  | 1152 |
| UK Electricity System Operator | 880 |  | 880 | (800) |  |  | 80 |
| New England | 643 | (38) | 605 | 65 | 84 |  | 754 |
| New York | 860 | (52) | 808 | 19 | 128 |  | 955 |
| National Grid Ventures | 469 | (1) | 468 |  |  |  | 468 |
| Other | (60) | (1) | (61) |  |  |  | (61) |
| **Total operating profit** | 5462 | (92) | 5370 | (920) | 212 |  | 4662 |
| Net finance costs | (1479) | 52 | (1427) |  |  |  | (1427) |
| Share of post-tax results of joint <br>ventures and associates<br>| 101 | (2) | 99 |  |  |  | 99 |
| **Profit before tax** | 4084 | (42) | 4042 | (920) | 212 |  | 3334 |
| **Tax** | (983) | 10 | (973) | 227 | (56) | 302 | (500) |
| **Profit after tax** | 3101 | (32) | 3069 | (693) | 156 | 302 | 2834 |
| Attributable to non-controlling <br>interests<br>| (1) |  | (1) |  |  |  | (1) |
| **Earnings** | 3100 | (32) | 3068 | (693) | 156 | 302 | 2833 |
| **Earnings per share (pence)** | 77.7 | (0.8) | 76.9 | (17.4) | 3.9 | 7.6 | 71.0 |

---

**Earnings per share calculations from continuing operations**

The table below reconciles the profit after tax from continuing operations as per the previous tables back

to the earnings per share from continuing operations for each of the adjusted profit measures.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Profit** <br>**after tax** <br>**£m** | **Non-**<br>**controlling**<br>**interest** <br>**£m** | **Profit after tax**<br>**attributable to**<br>**shareholders** <br>**£m** | **Weighted** <br>**average**<br>**number of** <br>**shares** <br>**millions** | **Earnings**<br>**per share** <br>**pence** |
| **Year ended 31 March 2026** | **Profit** <br>**after tax** <br>**£m** | **Non-**<br>**controlling**<br>**interest** <br>**£m** | **Profit after tax**<br>**attributable to**<br>**shareholders** <br>**£m** | **Weighted** <br>**average**<br>**number of** <br>**shares** <br>**millions** | **Earnings**<br>**per share** <br>**pence** |
| Statutory | **3243** | **(2)** | **3241** | **4946** | **65.5** |
| Adjusted | **2894** | **(2)** | **2892** | **4946** | **58.5** |
| Underlying | **3861** | **(2)** | **3859** | **4946** | **78.0** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Profit <br>after tax <br>£m | Non-<br>controlling<br>interest <br>£m | Profit after tax<br>attributable to<br>shareholders <br>£m | Weighted <br>average<br>number of <br>shares <br>millions | Earnings<br>per share <br>pence |
| **Year ended 31 March 2025** | Profit <br>after tax <br>£m | Non-<br>controlling<br>interest <br>£m | Profit after tax<br>attributable to<br>shareholders <br>£m | Weighted <br>average<br>number of <br>shares <br>millions | Earnings<br>per share <br>pence |
| Statutory | 2829 | (3) | 2826 | 4707 | 60.0 |
| Adjusted | 2618 | (3) | 2615 | 4707 | 55.6 |
| Underlying | 3455 | (3) | 3452 | 4707 | 73.3 |
| Underlying at constant currency | 3391 | (3) | 3388 | 4707 | 72.0 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Profit <br>after tax <br>£m | Non-<br>controlling<br>interest <br>£m | Profit after tax<br>attributable to<br>shareholders <br>£m | Weighted <br>average<br>number of <br>shares <br>millions | Earnings<br>per share <br>pence |
| **Year ended 31 March 2024** | Profit <br>after tax <br>£m | Non-<br>controlling<br>interest <br>£m | Profit after tax<br>attributable to<br>shareholders <br>£m | Weighted <br>average<br>number of <br>shares <br>millions | Earnings<br>per share <br>pence |
| Statutory | 2217 | (1) | 2216 | 3991 | 55.5 |
| Adjusted | 3101 | (1) | 3100 | 3991 | 77.7 |
| Underlying | 2880 | (1) | 2879 | 3991 | 72.1 |
| Underlying at constant currency | 2834 | (1) | 2833 | 3991 | 71.0 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **240** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

**Timing and regulated revenue adjustments** 

As described on pages [220](#i39c083f7223e44388d99dfa58a33ab00_352) – [225](#ie2721c93955940ef945161451362ca3c_28103), our allowed revenues are set in accordance with our regulatory price controls or rate plans. We calculate the prices we charge our customers based on the estimated volume

of energy we expect will be delivered during the coming period. The actual volumes delivered will differ from the estimate. Therefore, our total actual revenue will be different from our total allowed revenue. These

differences are commonly referred to as timing differences. If we collect more than the allowed revenue, adjustments will be made to future prices to reflect this over-recovery, and if we collect less than the allowed

level of revenue, adjustments will be made to future prices to reflect the under-recovery. In the US, a substantial portion of our costs are pass-through costs (including commodity and energy-efficiency costs) and

are fully recoverable from our customers. Timing differences between costs of this type being incurred and their recovery through revenue are also included in timing. The amounts calculated as timing differences

are estimates and subject to change until the variables that determine allowed revenue are final. Timing differences tend to be short-term in nature (typically less than two years) and are applicable where existing

regulatory recovery mechanisms are already in place, hence dependent on an operating company's current rate plan or price control. Future revenue adjustments linked to mechanisms in rate plans that have not

yet been agreed are not normally considered to be timing.

New England and New York in-year over/(under)-recovery and all New England and New York balances have been translated using the average exchange rate of $1.34 for the year ended 31 March 2026.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **UK Electricity**<br>**Transmission** <br>**£m**<br>| **UK Electricity**<br>**Distribution** <br>**£m**<br>| **UK Electricity**<br>**System Operator** <br>**£m**<br>| **New England** <br>**£m**<br>| **New York** <br>**£m**<br>| **Total** <br>**£m**<br>|
| 1 April 2025 opening balance<sup>1</sup> | **9** | **118** | **—** | **(368)** | **301** | **60** |
| (Under)/over-recovery | **(77)** | **(116)** | **—** | **94** | **(537)** | **(636)** |
| **31 March 2026 closing balance to (recover)/return**<sup>2</sup> | **(68)** | **2** | **—** | **(274)** | **(236)** | **(576)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | UK Electricity<br>Transmission <br>£m<br>| UK Electricity<br>Distribution <br>£m<br>| UK Electricity <br>System Operator <br>£m<br>| New England<br>£m<br>| New York <br>£m<br>| Total <br>£m<br>|
| 1 April 2024 opening balance<sup>1</sup> | 160 | (282) | 941 | (425) | 624 | 1018 |
| (Under)/over-recovery | (151) | 407 | (479) | 57 | (323) | (489) |
| Disposal |  |  | (462) |  |  | (462) |
| **31 March 2025 closing balance to return/(recover)**<sup>2</sup> | 9 | 125 |  | (368) | 301 | 67 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | UK Electricity<br>Transmission <br>£m<br>| UK Electricity<br>Distribution <br>£m<br>| UK Electricity <br>System Operator <br>£m<br>| New England <br>£m<br>| New York <br>£m<br>| Total <br>£m<br>|
| 1 April 2023 opening balance<sup>1</sup> | (213) | (124) | 77 | (360) | 643 | 23 |
| (Under)/over-recovery | 363 | (159) | 800 | (65) | (19) | 920 |
| **31 March 2024 closing balance to return/(recover)**<sup>2</sup> | 150 | (283) | 877 | (425) | 624 | 943 |

---

1. Opening balances have been restated to reflect the finalisation of calculated over/(under)-recoveries in both the UK and the US and also adjusted for the regulatory time value of money impact on opening balances, where appropriate, in the UK.

2. The closing balance at 31 March 2026 was £584 million under-recovered (translated at the closing rate of $1.32:£1). 31 March 2025 was £65 million over-recovered (translated at the closing rate of $1.29:£1). 31 March 2024 was £954 million over-recovered (including discontinued

operations and translated at the closing rate of $1.26:£1).

In addition to the (short-term) timing adjustments described above, other regulated revenue adjustments also exist. For example, as part of the RIIO price controls in the UK, outperformance against allowances as

a result of the totex incentive mechanism, together with changes in output-related allowances included in the original price control, will almost always be adjusted in future revenue recoveries, typically starting in two

years' time. We also receive revenues in relation to certain costs incurred or expected to be incurred (for example pension deficit contributions), with differences between revenues received and cost incurred adjusted

in future revenue recoveries, e.g. after a triennial actuarial pension funding valuation has been concluded. Our current IFRS revenues and earnings include these amounts that relate to certain costs incurred in prior

years or that will need to be repaid or recovered in future periods. Such adjustments will form an important part of the continuing difference between reported IFRS results and underlying economic performance

based on our regulatory obligations. In the US, accumulated regulatory entitlements cover a range of different areas, with the most significant being environmental remediation and pension assets, as well as deferred

storm costs. All regulatory entitlements are recoverable (or repayable) over different periods, which are agreed with the regulators to match the expected payment profile for the liabilities.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **241** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

**Capital investment at constant currency**

Capital investment measures are presented at actual exchange rates, but are also shown on a constant

currency basis to show the year-on-year comparisons excluding any impact of foreign currency translation

movements.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March**  | **At actual exchange rates** | **At actual exchange rates** | **At actual exchange rates** | **At constant currency** | **At constant currency** | **At constant currency** |
| **Year ended 31 March**  | **2026** | 2025 | change | **2026** | 2025 | change |
| **Year ended 31 March**  | **£m** | £m | change | **£m** | £m | change |
| UK Electricity <br>Transmission<br>| **4372** | 2999 | 46% | **4372** | 2999 | 46% |
| UK Electricity Distribution | **1617** | 1426 | 13% | **1617** | 1426 | 13% |
| New England | **2043** | 1751 | 17% | **2043** | 1650 | 24% |
| New York | **3428** | 3289 | 4% | **3428** | 3101 | 11% |
| **Capital investment** <br>**(regulated networks)**<br>| **11460** | 9465 | 21% | **11460** | 9176 | 25% |
| National Grid Ventures | **109** | 378 | (71%) | **109** | 362 | (70%) |
| Other | **7** | 4 | 75% | **7** | 4 | 75% |
| **Group capital** <br>**investment – total**<br>| **11576** | 9847 | 18% | **11576** | 9542 | 21% |

---

**Capital expenditure**

Capital expenditure (for the purposes of measuring green capex aligned to the EU Taxonomy) comprises

additions to property, plant and equipment and intangible assets, but excludes capital prepayments

and equity contributions to joint ventures and associates during the period.

---

| | | |
|:---|:---|:---|
|  | **2026** | 2025 |
|  | **£m** | £m |
| Asset type: |  |  |
| Property, plant and equipment | **9924** | 8894 |
| Non-current intangible assets | **693** | 478 |
| Transfers from prepayments | **501** | 87 |
| **Group capital expenditure** | **11118** | 9459 |
| Equity investments in joint ventures and associates | **27** | 116 |
| Capital expenditure prepayments | **932** | 359 |
| Transfers to capital expenditure additions | **(501)** | (87) |
| **Group capital investment** | **11576** | 9847 |

---

**Net debt**

See note 29 of the financial statements on page 190 for the definition and reconciliation of net debt.

**Funds from operations and interest cover**

FFO are the cash flows generated by the operations of the Group. Credit rating metrics, including FFO,

are used as indicators of balance sheet strength.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025¹ | 2024¹ |
| **Year ended 31 March**  | **£m** | £m | £m |
| **Interest expense (income statement)** | **1649** | 1810 | 1723 |
| Hybrid interest reclassified as dividend | **(13)** | (37) | (38) |
| Capitalised interest | **424** | 294 | 251 |
| Pensions interest adjustment | **12** | 13 | 9 |
| Unwinding of discount on provisions | **(123)** | (130) | (102) |
| Pension interest | **—** |  | 94 |
| **Adjusted interest expense** | **1949** | 1950 | 1937 |
| **Net cash inflow from operating activities** | **7829** | 6808 | 6939 |
| Interest received on financial instruments | **231** | 332 | 148 |
| Interest paid on financial instruments | **(1932)** | (1920) | (1627) |
| Dividends received | **105** | 126 | 176 |
| Working capital adjustment | **(632)** | (104) | 49 |
| Excess employer pension contributions | **16** | 26 | 27 |
| Hybrid interest reclassified as dividend | **13** | 37 | 38 |
| Add back accretions | **168** | 152 | 208 |
| Difference in net interest expense in income statement <br>to cash flow<br>| **14** | (45) | (253) |
| Difference in current tax in income statement to cash flow | **186** | 145 | (24) |
| Current tax related to prior periods | **(172)** |  |  |
| **Funds from operations (FFO)** | **5826** | 5557 | 5681 |
| **FFO interest cover ((FFO + adjusted interest expense)/**<br>**adjusted interest expense)**<br>| **4.0x** | 3.8x | 3.9x |

---

1. Numbers for 2025 and 2024 reflect the calculations for the total Group as based on the published accounts for the respective years.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **242** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

**Funds from operations/adjusted net debt and retained cash flow/adjusted net debt**

FFO/adjusted net debt and RCF/adjusted net debt are credit metrics that we monitor in order to

ensure the Group is generating sufficient cash to service its debts, consistent with maintaining a strong

investment-grade credit rating.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025<sup>1</sup> | 2024<sup>1</sup> |
| **Year ended 31 March**  | **£m** | £m | £m |
| **Funds from operations (FFO)**  | **5826** | 5557 | 5681 |
| Hybrid interest reclassified as dividend  | **(13)** | (37) | (38) |
| Ordinary dividends paid to shareholders  | **(1623)** | (1529) | (1718) |
| **RCF** | **4190** | 3991 | 3925 |
| Borrowings | **46755** | 47539 | 47072 |
| Less:  |  |  |  |
| 50% hybrid debt  | **(328)** | (814) | (1034) |
| Cash and cash equivalents  | **(375)** | (1178) | (578) |
| Financial and other investments  | **(1370)** | (5156) | (3084) |
| Underfunded pension obligations  | **237** | 247 | 266 |
| Borrowings in held for sale | **—** |  | 13 |
| Collateral – cash received under collateral agreements<sup>2</sup> | **—** |  |  |
| **Adjusted net debt (includes pension deficit)**  | **44919** | 40638 | 42655 |
| **FFO/adjusted net debt** | **13.0%** | 13.7% | 13.3% |
| **RCF/adjusted net debt**  | **9.3%** | 9.8% | 9.2% |

---

1. Numbers for 2025 and 2024 reflect the calculations for the total Group as based on the published accounts for that year.

2. Below agency threshold to adjust in 2026, 2025 and 2024.

**Regulatory performance measures** 

**Regulated financial performance – UK**

Regulatory financial performance is a pre-interest and tax measure, starting at segmental operating profit

and making adjustments (such as the elimination of all pass-through items included in revenue allowances

and timing) to approximate regulatory profit for the UK regulated activities. This measure provides a bridge

for investors between a well-understood and comparable IFRS starting point and the key adjustments

required to approximate regulatory profit. This measure also provides the foundation to calculate

Group RoE.

Under the UK RIIO regulatory arrangements the Company is incentivised to deliver efficiencies against

cost targets set by the regulator. In total, these targets are set in terms of a regulatory definition of

combined total operating and capital expenditure, also termed 'totex'. The definition of totex differs from

the total combined regulated controllable operating costs and regulated capital expenditure as reported

in this statement according to IFRS accounting principles. Key differences are capitalised interest, capital

contributions, exceptional costs, costs covered by other regulatory arrangements and unregulated costs.

For the reasons noted above, the table below shows the principal differences between the IFRS

operating profit and the regulated financial performance, but is not a formal reconciliation to an

equivalent IFRS measure.

UK Electricity Transmission

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
| **Year ended 31 March**  | **£m** | £m | £m |
| Adjusted operating profit | **1605** | 1277 | 1677 |
| Movement in regulatory 'IOUs' | **278** | 256 | (363) |
| UK regulatory notional deferred taxation adjustment | **276** | 238 | 219 |
| RAV indexation – 2% CPIH long-run inflation | **410** | 368 | 343 |
| Regulatory vs IFRS depreciation difference | **(622)** | (575) | (553) |
| Fast money/other | **(435)** | (261) | (119) |
| Pensions | **—** |  | (2) |
| Performance RAV created | **76** | 65 | 68 |
| **Regulated financial performance** | **1588** | 1368 | 1270 |

---

UK Electricity Distribution

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
| **Year ended 31 March**  | **£m** | £m | £m |
| Adjusted operating profit | **1122** | 1610 | 993 |
| Less non-regulated profits | **(11)** | (7) | (8) |
| Movement in regulatory 'IOUs' | **131** | (417) | 158 |
| UK regulatory notional deferred taxation adjustment | **36** | 15 | 38 |
| RAV indexation – 2% CPIH long-run inflation | **245** | 230 | 216 |
| Regulatory vs IFRS depreciation difference | **(551)** | (547) | (555) |
| Fast money/other | **(72)** | (46) | (36) |
| Performance RAV created | **5** | (1) | 50 |
| **Regulated financial performance** | **905** | 837 | 856 |

---

UK Electricity System Operator

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
| **Year ended 31 March**  | **£m** | £m | £m |
| Adjusted operating profit | **—** | (364) | 880 |
| Movement in regulatory 'IOUs' | **—** | 479 | (800) |
| UK regulatory notional deferred taxation adjustment | **—** | 3 | 2 |
| RAV indexation – 2% CPIH long-run inflation | **—** | 9 | 7 |
| Regulatory vs IFRS depreciation difference | **—** | (50) | (19) |
| Fast money/other | **—** | (44) | (29) |
| **Regulated financial performance** | **—** | 33 | 41 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **243** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

**Regulated financial performance – US** 

New England

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
| **Year ended 31 March** | **£m** | £m | £m |
| Adjusted operating profit | **960** | 982 | 643 |
| Major storm costs | **—** | 3 | 90 |
| Timing | **(94)** | (61) | 69 |
| US GAAP pension adjustment and other<sup>1</sup> | **79** | 60 | 29 |
| **Regulated financial performance** | **945** | 984 | 831 |

---

1.£2 million unfavourable COVID-19 bad debt provision adjustment included in 2025 other.

New York

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
| **Year ended 31 March** | **£m** | £m | £m |
| Adjusted operating profit | **1172** | 1023 | 860 |
| Provision for bad and doubtful debts (COVID-19), <br>net of recoveries<sup>1</sup><br>| **(37)** | (47) | (34) |
| Major storm costs | **—** | 84 | 136 |
| Timing | **537** | 343 | 20 |
| US GAAP pension adjustment | **43** | 48 | 42 |
| **Regulated financial performance** | **1715** | 1451 | 1024 |

---

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**

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
| **Year ended 31 March** | **£m** | £m | £m |
| UK Electricity Transmission | **1588** | 1368 | 1270 |
| UK Electricity Distribution | **905** | 837 | 856 |
| UK Electricity System Operator | **—** | 33 | 41 |
| New England | **945** | 984 | 831 |
| New York | **1715** | 1451 | 1024 |
| **Total regulated financial performance** | **5153** | 4673 | 4022 |

---

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, this is calculated as cash payments against the regulatory proportion of

pension deficits in the UK regulated business, whereas in the US it is the difference between IFRS and

US GAAP pension charges.

2% CPIH and 3% RPI RAV indexation – Future UK revenues are expected to be set using an asset base

adjusted for inflation. This is calculated as UK RAV multiplied by 2% long-run CPIH inflation assumption

under RIIO-2 and a 3% long-run RPI inflation assumption under RIIO-1.

UK regulatory notional deferred taxation adjustment – Future UK revenues are expected to recover cash

taxation cost including the unwinding of deferred taxation balances created in the current year. This is the

difference between: (1) IFRS underlying EBITDA less other regulatory adjustments; and (2) IFRS underlying

EBITDA less other regulatory adjustments less current taxation (adjusted for interest tax shield) then

grossed up at full UK statutory tax rate.

Regulatory depreciation – US and UK regulated revenues include allowance for a return of regulatory capital

in accordance with regulatory assumed asset lives. This return does not form part of regulatory profit.

Fast/slow money adjustment – The regulatory remuneration of costs incurred is split between in-year

revenue allowances and the creation of additional RAV. This does not align with the classification of

operating costs and fixed asset additions under IFRS accounting principles. This is calculated as the

difference between IFRS classification of operating costs versus fixed asset additions and the regulatory

classification.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **244** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

**Regulated asset base**

The regulated asset base is a regulatory construct, based on predetermined principles not based on IFRS.

It effectively represents the invested capital on which we are authorised to earn a cash return. By investing

efficiently in our networks, we add to our regulated asset base over the long term, and this in turn

contributes to delivering shareholder value. Our regulated asset base comprises our regulatory asset

value in the UK plus our rate base in the US.

Maintaining efficient investment in our regulated asset base ensures we are well positioned to provide

consistently high levels of service to our customers and increases our revenue allowances in future years.

While we have no specific target, our overall aim is to achieve around 10% growth in regulated asset base

each year through continued investment in our networks in both the UK and US.

In the UK, the way in which our transactions impact RAV is driven by principles set out by Ofgem. In a

number of key areas these principles differ from the requirements of IFRS, including areas such as additions

and the basis for depreciation. Further, our UK RAV is adjusted annually for inflation. RAV in each of our

retained UK businesses has evolved over the period since privatisation in 1990 and, as a result, historical

differences between the initial determination of RAV and balances reported under UK GAAP at that time

still persist. In the case of UK ED, differences arise as the result of acquisition fair value adjustments

(where PP&E at acquisition has been valued above RAV). Due to the above, substantial differences exist

in the measurement bases between RAV and an IFRS balance metric, and therefore it is not possible

to provide a meaningful reconciliation between the two.

In the US, rate base is a regulatory measure determined for each of our main US operating companies.

It represents the value of property and other assets or liabilities on which we are permitted to earn a rate

of return, as set out by the regulatory authorities for each jurisdiction. The calculations are based on the

applicable regulatory agreements for each jurisdiction and include the allowable elements of assets and

liabilities from our US companies. For this reason, it is not practical to provide a meaningful reconciliation

from the US rate base to an equivalent IFRS measure.

'Total regulated and other balances' for our UK regulated businesses include the under- or over-recovery

of allowances that those businesses target to collect in any year, which are based on the regulator's

forecasts for that year. Under the UK price control arrangements, revenues will be adjusted in future years

to take account of actual levels of collected revenue, costs and outputs delivered when they differ from

those regulatory forecasts. In the US, other regulatory assets and liabilities include regulatory assets and

liabilities which are not included in the definition of rate base, including working capital where appropriate.

'Total regulated and other balances' for NGV and other businesses includes assets and liabilities

as measured under IFRS, but excludes certain assets and liabilities such as pensions, tax, net debt

and goodwill.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended 31 March**<br>**(£m at constant currency)** | **RAV, rate base or** <br>**other business assets** | **RAV, rate base or** <br>**other business assets** | **Total regulated** <br>**and other balances** | **Total regulated** <br>**and other balances** |
| **Year ended 31 March**<br>**(£m at constant currency)** | **2026** | 2025¹ | **2026**<sup>23</sup> | 2025<sup>123</sup> |
| **Year ended 31 March**<br>**(£m at constant currency)** | **£m** | £m | **£m** | £m |
| UK Electricity Transmission | **23847** | 20525 | **23786** | 20186 |
| UK Electricity Distribution | **13139** | 12254 | **13026** | 12010 |
| New England | **10289** | 9198 | **12059** | 11060 |
| New York | **19163** | 17496 | **21840** | 19281 |
| **Total regulated** | **66438** | 59473 | **70711** | 62537 |
| National Grid Ventures and <br>other business balances<br>| **5545** | 7266 | **3955** | 6477 |
| **Total Group regulated and other balances** | **71983** | 66739 | **74666** | 69014 |

---

1. Figures relating to prior periods have, where appropriate, been re-presented at constant currency, for segmental reorganisation, opening

balance adjustments following the completion of the UK regulatory reporting pack process and finalisation of US balances.

2. Includes totex-related regulatory IOUs of £105 million (2025: £250 million) and under-recovered timing balances of £568 million (2025:

£62 million over-recovered).

3. Includes assets for construction work-in-progress of £3,084 million (2025: £2,528 million), other regulatory assets related to timing and

other cost deferrals of £1,230 million (2025: £1,113 million) and net working capital assets of £134 million (2025: £95 million net working

capital assets).

New England and New York rate base and other total regulated and other balances for 31 March 2025

have been re-presented in the table above at constant currency. At actual currency the values were

£11.3 billion and £19.8 billion respectively.

**Group RoE**

Group RoE provides investors with a view of the performance of the Group as a whole compared with

the amounts invested by the Group in assets attributable to equity shareholders. It reflects the regulated

activities as well as the contribution from our non-regulated businesses together with joint ventures and

non-controlling interests. We use Group RoE to measure our performance in generating value for our

shareholders, and targets for Group RoE are included in APP and LTPP incentive mechanisms for

Executive members. Group RoE is underpinned by our regulated asset base. Goodwill and indefinite-lived

intangible assets are amortised in the denominator over 20 years, to reflect the estimated period over

which the value related to the premium paid on acquisition would be realised. For the reasons noted

above, no reconciliation to IFRS has been presented, as we do not believe it would be practical.

Calculation: Regulatory financial performance including a long-run inflation assumption (2% CPIH for

RIIO-2), less adjusted interest and adjusted taxation divided by equity investment in assets:

–adjusted interest removes accretions above long-run inflation rates, interest on pensions, capitalised

interest in regulated operations and unwind of discount rate on provisions;

–adjusted taxation adjusts the Group taxation charge (before exceptional items and remeasurements) for

differences between IFRS profit before tax and regulated financial performance less adjusted interest; and

–equity investment in assets is calculated as opening UK RAV, opening US rate base, goodwill and

indefinite-lived intangibles (adjusted for 'asset swap' transactions and the 'value realisation' of goodwill

over 20 years), plus opening net book value of NGV and other activities (excluding certain pensions, tax

and commodities balances) and our share of JVs and associates, minus opening net debt as reported

under IFRS restated to the weighted average sterling–dollar exchange rate for the year.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **245** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Year ended 31 March** | **2026** | 2025 | 2024 |
| **Year ended 31 March** | **£m** | £m | £m |
| Regulated financial performance  | **5153** | 4673 | 4022 |
| Operating profit of other activities – continuing <br>and discontinued operations<br>| **231** | 275 | 467 |
| **Group financial performance**  | **5384** | 4948 | 4489 |
| Share of post-tax results of joint ventures and associates<sup>1</sup>  | **76** | 100 | 174 |
| Non-controlling interests  | **(2)** | (3) | (1) |
| Adjusted total Group interest charge (including discontinued) | **(1633)** | (1590) | (1613) |
| Total Group tax charge (including discontinued) | **(955)** | (861) | (983) |
| Tax on adjustments  | **(4)** | 8 | 270 |
| **Total Group financial performance after interest and tax**  | **2866** | 2602 | 2336 |
| Opening rate base/RAV  | **59071** | 55326 | 50806 |
| Opening other balances | **7212** | 8223 | 7973 |
| **Opening RAV, rate base and other balances** | **66283** | 63549 | 58779 |
| Opening goodwill  | **11145** | 11430 | 11444 |
| Opening goodwill adjustment (realisation of value over 20 years) | **(4599)** | (4441) | (4053) |
| Opening strategic pivot (asset swap) adjustment<sup>2</sup>  | **(3387)** | (3450) | (3464) |
| Opening capital employed  | **69442** | 67088 | 62706 |
| Opening net debt  | **(40343)** | (43509) | (40505) |
| Rights Issue adjustment (£6.8 billion net proceeds pro-rated <br>from June 2024)<br>| **—** | 5471 |  |
| **Opening equity**  | **29099** | 29050 | 22201 |
| **Group RoE** | **9.8%** | 9.0% | 10.5% |

---

1.2026 includes £nil (2025: £25 million; 2024: £73 million) in respect of the Group's minority interest in National Gas Transmission, which

was fully divested during 2024/25.

2. The regulatory gains on disposal of NECO and UK Gas Transmission (proceeds received less RAV, rate base and other related balances

used to calculate the Group RoE denominator) deducted against IFRS goodwill and indefinite-lived intangibles recognised on acquisition

of NGED. For this metric, the purchase of NGED and sales of NECO and UK Gas Transmission were deemed to be linked transactions

with the opening equity reflecting the impact of these as asset swaps rather than as unrelated transactions.

**Group RoE three-year average calculation** 

The Group RoE metrics for each of the years 2025/26, 2024/25 and 2023/24 are provided in the table

above, resulting in a historical three-year average Group RoE of 9.8% (2025: 11.0%).

**UK and US regulated RoE**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended 31 March** | **Regulatory Debt:**<br>**Equity assumption** | **Achieved**<br>**Return on Equity** | **Achieved**<br>**Return on Equity** | **Base or Allowed** <br>**Return on Equity** | **Base or Allowed** <br>**Return on Equity** |
| **Year ended 31 March** | **Regulatory Debt:**<br>**Equity assumption** | **2026** | 2025 | **2026** | 2025 |
| **Year ended 31 March** | **Regulatory Debt:**<br>**Equity assumption** | **%** | % | **%** | % |
| UK Electricity Transmission | **55/45** | **8.2** | 8.3 | **7.2** | 7.3 |
| UK Electricity Distribution | **60/40** | **8.1** | 7.9 | **7.6** | 7.7 |
| New England | **Avg. 45/55** | **9.2** | 9.1 | **9.6** | 9.9 |
| New York | **Avg. 52/48** | **9.0** | 8.7 | **9.4** | 9.2 |

---

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 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 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.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **246** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

In respect of 2024/25 and 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 2025/26, this measure represents our current estimate, since

local financial statements have yet to be prepared.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 | 2024 |
|  | **£m** | £m | £m |
| **Underlying IFRS operating profit for New England segment** | **866** | 924 | 802 |
| **Underlying IFRS operating profit for New York segment** | **1709** | 1450 | 1016 |
| Weighted average £/$ exchange rate | **$1.343** | $1.266 | $1.262 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **New England** | **New England** | **New England** | **New York** | **New York** | **New York** |
|  | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 |
|  | **$m** | $m | $m | **$m** | $m | $m |
| **Underlying IFRS operating profit** <br>**for US segments**<br>| **1164** | 1170 | 1013 | **2296** | 1836 | 1283 |
| *Adjustments to convert to US GAAP as applied* <br>*in our US OpCo entities*<br>|  |  |  |  |  |  |
| Adjustment in respect of customer contributions | **(31)** | (30) | (29) | **(44)** | (51) | (37) |
| Pension accounting differences<sup>1</sup> | **108** | 78 | 43 | **59** | 61 | 63 |
| Environmental charges recorded under US GAAP | **11** | 5 | 10 | **(140)** | (144) | 21 |
| Storm costs and recoveries recorded under <br>US GAAP<br>| **(98)** | (59) | (56) | **57** | (7) | 6 |
| Other regulatory deferrals, amortisation <br>and other items<br>| **(402)** | (314) | (139) | **(833)** | (518) | (155) |
| **Results for US regulated OpCo entities,** <br>**aggregated under US GAAP**<sup>2</sup><br>| **752** | 850 | 842 | **1395** | 1177 | 1181 |
| *Adjustments to determine regulatory operating* <br>*profit used in US RoE*<br>|  |  |  |  |  |  |
| Levelisation of rate increases | **—** |  |  | **184** | 196 |  |
| FERC RoE order<sup>3</sup> | **157** |  |  | **—** |  |  |
| Net other | **116** | 96 | 14 | **157** | 178 | 151 |
| **Regulatory operating profit** | **1025** | 946 | 856 | **1736** | 1551 | 1332 |
| Pensions<sup>1</sup> | **95** | 70 | 60 | **308** | 169 | 159 |
| Regulatory interest charge | **(241)** | (219) | (199) | **(588)** | (459) | (374) |
| Regulatory tax charge | **(240)** | (218) | (196) | **(404)** | (351) | (305) |
| **Regulatory earnings used to determine** <br>**US RoE**<br>| **639** | 579 | 521 | **1052** | 910 | 812 |

---

1. An element of the pensions charge is reported outside operating profit under US GAAP.

2. Based on US GAAP accounting policies as applied by our US regulated OpCo entities.

3. The US GAAP impact of the FERC rate order in March 2026 is not included in New England's reported RoE for 2025/26 (as our US RoEs

are a measure of our current year performance against current year allowances) and the FERC rate order relates to complaints filed against

FERC allowed RoE rates dating back to 2011 in relation to reductions in historical years' revenues. The impact of lower rates did not have

a significant impact as applied to current year allowed revenues.

In addition to the regulatory earnings used to determine US RoE, our US regulated businesses also earn

a return on assets outside of rate base (principally construction work-in-progress) of $2.3 billion (2025:

$2.5 billion) in New England and $3.5 billion (2025: $2.4 billion) in New York. In 2025/26, this additional

return amounted to $77 million (2025: $75 million) in New England and $153 million (2025: $118 million)

in New York. The aggregate of regulatory earnings used to determine US RoE and the return on assets

outside of rate base for the year was $716 million (2025: $654 million) for New England and $1,205 million

(2025: $1,029 million) for New York.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **New England** | **New England** | **New England** | **New York** | **New York** | **New York** |
|  | **2026** | 2025 | 2024 | **2026** | 2025 | 2024 |
|  | **$m** | $m | $m | **$m** | $m | $m |
| Average US equity base | **6988** | 6352 | 5645 | **11637** | 10512 | 9517 |
| US jurisdiction RoE | **9.2%** | 9.1% | 9.2% | **9.0%** | 8.7% | 8.5% |

---

**Information on differences between IFRS and regulatory balances**

There are certain significant assets and liabilities included in our IFRS balance sheet, which are treated

differently in the analysis below and to which we draw readers' attention. Our UK OpCo RAVs are different

to the IFRS carrying value of PP&E and intangibles in these entities. For example, the annual indexation

(inflationary uplift) adjustment applied to RAV compared with the IFRS value of these assets (which are

held at amortised cost), borrowing costs included as part of capital investment under IFRS are not added

to RAV but are recovered by means of a 'cost of debt allowance' in allowed regulatory revenues, additions

to RAV are based on a 'slow money' capitalisation percentage (set by the regulator) which is then applied

to 'totex' (i.e. capex plus opex) or in the case of UK ED, the result of acquisition fair value adjustments

(where PP&E at acquisition has been valued above RAV). In addition, under IFRS we recognise liabilities

in respect of US environmental remediation costs, and pension and OPEB costs. For regulatory purposes,

these are not shown as obligations because we are entitled to full recovery of costs through our existing

rate plans. The impact of US tax reform in 2017/18 which resulted in a reduction in IFRS deferred tax

liabilities, and from a regulatory perspective remains as a future obligation, results in a regulatory liability

within US rate base. Regulatory IOUs which reflect net over- or under-recoveries compared with our

regulatory allowances are treated within this table as obligations (or rights) but do not qualify for

recognition as liabilities (or assets) under IFRS.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **247** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Other unaudited financial information cont.** | **Other unaudited financial information cont.** | **Other unaudited financial information cont.** |  |  |  |

---

**Asset growth and regulated asset growth**

To help readers' assessment of the financial position of the Group, the table below shows an aggregated

position for the Group, as viewed from a regulatory perspective. The asset growth and regulated asset

growth measures included in the table below are calculated in part from financial information used to

derive measures sent to and used by our regulators in the UK and US, and accordingly inform certain

of the Group's regulatory performance measures, but are not derived from, and cannot be reconciled

to, IFRS. These alternative performance measures include regulatory assets and liabilities and certain

IFRS assets and liabilities of businesses that were classified as held for sale under IFRS 5.

Asset growth is the annual percentage increase in our RAV and US rate base and other non-regulated

business balances (including our investments in NGV, UK property and other assets and US other assets)

calculated at constant currency.

Regulated asset growth is the annual percentage increase in our RAV and US rate base (calculated

at constant currency), but does not include other non-regulated business balances.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025/26** | **2025/26** | **2025/26** | **2025/26** | **2025/26** |
| **£m** | **31 March** <br>**2026**<br>| **Sale of** <br>**Grain LNG** <br>**and NG** <br>**Renewables**<br>| **31 March** <br>**2025**<br>| **Increase** | **Asset** <br>**growth**<br>|
| UK RAV | **36986** | **—** | **32779** | **4207** | **12.8%** |
| US rate base | **29452** | **—** | **26694** | **2758** | **10.3%** |
| **Total RAV and rate base (used to** <br>**calculate regulated asset growth)**<br>| **66438** | **—** | **59473** | **6965** | **11.7%** |
| National Grid Ventures and other | **5545** | **(2032)** | **7266** | **311** | **4.3%** |
| **Total assets (used to calculate** <br>**asset growth)**<br>| **71983** | **(2032)** | **66739** | **7276** | **10.9%** |

---

For 2025/26, asset growth was 10.9% and regulated asset growth was 11.7%, which excludes the

impact of the reduction in assets from the sales of NG Renewables and Grain LNG during the year

(2024/25: excluding the reduction in RAV as a result of the sale of the UK Electricity System Operator

business, based on an estimated RAV value at the date of disposal).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2024/25 | 2024/25 | 2024/25 | 2024/25 | 2024/25 |
| **£m** | 31 March <br>2025<br>| Sale of ESO | 31 March <br>2024<br>| Increase | Asset <br>growth<br>|
| UK RAV | 32805 | (469) | 30310 | 2964 | 9.8% |
| US rate base | 27345 |  | 24527 | 2818 | 11.5% |
| **Total RAV and rate base (used to** <br>**calculate regulated asset growth)**<br>| 60150 | (469) | 54837 | 5782 | 10.5% |
| National Grid Ventures and other | 7352 |  | 7509 | (157) | (2.1)% |
| **Total assets (used to calculate** <br>**asset growth)**<br>| 67502 | (469) | 62346 | 5625 | 9.0% |

---

Figures relating to prior periods have, where appropriate, been re-presented at constant currency, for

opening balance adjustments following the completion of the UK regulatory reporting pack process and

finalisation of US balances.

**Regulatory gearing**

Regulatory gearing is a measure of how much of our investment in RAV and rate base and other elements

of our invested capital (including our investments in NGV, UK property and UK other assets and US other

assets) is funded through debt. Comparative amounts as at 31 March 2025 are presented at historical

exchange rates and have not been restated for opening balance adjustments.

---

| | | | |
|:---|:---|:---|:---|
|  | **2026** | 2025 |  |
| **As at 31 March** | **£m** | £m |  |
| UK RAV | **36986** | 32805 |  |
| US rate base | **29452** | 27345 |  |
| Other invested capital included in gearing calculation | **5545** | 7352 |  |
| Total assets included in gearing calculation | **71983** | 67502 |  |
| Net debt (including 100% of hybrid debt and held for sale) | **(44160)** | (41316) | change  |
| Group gearing (based on 100% of net debt including held <br>for sale)<br>| **61%** | 61% | —% pts |
| Group gearing (excluding 50% of hybrid debt from net debt) <br>including held for sale<br>| **61%** | 60% | 1% pts |

---

**Cash flow statement used in credit metric calculation** 

The table below re-analyses our IFRS operating cash flows for the purposes of facilitating calculation

of certain measures of credit worthiness – being RCF/adjusted net debt and FFO/adjusted net debt as

described on pages 241 and 242. The differences between this table and the consolidated cash flow

statement relate to the disaggregation of cash flows relating to items considered 'exceptional' as

described in note 5, as explained within the footnotes below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2026** | 2025 | 2024 |
|  | Notes | **£m** | £m | £m |
| *Cash flows from operating activities* |  |  |  |  |
| Total operating profit from continuing operations | 2(b) | **5431** | 4934 | 4475 |
| Adjustments for: |  |  |  |  |
| Exceptional items and remeasurements | 5 | **(387)** | (169) | 987 |
| Other fair value movements |  | **(31)** | 66 | (16) |
| Depreciation, amortisation and impairment |  | **2247** | 2175 | 2061 |
| Share-based payments |  | **45** | 37 | 37 |
| Changes in working capital |  | **759** | 104 | (49) |
| Changes in provisions |  | **(127)** | 10 | (154) |
| Changes in pensions and other post-retirement <br>benefit obligations<br>|  | **(31)** | (90) | 31 |
| Cash flows relating to exceptional items |  | **(45)** | (76) | (91) |
| Cash generated from operations – continuing operations |  | **7861** | 6991 | 7281 |
| Tax paid |  | **(32)** | (183) | (342) |
| **Net cash inflow from operating activities –** <br>**continuing operations**<br>|  | **7829** | 6808 | 6939 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **248** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Commentary on consolidated financial statements**<br>for the year ended 31 March 2025 | **Commentary on consolidated financial statements**<br>for the year ended 31 March 2025 | **Commentary on consolidated financial statements**<br>for the year ended 31 March 2025 |  |  |  |

---

![](nggtf-20260331_g450.gif)

In compliance with SEC rules, we present a summarised analysis of movements in the income <br>statement and an analysis of movements in adjusted operating profit (for the continuing Group) by <br>operating segment. This should be read in conjunction with the 31 March 2025 Financial review <br>included on pages 69 – 84.<br>

**Analysis of the income statement for the year ended 31 March 2025** 

**Revenue**

Revenue from continuing operations for the year ended 31 March 2025 decreased by £1,472 million

to £18,378 million. Lower revenues were primarily the result of £771 million lower pass-through costs and

a timing under-recovery of £505 million compared with an over-recovery of £915 million in the prior year.

This mostly related to the UK Electricity System Operator business sold mid-year and also US commodity

pass-through costs in New York and New England. Underlying net revenues increased £719 million driven

by increased rates and higher returns on our investment in our regulated businesses.

**Operating costs**

Operating costs from continuing activities for the year ended 31 March 2025 of £13,613 million were

£787 million lower than prior year. This decrease in costs excluded exceptional items and remeasurements

impacts, discussed below. Operating costs were driven by lower UK Electricity System Operator balancing

service pass-through costs down £1,343 million (business was sold mid-way through 2024/25) partly

offset by increased gas and electricity purchases (mostly on behalf of our US customers, which are pass-

through in nature) up £324 million. Higher depreciation as a result of continued asset investment was

up £114 million compared with 2023/24.

**Net finance costs**

Net finance costs (excluding remeasurements) for 2024/25 were £1,361 million, down from

£1,479 million in the prior year, driven by the Rights Issue in June 2024, which raised net proceeds

of £6.8 billion. The beneficial impact of this was partly offset by outflows for higher levels of capital

investment and higher interest rates on new borrowings, partly mitigated by higher levels of capitalised

interest compared with 2023/24.

**Tax**

The tax charge on profits before exceptional items and remeasurements of £861 million was £122 million

lower than 2023/24. This was primarily driven by lower taxable profits (principally related to a £1.3 billion

year-on-year adverse timing swing in our UK Electricity System Operator business which was sold

during 2024/25).

**Exceptional items and remeasurements** 

Exceptional items in 2024/25 included £146 million of credits for environmental provisions (2023/24:

£496 million charge), a £151 million partial reversal of a £498 million provision made in 2023/24 for the

return of over-collected revenues related to UK electricity balancing costs, a £187 million gain on disposal

of our UK Electricity System Operator business; and a £303 million impairment of our Community Offshore

Wind joint venture. Transaction, separation and integration costs increased to £65 million from £44 million

in 2023/24. Major transformation costs of £74 million were incurred in 2024/25. In 2023/24, exceptional

items included £92 million of gains related to insurance recoveries related to a fire and £65 million of costs

relating to our cost efficiency programme that ended in 2023/24.

Remeasurement gains of £127 million were recognised on commodity contracts in 2024/25 compared

with gains of £24 million in 2023/24.

Finance costs for the year ended 31 March 2025 included a net gain of £4 million on financial

remeasurements of derivative financial instruments and financial assets at fair value through profit

or loss, compared to a net gain of £15 million on financial remeasurements in 2023/24.

**Joint ventures and associates** 

Share of post-tax results of joint ventures and associates before exceptional items for 2024/25 were

£75 million compared with £101 million in 2023/24, principally due to lower revenues in our BritNed

interconnector joint venture in the UK, mostly reflecting lower auction prices. Joint ventures and

associates' share of remeasurement losses were £2 million compared with £64 million in 2023/24.

**Profit after tax from discontinued operations**

On 26 September 2024, we sold our residual 20% interest in National Gas Transmission for proceeds

of £686 million, that resulted in a gain on disposal after transaction costs of £25 million. The Group did

not apply equity accounting to this asset held for sale since 31 January 2023 (the date of sale of our

60% interest), which resulted in no profits being recognised from that date onwards.

**Adjusted earnings and EPS from continuing operations**

Adjusted earnings and adjusted EPS, which exclude exceptional items and remeasurements, are provided

to reflect the Group's results on an 'adjusted profit' basis, described further in note 8. See page 163

for a reconciliation of adjusted basic EPS to EPS.

The above earnings performance translated into adjusted EPS in 2024/25 of 55.6p, compared with 77.7p

in 2023/24. Including discontinued operations, adjusted EPS in 2024/25 of 55.6p, compared with 78.0p

in 2023/24.

**Exchange rates**

Our financial results are reported in sterling. Transactions for our US operations are denominated in

dollars, so the related amounts that are reported in sterling depend on the dollar to sterling exchange rate.

The table below shows the average and closing exchange rates of sterling to US dollars.

---

| | | | |
|:---|:---|:---|:---|
|  | **2024/25** | 2023/24 | % change  |
| Weighted average (income statement) | **1.27** | 1.26 | —% |
| Year end (statement of financial position) | **1.29** | 1.26 | 2% |

---

The movement in foreign exchange during 2024/25 has resulted in a £34 million decrease in revenue, a

£4 million decrease in adjusted operating profit and a £5 million decrease in underlying operating profit.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **249** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Commentary on consolidated financial statements cont.**<br>for the year ended 31 March 2025 | **Commentary on consolidated financial statements cont.**<br>for the year ended 31 March 2025 | **Commentary on consolidated financial statements cont.**<br>for the year ended 31 March 2025 |  |  |  |

---

**Analysis of the adjusted operating profit by segment for the year ended** 

**31 March 2025** 

**UK Electricity Transmission**

For 2024/25, revenue in the UK Electricity Transmission segment decreased by £116 million to £2,619

million and adjusted operating profit decreased by £400 million to £1,277 million. Revenue was lower due

to adverse timing, driven by a higher return prior year balances. Regulated controllable costs including

pensions were higher from inflation and workload increases mostly offset by efficiency savings. The

increase in depreciation and amortisation is a result of having higher asset base and asset commissioning.

Capital investment increased by £1,087 million compared with 2023/24 to £2,999 million primarily due

to the ASTI projects (including capacity payments to secure the supply chain), and customer connections.

**UK Electricity Distribution**

For 2024/25 revenue in UK Electricity Distribution segment increased by £629 million and adjusted

operating profit increased by £617 million to £1,610 million. Revenue was higher due to favourable

timing, driven by a higher inflation true-up and volume related over-recoveries. Regulated controllable

costs including pensions were higher due to inflationary and workload increases, partly offset by

efficiencies. Other costs were higher, primarily due to Storm Darragh related costs.

Capital investment for the period 2024/25 was £1,426 million, an increase of £179 million from

2023/24 due to additional asset replacement and refurbishment, growth in connections and higher

reinforcement works.

**UK Electricity System Operator**

This business was purchased by the UK Government on 1 October 2024, resulting in only six months'

ownership in 2024/25 compared with the previous year. For 2024/25, revenue in the UK Electricity

System Operator segment decreased by £2,759 million to £1,029 million principally as a result of lower

pass-through costs and the mid-year disposal. Net underlying revenue was £92 million lower driven

by a shorter ownership period, partly offset by recovery of Future System Operator costs. Timing was

£1,279 million adverse compared with 2023/24, related to BSUoS over-collections in the comparative

period and the subsequent return of these during 2024/25. Regulated controllable costs including

pensions were £64 million higher due to higher volume of work under RIIO-2 and additional NESO

costs ahead of separation. Depreciation and amortisation was £61 million lower due to the business

being classified as 'held for sale'.

Capital investment was £nil in 2024/25 compared to £85 million in 2023/24 as a result of the

business being classified as HFS and therefore only seven months of capital investment is included

for the comparative year.

**New England** 

Revenue in the New England segment increased by £358 million to £4,306 million. Adjusted operating

profit increased by £339 million to £982 million. Underlying net revenue increased by £223 million

principally reflecting increased rate case increments in Massachusetts Gas and Massachusetts Electric

and the impact of capital trackers (GSEP and GridMod). Regulated controllable costs increased by

£5 million with inflation and increased workload largely offset by efficiency savings. Provisions for bad

and doubtful debts were £17 million lower as a result of higher accounts receivable cash recoveries.

Depreciation and amortisation was £49 million higher as a result of increased capital investment.

Other costs were £37 million lower due to a reduced impact from deferrable storm costs, partly offset

by investment-related expense, property taxes and customer-funded works, and no repeat of the benefit

of a gain on a pension buyout in 2023/24.

Capital investment increased by £78 million to £1,751 million primarily due to higher electric capital

investment driven by asset conditioning and Advanced Metering Infrastructure (AMI) spend.

**New York** 

Revenue in the New York segment increased by £595 million to £6,689 million. Adjusted operating

profit increased by £163 million to £1,023 million. Underlying net revenue increased by £488 million

predominately driven by increased rates in KEDNY/KEDLI and in NIMO. Regulated controllable costs

were lower mainly due to workload and inflation increases being more than offset by cost efficiency

savings. Provisions for bad and doubtful debts increased by £45 million, driven by increased receivables,

in line with revenue increases. Depreciation and amortisation increased due to the growth in assets.

Other costs (on an underlying basis) decreased due to lower environmental costs, partially offset by

higher property taxes, driven by a higher asset base. Major storm costs were £52 million lower, but

still above our threshold to be excluded from underlying results.

Capital investment increased by £635 million to £3,289 million, due to a step up in gas capital investment

in KEDNY and KEDLI following increases approved in the rate case (mains replacement and other

mandated works) and along with higher electric investment in NIMO driven by the Climate Leadership

and Community Protection Act programme spend, in addition to higher AMI investment.

**National Grid Ventures (NGV)**

Revenue in the NGV segment increased by £8 million to £1,397 million. Adjusted operating profit

decreased by £89 million, as a result of lower UK interconnector performance and fewer renewable

projects being sold to our Emerald joint venture in the US.

Capital investment in NGV was £284 million lower than 2023/24 after completing Viking Link in the

comparative year along with no investment in NG Renewables or Grain LNG following the classification

of those businesses as 'held for sale' in 2023/24.

**Other activities**

In 2024/25, adjusted operating loss (including corporate costs) increased by £83 million to a £143 million

loss, primarily driven by higher fair value losses within our NG Partners portfolio and lower captive

insurance profits.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **250** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Shareholder information** | **Shareholder information** | **Shareholder information** |  |  |  |

---

**Equiniti**

For queries about ordinary shares:

---

| | |
|:---|:---|
| ![Arrow_phone icon.jpg](nggtf-20260331_g451.jpg) | Visit eq.shareview.co.uk/help for information regarding <br>your shareholding (from here you will also be able to email <br>a query securely).<br>|
| ![Info_phone icon.jpg](nggtf-20260331_g452.jpg) | **0800 169 7775**<br>This is a Freephone number from landlines within the UK; <br>mobile costs may vary. Lines are open 8:30am to <br>5:30pm, Monday to Friday, excluding public holidays. <br>If calling from outside the UK: +44 (0) 800 169 7775. Calls <br>from outside the UK will be charged at the applicable <br>international rate.<br>|
| ![Envelope_phone icon.jpg](nggtf-20260331_g453.jpg) | National Grid Share Register <br>Equiniti, Highdown House,<br>Yeoman Way, Worthing, <br>BN99 6DA<br>|

---

**The Bank of New York Mellon**

For queries about ADSs:

---

| | |
|:---|:---|
| ![Info_phone icon.jpg](nggtf-20260331_g452.jpg) | **1-888-269-2377** <br>If calling from outside the US: +1-201-680-6825<br>|
| ![Arrow_phone icon.jpg](nggtf-20260331_g451.jpg) | computershare.com/investor <br>Email: shrrelations@cpushareownerservices.com<br>|
| ![Envelope_phone icon.jpg](nggtf-20260331_g453.jpg) | BNY Shareowner Services <br>P.O. Box 43006<br>Providence RI 02940-3078<br>|

---

Further information about National Grid, including share price and

interactive tools, can be found on our website nationalgrid.com/

investors

**Beware of share fraud**

Investment scams are often sophisticated and difficult to spot.

Shareholders are advised to be wary of any unsolicited advice or

offers, whether over the telephone, through the post or by email. If

you receive any unsolicited communication, please check that the

company or person contacting you is properly authorised by the

Financial Conduct Authority (FCA) before getting involved. Be

ScamSmart and visit fca.org.uk/consumers/protect-yourself-scams.

You can report calls from unauthorised firms to the FCA by calling

0800 111 6768.

**Financial calendar**

The following dates have been announced or are indicative:

---

| | |
|:---|:---|
| 14 May 2026 | 2025/26 full-year results |
| 28 May 2026 | Ex-dividend date for 2025/26 final <br>dividend – ordinary shares<br>|
| 29 May 2026 | Ex-dividend date for 2025/26 final <br>dividend – ADRs<br>|
| 29 May 2026 | Record date for 2025/26 final dividend |
| 4 June 2026 | Scrip reference price announced for <br>2025/26 final dividend<br>|
| 15 June 2026 <br>(5:00 pm EDT)<br>| Scrip election date for 2025/26 final <br>dividend – ADRs<br>|
| 18 June 2026 <br>(5.00 pm BST)<br>| Scrip election date for 2025/26 final <br>dividend – ordinary shares<br>|
| 14 July 2026 | 2026 AGM  |
| 23 July 2026 | 2025/26 final dividend paid to qualifying <br>shareholders<br>|
| 05 November 2026 | 2026/27 half-year results |
| 19 November 2026 | Ex-dividend date for 2026/27 <br>interim dividend – ordinary shares<br>|
| 20 November 2026 | Ex-dividend date for 2026/27 interim <br>dividend – ADRs<br>|
| 20 November 2026 | Record date for 2026/27 interim <br>dividend<br>|
| 26 November 2026 | Scrip reference price announced for <br>2026/27 interim dividend<br>|
| 07 December 2026 <br>(5:00 pm EST)<br>| Scrip election date for 2026/27 interim <br>dividend – ADRs<br>|
| 10 December 2026 <br>(5.00 pm GMT)<br>| Scrip election date for 2026/27 interim <br>dividend – ordinary shares<br>|
| 12 January 2027 | 2026/27 interim dividend paid to <br>qualifying shareholders<br>|

---

**Dividends**

The Directors are recommending a final dividend of 32.14 pence per

ordinary share ($2.1738 per ADS) to be paid on 23 July 2026 to

shareholders on the register as at 29 May 2026. Further details on

dividend payments can be found on page 164. If you live outside the

UK, you may be able to request that your dividend payments are

converted into your local currency.

Under the Deposit agreement, a fee of up to $0.05 per ADS can be

charged for any cash distribution made to ADS holders, including

cash dividends. ADS holders who receive cash in relation to the

2025/26 final dividend will be charged a fee of $0.02 per ADS by the

Depositary prior to the distribution of the cash dividend.

**Chequeless dividends:** Since August 2022, all National Grid

dividends will be paid directly into bank or building society accounts

for ordinary shareholders. Please make sure you have completed and

returned a bank mandate form.

**Benefits include the following:**

–your dividend reaches your account on the payment day;

–it is a more efficient and secure way of receiving your payment;

and

–it helps reduce the volume of paper in dividend mailing.

**Scrip dividends – elect to receive your dividends as additional** 

**shares:** Join our Scrip Dividend Scheme; no stamp duty or

commission to pay. Further information can be found on our website

nationalgrid.com/investors/shareholder-information/dividends/scrip-

dividend-scheme

**Electronic communications**

Please register at shareview.co.uk. It only takes a few minutes to

register – just have your 11-digit Shareholder Reference Number to

hand. You will be sent an Activation Code to complete registration.

Once you have registered, you can elect to receive your shareholder

communications electronically.

**Registered office**

National Grid plc was incorporated on 11 July 2000. The Company is

registered in England and Wales No. 4031152, with its registered

office at 1–3 Strand, London, WC2N 5EH.

**Share dealing** 

**Postal share dealing:** Equiniti offers our European Economic Area

resident shareholders a share dealing service by post. This service is

available to private shareholders resident within the European

Economic Area, the Channel Islands or the Isle of Man. If you hold

your shares in CREST, you are not eligible to use this service. For

more information and to obtain a form, please visit shareview.co.uk or

call Equiniti on 0800 169 7775.

**Internet and telephone share dealing:** Equiniti also offers

telephone and online share dealing at live prices. For full details,

together with terms and conditions, please visit shareview.co.uk. You

can call Equiniti on 0345 603 7037 for further details, or to arrange a

trade. Lines are open Monday to Friday, 8:00am to 4:30pm for

dealing, and until 5:30pm for enquiries.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **251** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Shareholder information cont.** | **Shareholder information cont.** | **Shareholder information cont.** |  |  |  |

---

**ShareGift:** If you only have a small number of shares that would cost

more for you to sell than they are worth, you may wish to consider

donating them to ShareGift. ShareGift is a registered charity (No.

1052686) which specialises in accepting such shares as donations.

For more information, visit sharegift.org or contact Equiniti.

**Individual Savings Accounts (ISAs):** ISAs for National Grid shares

are available from Equiniti. For more information, visit eqi.co.uk or

contact Equiniti.

**Articles of Association** 

The following description is a summary of the material terms of our

Articles of Association (Articles) and applicable English law. It is

a summary only and is qualified in its entirety by reference to the

Articles.

The Company is proposing at the 2026 AGM to update the Articles to

take account of recent market changes, including in particular

reducing the time periods in respect of the sale of shares of

shareholders who cannot be traced and the forfeiture of unclaimed

dividends as well as to increase the borrowing limit in line with the

resolution approved by the Company's shareholders at the 2025

AGM. The Notice of Meeting for the 2026 AGM, which sets out

details of the proposed updates to the Articles, and the proposed

form of the updated Articles are available on the Company's website.

The Articles set out the Company's internal regulations. Copies are

available on our website at nationalgrid.com/corporate-governance

and upon request. Updates to the Articles have to be approved by at

least 75% of those voting at a general meeting of the Company.

Subject to company law and the Articles, the Directors may exercise

all the powers of the Company. They may delegate authorities and

decision-making and the day-to-day management to individual

Executive Directors and Committees on page 89.

**General** 

The Company is incorporated under the name National Grid plc and is

registered in England and Wales with registered number 4031152. Under

the Companies Act 2006, the Company's objects are unrestricted.

**Directors** 

Under the Articles, a Director must disclose any personal interest in a

matter and may not vote in respect of that matter, subject to certain

limited exceptions. As permitted under the Companies Act 2006, the

Articles allow non-conflicted Directors to authorise a conflict

or potential conflict for a particular matter. In doing so, the non-

conflicted Directors must act in a way they consider, in good faith, will

most likely promote the success of the Company for the benefit of

the shareholders as a whole.

The Directors (other than a Director acting in an executive capacity)

are paid fees for their services. In total, these fees must not exceed

£2 million per year, or any higher sum decided by an ordinary

resolution at a general meeting of shareholders. In addition, special

pay may be awarded to a Director who acts in an executive capacity,

serves on a committee, performs services which the Directors

consider to extend beyond the ordinary duties of a Director, devotes

special attention to the business of the Company, or goes or

lives abroad on the Company's behalf. Directors may also receive

reimbursement for expenses properly incurred and may be awarded

pensions and other benefits. The compensation awarded to the

Executive Directors is determined by the People & Remuneration

Committee. Further details of Directors' remuneration are set out in

the Directors' Remuneration Report (see pages 107-126).

The Directors may exercise all the powers of National Grid to borrow

money. However, the aggregate principal amount of all the Group's

borrowings outstanding at any time must not exceed £70 billion or

any other amount approved by shareholders by an ordinary resolution

at a general meeting.

Directors can be appointed or removed by the Board or shareholders

at a general meeting. Directors must stand for election at the first

AGM following their appointment to the Board. The Articles provide

that they must be recommended by the Board or the Company must

have received written confirmation of their willingness to act as

Director. Under the Articles, each Director must retire at least every

three years and be eligible for re-election should they wish to

continue to serve. In accordance with the Code, all Directors wishing

to continue in office currently offer themselves for re-election annually.

No person is disqualified from being a Director or is required to

vacate that office by reason of attaining a maximum age.

A Director is not required to hold shares in National Grid plc in order

to qualify as a Director.

**Rights, preferences and restrictions** 

**Dividend rights** 

National Grid may not pay any dividend otherwise than out of profits

available for distribution under the Companies Act 2006 and other

applicable provisions of English law. In addition, as a public company, the

Company may only make a distribution if, at the time of the distribution,

the amount of its net assets is not less than the aggregate of its called-up

share capital and undistributable reserves (as defined in the Companies

Act 2006), and to the extent that the distribution does not reduce the

amount of those assets to less than that aggregate. Ordinary

shareholders and ADS holders receive dividends.

Subject to these points, shareholders may, by ordinary resolution,

declare dividends in accordance with the respective rights of the

shareholders, but not exceeding the amount recommended by the

Board. The Board may pay interim dividends if it considers that the

Company's financial position justifies the payment. Any dividend or

interest unclaimed for 12 years from the date when it was declared or

became due for payment will be forfeited and revert to the Company,

and the Articles clarify that the Company may use such unclaimed

dividends for the Company's benefit as the Directors may think fit.

**Voting rights** 

Subject to any rights or restrictions attached to any shares and to any

other provisions of the Articles, at any general meeting on a show of

hands, every shareholder who is present in person will have one vote

and, on a poll, every shareholder will have one vote for every share

they hold. On a show of hands or poll, shareholders may cast votes

either personally or by proxy. A proxy need not be a shareholder.

Under the Articles, all substantive resolutions at a general meeting

must be decided on a poll and the Articles further provide that voting

on resolutions at a general meeting that is held at least in part using

an electronic platform must be decided on a poll. Ordinary

shareholders and ADS holders can vote at general meetings.

**Liquidation rights** 

In a winding up, a liquidator may (in each case with the sanction of a

special resolution passed by the shareholders and any other sanction

required under English law): (1) divide among the shareholders the whole

or any part of National Grid's assets (whether the assets are of the same

kind or not) – the liquidator may, for this purpose, value any assets and

determine how the division should be carried out as between

shareholders or different classes of shareholders; or (2) transfer any

part of the assets to Trustees on trust for the benefit of the shareholders

as the liquidator determines. In neither case will a shareholder be

compelled to accept assets upon which there is a liability.

**Restrictions** 

There are no restrictions on the transfer or sale of ordinary shares. Some

of the Company's employee share plans, details of which are contained in

the Directors' Remuneration Report starting on page 107, include

restrictions on the transfer of ordinary shares while the ordinary shares are

subject to the plan. Where, under an employee share plan operated by

the Company, participants are the beneficial owners of the ordinary

shares but not the registered owner, the voting rights may be exercised

by the registered owner at the direction of the participant. Treasury shares

do not attract a vote or dividends.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **252** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Shareholder information cont.** | **Shareholder information cont.** | **Shareholder information cont.** |  |  |  |

---

**Variation of rights**

Subject to applicable provisions of English law, the rights attached to

any class of shares of National Grid may be varied or cancelled. This

must be with the written consent of the holders of three quarters in

nominal value of the issued shares of that class, or with the sanction

of a special resolution passed at a separate meeting of the holders of

the shares of that class.

**General meetings** 

AGMs must be convened each year within six months of the

Company's accounting reference date upon 21 clear days' advance

written notice. Under the Articles, any other general meeting may

be convened provided at least 14 clear days' written notice is given,

subject to annual approval of shareholders. In certain limited

circumstances, the Company can convene a general meeting by

shorter notice. The notice must specify, among other things, the

nature of the business to be transacted and the place, the date and

the time of the meeting. The 2026 AGM will be held as a combined

physical and electronic meeting. Shareholders should monitor our

website at nationalgrid.com/investors for any updates to the

arrangements for the AGM.

**Rights of non-residents** 

There are no restrictions under the Articles that would limit the rights of

persons not resident in the UK to vote in relation to ordinary shares.

**Depositary payments to the Company**

The Bank of New York Mellon (the 'Depositary') reimburses the Company

for certain expenses it incurs in relation to the ADS programme, which

consist of the expenses for the mailing of annual financial reports, printing

and distributing dividend cheques, the electronic filing of US federal tax

information, mailing required tax forms, stationery, postage, facsimiles

and telephone calls. It also reimburses the Company for certain investor

relationship programmes or special investor relations promotional

activities. There are limits on the amount of expenses for which the

Depositary will reimburse the Company, but the amount of

reimbursement is not necessarily tied to the amount of fees the

Depositary collects from investors.

For the period 15 May 2025 to 13 May 2026, the Company received

a total of $2,941,910.67 in reimbursements from the Depositary

consisting of $1,346,701.21, $437,071.50, $740,074.46 and

$418,063.50 received on 3 September 2025, 17 November 2025, 5

February 2026 and 15 April 2026 respectively. Fees that are charged

on cash dividends will be apportioned between the Depositary and

the Company. Any questions from ADS holders should be directed to

the Depositary at the contact details on page [250](#i39c083f7223e44388d99dfa58a33ab00_367).

**Description of securities other than equity securities:** 

**Depositary fees and charges** 

The Depositary collects fees by deducting them from the amounts

distributed or by selling a portion of distributable property for:

–delivery and surrender of ADSs directly from investors depositing

shares or surrendering ADSs for the purpose of withdrawal or from

intermediaries acting for them; and

–making distributions to investors (including, it is expected, cash

dividends).

The Depositary may generally refuse to provide fee-attracting services

until its fees for those services are paid.

The Company's Deposit agreement under which the ADSs are issued

allows a fee of up to $0.05 per ADS to be charged for any cash

distribution made to ADS holders, including cash dividends. ADS

holders who receive cash in relation to the 2025/26 final dividend will

be charged a fee of $0.02 per ADS by the Depositary prior to

distribution of the cash dividend.

---

| | |
|:---|:---|
| **Persons depositing or** <br>**withdrawing shares must pay:**<br>| **For:** |
| $5.00 per 100 ADSs <br>(or portion of 100 ADSs)<br>| Issuance of ADSs, including issuances <br>resulting from a distribution of shares or <br>rights or other property; cancellation of <br>ADSs for the purpose of withdrawal, <br>including if the Deposit agreement <br>terminates; and distribution of securities <br>distributed to holders of deposited <br>securities that are distributed by the <br>Depositary to ADS holders.<br>|
| Registration or transfer fees | Transfer and registration of shares on <br>our share register to or from the name of <br>the Depositary or its agent when they <br>deposit or withdraw shares.<br>|
| Expenses of the Depositary | Cable, telex and facsimile transmissions <br>(when expressly provided in the Deposit <br>agreement); and converting foreign <br>currency to dollars.<br>|
| Taxes and other governmental <br>charges the Depositary or the <br>Custodian has to pay on any <br>ADS or share underlying an <br>ADS – for example, stock <br>transfer taxes, stamp duty or <br>withholding taxes<br>| As necessary. |

---

**Documents on display**

National Grid is subject to the US SEC reporting requirements for

foreign companies. The Company's Form 20-F and other filings can

be viewed on the website as well as the SEC website at sec.gov.

**Events after the reporting period**

A post balance sheet event occurred. Please see note 36 on page

211 for details.

**Exchange controls**

There are currently no UK laws, decrees or regulations that restrict

the export or import of capital, including, but not limited to, foreign

exchange control restrictions, or that affect the remittance of

dividends, interest or other payments to non-UK resident holders of

ordinary shares except as otherwise set out in Taxation on pages [253](#i31b6aae3be9e4df1aabbf2a5344cb727_37556)

to [255](#i31b6aae3be9e4df1aabbf2a5344cb727_37561) and except in respect of the governments of and/or certain

citizens, residents or bodies of certain countries (described in

applicable Bank of England Notices or European Union Council

Regulations in force as at the date of this document).

**Share information**

National Grid ordinary shares are listed on the London Stock

Exchange under the symbol NG. The ADSs are listed on the New

York Stock Exchange under the symbol NGG.

As at 13 May 2026, the share capital of the Company consists of

5,198,968,690 ordinary shares of 12<sup>204</sup>⁄473 pence nominal value each

and ADSs, which represent five ordinary shares each.

**Disclosure of interests**

Under the Companies Act 2006, National Grid may, by written notice,

require a person whom it has reasonable cause to believe to be or to

have been, in the last three years, interested in its shares to provide

additional information relating to that interest. Under the Articles,

failure to provide such information may result in a shareholder losing

their rights to attend, vote or exercise any other right in relation to

shareholders' meetings.

Other than as stated below as far as we are aware, there are no

persons with significant direct or indirect holdings in the Company.

Information provided pursuant to FCA's DTR is published on the

Regulatory Information Service and on the Company's website.

The UK City Code on Takeovers and Mergers imposes strict

disclosure requirements regarding dealings in the securities of an

offeror or offeree company, and also on their respective associates,

during the course of an offer period. Other regulators in the UK, US

and elsewhere may have, or assert, notification or approval rights

over acquisitions or transfers of shares.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **253** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Shareholder information cont.** | **Shareholder information cont.** | **Shareholder information cont.** |  |  |  |

---

**Material interests in shares**

As at 31 March 2026, National Grid plc had received notice, under

the DTRs, in respect of the following holdings of 3% or more of the

voting rights in its issued ordinary share capital:

---

| | | | |
|:---|:---|:---|:---|
|  | Number of <br>ordinary shares<br>| % of voting <br>rights<sup>1</sup><br>| Date of last notification of <br>interest<br>|
| BlackRock, Inc. | 406584816 | 8.17 | 25 November 2025 |
| The Capital Group <br>Companies, Inc.<br>| 182521721 | 4.99 | 7 September 2022 |

---

1. This number is calculated in relation to the issued share capital at the time the holding

was disclosed.

As at 13 May 2026, no further notifications have been received.

The rights attached to ordinary shares are detailed on page [251](#i31b6aae3be9e4df1aabbf2a5344cb727_37558). All

ordinary shares and all major shareholders have the same voting

rights. The Company is not, to the best of its knowledge, directly or

indirectly controlled.

**Authority to purchase shares**

Shareholder approval was given at the 2025 AGM to purchase up to

10% of the Company's share capital (being 490,143,652 ordinary

shares). The Directors will seek shareholder approval to renew this

authority at the 2026 AGM.

In some circumstances, the Company may find it advantageous to

have the authority to purchase its own shares in the market, where

the Directors believe this would be in the interests of shareholders

generally. The Directors believe that it is an important part of the

financial management of the Company to have the flexibility to

repurchase issued shares to manage its capital base, including

actively managing share issuances from the operation of the Scrip

Dividend Scheme. It is expected that repurchases to manage share

issuances under the Scrip Dividend Scheme will not exceed 2.5% of

the issued share capital (excluding treasury shares) per annum.

When purchasing shares, the Company has taken, and will continue

to take, into account market conditions prevailing at the time, other

investment and financing opportunities, and the overall financial

position of the Company.

At the 2025 AGM, the Company sought authority to purchase

ordinary shares in the capital of the Company as part of the

management of the dilutive effect of share issuances under the Scrip

Dividend Scheme. During the year, the Company did not purchase

any of its own shares, and does not expect to do so while delivering

strong asset growth.

---

| | | | |
|:---|:---|:---|:---|
|  | Number of <br>shares<br>| Total <br>nominal <br>value<br>| % of called <br>up share <br>capital<br>|
| Shares held in <br>Treasury purchased <br>in prior years<sup>1</sup><br>| 235493935 | £29,274,933.15<br><sup>2</sup> | 4.59<br><sup>1</sup> |
| Shares purchased <br>and held in Treasury <br>during the year<br>|  |  |  |
| Shares transferred <br>from Treasury during <br>the year <br>(to employees under <br>employee share <br>plans)<br>| 9952077 | £1,237,171.52<br><sup>2</sup> | 0.19<br><sup>3</sup> |
| Maximum number of <br>shares held in <br>Treasury during the <br>year<sup>4</sup><br>| 235493935 | £29,274,933.15<br><sup>2</sup> | 4.53<br><sup>3</sup> |

---

1. Called-up share capital: 5,132,617,708, ordinary shares as at 31 March 2025.

2. Nominal value: 12<sup>204</sup>⁄473 pence per ordinary share.

3. Called-up share capital: 5,198,968,690 ordinary shares as at the date of this report.

4. Maximum number of shares held in Treasury during the year as at 31 March 2026.

As at 13 May 2026, the Company's issued share capital comprised

5,198,968,690 ordinary shares including 223,323,555 ordinary

shares held in treasury. This represented 4.30% of the Company's

called-up share capital.

**Authority to allot shares**

Shareholder approval was given at the 2025 AGM to allot shares of

up to one third of the Company's share capital. The Directors are

seeking a similar authority this year. The Directors consider that the

Company will have sufficient flexibility with this level of authority to

respond to market developments and that this authority is in line with

investor guidelines.

The Directors currently have no intention of issuing new shares, or of

granting rights to subscribe for or to convert any security into shares,

except in relation to, or in connection with, the operation and

management of the Company's Scrip Dividend Scheme and the

exercise of options under the Company's employee share plans. No

issue of shares will be made that would effectively alter control of the

Company without the sanction of shareholders in a general meeting.

The Company expects to actively manage the dilutive effect of share

issuance arising from the operation of the Scrip Dividend Scheme. In

some circumstances, additional shares may be allotted to the market

for this purpose under the authority provided by this resolution. Under

these circumstances, it is expected that the associated allotment of

new shares (or rights to subscribe for or convert any security into

shares) will not exceed 1% of the issued share capital (excluding

treasury shares) per annum.

**Dividend waivers** 

The Trustee of the National Grid Employee Share Trust, which is

independent of the Company, waived the right to dividends paid during

the year. They have also agreed to waive the right to future dividends, in

relation to the ordinary shares and ADSs held by the Trust.

Under the Company's ADS programme, the right to dividends in

relation to the ordinary shares underlying the ADSs was waived

during the year, under an arrangement whereby the Company pays

the monies to satisfy any dividends separately to the Depositary for

distribution to ADS holders entitled to the dividend. This arrangement

is expected to continue for future dividends.

**Shareholder analysis**

The following table includes a brief analysis of shareholder numbers

and shareholdings as at 31 March 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Number of <br>shareholders<br>| % of <br>shareholders<sup>1</sup><br>| Number <br>of shares<br>| % of <br>shares<sup>1</sup><br>|
| 1 – 50 | 110405 | 19.40 | 3400650 | 0.07 |
| 51 – 100 | 139365 | 24.49 | 9787504 | 0.19 |
| 101 – 500 | 240965 | 42.35 | 51388316 | 0.99 |
| 501 – 1000 | 37655 | 6.62 | 26132299 | 0.50 |
| 1001 – 10000 | 37516 | 6.59 | 93592577 | 1.80 |
| 10001 – 50000 | 1830 | 0.32 | 33774743 | 0.65 |
| 50001 – 100000 | 237 | 0.04 | 16867357 | 0.32 |
| 100001 – 500000 | 476 | 0.08 | 116492275 | 2.24 |
| 500001 – <br>1000000<br>| 175 | 0.03 | 125170494 | 2.41 |
| 1,000,001+ | 358 | 0.06 | 4722362475 | 90.83 |
| **Total** | **568982** | **100** | **5198968690** | **100** |

---

1. Percentages have been rounded to two decimal places.

**Taxation**

This section provides information about certain US federal income tax

and UK tax consequences for US Holders (defined below) of owning

ADSs and ordinary shares. A US Holder is the beneficial owner of

ADSs or ordinary shares who:

–is for US federal income tax purposes (1) an individual citizen or

resident of the US; (2) a corporation created or organised under

the laws of the US, any state thereof or the District of Columbia;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **254** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Shareholder information cont.** | **Shareholder information cont.** | **Shareholder information cont.** |  |  |  |

---

(3) an estate, the income of which is subject to US federal income

tax without regard to its source; or (4) a trust, if a court within the

US is able to exercise primary supervision over the administration

of the trust and one or more US persons have the authority to

control all substantial decisions of the trust, or the trust has elected

to be treated as a domestic trust for US federal income tax

purposes;

–is not resident in the UK for UK tax purposes; and

–does not hold ADSs or ordinary shares in connection with the

conduct of a business or the performance of services in the UK

or otherwise in connection with a branch, agency or permanent

establishment in the UK.

This section is not a comprehensive description of all the US federal

income tax and UK tax considerations that may be relevant to any

particular investor (including consequences under the US alternative

minimum tax or net investment income tax). Neither does it address

state, local or other tax laws. National Grid has assumed that

shareholders, including US Holders, are familiar with the tax rules

applicable to investments in securities generally and with any special

rules to which they may be subject. This discussion deals only with

US Holders who hold ADSs or ordinary shares as capital assets. It

does not address the tax treatment of investors who are subject to

special rules. Such investors may include:

–financial institutions;

–insurance companies;

–dealers in securities or currencies;

–investors who elect mark-to-market treatment;

–entities treated as partnerships or other pass-through entities and

their partners;

–individual retirement accounts and other tax-deferred accounts;

–tax-exempt organisations;

–investors who own (directly or indirectly) 10% or more of our

shares (by vote or value);

–investors who hold ADSs or ordinary shares as a position in a

straddle, hedging transaction or conversion transaction;

–individual investors who have ceased to be resident in the UK for a

period of five years or less;

–persons who have ceased to be US citizens or lawful permanent

residents of the US; and

–US Holders whose functional currency is not the US dollar.

The statements regarding US and UK tax laws and administrative

practices set forth below are based on laws, treaties, judicial

decisions and regulatory interpretations that were in effect on the

date of this document. These laws and practices are subject to

change without notice, potentially with retroactive effect. In addition,

the statements set forth below are based on the representations of

the Depositary and assume that each party to the Deposit agreement

will perform its obligations thereunder in accordance with its terms.

US Holders of ADSs generally will be treated as the owners of the

ordinary shares represented by those ADSs for US federal income tax

purposes. For the purposes of the Tax Convention, the Estate Tax

Convention and UK tax considerations, this discussion assumes that

a US Holder of ADSs will be treated as the owner of the ordinary

shares represented by those ADSs. HMRC has stated that it will

continue to apply its longstanding practice of treating a holder of

ADSs as holding the beneficial interest in the ordinary shares

represented by the ADSs; however, we note that this is an area of

some uncertainty and may be subject to change.

US Holders should consult their own advisors regarding the tax

consequences of buying, owning and disposing of ADSs or ordinary

shares depending on their particular circumstances, including the

effect of any state, local or other tax laws.

**Taxation of dividends** 

The UK does not currently impose a withholding tax on dividends

paid to US Holders.

US Holders should assume that any cash distribution paid by the

Depositary for ADSs with respect to ADSs or ordinary shares will be

reported as dividend income for US federal income tax purposes.

While dividend income received from non-US corporations is

generally taxable to a non-corporate US Holder as ordinary income

for US federal income tax purposes, dividend income received by a

non-corporate US Holder from us generally will be taxable at the

same favourable rates applicable to long-term capital gains provided

(1) either: (a) we are eligible for the benefits of the Tax Convention or

(b) ADSs or ordinary shares are treated as 'readily tradable' on an

established securities market in the US; and (2) we are not, for our

taxable year during which the dividend is paid or the prior year, a

passive foreign investment company for US federal income

tax purposes, and certain other requirements are met. We expect

that our shares will be treated as 'readily tradable' on an established

securities market in the US as a result of the trading of ADSs on the

New York Stock Exchange (NYSE). We also believe we are eligible for

the benefits of the Tax Convention.

Based on our audited financial statements and the nature of our business

activities, we believe that we were not treated as a Passive Foreign

Investment Company (PFIC) for US federal income tax purposes with

respect to our taxable year ended 31 March 2026. In addition, based on

our current expectations regarding the value and nature of our assets, the

sources and nature of our income, and the nature of our business

activities, we do not anticipate becoming a PFIC in the foreseeable future.

Dividends received by corporate US Holders with respect to ADSs or

ordinary shares will not be eligible for the dividends-received

deduction that is generally allowed to corporations.

**Taxation of capital gains** 

Subject to specific rules relating to assets that derive at least 75% of

their value from UK land, US Holders will not be subject to UK

taxation on any capital gain realised on the sale or other disposition of

ADSs or ordinary shares.

Provided that we are not a PFIC for any taxable year during which a

US Holder holds their ADSs or ordinary shares, upon a sale or other

taxable disposition of ADSs or ordinary shares, a US Holder generally

will recognise a capital gain or loss for US federal income tax

purposes that is equal to the difference between the US dollar value

of the amount realised on the sale or other taxable disposition and

the US Holder's adjusted tax basis in the ADSs or ordinary shares.

Such capital gain or loss generally will be long-term capital gain or

loss if the ADSs or ordinary shares were held for more than one year.

For non-corporate US Holders, long-term capital gain is generally

taxed at a lower rate than ordinary income. A US Holder's ability to

deduct capital losses is subject to significant limitations.

**US information reporting and backup withholding tax** 

Dividend payments made to US Holders and proceeds paid from the

sale or other taxable disposition of ADSs or ordinary shares to US

Holders may be subject to information reporting to the US Internal

Revenue Service. Such payments may be subject to backup

withholding taxes if the US Holder fails to provide an accurate

taxpayer identification number or certification of exempt status or fails

to comply with applicable certification requirements.

US Holders should consult their tax advisors about these rules and

any other reporting obligations that may apply to the ownership

or disposition of ADSs or ordinary shares. Such obligations include

reporting requirements related to the holding of certain foreign

financial assets.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **255** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Shareholder information cont.** | **Shareholder information cont.** | **Shareholder information cont.** |  |  |  |

---

**UK stamp duty and stamp duty reserve tax (SDRT)**

**Transfers of ordinary shares**

SDRT at the rate of 0.5% of the amount or value of the consideration

will generally be payable on any agreement to transfer ordinary

shares that is not completed using a duly stamped instrument of

transfer (such as a stock transfer form).

The SDRT liability will be cancelled where an instrument of transfer is

executed and duly stamped before the expiry of the six-year period

beginning with the date on which the agreement is made. If a claim is

made within the specified period, any SDRT which has been paid will

be refunded. SDRT is due whether or not the agreement or transfer is

made or carried out in the UK and whether or not any party to that

agreement or transfer is a UK resident.

Purchases of ordinary shares completed using a stock transfer form

will generally result in a UK stamp duty liability at the rate of 0.5%

(rounded up to the nearest £5) of the amount or value of the

consideration. Paperless transfers under the CREST paperless

settlement system will generally be liable to SDRT at the rate of 0.5%,

and not stamp duty. SDRT is generally the liability of the purchaser,

and UK stamp duty is usually paid by the purchaser or transferee.

**Transfers of ADSs**

No UK stamp duty will be payable on the acquisition or transfer of

existing ADSs or beneficial ownership of ADSs (in each case in the

form of ADRs), provided that any instrument of transfer or written

agreement to transfer is executed outside the UK and remains at all

times outside the UK.

An agreement for the transfer of ADSs in the form of ADRs will not

result in an SDRT liability. A charge to stamp duty or SDRT may arise

on the transfer of ordinary shares to the Depositary or The Bank of

New York Mellon as agent of the Depositary (the 'Custodian').

The rate of stamp duty or SDRT will generally be 1.5% of the value of

the consideration or, in some circumstances, the value of the ordinary

shares concerned. However, there is no 1.5% SDRT charge on the

issue of ordinary shares (or, where a transfer is made in the course of

a 'capital raising arrangement', being arrangements pursuant to

which securities are issued by a company for the purpose of raising

new capital) to the Depositary or the Custodian.

The Depositary will generally be liable for the stamp duty or SDRT. Under

the terms of the Deposit agreement, the Depositary will charge any tax

payable by the Depositary or the Custodian (or their nominees) on the

deposit of ordinary shares to the party to whom the ADSs are delivered

against such deposits. If the stamp duty is not a multiple of £5, the duty

will be rounded up to the nearest multiple of £5.

**UK inheritance tax**

An individual who is domiciled in the US for the purposes of the

Estate Tax Convention and who is not a UK national for the purposes

of the Estate Tax Convention will generally not be subject to UK

inheritance tax in respect of (1) the ADSs or ordinary shares on the

individual's death or (2) a gift of the ADSs or ordinary shares during

the individual's lifetime. This is not the case where the ADSs

or ordinary shares are part of the business property of the individual's

permanent establishment in the UK or relate to a fixed base in the UK

of an individual who performs independent personal services.

Special rules apply to ADSs or ordinary shares held in trust. In the

exceptional case where the ADSs or shares are subject both to UK

inheritance tax and to US federal gift or estate tax, the Estate Tax

Convention generally provides for the tax paid in the UK to be

credited against tax paid in the US or vice versa.

**Capital Gains Tax (CGT) for UK resident shareholders**

You can find CGT information relating to National Grid shares for UK

resident shareholders on the investors section of our website

nationalgrid.com/investors.

Share prices on specific dates are also available on our website.

**All-employee share plans**

The Company has a number of all-employee share plans as

described below, which operated during the year. These allow UK-

or US-based employees to participate in tax-advantaged plans and

to become shareholders in National Grid.

**UK Sharesave**

UK employees are eligible to participate in the Sharesave Plan. Under

this plan, participants may contribute between £5 and £500 each

month, for a fixed period of three years, five years, or both.

Contributions are taken from net salary. At the end of the fixed

period, participants may use their savings to purchase ordinary

shares in National Grid plc at a 20% discounted option price, which is

set at the time of each Sharesave launch.

**UK Share Incentive Plan (SIP)** 

UK employees are eligible to participate in the SIP. Contributions up

to £150 per month are deducted from participants' gross salary and

used to purchase National Grid plc ordinary shares each month. The

shares are placed in a UK resident trust and are available to

the individual with tax advantages after a five-year period.

**US Employee Stock Purchase Plan (ESPP)**

Employees of National Grid's participating US companies are eligible

to participate in the ESPP (commonly referred to as a 423(b) plan).

Eligible employees have the opportunity to purchase ADSs in National

Grid on a monthly basis at a 15% discount to the Fair Market Value

(FMV). Under the plan, employees may contribute up to 20% of

base pay each year, up to a maximum annual contribution of

$21,250, to purchase $25,000 worth of ADSs at FMV.

**US Incentive Thrift Plan**

The Thrift Plan is open to substantially all US employees of

participating National Grid companies; this is a tax-advantaged

savings plan (commonly referred to as a 401(k) plan). This is a defined

contribution pension plan that gives participants the opportunity to

invest up to applicable federal salary limits. Contribution limits for

calendar year 2025 were: for pre-tax contributions or Roth 401(k)

after tax contributions, a maximum of 50% of salary limited to

$23,500 for those under the age of 50 and $31,000 for those aged

50 and above (except this limit was $34,750 for those aged 60-63);

and for post-tax contributions, up to 15% of salary. The total amount

of employee contributions (pre-tax, Roth 401(k) and post-tax) could

not exceed 50% of compensation. The total amount of employee and

employer contributions collectively were subject to the federal annual

contribution limit of $70,000 for those under the age of 50 and

$77,500 for those aged 50 and above (except this limit is $81,250 for

those aged 60 to 63). For calendar year 2026, participants may

contribute, up to the applicable federal salary limits: for pre-tax

contributions or Roth 401(k) after tax contributions, a maximum of

50% of salary limited to $24,500 for those under the age of 50 and

$32,500 for those aged 50 and above (except this limit is $35,750 for

those aged 60 to 63); and for post-tax contributions, up to 15% of

salary. The total amount of employee contributions (pre-tax, Roth

401(k) and post-tax) may not exceed 50% of compensation. The total

amount of employee and employer contributions collectively, in 2026,

are subject to the federal annual contribution limit of $72,000 for

those under the age of 50, and $80,000 for those aged 50 and above

(except this limit is $83,250 for those aged 60 to 63).

New contributions or exchanges into the National Grid ADR Fund

within the plan are limited to 20% of a participant's account balance.

---

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|:---|:---|:---|:---|:---|:---|
| **National Grid plc** Annual Report and Accounts 2025/26 | **256** | Strategic Report | Corporate Governance | Financial Statements | **Additional Information** |
| **Definitions and glossary of terms**  | **Definitions and glossary of terms**  | **Definitions and glossary of terms**  |  |  |  |

---

Our aim is to use plain English in this

Annual Report and Accounts. However,

where necessary, we do use a number of

technical terms and abbreviations.

We summarise the principal ones below,

together with an explanation of their

meanings. The descriptions below are not

formal legal definitions. Alternative

and regulatory performance measures are

defined on pages [236](#i39c083f7223e44388d99dfa58a33ab00_361) to [247](#i592addd8bb7a41d2ba80c4f11374d91c_32543).

**A**

**Adjusted interest**

A measure of the interest charge of the Group, calculated by making

adjustments to the Group reported interest charge.

**Adjusted net debt**

A measure of the indebtedness of the Group, calculated by making

adjustments to the Group reported borrowings, including

adjustments made to include elements of pension deficits and

exclude elements of hybrid debt financing.

**Adjusted results** 

Financial results excluding the impact of exceptional items and

remeasurements that are treated as discrete transactions under

IFRS and can accordingly be classified as such.

**American Depositary Shares (ADSs)** 

Securities of National Grid listed on the NYSE each of which

represents five ordinary shares. They are evidenced by American

Depositary Receipts or ADRs.

**Annual General Meeting (AGM)**

Meeting of shareholders of the Company held each year to consider

ordinary and special business as provided in the Notice of AGM.

**ASTI**

The Accelerated Strategic Transmission Investment framework to

connect 50GW of offshore generation by 2030, announced by Ofgem

in December 2022. The six Wave 1 ASTI projects, currently in

construction, comprise Eastern Green Link 1, Eastern Green Link 2,

Bramford to Twinstead, Yorkshire Green, North London

Reinforcements and Tilbury to Grain.

**B**

**bps**

Basis point (bp) is a unit that is equal to 1/100th of 1% and is typically

used to denote the movement in a percentage-based metric such as

interest rates or RoE. A 0.1% change in a percentage represents 10

basis points.

**Board**

The Board of Directors of the Company (for more information, see

pages 91 to 93).

**BritNed**

BritNed Development Limited, the joint venture company operating

the BritNed interconnector between The Netherlands and Great

Britain, commissioned in 2011, in which National Grid and TenneT,

the Dutch national transmission operator, each hold 50% of the

shares.

**BSUoS**

Balancing Service Use of System (charges) are revenues collected by

NESO and regulated by Ofgem.

**C**

**Called-up share capital**

Shares (common stock) that have been issued and have been fully

paid for.

**Capital tracker**

In the context of our US rate plans, this is a mechanism that allows

the recovery of the revenue requirement of incremental capital

investment above that embedded in base rates, including

depreciation, property taxes and a return on the incremental

investment.

**Carrying value**

The amount at which an asset or a liability is recorded in the Group's

statement of financial position and the Company's balance sheet.

**Clean energy, clean power, clean generation**

We use these terms in relation to energy, power or generation which

when used or produced, creates little or no GHG emissions.

**Climate Transition Plan (CTP)** 

The plan sets out our actions to meet our Group GHG reduction

targets by 2030. We have committed to update the plan every three

years (minimum).

**The Company, the Group, National Grid, we, our or us**

We use these terms to refer to either National Grid plc itself or to

National Grid plc and/or all or certain of its subsidiaries, depending

on context.

**Compound annual growth rate (CAGR)**

The annualised rate of return representing the growth of an

investment from its initial value to its final value over a defined period,

assuming reinvestment of returns.

**Consolidated financial statements**

Financial statements that include the results and financial position of

the Company and its subsidiaries together as if they were

a single entity.

**Constant currency**

Constant currency basis refers to the reporting of the actual results

against the results for the same period last year, which, in respect of

any US$ currency denominated activity, have been translated using

the average US$ exchange rate for the year ended 31 March 2026,

which was $1.34332 to £1. The average rate for the year ended 31

March 2025 was $1.26637 to £1, for the year ended 31 March 2024

was $1.2624 to £1, and for the year ended 31 March 2023 was

$1.2156 to £1. Assets and liabilities as at 31 March 2025 have been

retranslated at the closing rate at 31 March 2026 of $1.3231 to £1.

The closing rate for the balance sheet date 31 March 2025 was

$1.29160 to £1.

**Contingent liabilities**

Possible obligations or potential liabilities arising from past events for

which no provision has been recorded, but for which disclosure in the

financial statements is made.

**COP30**

The 30th UN Climate Change Conference of the Parties held in

Belém, in Brazil, in November 2025 at which the Company gave

various keynote speeches.

**CPIH**

The UK Consumer Prices Index including Owner Occupiers' Housing

Costs as published by the Office for National Statistics.

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**D**

**DB**

Defined benefit, relating to our UK or US (as the context requires) final

salary pension schemes.

**Deferred tax**

For most assets and liabilities, deferred tax is the amount of tax that

will be payable or receivable in respect of that asset or liability

in future tax returns as a result of a difference between the carrying

value for accounting purposes in the statement of financial position or

balance sheet and the value for tax purposes of the same asset or

liability.

**Deposit agreement**

The amended and restated Deposit agreement entered into between

National Grid plc, the Depositary and all the registered holders of

ADRs, pursuant to which ADSs have been issued, dated 23 May

2013, and any related agreement.

**Depositary**

The Bank of New York Mellon acting as ADS Depositary.

**Derivative**

A financial instrument or other contract where the value is linked to an

underlying index, such as exchange rates, interest rates or

commodity prices. In most cases, we exclude contracts for the sale

or purchase of commodities that are used to supply customers or for

our own needs from this definition.

**DESNZ**

The Department for Energy Security and Net Zero, the UK

Government department established in February 2023 and focused

on energy security, climate change and the transition to a low-carbon

economy.

**Directors/Executive Directors/Non-executive Directors**

The Directors, Executive Directors and Non-executive Directors of

the Company, whose names are set out on pages 91 to 93 of

this document.

**Distributed energy resources (DER)**

Decentralised assets, generally located behind the meter, covering a

range of technologies including solar, storage, electric vehicle

charging, district heating, smart street lighting and combined heat

and power.

**Dollars or $**

Except as otherwise noted, all references to dollars or $ in this Annual

Report and Accounts relate to the US currency.

**DSO**

Distribution System Operator.

**Dth**

Decatherm, being an amount of energy equal to 1 million British

thermal units (BTUs), equivalent to approximately 293 kWh.

**E**

**Earnings per share (EPS)**

Profit for the year attributable to equity shareholders of the Company

allocated to each ordinary share.

**Employee engagement**

A key performance indicator (KPI), based on the percentage of

favourable responses to certain indicator questions repeated in each

employee survey. We currently perform two Company-wide

employee surveys each year. It is used to measure how employees

think, feel and act in relation to National Grid. Research shows that a

highly engaged workforce leads to increased productivity and

employee retention. We use employee engagement as a measure of

organisational health in relation to business performance.

**Employee Resource Group (ERG)**

A voluntary, employee-led group whose aim is to foster an inclusive

workplace, aligned with the organisations they serve.

**Estate Tax Convention**

The convention between the US and the UK for the avoidance of

double taxation with respect to estate and gift taxes.

**F**

**FERC**

The US Federal Energy Regulatory Commission.

**Financial year**

For National Grid this is an accounting year ending on 31 March.

Also known as a fiscal year.

**FRS**

A UK Financial Reporting Standard as issued by the UK Financial

Reporting Council (FRC). It applies to the Company's individual

financial statements on pages 212 to 218, which are prepared in

accordance with FRS 101.

**Funds from Operations (FFO)**

A measure used by the credit rating agencies of the operating cash

flows of the Group after interest and tax but before capital

investment.

**G**

**Grain LNG**

Grain LNG Limited, which together with another former National Grid

Subsidiary, Thamesport Interchange Limited, was sold to a joint

venture of Centrica plc and Energy Capital Partners, part of

Bridgepoint Group plc, effective 28 November 2025.

**Great Britain (GB)**

England, Wales and Scotland.

**Green capital expenditure (green capex)**

Capital expenditure invested in decarbonisation of energy systems

and considered to be aligned with the principles of the EU Taxonomy

legislation at the date of reporting for climate change mitigation and

adaptation activities. Green capital expenditure excludes any capital

prepayments and equity investments in joint ventures and associates.

**Green** 

Green refers to any economic activity aligned to the EU Taxonomy

Climate Change Delegation Act, which includes climate change

adaptation and mitigation requirements. (Full alignment assessment

can be found in our latest EU Taxonomy report.)

**Grid for Good** 

Our flagship programme wherein we work with our supply chain and

other partners to benefit local communities.

**Gridtern** 

This is the term we use to describe our paid summer interns who

work for the Company in the US from May/June through to August

each year.

**Group Principal Risk (GPR)**

A principal risk faced by the Company as monitored and assessed by

the Board, details of which are set out on pages 31 to 36.

**GW**

Gigawatt, an amount of power equal to 1 billion watts (10<sup>9</sup> watts).

**GWh**

Gigawatt hours, an amount of energy equivalent to delivering 1 billion

watts (10<sup>9</sup> watts) of power for a period of one hour.

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**H**

**HMRC**

HM Revenue & Customs, the UK tax authority.

**HVDC**

High-voltage, direct-current electric power transmission that uses

direct current for the bulk transmission of electrical power, in contrast

to the more common alternating current systems.

**I**

**IFA** 

Interconnection France Angleterre, also referred to as IFA1, the first

interconnector between France and Great Britain which was

commissioned in 1986, operated by National Grid and RTE, the

French national transmission operator.

**IFA2**

The second interconnector between France and Great Britain, which

was commissioned in 2020, operated by National Grid and RTE, the

French national transmission operator.

**IAS or IFRS**

An International Accounting Standard (IAS) or International Financial

Reporting Standard (IFRS), as issued by the International Accounting

Standards Board (IASB). IFRS is also used as the term to describe

international generally accepted accounting principles as a whole.

**Individual financial statements**

Financial statements of a company on its own, not including its

subsidiaries or joint ventures and associates.

**Interest cover**

A measure used by the credit rating agencies, calculated as FFO plus

adjusted interest, divided by adjusted interest.

**J**

**Joint venture (JV)**

A company or other entity that is controlled jointly with other parties.

**K**

**KEDLI**

KeySpan Gas East Corporation, also known as KeySpan Energy

Delivery Long Island.

**KEDNY**

The Brooklyn Union Gas Company, also known as KeySpan Energy

Delivery New York.

**KPI**

Key performance indicator.

**kW**

Kilowatt, an amount of power equal to 1,000 watts.

**L**

**LIPA**

The Long Island Power Authority.

**LNG**

Liquefied natural gas is natural gas that has been condensed into a

liquid form, typically at temperatures at or below -161°C (-258°F).

**Lost time injury (LTI)**

An incident arising out of National Grid's operations that leads to an

injury where the employee or contractor normally has time off for the

following day or shift following the incident. It relates to one specific

(acute) identifiable incident which arises as a result of National Grid's

premises, plant or activities, and was reported to the supervisor at

the time and was subject to appropriate investigation.

**Lost time injury frequency rate (LTIFR)**

The number of lost time injuries (LTIs) per 100,000 hours worked in a

12-month period.

**M**

**MADPU**

The Massachusetts Department of Public Utilities.

**MW**

Megawatt, an amount of power equal to 1 million watts (10<sup>6</sup> watts).

**MWh**

Megawatt hours, an amount of energy equivalent to delivering

1 million watts (10<sup>6</sup> watts) of power for a period of one hour.

**N**

**National Energy System Operator (NESO)**

The party responsible for the long-term strategy and planning of

electricity and gas systems and the real-time operation (balancing

supply and demand) of the electricity system in Great Britain. NESO,

formerly National Grid Electricity System Operator Limited, was

divested by National Grid to the UK Government, effective 1 October

2024. **National Gas Transmission**

National Gas Transmission plc, the gas transmission operator for

England and Wales, formerly owned by the Company and sold to a

consortium comprising, inter alia, Macquarie Asset Management and

British Columbia Investment Management Corporation. The final

stake in this business was sold in September 2024.

**National Grid Electricity Distribution (NGED/UK ED)**

National Grid's UK electricity distribution business, comprising

National Grid Electricity Distribution Holdings Limited and its

subsidiaries.

**National Grid Electricity Transmission (NGET/UK ET)**

National Grid's UK electricity transmission business.

**National Grid Renewables**

National Grid's US renewables development business, including the

company formerly known as Geronimo, a leading developer of wind

and solar generation based in Minneapolis, which was sold to

Brookfield Asset Management effective 30 May 2025.

**National Grid Ventures (NGV)**

The Group's division that operates outside its core UK and US

Regulated businesses, comprising a broad range of activities in the

UK and US, including electricity interconnectors and energy metering,

as well as being tasked with investment in adjacent businesses and

distributed energy opportunities.

**Net zero**

Net zero means that a person, legal entity (such as a company),

country or other body's own emissions of greenhouse gases are

either zero or that its remaining greenhouse gas emissions are

balanced by schemes to offset, through the removal of an equivalent

amount of greenhouse gases from the atmosphere, such as planting

trees or using technologies like carbon capture and storage.

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**Nemo Link**

Nemo Link Limited, the joint venture company operating the Nemo

Link interconnector between Great Britain and Belgium,

commissioned in 2019, in which National Grid and Elia Transmission,

the Belgian national transmission operator, each hold 50% of the

shares.

**New England**

The term refers to a region within the Northeastern US that includes

the states of Connecticut, Maine, Massachusetts, New Hampshire,

Rhode Island and Vermont. National Grid's New England operations

are primarily in the state of Massachusetts.

**NIMO**

Niagara Mohawk Power Corporation.

**Northeastern US**

The Northeastern region of the US, comprising the states of

Connecticut, Maine, Massachusetts, New Hampshire, New Jersey,

New York, Pennsylvania, Rhode Island and Vermont.

**NSL**

North Sea Link, the interconnector between Norway and Great

Britain, which was commissioned in 2021, operated by National Grid

and Statnett, the Norwegian national transmission operator.

**NYPSC**

The New York Public Service Commission.

**O**

**Ofgem**

The UK Office of Gas and Electricity Markets is part of the UK Gas

and Electricity Markets Authority (GEMA), which regulates the energy

markets in the UK.

**OPEB**

Other post-employment benefits.

**Ordinary shares**

Voting shares entitling the holder to part ownership of a company.

Also known as common stock. National Grid's ordinary shares have a

nominal value of 12<sup>204</sup>⁄473 pence.

**P**

**Paris Agreement**

The agreement, also known as the Paris Climate Accord, within the

United Nations Framework Convention on Climate Change, dealing

with greenhouse gas emissions mitigation, adaptation and finance

starting in 2020, and adopted by consensus on 12 December 2015.

**Price control**

The mechanism by which Ofgem sets restrictions on the amounts of

revenue we are allowed to collect from customers in our UK

businesses. The allowed revenues are intended to cover efficiently

incurred operational expenditure, capital expenditure and financing

costs, including a Return on Equity invested.

**R**

**Rate base**

The base investment on which the utility is authorised to earn a cash

return. It includes the original cost of facilities, minus depreciation, an

allowance for working capital and other accounts.

**Rate plan**

The term given to the mechanism by which a US utility regulator sets

terms and conditions for utility service, including, in particular, tariffs

and rate schedules. The term can mean a multi-year plan that is

approved for a specified period, or an order approving tariffs and rate

schedules that remain in effect until changed as a result of future

regulatory proceedings. Such proceedings can be commenced

through a filing by the utility or on the regulator's own initiative.

**Regulated controllable costs** 

Total operating costs under IFRS less depreciation and certain

regulatory costs where, under our regulatory agreements,

mechanisms are in place to recover such costs in current or future

periods.

**Regulatory asset value (RAV)**

The value ascribed by Ofgem to the capital employed in the relevant

licensed business. It is an estimate of the initial market value of

the regulated asset base at privatisation, plus subsequent allowed

additions at historical cost, less the deduction of annual regulatory

depreciation. Deductions are also made to reflect the value realised

from the disposal of certain assets that formed part of the regulatory

asset base. It is also indexed to the RPI to allow for the effects of

inflation.

**Regulatory IOUs**

Net under/over-recoveries of revenue from output-related allowance

changes, the totex incentive mechanism, legacy price control cost

true-up and differences between allowed and collected revenues.

**Renewable energy** 

Renewable energy is usable energy derived from replenishable

sources such as the sun (solar energy), wind (wind power), rivers

(hydroelectric power), hot springs (geothermal energy), tides (tidal

power) and biomass (biofuels).

**Retained cash flow (RCF)** 

A measure of the cash flows of the Group used by the credit rating

agencies. It is calculated as funds from operations less dividends

paid and costs of repurchasing scrip shares.

**Revenue decoupling**

The term given to the elimination of the dependency of a utility's

revenue on the volume of gas or electricity transported. The purpose

of decoupling is to encourage energy-efficiency programmes by

eliminating the disincentive a utility otherwise has to

such programmes.

**Rights Issue**

The Company's latest equity rights issue, announced on 23 May

2024 and completed on 12 June 2024, successfully raising c.£7

billion by way of a fully underwritten issue of 1,085,448,980 new

shares at 645 pence per new share on the basis of 7 new shares for

every 24 existing shares. The Rights Issue price of 645 pence

represented a 34.7% discount to the theoretical ex-rights price of

988 pence per ordinary share based on the closing middle-market

price on 22 May 2024, adjusted for the recommended final dividend

for 2023/24 of 39.12 pence per ordinary share.

**RIIO** 

Revenue = Incentives + Innovation + Outputs, the regulatory

framework for energy networks issued by Ofgem.

**RIIO-ED1**

The eight-year regulatory framework for electricity distribution

networks issued by Ofgem which started on 1 April 2015.

**RIIO-ED2**

The five-year regulatory framework for electricity distribution networks

issued by Ofgem which started on 1 April 2023.

**RIIO-ED3**

The five-year regulatory framework for electricity distribution networks

issued by Ofgem, which is expected to start on 1 April 2028.

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**RIIO-T1**

The eight-year regulatory framework for transmission networks that

was implemented in the eight-year price controls which started on

1 April 2013.

**RIIO-T2**

The five-year regulatory framework for transmission networks issued

by Ofgem which started on 1 April 2021.

**RIIO-T3**

The five-year regulatory framework for transmission networks issued

by Ofgem which started on 1 April 2026.

**RPI**

The UK retail price index as published by the Office for National

Statistics.

**S**

**Science-Based Targets (SBTs)** 

SBTs provide companies with a clearly defined path to reduce

greenhouse gas emissions in line with the Paris Agreement goals.

More than 4,000 businesses around the world are already working

with the Science Based Targets initiative (SBTi).

**Science Based Targets initiative (SBTi) validation** 

To achieve SBTi validation, a company's emissions reduction targets

must align with the latest climate science, be ambitious in

contributing to limiting global warming, and use a robust

methodology. The SBTi reviews submissions to assess compliance,

and validated targets receive official recognition. This validation

showcases the company's commitment to addressing climate

change and aligning with global climate goals.

**Scope 1 greenhouse gas emissions**

Scope 1 emissions are direct greenhouse gas emissions that occur

from sources that are owned or controlled by the Company.

Examples include emissions from combustion in owned or controlled

boilers, furnaces, vehicles, etc.

**Scope 2 greenhouse gas emissions**

Scope 2 emissions are greenhouse gas emissions from the

generation of purchased electricity consumed by the Company.

Purchased electricity is defined as electricity, heat, steam or cooling

that is purchased or otherwise brought into the organisational

boundary of the Company. Scope 2 emissions physically occur at the

facility where electricity is generated.

**Scope 3 greenhouse gas emissions**

Scope 3 emissions are indirect greenhouse gas emissions as a

consequence of the operations of the Company, but are not

owned or controlled by the Company, such as emissions from third-

party logistics providers, waste management suppliers, travel

suppliers, employee commuting and combustion of sold gas by

customers.

**SEC**

The US Securities and Exchange Commission, the financial regulator

for companies with registered securities in the US, including National

Grid and certain of its subsidiaries.

**SF6**

Sulphur hexafluoride is an inorganic, colourless, odourless and non-

flammable greenhouse gas. SF6 is used in the electricity industry as a

gaseous dielectric medium for high-voltage circuit breakers,

switchgear and other electrical equipment. The Kyoto Protocol

estimated that the global warming potential over 100 years of SF6 is

23,900 times more potent than that of CO2.

**Share premium**

The difference between the amount shares are issued for and the

nominal value of those shares.

**Subsidiary**

A company or other entity that is controlled by National Grid plc.

**Sustainable Development Goals (SDGs)** 

The United Nations SDGs are 17 goals, established by the United

Nations General Assembly in 2015, that are aimed at improving the

planet and the quality of human life around the world by 2030. The

goals clearly define the world we want, and they apply to all nations

to ensure no one is left behind.

**T**

**Task Force on Climate-related Financial Disclosures** 

**(TCFD)**

A body established in 2015 comprising 31 members from across the

G20. In 2017 the TCFD released its climate-related disclosure

recommendations and in 2022 TCFD disclosures became mandatory

for UK premium listed companies. In 2023 the task force disbanded,

with its monitoring responsibilities taken over by the IFRS Foundation,

whose role is to develop recommendations for more informed

investment and enable stakeholders to better understand the

concentrations of carbon-related assets in the financial sector and

the financial system's exposures to climate-related risk.

**Tax convention**

The income tax convention between the US and the UK.

**Taxes borne**

Those taxes that represent a cost to the Company and are reflected

in our results.

**Taxes collected**

Those taxes that are generated by our operations but do not affect

our results. We generate the commercial activity giving rise to these

taxes and then collect and administer them on behalf of tax

authorities.

**TCFD recommendations or recommended disclosures**

The 11 recommended disclosures set out in the June 2017 TCFD

report entitled 'Recommendations of the Task Force on Climate-

related Financial Disclosures'.

**Tonne**

A unit of mass equal to 1,000 kilogrammes, equivalent to

approximately 2,205 pounds.

**Tonnes carbon dioxide equivalent (tCO2e)**

A measure of greenhouse gas emissions in terms of the equivalent

amount of carbon dioxide.

**Totex**

Total expenditure, comprising capital and operating expenditure.

**Treasury shares**

Shares that have been repurchased but not cancelled. These shares

can then be allotted to meet obligations under the Company's

employee share schemes.

**TWh**

Terawatt hours, an amount of energy equivalent to delivering 1 trillion

watts (10<sup>12</sup> watts) of power for a period of one hour.

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**U**

**UK**

The United Kingdom, comprising England, Wales, Scotland and

Northern Ireland.

**UK Corporate Governance Code (the '2024 Code')**

Guidance, issued by the Financial Reporting Council in 2024, on how

companies should be governed, applicable to UK listed companies,

including National Grid, in respect of reporting periods starting on or

after 1 January 2025, with Provision 29 applicable to financial years

beginning on or after 1 January 2026.

**UK Electricity Distribution (UK ED/NGED)**

National Grid's UK electricity distribution business, formerly known as

WPD, comprising Western Power Distribution Holding Company

Limited and its subsidiaries.

**UK Electricity Transmission (UK ET/NGET)**

National Grid's UK electricity transmission business.

**UK GAAP**

Generally accepted accounting practices in the UK. These differ from

IFRS and from US GAAP.

**Underlying Earnings per Share**

Underlying results for the year attributable to equity shareholders of

the Company allocated to each ordinary share.

**Underlying results**

The financial results of the Company, adjusted to exclude the impact

of exceptional items and remeasurements that are treated as discrete

transactions under IFRS and can accordingly be classified as such,

and to take account of volumetric and other revenue timing

differences arising due to the in-year difference between allowed and

collected revenues, major storm costs (where these are above $100

million threshold in a given year) as well as excluding deferred tax on

underlying profits in our UK regulated businesses (NGET and NGED).

**US**

The United States of America, its territories and possessions; any

state of the United States and the District of Columbia.

**US GAAP**

Generally accepted accounting principles in the US. These differ from

IFRS and from UK GAAP.

**US state regulators (state utility commissions)**

In the US, public utilities' retail transactions are regulated by state

utility commissions, including the New York Public Service

Commission (NYPSC) and the Massachusetts Department of Public

Utilities (MADPU).

**V**

**Viking Link**

The interconnector between Denmark and Great Britain, which was

commissioned in 2023, operated by National Grid and Energinet, the

Danish national transmission operator.

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This document comprises the Annual Report and Accounts for the year ended 31 March 2026 for

National Grid plc and its subsidiaries.

It contains the Directors' Report and Financial Statements, together with the independent auditor's report

thereon, as required by the Companies Act 2006. The Directors' Report, comprising pages 1 to 126 and

[219](#i39c083f7223e44388d99dfa58a33ab00_349) to [261](#ie9b9a2537a9f4bd6aea362ce130b4e06_27452), has been drawn up in accordance with the requirements of English law, and liability in respect

thereof is also governed by English law. In particular, the liability of the Directors for these reports is solely

to National Grid.

This document contains certain statements that are neither reported financial results nor other historical

information. These statements are forward-looking statements within the meaning of section 27A of the

Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as

amended. These statements include information with respect to our financial condition, our results of

operations and businesses, strategy, plans and objectives. Words such as 'aims', 'anticipates', 'expects',

'should', 'intends', 'plans', 'believes', 'outlook', 'seeks', 'estimates', 'targets', 'may', 'will', 'continue',

'project' and similar expressions, as well as statements in the future tense, identify forward-looking

statements. This document also references sustainability-related targets and sustainability-related risks

(including climate-related targets and climate-related risks) which differ from conventional financial risks in

that they are complex, novel and tend to involve projection over long-term scenarios which are subject to

significant uncertainty and change.

These forward-looking statements and targets are not guarantees of our future performance and are

subject to assumptions, risks and uncertainties that could cause actual future results to differ materially

from those expressed in or implied by such forward-looking statements and targets. Many of these

assumptions, risks and uncertainties relate to factors that are beyond our ability to control or estimate

precisely, such as changes in laws or regulations; and decisions by governmental bodies or regulators,

including those relating to current and upcoming price controls in the UK and rate cases in the US; the

timing of construction and delivery by third parties of new generation projects requiring connection;

breaches of, or changes in, environmental, climate change, and health and safety laws or regulations,

including breaches or other incidents arising from the potentially harmful nature of our activities; network

failure or interruption, the inability to carry out critical non-network operations, and damage to

infrastructure, due to adverse weather conditions, including the impact of major storms as well as the

results of climate change, or due to counterparties being unable to deliver physical commodities; reliability

of and access to IT systems, including due to the failure of or unauthorised access to or deliberate

breaches of our systems and supporting technology; failure to adequately forecast and respond to

disruptions in energy supply; performance against regulatory targets and standards and against our peers

with the aim of delivering stakeholder expectations regarding costs and efficiency savings including

affordability considerations, as well as against targets and standards designed to support our role in the

energy transition; and customers and counterparties (including financial institutions) failing to perform their

obligations to the Company.

Other factors that could cause actual results to differ materially from those described in this document

include fluctuations in exchange rates, interest rates and commodity price indices; restrictions and

conditions (including filing requirements) in our borrowing and debt arrangements, funding costs and

access to financing; regulatory requirements for us to maintain financial resources in certain parts of our

business and restrictions on some subsidiaries' transactions, such as paying dividends, lending or levying

charges; the delayed timing of recoveries and payments in our regulated businesses and whether aspects

of our activities are contestable; the funding requirements and performance of our pension schemes and

other post-retirement benefit schemes; the failure to attract, develop and retain employees with the

necessary competencies, including leadership and business capabilities, and any significant disputes

arising with our employees or breaches of laws or regulations by our employees; the failure to respond to

market developments, including competition for onshore transmission; the threats and opportunities

presented by emerging technology, including AI; the risk that global actions may not be effective in

transitioning to net zero and in managing relevant ESG risks, including in particular climate, nature-related

and human rights risks; the failure by the Company to respond to, or meet its own commitments

as a leader in relation to, climate change development activities relating to energy transition, including the

integration of distributed energy resources, which may result in the Company's failure to achieve the

expected benefits of its strategic priorities; and the need to grow our business to deliver our strategy, as

well as incorrect or unforeseen assumptions or conclusions (including unanticipated costs and liabilities)

relating to business development activity, our strategic infrastructure projects and joint ventures.

Furthermore, in preparing the ESG-related information contained in this document, National Grid has

made a number of key judgements, estimations and assumptions, and the processes and issues involved

are complex. The ESG data, models and methodologies used are often relatively new, are rapidly evolving

and are not of the same standard as those available in the context of other financial information, nor are

they subject to the same or equivalent disclosure standards, historical reference points, benchmarks or

globally accepted accounting principles. In addition, the climate scenarios and the models that analyse

such scenarios, have limitations that are sensitive to key assumptions and parameters, which are

themselves subject to some uncertainty, and cannot fully capture all of the potential effects of climate,

policy and technology driven outcomes. Outputs of models, processed data and methodologies are also

likely to be affected by underlying data quality, which can be hard to assess, and our disclosures are

limited by the consistent availability of high-quality data. Whilst we expect data quality to improve over

time, there may be unexpected fluctuations year-on-year, and/or differences between the quality of the

data obtained, which could result in revisions to reported data going forward, meaning that such data may

not be reconcilable or comparable year-on-year. We expect industry guidance, market practice, and

regulations in this field to continue to change. There are also challenges faced in relation to the ability to

access data on a timely basis and the lack of consistency and comparability between data that is

available. This means the ESG-related forward-looking statements and ESG metrics discussed in this

document carry an additional degree of inherent risk and uncertainty.

In the light of uncertainty as to the nature of future policy and market response to climate change,

including between regions, and the effectiveness of any such response, National Grid may have to re-

evaluate its progress towards its ESG ambitions, commitments and targets in the future, update the

methodologies it uses or alter is approach to ESG and climate analysis and may be required to amend,

update and recalculate its ESG disclosures and assessments in the future, as market practice and data

quality and availability develops rapidly. In addition, the methodologies National Grid uses may develop

over time in line with market practice, regulation and/or developments in science, where applicable. Such

developments could result in revisions to reported data and lack of reconcilability or comparability.

For further details regarding these and other assumptions, risks and uncertainties that may affect National

Grid, please read the Strategic Report and the risk factors on pages [226](#i39c083f7223e44388d99dfa58a33ab00_355) to [232](#i200a48bfdf894a7a8bad21b5116911f7_1-0-1-1-954526) of this document. In

addition, new factors emerge from time to time, and we cannot assess the potential impact of any such

factor on our activities or the extent to which any factor, or combination of factors, may cause actual

future results to differ materially from those contained in any forward-looking statement. Except as may be

required by law or regulation, the Company undertakes no obligation to update any of its forward-looking

statements, which speak only as of the date of this document.

The contents of any website references in this document do not form part of this document.

---

| | |
|:---|:---|
| ![New_MIX_Portrait_White.gif](nggtf-20260331_g454.gif) | ![Logo-White_CBP030963.gif](nggtf-20260331_g455.gif) |

---

Printed by a CarbonNeutral<sup>®</sup> Company certified to ISO 14001

environmental management system.

Printed on material from well-managed, FSC<sup>®</sup> certified forests and

other controlled sources.

100% of the inks used are vegetable oil based, 95% of press

chemicals are recycled for further use and, on average 99% of any

waste associated with this production will be recycled and the

remaining 1% used to generate energy.

The paper is Carbon Balanced with World Land Trust, an

international conservation charity, who offset carbon emissions

through the protection and preservation of high conservation value

land. Through protecting standing forests under threat of clearance,

carbon is locked-in that would otherwise be released.

![Emperor_Imprint_White.gif](nggtf-20260331_g456.gif)

National Grid plc

1–3 Strand

London WC2N 5EH

United Kingdom

**nationalgrid.com**

**Further Information** 

**Share ownership**

At 1 June 2026, the latest practicable date, none of the directors had an individual beneficial interest amounting to greater than 1% of the Company's shares.

**Material interests in shares**

The following summarises significant changes in the percentage ownership held by our major shareholders since 1 April 2025. The disclosure of certain major and significant shareholdings in the share capital of the company is governed by applicable legal requirements. The following disclosure is derived from notifications made under the Companies Act 2006, the UK Financial Conduct Authority's Disclosure Guidance, Transparency Rules (DTR) and, where more timely, the US Securities Exchange Act of 1934.

BlackRock, Inc. held 8.5% of our outstanding share capital as at 1 April 2025. Such holdings decreased to 8.17% as at 25 November 2025. As noted on page 253 of the Annual Report, such holdings remained unchanged as at 31 March 2026. Such holdings increased to 8.42% as at 25 May 2026 and remained unchanged as at 1 June 2026.

Bank of America corporation held 5.60% of our outstanding share capital as at 1 April 2025. On 30 May 2025, we received notification that such holdings decreased below 3.00% of our outstanding share capital, and we have not received any notification that such holding has changed since that date.

Since 31 March 2026, we have not been notified of any other significant change in the percentage ownership held by our major shareholders.

**Material interest in American Depositary Shares**

As at 1 June 2026, we had 10,191 registered holders of our American Depositary Shares (ADSs) representing ownership of 8.63% of our issued and outstanding share capital, excluding ordinary shares held in treasury. As at 1 June 2026, based on information available to us, we believe that approximately 8.63% of our issued and outstanding share capital (whether in the form of shares or ADSs), excluding shares held in treasury, was held beneficially in the United States.

**Insider Trading Policy** 

We have adopted insider trading policies and procedures governing the purchase, sale, and other dispositions of our securities by directors, senior management, and employees, which policies and procedures are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations, and any listing standards applicable to us. A copy of the policy is filed as Exhibit 11(b) to this Annual Report.

**Subsequent Events**

NONE

**Representations and Warranties in the Exhibits**

Pursuant to the rules and regulations of the SEC, the Company has filed certain agreements as exhibits to this Annual Report on Form 20-F. These agreements may contain representations and warranties by the parties to them. These representations and warranties have been made solely for the benefit of the other party or parties to such agreement and (i) may be intended not as statements of fact, but rather as a way of allocating the risk to one of the parties to such agreements if those statements turn out to be inaccurate, (ii) may have been qualified by disclosures that were made to such other party or parties and that either have been reflected in the company's filings or are not required to be disclosed in those filings, (iii) may apply materiality standards different from what may be viewed as material to investors and (iv) were made only as of the date of such agreements or such other date or dates as may be specified in such agreements.

In accordance with the instructions to Item 2(b)(i) of the Instructions to Exhibits to the Form 20-F, National Grid agrees to furnish to the SEC, upon request, a copy of any instrument relating to long-term debt that does not exceed 10 percent of the total assets of National Grid and its subsidiaries on a consolidated basis.

**Reports of Independent Registered Public Accounting Firms—Audit opinions for Form 20-F**

In addition to the financial information set forth on the pages referenced under Item 18 in the Form 20-F Cross Reference Table on page vii, the reports of Deloitte LLP (PCAOB ID 1147), Independent Registered Public Accounting Firm, are presented below:

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the shareholders and the Board of Directors of National Grid plc

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statements of financial position of National Grid plc and its subsidiaries (together the "Group") as at 31 March 2026 and 2025, the related consolidated statements of income, comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended 31 March 2026, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Group as at 31 March 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended 31 March 2026, in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB").

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Group's internal control over financial reporting as at 31 March 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated 13 May 2026, expressed an unqualified opinion on the Group's internal control over financial reporting.

**Basis for Opinion** 

These financial statements are the responsibility of the Group's management. Our responsibility is to express an opinion on the Group's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter** 

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the Audit and Risk Committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

**US environmental provisions – Refer to notes 1F, 26 and 35 to the financial statements**

**Critical Audit Matter Description**

At 31 March 2026, the Group has £2,011 million of environmental provisions in the United States ("US") relating to a number of sites owned and managed by the Group, together with certain sites which are no longer owned.

We have identified the US environmental provisioning at certain sites as a key audit matter due to the complexities in estimating the future cost of remediation.

The sites with the highest level of estimation uncertainty were identified as those with significant

contamination ("Superfund" sites) and certain other legacy Manufactured Gas Plant ("MGP") sites based on factors including the presence of regulatory correspondence in the year and the level of change in the provision amount.

Environmental provisions are calculated based on management's best estimate of the cash flows that will be required to settle the obligation, discounted at a real discount rate, calculated based on the US government bond yield curve and the weighted average life of the provisions.

------

The audit procedures required to evaluate the reasonableness of management's estimates and assumptions required a high degree of auditor judgement and an increased extent of effort. Key estimates and assumptions included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of changes in regulation or the environmental agencies' interpretation and implementation of the regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the extent of contamination identified and modelled from ongoing exploratory and remediation works;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the form, timing, extent, and associated cost of remediation needed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the allocation of responsibility for remediation.

**How the Critical Audit Matter Was Addressed in the Audit**

Our audit procedures related to the forecasts of future cash flows of the Superfund and certain legacy MGP sites for US environmental provisions included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We tested the effectiveness of controls over management's compilation of its forecast cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We completed public domain searches on federal databases across all Group subsidiaries' sites to determine whether any relevant costs or applicable sites were omitted. We further checked for the latest regulatory changes at the federal and local level, and precedent from remediation plans recently agreed with the environmental agencies, to determine any indication of changing requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We evaluated the results of ongoing environmental testing for potential non-compliance or evidence that the existing or planned remediation activities would require revision or enhancement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We performed additional procedures regarding the uncertainty over the allocation of responsibilities between the Potentially Responsible Parties ("PRPs");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ We made enquiries of the US internal legal counsel and obtained analysis directly from external legal counsel to understand potential changes to previously determined PRP positions, including shifts in liability, new legal interpretations, or ongoing negotiations that could impact the Group's share of responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ We evaluated settlements reached in the current period with PRPs and analysed compliance with funding contributions requests, comparing the terms and outcomes to the Group's assumed shares of responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ We evaluated publicly available financial statement information and disclosures for a selection of PRPs to identify contradictory evidence regarding their assumed share percentages and to assess their financial viability, which could impact their ability to fulfil their allocated responsibilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ We assessed the extent to which the evidence obtained demonstrated that the allocations will be substantially followed by all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We worked with our environmental specialists to assist us in evaluating the associated cost of remediation. Procedures included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Agreeing the proposed remediation activities to technical engineering studies agreed with the environmental agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Considering the latest correspondence with the environmental agencies where remediation plans are yet to be agreed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Agreeing costings to third-party contracts and estimates where available.

/s/ Deloitte LLP

London, United Kingdom 13 May 2026

We have served as the Group's auditor since 2018.

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the shareholders and the Board of Directors of National Grid plc

**Opinion on Internal Control over Financial Reporting**

We have audited the internal control over financial reporting of National Grid plc and subsidiaries (together the "Group") as of 31 March 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of 31 March 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended 31 March 2026, of the Group and our report dated 13 May 2026, expressed an unqualified opinion on those consolidated financial statements.

**Basis for Opinion**

The Group's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying management's report on internal control over financial reporting. Our responsibility is to express an opinion on the Group's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte LLP

London, United Kingdom

13 May 2026

------

---

| | | |
|:---|:---|:---|
| | **<u>Description</u>** | |
| <u>[1.1](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex11articlesofassociation2.htm)</u> | <u>[Articles of Association of National Grid plc as amended by Special Resolution passed on 26 July 2021. (Exhibit 1.1 to National Grid plc Form 20-F dated 7 June 2022 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex11articlesofassociation2.htm)</u> | Incorporated by reference  |
| <u>[2(a)](https://www.sec.gov/Archives/edgar/data/1004315/000101915513000270/natgriddepnreccomp.htm)</u> | <u>[Amended and restated Deposit Agreement dated as of 23 May 2013 among National Grid plc and The Bank of New York Mellon, as Depository, and all Owners and Holders from time to time of American Depositary Shares issued thereunder. (Exhibit 1 to National Grid plc Form F-6 dated 15 May 2013 File No. 333-178045)](https://www.sec.gov/Archives/edgar/data/1004315/000101915513000270/natgriddepnreccomp.htm)</u> | Incorporated by reference  |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/1004315/000119312512267777/d360489dex2b4.htm)[1](https://www.sec.gov/Archives/edgar/data/1004315/000119312512267777/d360489dex2b4.htm)</u> | <u>[Amended and Restated Trust Deed dated 2 August 2011 among National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to a €15,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).5 to National Grid plc Form 20-F dated 12 June 2012 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312512267777/d360489dex2b4.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/1004315/000119312513252366/d536809dex2b6.htm)[2](https://www.sec.gov/Archives/edgar/data/1004315/000119312513252366/d536809dex2b6.htm)</u> | <u>[Amended and Restated Trust Deed dated 10 September 2012 among National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to a €15,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).6 to National Grid plc Form 20-F dated 10 June 2013 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312513252366/d536809dex2b6.htm)</u> | Incorporated by reference |
| <u>[2(](ex2b3ngnaemtnupdate2025_tr.htm)[b](ex2b3ngnaemtnupdate2025_tr.htm)[).](ex2b3ngnaemtnupdate2025_tr.htm)[3](ex2b3ngnaemtnupdate2025_tr.htm)</u> | <u>[Amended and Restated Trust Deed](ex2b3ngnaemtnupdate2025_tr.htm)[r](ex2b3ngnaemtnupdate2025_tr.htm)[elating to](ex2b3ngnaemtnupdate2025_tr.htm)[N](ex2b3ngnaemtnupdate2025_tr.htm)[ational Grid North America Inc.'s](ex2b3ngnaemtnupdate2025_tr.htm)[€](ex2b3ngnaemtnupdate2025_tr.htm)[8](ex2b3ngnaemtnupdate2025_tr.htm)[,000,000,000 Euro Medium Term Note Programme](ex2b3ngnaemtnupdate2025_tr.htm)[arranged by HSBC Bank plc](ex2b3ngnaemtnupdate2025_tr.htm)[dated 21 August 2025](ex2b3ngnaemtnupdate2025_tr.htm)[b](ex2b3ngnaemtnupdate2025_tr.htm)[etween National Grid North America Inc. and the Law Debenture Trust Corporation p.l.c](ex2b3ngnaemtnupdate2025_tr.htm)[.](ex2b3ngnaemtnupdate2025_tr.htm)</u> | Filed herewith |
| <u>[2(b).](ex2b4ngngetemtnupdate2025t.htm)[4](ex2b4ngngetemtnupdate2025t.htm)</u> | <u>[Amended and Restated Trust Deed relating to National Grid](ex2b4ngngetemtnupdate2025t.htm)[Electricity Transmission plc](ex2b4ngngetemtnupdate2025t.htm)[€](ex2b4ngngetemtnupdate2025t.htm)[20](ex2b4ngngetemtnupdate2025t.htm)[,000,000,000 Euro Medium Term Note Programme arranged by HSBC Bank plc dated](ex2b4ngngetemtnupdate2025t.htm)[19](ex2b4ngngetemtnupdate2025t.htm)[August 2025](ex2b4ngngetemtnupdate2025t.htm)[among National Grid plc,](ex2b4ngngetemtnupdate2025t.htm)[National Grid](ex2b4ngngetemtnupdate2025t.htm)[Electricity Transmission plc](ex2b4ngngetemtnupdate2025t.htm)[and the Law Debenture Trust Corporation p.l.c.](ex2b4ngngetemtnupdate2025t.htm)</u> | Filed herewith |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex2b13.htm)[5](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex2b13.htm)</u> | <u>[Amended and Restated Trust Deed dated 21 September 2015 among National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to National Grid plc and National Grid Electricity Transmission plc €15,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).13 to National Grid plc Form 20-F dated 7 June 2016 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex2b13.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex2b14.htm)[6](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex2b14.htm)</u> | <u>[Amended and Restated Trust Deed dated 9 December 2015 among National Grid USA, National Grid North America Inc. and the Law Debenture Trust Corporation p.l.c. relating to National Grid USA €4,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).14 to National Grid plc Form 20-F dated 7 June 2016 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex2b14.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b8trustdeed30july2019.htm)[7](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b8trustdeed30july2019.htm)</u> | <u>[Amended and Restated Trust Deed dated 30 July 2019 among National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to National Grid plc and National Grid Electricity Transmission plc €15,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).8 to National Grid plc Form 20-F dated 25 June 2020 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b8trustdeed30july2019.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b9trsutdeed30july2019.htm)[8](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b9trsutdeed30july2019.htm)</u> | <u>[Amended and Restated Trust Deed dated 30 July 2019 among National Grid Gas plc and the Law Debenture Trust Corporation p.l.c. relating to a €10,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).9 to National Grid plc Form 20-F dated 25 June 2020 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b9trsutdeed30july2019.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b10trustdeed5sept2019.htm)[9](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b10trustdeed5sept2019.htm)</u> | <u>[Trust Deed dated 5 September 2019 among NGG Finance plc, National Grid plc and the Law Debenture Trust Corporation p.l.c. relating to a €500,000,000 Fixed Rate Resettable Capital Securities due 2079. (Exhibit 2(b).9 to National Grid plc Form 20-F dated 25 June 2020 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b10trustdeed5sept2019.htm)</u> | Incorporated by reference |

---

------

---

| | | |
|:---|:---|:---|
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b11trustdeed5sept2019.htm)[10](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b11trustdeed5sept2019.htm)</u> | <u>[Trust Deed dated 5 September 2019 among NGG Finance plc, National Grid plc and the Law Debenture Trust Corporation p.l.c. relating to a €750,000,000 Fixed Rate Resettable Capital Securities due 2082. (Exhibit 2(b).9 to National Grid plc Form 20-F dated 25 June 2020 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex2b11trustdeed5sept2019.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431521000067/ex2b12-ngnget_trustdeed2.htm)[11](https://www.sec.gov/Archives/edgar/data/0001004315/000100431521000067/ex2b12-ngnget_trustdeed2.htm)</u> | <u>[Trust Deed dated 7 August 2020 among National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to a €15,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b). to National Grid plc Form 20-F dated 8 June 2021 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431521000067/ex2b12-ngnget_trustdeed2.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex2b14amendedandrestatedtr.htm)[12](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex2b14amendedandrestatedtr.htm)</u> | <u>[Amended and Restated Trust Deed dated 16 August 2021 among National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to a €15,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).14. to National Grid plc Form 20-F dated 7 June 2022 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex2b14amendedandrestatedtr.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex2b15ngnaemtnupdate2021.htm)[13](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex2b15ngnaemtnupdate2021.htm)</u> | <u>[Amended and Restated Trust Deed dated 22 October 2021 between National Grid North America and the Law Debenture Trust Corporation p.l.c. relating to a €8,000,000,000 Euro Medium Term Note Programme (Exhibit 2(b).15. to National Grid plc Form 20-F dated 7 June 2022 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex2b15ngnaemtnupdate2021.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex2b16-trustdeedngplcnge.htm)[14](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex2b16-trustdeedngplcnge.htm)</u> | <u>[Amended and Restated Trust Deed dated 11 August 2022 between National Grid plc, National Grid Electricity Transmission plc and the Law Debenture Trust Corporation p.l.c. relating to a €20,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).16 to National Grid plc Form 20-f dated 6 June 2023 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex2b16-trustdeedngplcnge.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex2b17-trustdeedwpd.htm)[15](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex2b17-trustdeedwpd.htm)</u> | <u>[Amended and Restated Trust Deed dated 24 August 2022 among Western Power Distribution (East Midlands) plc, Western Power Distribution (South Wales) plc, Western Power Distribution (West Midlands) plc and HSBC Corporate Trustee Company (UK) Limited relating to a €6,000,000,000 Euro Medium Term Note Programme. (Exhibit 2(b).17 to National Grid plc Form 20-f dated 6 June 2023 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex2b17-trustdeedwpd.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_2b18-ngnaemtnupdate20.htm)[16](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_2b18-ngnaemtnupdate20.htm)</u> | <u>[Amended and Restated Trust Deed dated 4 August 2023 between National Grid North America Inc. and The Law Debenture Trust Corporation p.l.c. relating to a €8,000,000,000 Euro Medium Term Note Programme.](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_2b18-ngnaemtnupdate20.htm)</u> | Incorporated by reference |
| <u>[2(b).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_2b19-ngedmtnupdate202.htm)[17](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_2b19-ngedmtnupdate202.htm)</u> | <u>[Amended and Restated Trust Deed dated 10 August 2023 among National Grid Electricity Distribution (East Midlands) plc, National Grid Electricity Distribution (South Wales) plc, National Grid Electricity Distribution (South West) plc, National Grid Electricity Distribution (West Midlands) plc and HSBC Corporate Trustee Company (UK) Limited relating to a €6,000,000,000 Euro Medium Term Note Programme.](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_2b19-ngedmtnupdate202.htm)</u> | Incorporated by reference  |
| <u>[2(c)](https://www.sec.gov/Archives/edgar/data/1004315/000100431524000007/ex_2cdescriptionofsecuriti.htm)</u> | <u>[Description of Securities Registered Under Section 12 of the Exchange Act](https://www.sec.gov/Archives/edgar/data/1004315/000100431524000007/ex_2cdescriptionofsecuriti.htm)</u> | Incorporated by Reference |
| <u>[4(a).1\*](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/exhibit4a1-underwritinga.htm)</u> | <u>[Underwriting Agreement dated as of 23 May 2024 among National Grid plc and the underwriting banks named therein.](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/exhibit4a1-underwritinga.htm)</u> | Incorporated by reference |
| <u>[4(c).2](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c5.htm)</u> | <u>[Service Agreement among National Grid Electricity Transmission plc and John Mark Pettigrew dated 2 November 2014. (Exhibit 4(c).5 to National Grid plc Form 20-F dated 5 June 2014 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c5.htm)</u> | Incorporated by reference |
| <u>[4(c).3](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex4c4.htm)</u> | <u>[Amendment to Service Agreement among National Grid Electricity Transmission plc and John Mark Pettigrew dated 2 November 2015. (Exhibit 4(c).4 to National Grid plc Form 20-F dated 5 June 2014 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312516614641/d360371dex4c4.htm)</u>  | Incorporated by reference |
| <u>[4(c).4](https://www.sec.gov/Archives/edgar/data/1004315/000119312517195204/d406115dex4c4.htm)</u> | <u>[Service Agreement among National Grid Electricity Transmission plc and Nicola Shaw dated 23 March 2016. (Exhibit 4(c).4 to National Grid plc Form 20-F dated 6 June 2017 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312517195204/d406115dex4c4.htm)</u> | Incorporated by reference |

---

------

---

| | | |
|:---|:---|:---|
| <u>[4(c).5](https://www.sec.gov/Archives/edgar/data/1004315/000100431519000071/ex4c5-serviceagreement_and.htm)</u> | <u>[Service Agreement among National Grid plc and Andrew Agg dated 21 December 2018.](https://www.sec.gov/Archives/edgar/data/1004315/000100431519000071/ex4c5-serviceagreement_and.htm)</u> <u>[(Exhibit 4(c).5 to National Grid plc Form 20-F dated 4 June 2019 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000100431519000071/ex4c5-serviceagreement_and.htm)</u> | Incorporated by reference |
| <u>[4](ex4c6serviceagreementzoy.htm)[(c).](ex4c6serviceagreementzoy.htm)[6](ex4c6serviceagreementzoy.htm)</u> | <u>[Service Agreement among National Grid plc and](ex4c6serviceagreementzoy.htm)[Zoë Yujnovich](ex4c6serviceagreementzoy.htm)[dated](ex4c6serviceagreementzoy.htm)[1 May 2025](ex4c6serviceagreementzoy.htm)</u> | Filed herewith |
| <u>[4(c).](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_4c6jacquixfergusonapp.htm)[7](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_4c6jacquixfergusonapp.htm)</u> | <u>[Letter of Appointment—Jacqui Ferguson](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex_4c6jacquixfergusonapp.htm)</u> <u>[(Exhibit 4(c).](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c14.htm)[6](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c14.htm)[to National Grid plc Form 20-F dated](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c14.htm)[29 May](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c14.htm)[2025](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c14.htm)[File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000119312514226324/d721575dex4c14.htm)</u> | Incorporated by reference |
| <u>[4(c).8](https://www.sec.gov/Archives/edgar/data/1004315/000100431519000071/ex4c15-letterofappointment.htm)</u> | <u>[Letter of Appointment—Earl Shipp. (Exhibit 4(c).15 to National Grid plc Form 20-F dated 4 June 2019 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000100431519000071/ex4c15-letterofappointment.htm)</u> | Incorporated by reference |
| <u>[4(c).9](https://www.sec.gov/Archives/edgar/data/1004315/000100431520000053/ex4c15letterofappointmen.htm)</u> | <u>[Letter of Appointment—Jonathan Silver. (Exhibit 4(c).15 to National Grid plc Form 20-F dated 25 June 2020 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000100431520000053/ex4c15letterofappointmen.htm)</u> | Incorporated by reference |
| <u>[4(c).10](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex4c15letterofappointmen.htm)</u> | <u>[Letter of Appointment—Elizabeth (Liz) Hewitt. (Exhibit 4(c).16 to National Grid plc Form 20-F dated 25 June 2020 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431520000053/ex4c15letterofappointmen.htm)</u> | Incorporated by reference |
| <u>[4(c).11](https://www.sec.gov/Archives/edgar/data/0001004315/000100431521000067/ex4c17-20_chairappletter.htm)</u> | <u>[Letter of Appointment—Paula Rosput Reynolds. (Exhibit 4(c).17 to National Grid plc Form 20-F dated 8 June 2021 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431521000067/ex4c17-20_chairappletter.htm)</u> | Incorporated by reference  |
| <u>[4(c).12](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c18lord_ianxlivingsto.htm)</u> | <u>[Letter of Appointment—Lord Ian Livingston. (Exhibit 4(c).18 to National Grid plc Form 20-F dated 7 June 2022 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c18lord_ianxlivingsto.htm)</u> | Incorporated by reference |
| <u>[4(c).13](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c19annerobinsonappoin.htm)</u> | <u>[Letter of Appointment—Anne Robinson. (Exhibit 4(c).19 to National Grid plc Form 20-F dated 7 June 2022 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c19annerobinsonappoin.htm)</u> | Incorporated by reference |
| <u>[4(c).14](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c20tony_woodx-xappoin.htm)</u> | <u>[Letter of Appointment—Tony Wood. (Exhibit 4(c).20 to National Grid plc Form 20-F dated 7 June 2022 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c20tony_woodx-xappoin.htm)</u> | Incorporated by reference |
| <u>[4(c).15](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c21martha_wyrschx-xap.htm)</u> | <u>[Letter of Appointment—Martha Wyrsch (Exhibit 4(c).21 to National Grid plc Form 20-F dated 7 June 2022 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/0001004315/000100431522000057/ex4c21martha_wyrschx-xap.htm)</u> | Incorporated by reference |
| <u>[4(c).16](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex4c17_iainxmackayx-xapp.htm)</u> | <u>[Letter of Appointment —Iain Mackay (exhibit 4(c).17 to National Grid plc Form 20-F dated 6 June 2023 File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000100431523000012/ex4c17_iainxmackayx-xapp.htm)</u> | Incorporated by reference  |
| <u>[4(c).17](https://www.sec.gov/Archives/edgar/data/1004315/000095012310107393/y87854sv8.htm)</u> | <u>[National Grid plc Deferred Share Plan. (Exhibit 4.2 to National Grid plc S-8 dated 28 July 2011 File No. 333-175852)](https://www.sec.gov/Archives/edgar/data/1004315/000095012310107393/y87854sv8.htm)</u> | Incorporated by reference |
| <u>[4(c).23](https://www.sec.gov/Archives/edgar/data/1004315/000119312512431627/d427505dex42.htm)</u> | <u>[National Grid USA Companies' Defined Contribution Supplemental Executive Retirement Plan. (Exhibit 4.2 to National Grid plc S-8 dated 23 October 2012 File No. 333-184558)](https://www.sec.gov/Archives/edgar/data/1004315/000119312512431627/d427505dex42.htm)</u> | Incorporated by reference |
| 8 | List of subsidiaries - The list of the Company's significant subsidiaries as of 31 March 2026 is incorporated by reference to "Financial Statements—Notes to the consolidated financial statements—34. Subsidiary undertakings, joint venture and associates—Subsidiary undertakings" on pages 206-209 included in the Annual Report on Form 20-F for the financial year ended 31 March 2025. This list excludes subsidiaries that do not, in aggregate, constitute a "significant subsidiary" as defined in Rule 1-02(w) of Regulation S-X as at 31 March 2026.  | Filed herewith |
| <u>[11(b)](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)</u> | <u>[Share Dealing Policy](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[(Exhibit](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[11](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[(](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[b](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[)](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[to National Grid plc Form 20-F dated](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[29 May](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[2026](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)[File No. 1-14958)](https://www.sec.gov/Archives/edgar/data/1004315/000100431525000012/exhibit11b_sharedealingp.htm)</u> | Incorporated by reference |
| <u>[12.1](ex1212025-26xsox302xzy.htm)</u> | <u>[Certification of Zoë Yujnovich pursuant to Rule 13a-14(a) of the Exchange Act.](ex1212025-26xsox302xzy.htm)</u> | Filed herewith |

---

------

---

| | | |
|:---|:---|:---|
| <u>[12.2](ex1222025-26xsox302xaa.htm)</u> | <u>[Certification of Andrew Agg pursuant to Rule 13a-14(a) of the Exchange Act.](ex1222025-26xsox302xaa.htm)</u> | Filed herewith |
| <u>[13.1](ex1312025-26xsox906zyaa.htm)</u> | <u>[Certifications of Zoë Yujnovich and Andrew Agg furnished pursuant to Rule 13a-14(b) of the Exchange Act (such certifications are not deemed filed for purpose of Section 18 of the Exchange Act and not incorporated by reference in any filing under the Securities Act).](ex1312025-26xsox906zyaa.htm)</u> | Filed herewith |
| <u>[15.1](ex151deloitteconsentngplc3.htm)</u> | <u>[Consent of Deloitte LLP, independent registered public accounting firm to National Grid plc.](ex151deloitteconsentngplc3.htm)</u> | Filed herewith |
| <u>[17.1](https://www.sec.gov/Archives/edgar/data/1004315/000100431524000007/ex171subsidiaryguarantorsa.htm)</u> | <u>[Subsidiary guarantors and issuers of guaranteed securities](https://www.sec.gov/Archives/edgar/data/1004315/000100431524000007/ex171subsidiaryguarantorsa.htm)</u> | Incorporated by reference |
| <u>[97.1](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex971nationalgrid_uscomp.htm)</u> | <u>[US Clawback Policy](https://www.sec.gov/Archives/edgar/data/0001004315/000100431524000007/ex971nationalgrid_uscomp.htm)</u> | Incorporated by reference |
| <br>\* Portions of this exhibit have been **redacted** in compliance with <u>Regulation S-K</u> Item <u>601(b)(10).</u> | <br>\* Portions of this exhibit have been **redacted** in compliance with <u>Regulation S-K</u> Item <u>601(b)(10).</u> |  |

---

------

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.

NATIONAL GRID PLC

By: /s/ Andrew Agg

Andrew Agg

Chief Financial Officer

London, England

3 June 2026

## Ex-2.(B)3

EXECUTION VERSION

Exhibit 2(b).3

![image_1a.jpg](image_1a.jpg)

---

| |
|:---|
| Amended and Restated Trust Deed |
| relating to National Grid North America Inc.'s Euro 8,000,000,000 Euro Medium Term Note Programme arranged by HSBC Bank plc |
| Dated 21 August 2025 |
| NATIONAL GRID NORTH AMERICA INC.<br>as Issuer<br>and<br>THE LAW DEBENTURE TRUST CORPORATION p.l.c.<br>as Trustee |
| Ref: L-363726 |

---

------

**Table of Contents**

**Contents&nbsp;&nbsp;&nbsp;&nbsp;Page**

2&nbsp;&nbsp;&nbsp;&nbsp;Issue of Instruments and Covenant to Pay&nbsp;&nbsp;&nbsp;&nbsp;[6](#i8edcda117c6a4a389e9bb0af366d7035_7)

3&nbsp;&nbsp;&nbsp;&nbsp;Form of the Instruments&nbsp;&nbsp;&nbsp;&nbsp;[8](#i8edcda117c6a4a389e9bb0af366d7035_7)

4&nbsp;&nbsp;&nbsp;&nbsp;Stamp Duties and Taxes&nbsp;&nbsp;&nbsp;&nbsp;[9](#i8edcda117c6a4a389e9bb0af366d7035_7)

5&nbsp;&nbsp;&nbsp;&nbsp;Application of Moneys Received by the Trustee&nbsp;&nbsp;&nbsp;&nbsp;[10](#i8edcda117c6a4a389e9bb0af366d7035_7)

6&nbsp;&nbsp;&nbsp;&nbsp;Covenants&nbsp;&nbsp;&nbsp;&nbsp;[11](#i8edcda117c6a4a389e9bb0af366d7035_7)

7&nbsp;&nbsp;&nbsp;&nbsp;Remuneration and Indemnification of the Trustee&nbsp;&nbsp;&nbsp;&nbsp;[13](#i8edcda117c6a4a389e9bb0af366d7035_7)

8&nbsp;&nbsp;&nbsp;&nbsp;Provisions Supplemental to the Trustee Acts&nbsp;&nbsp;&nbsp;&nbsp;[15](#i8edcda117c6a4a389e9bb0af366d7035_7)

9&nbsp;&nbsp;&nbsp;&nbsp;Disapplication and Trustee Liability&nbsp;&nbsp;&nbsp;&nbsp;[19](#i8edcda117c6a4a389e9bb0af366d7035_7)

10&nbsp;&nbsp;&nbsp;&nbsp;Waiver and Proof of Default&nbsp;&nbsp;&nbsp;&nbsp;[19](#i8edcda117c6a4a389e9bb0af366d7035_7)

11&nbsp;&nbsp;&nbsp;&nbsp;Trustee not Precluded from Entering into Contracts&nbsp;&nbsp;&nbsp;&nbsp;[19](#i8edcda117c6a4a389e9bb0af366d7035_7)

12&nbsp;&nbsp;&nbsp;&nbsp;Modification and Substitution&nbsp;&nbsp;&nbsp;&nbsp;[20](#i8edcda117c6a4a389e9bb0af366d7035_7)

13&nbsp;&nbsp;&nbsp;&nbsp;Appointment, Retirement and Removal of the Trustee&nbsp;&nbsp;&nbsp;&nbsp;[21](#i8edcda117c6a4a389e9bb0af366d7035_7)

14&nbsp;&nbsp;&nbsp;&nbsp;Instruments held in Clearing Systems&nbsp;&nbsp;&nbsp;&nbsp;[22](#i8edcda117c6a4a389e9bb0af366d7035_7)

15&nbsp;&nbsp;&nbsp;&nbsp;Currency Indemnity&nbsp;&nbsp;&nbsp;&nbsp;[23](#i8edcda117c6a4a389e9bb0af366d7035_7)

16&nbsp;&nbsp;&nbsp;&nbsp;Enforcement&nbsp;&nbsp;&nbsp;&nbsp;[23](#i8edcda117c6a4a389e9bb0af366d7035_7)

17&nbsp;&nbsp;&nbsp;&nbsp;Communications&nbsp;&nbsp;&nbsp;&nbsp;[24](#i8edcda117c6a4a389e9bb0af366d7035_7)

18&nbsp;&nbsp;&nbsp;&nbsp;Governing Law and Jurisdiction&nbsp;&nbsp;&nbsp;&nbsp;[25](#i8edcda117c6a4a389e9bb0af366d7035_7)

Schedule 1 Part A Form of Global Certificates&nbsp;&nbsp;&nbsp;&nbsp;[26](#i8edcda117c6a4a389e9bb0af366d7035_7)

Schedule 1 Part B Form of Certificate&nbsp;&nbsp;&nbsp;&nbsp;[38](#i8edcda117c6a4a389e9bb0af366d7035_7)

Schedule 2 Terms and Conditions of the Instruments&nbsp;&nbsp;&nbsp;&nbsp;[42](#i8edcda117c6a4a389e9bb0af366d7035_7)

Schedule 3 Provisions for Meetings of Instrumentholders&nbsp;&nbsp;&nbsp;&nbsp;[81](#i8edcda117c6a4a389e9bb0af366d7035_10)

<br>i

------

**This Trust Deed** is made on 21 August 2025 **between**:

**(1)NATIONAL GRID NORTH AMERICA INC.** (the "**Issuer**"); and

**(2)THE LAW DEBENTURE TRUST CORPORATION p.l.c.** (the "**Trustee**", which expression, where the meaning so admits, includes any other trustee for the time being of this Trust Deed).

**Whereas**:

(A)The Issuer proposes to issue from time to time debt instruments in registered form (the "**Instruments**") in an aggregate nominal amount outstanding at any one time, not exceeding the Programme Limit in accordance with the Dealer Agreement (the "**Programme**") and to be constituted by this Trust Deed.

(B)This Trust Deed amends and restates the amended and restated trust deed dated 4 August 2023 between National Grid North America Inc. and The Law Debenture Trust Corporation p.l.c. (the "**Original Trust Deed**") in respect of all Instruments issued pursuant to the Programme on or after the date of this Trust Deed. The Original Trust Deed will continue in full force and effect in respect of all Instruments issued prior to the date of this Trust Deed and any Instruments issued on or after the date of this Trust Deed which are to be consolidated and form a single series with any Instruments issued prior to the date hereof.

(C)The Trustee has agreed to act as trustee of this Trust Deed on the following terms and conditions.

**This Deed** witnesses and it is declared as follows:

**1Interpretation**

**1.1Definitions**

In this Trust Deed:

"**Agency Agreement**" means the amended and restated agency agreement (as amended, supplemented and/or restated from time to time) relating to the Programme dated 4 August 2023, between the Issuer, the Trustee, The Bank of New York Mellon, London Branch as Issuing and Paying Agent, Calculation Agent and Transfer Agent, The Bank of New York Mellon SA/NV, Dublin Branch as Registrar and Transfer Agent, Quintet Private Bank (Europe) S.A. as Paying Agent and Transfer Agent, Computershare Advantage Trust of Canada as Canadian Paying Agent and the other agent(s) mentioned in it;

"**Agents**" has the meaning given to it in the Agency Agreement;

"**Calculation Agent**" means any person named as such in the Conditions or any Successor Calculation Agent;

"**Canadian Paying Agent**" means Computershare Advantage Trust of Canada as Canadian Paying Agent under the Agency Agreement (or such other Canadian Paying Agent as may be appointed from time to time under the Agency Agreement);

"**CDS**" means CDS Clearing and Depository Services Inc.;

"**Certificate**" means a registered certificate representing one or more Instruments of the same Series and, save as provided in the Conditions, comprising the entire holding by an

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Instrumentholder of his Instruments of that Series and, save in the case of Global Certificates, being substantially in the form set out in Schedule1 Part B;

"**Common Safekeeper**" means, in relation to a Series where the relevant Global Certificate is held under the NSS, the common safekeeper for Euroclear and Clearstream, Luxembourg appointed in respect of such Instruments;

"**Clearstream, Luxembourg**" means Clearstream Banking S.A.;

"**Conditions**" means in respect of the Instruments of each Series the terms and conditions applicable to them which shall be substantially in the form set out in Schedule 2 (Terms and Conditions of the Instruments) as modified, with respect to any Instruments represented by a Global Certificate, by the provisions of such Global Certificate, and shall incorporate any additional provisions forming part of such terms and conditions set out in Part A of the Final Terms relating to the Instruments of that Series and any reference to a particularly numbered Condition shall be construed accordingly;

"**Contractual Currency**" means, in relation to any payment obligation of any Instrument, the currency in which that payment obligation is expressed and, in relation to Clause 8 (Provisions Supplemental to the Trustee Acts), such currency as may be agreed between the Issuer and the Trustee from time to time;

"**Dealer Agreement**" means the amended and restated dealer agreement (as amended, supplemented and/or restated from time to time) relating to the Programme dated 21 August 2025 between the Issuer, the Arranger and the dealers named in it;

"**Definitive Instrument**" means a Certificate other than a Global Certificate and includes any replacement Instrument or Certificate issued pursuant to the Conditions;

"**Effective Date**" means the date on which the Arranger, has received, on behalf of the Dealers, each of the condition precedent documents listed in Schedule 2 to the Dealer Agreement and that each is, in form and substance, satisfactory to it;

"**Euroclear**" means Euroclear Bank SA/NV;

"**Event of Default**" means an event described in Condition 8 and that, if so required by that Condition, has been certified by the Trustee to be, in its opinion, materially prejudicial to the interests of the Instrumentholders;

"**Extraordinary Resolution**" has the meaning set out in Schedule 3 (Provisions for Meetings of Instrumentholders);

"**Final Terms**" means, in relation to a Tranche, the final terms document substantially in the form set out in the Prospectus which will be completed at or around the time of the agreement to issue each Tranche of Instruments and which will constitute final terms for the purposes of the UK Prospectus Regulation. For the avoidance of doubt, in the case of Instruments issued under the Programme which are not admitted to trading on the London Stock Exchange's Main Market, all references to the Final Terms shall be construed as references to the pricing supplement substantially in the form set forth in the Prospectus;

"**Global Certificate**" means a Temporary Global Certificate and/or the Permanent Global Certificate substantially in the forms set out in Part A of Schedule 1 representing Instruments of one or more Tranches of the same Series;

"**holder**" in relation to an Instrument and "**Instrumentholder**" have the meanings given to them in the Conditions;

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"**Instruments**" means the debt instruments to be issued by the Issuer pursuant to the Dealer Agreement, constituted by this Trust Deed and for the time being outstanding or, as the context may require, a specific number of them;

"**Issuing and Paying Agent**" means the person named as such in the Conditions or any Successor Issuing and Paying Agent in each case at its specified office;

"**month**" means a calendar month;

"**NSS**" means the new safekeeping structure which applies to Instruments held in global form by a Common Safekeeper for Euroclear and Clearstream, Luxembourg and which is required for such Instruments to be recognised as eligible collateral for Eurosystem monetary policy and intra-day credit operations;

"**outstanding**" means, in relation to the Instruments, all the Instruments issued except (a) those that have been redeemed in accordance with the Conditions, (b) those in respect of which the date for redemption has occurred and the redemption moneys (including all interest accrued on such Instruments to the date for such redemption and any interest payable after such date) have been duly paid to the Trustee or to the Issuing and Paying Agent or the Canadian Paying Agent, as applicable, as provided in Clause 2 (Issue of Instruments and Covenant to Pay) and remain available for payment against presentation and surrender of such Instruments, (c) those which have become void or in respect of which claims have become prescribed, (d) those which have been purchased and cancelled as provided in the Conditions, (e) those mutilated or defaced Instrument(s) which have been surrendered in exchange for replacement Certificate(s), (f) those Instruments alleged to have been lost, stolen or destroyed and in respect of which replacement Instruments have been issued, and (g) any Temporary Global Certificate to the extent that such Certificates have been exchanged for a Permanent Global Certificate, provided that for the purposes of (i) ascertaining the right to attend at any meeting of Instrumentholders and vote at any meeting of the Instrumentholders or to participate in any Written Resolution or Electronic Consent, (ii) the determination of how many Instruments are outstanding for the purposes of Conditions 8 and 10 and Schedule 3 (Provisions for Meetings of Instrumentholders), (iii) the exercise of any discretion, power or authority that the Trustee is required, expressly or impliedly, to exercise in or by reference to the interests of the Instrumentholders and (iv) the certification (where relevant) by the Trustee as to whether a Potential Event of Default is in its opinion materially prejudicial to the interests of the Instrumentholders, those Instruments which are beneficially held by or on behalf of the Issuer or any of its subsidiary undertakings and not cancelled shall (unless no longer so held) be deemed not to remain outstanding;

"**Paying Agents**" means the persons (including the Issuing and Paying Agent and the Canadian Paying Agent, as applicable) referred to as such in the Conditions or any Successor Paying Agents in each case at their respective specified offices;

"**Permanent Global Certificate**" means a permanent Global Certificate in the form set out in Part A of Schedule 1 hereto, issued in a denomination equal to the outstanding principal amount of the Temporary Global Certificate upon expiration of the Restricted Period and certification of non-U.S. beneficial ownership;

"**Potential Event of Default**" means an event or circumstance that could with the giving of notice, lapse of time, issue of a certificate and/or fulfilment of any other requirement provided for in Condition 8 become an Event of Default;

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"**Programme Limit**" means the maximum aggregate nominal amount of Instruments which may be issued and outstanding at any time under the Programme, as such limit may be increased pursuant to the Dealer Agreement;

"**Prospectus**" means the prospectus prepared in connection with the Programme and constituting (i) a base prospectus in respect of the Issuer for the purposes of the UK Prospectus Regulation and (ii) listing particulars in respect of the Issuer for the purposes of Listing Rule 2.2.11 of the Listing Rules of the Financial Conduct Authority, as revised, supplemented or amended from time to time by the Issuer including any documents which are from time to time incorporated in the Prospectus by reference except that in relation to each Tranche of Instruments only the applicable Final Terms shall be deemed to be included in the Prospectus;

"**Redemption Amount**" means the Final Redemption Amount, Early Redemption Amount or Optional Redemption Amount, as the case may be, all as defined in the Conditions;

"**Register**" means the register maintained by the Registrar;

"**Registrar**" means the person named as such in the Conditions or any Successor Registrar in each case at its specified office;

"**Restricted Period**" means the 40-day distribution compliance period as defined in Regulation S under the Securities Act;

"**Securities Act**" means the U.S. Securities Act of 1933, as amended;

"**Series**" means a series of Instruments comprising one or more Tranches, whether or not issued on the same date, that (except in respect of the first payment of interest and their issue price) have identical terms on issue and are expressed to have the same series number;

"**specified office**" means, in relation to a Paying Agent, the Registrar or a Transfer Agent the office identified with its name at the end of the Conditions or any other office approved by the Trustee and notified to Instrumentholders pursuant to Clause 6.6 (Notices to Instrumentholders);

"**Successor**" means, in relation to an Agent such other or further person as may from time to time be appointed by the Issuer as such Agent with the written approval of, and on terms approved in writing by, the Trustee and notice of whose appointment is given to Instrumentholders pursuant to Clause 6.6 (Notices to Instrumentholders);

"**successor in business**" means (a) an entity which acquires all or substantially all of the undertaking and/or assets of the Issuer or of a successor in business of the Issuer; or (b) any entity into which any of the previously referred to entity is amalgamated, merged or reconstructed and is itself not the continuing company;

"**T2**" means the real time gross settlement system operated by the Eurosystem, or any successor system;

"**Temporary Global Certificate**" means a temporary Global Certificate in the form set out in Part A of Schedule 1 hereto, bearing the Temporary Global Certificate Legend;

"**Temporary Global Certificate Legend**" means the legend set forth in Clause 3 (Form of the Instruments);

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"**Tranche**" means, in relation to a Series, those Instruments of that Series which are issued on the same date at the same issue price and in respect of which the first payment of interest is identical;

"**Transfer Agents**" means the persons (including the Registrar) referred to as such in the Conditions or any Successor Transfer Agents in each case at their specified offices;

"**trust corporation**" means a trust corporation (as defined in the Law of Property Act 1925) or a corporation entitled to act as a trustee pursuant to applicable foreign legislation relating to trustees;

"**Trustee Acts**" means both the Trustee Act 1925 and the Trustee Act 2000 of England and Wales; and

"**UK Prospectus Regulation**" means Regulation 2017/1129 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

**1.2Construction of Certain References**

Unless the context otherwise requires, all references in this Trust Deed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1**the records of Euroclear and Clearstream, Luxembourg shall be to the records that each of Euroclear and Clearstream, Luxembourg holds for its customers which reflect the amount of such customers' interests in the Instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2**costs, charges, remuneration or expenses include any value added, turnover or similar tax charged in respect of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3**an action, remedy or method of judicial proceedings for the enforcement of creditors' rights include references to the action, remedy or method of judicial proceedings in jurisdictions other than England as shall most nearly approximate to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4**the Trustee's approval or consent shall, unless expressed otherwise, be subject to the requirement that any such approval or consent shall not be unreasonably withheld or delayed, such reasonableness to be determined by reference to acting in the interests of Instrumentholders as a whole; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.5**the appointment or employment of or delegation to any person by the Trustee shall be deemed to include a reference to, if in the opinion of the Trustee it is reasonably practicable, the prior notification of and consultation with the Issuer and, in any event, the notification forthwith of such appointment, employment or delegation, as the case may be.

**1.3Headings**

Headings shall be ignored in construing this Trust Deed.

**1.4Contracts**

References in this Trust Deed to this Trust Deed or any other document are to this Trust Deed or those documents as amended, supplemented or replaced from time to time in relation to the Programme and include any document that amends, supplements or replaces them.

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**1.5Schedules**

The Schedules are part of this Trust Deed and have effect accordingly.

**1.6Alternative Clearing System**

References in this Trust Deed to Euroclear and/or Clearstream, Luxembourg shall, wherever the context so permits, be deemed to include reference to any additional or alternative clearing system approved by the Issuer, the Trustee and the Issuing and Paying Agent. In the case of Global Certificates held under the NSS, such alternative clearing system must also be authorised to hold Instruments as eligible collateral for Eurosystem monetary policy and intra-day credit operations.

**1.7Other Terms**

Other terms defined in the Dealer Agreement or the Conditions have the same meaning in this Trust Deed.

**1.8Contracts (Rights of Third Parties) Act 1999**

A person who is not a party to this Trust Deed has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Trust Deed.

**1.9Effectiveness**

Upon execution of this Trust Deed by all the parties hereto, the Original Trust Deed shall be replaced by this Trust Deed and the Original Trust Deed shall be of no further force and effect, except in respect of Instruments issued prior to the date of this Trust Deed.

**2Issue of Instruments and Covenant to Pay**

**2.1Issue of Instruments**

The Issuer may from time to time issue Instruments in Tranches of one or more Series on a continuous basis with no minimum issue size in accordance with the Dealer Agreement. Before issuing any Tranche and not later than 3.00 p.m. (London time) on the second business day in London which for this purpose shall be a day on which commercial banks are open for general business in London preceding each proposed issue date, the Issuer shall give written notice or procure that it is given to the Trustee of the proposed issue of such Tranche, specifying the details to be included in the relevant Final Terms. Upon the issue by the Issuer of any Instruments expressed to be constituted by this Trust Deed, such Instruments shall forthwith be constituted by this Trust Deed without any further formality and irrespective of whether or not the issue of such debt securities contravenes any covenant or other restriction in this Trust Deed or the Programme Limit.

**2.2Separate Series**

The provisions of Clauses 2.3 (Covenant to Pay), 2.4 (Discharge), 2.5 (Payment after a Default) and 2.6 (Rate of Interest after a Default) and of Clauses 3 (Form of the Instruments) to 15 (Currency Indemnity) and Schedule 3 (Provisions for Meetings of Instrumentholders) (all inclusive) shall apply *mutatis mutandis* separately and independently to the Instruments of each Series and in such Clauses and Schedule the expressions "**Instrumentholders**", and "**Certificates**", together with all other terms that relate to Instruments or their Conditions, shall be construed as referring to those of the

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particular Series in question and not of all Series unless expressly so provided, so that each Series shall be constituted by a separate trust pursuant to Clause 2.3 (Covenant to Pay) and that, unless expressly provided, events affecting one Series shall not affect any other.

**2.3Covenant to Pay**

The Issuer shall on any date when any Instruments become due to be redeemed, in whole or in part, unconditionally pay to or to the order of the Trustee in the Contractual Currency, in the case of any Contractual Currency other than Euro, in the principal financial centre for the Contractual Currency and, in the case of Euro, in a city in which banks have access to T2, in same day funds the Redemption Amount of the Instruments becoming due for redemption on that date together with any applicable premium and shall (subject to the Conditions and other than in respect of Zero Coupon Instruments) until such payment (both before and after judgment) unconditionally so pay to or to the order of the Trustee interest in respect of the nominal amount of the Instruments outstanding as set out in the Conditions (subject to Clause 2.6 (Rate of Interest after a Default)) provided that (a) subject to the provisions of Clause 2.5 (Payment after a Default), payment of any sum due in respect of the Instruments made to the Issuing and Paying Agent or Canadian Paying Agent, as applicable, as provided in the Agency Agreement shall, to that extent, satisfy such obligation except to the extent that there is failure in its subsequent payment to the relevant Instrumentholders under the Conditions and (b) a payment made after the due date or as a result of the Instrument becoming repayable following an Event of Default shall be deemed to have been made when the full amount due has been received by the Issuing and Paying Agent or Canadian Paying Agent, as applicable, or the Trustee and notice to that effect has been given to the Instrumentholders (if required under Clause 6.8 (Notice of Late Payment)), except to the extent that there is failure in its subsequent payment to the relevant Instrumentholders under the Conditions. This covenant shall only have effect each time Instruments are issued and outstanding, when the Trustee shall hold the benefit of this covenant on trust for the Instrumentholders of the relevant Series.

**2.4Discharge**

Subject to Clause 2.5 (Payment after a Default), any payment to be made in respect of the Instruments by the Issuer or the Trustee may be made as provided in the Conditions and any payment so made shall (subject to Clause 2.5 (Payment after a Default)) to that extent be a good discharge to the Issuer or the Trustee, as the case may be, except to the extent that there is failure in its subsequent payment to the relevant Instrumentholders under the Conditions.

**2.5Payment after a Default**

At any time after an Event of Default or a Potential Event of Default has occurred the Trustee may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.1**by notice in writing to the Issuer and the Paying Agents, require the Paying Agents, until notified by the Trustee to the contrary, so far as permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)to act as Paying Agents and the Transfer Agents of the Trustee under this Trust Deed and the Instruments on the terms of the Agency Agreement (with consequential amendments as necessary and except that the Trustee's liability for the indemnification, remuneration and expenses of the

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Paying Agents shall be limited to the amounts for the time being held by the Trustee in respect of the Instruments on the terms of this Trust Deed) and thereafter to hold all Instruments and Certificates, and all moneys, documents and records held by them in respect of Instruments and Certificates to the order of the Trustee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)to deliver all Instruments and Certificates and all moneys, documents and records held by them in respect of the Instruments and Certificates to the Trustee or as the Trustee directs in such notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.2**by notice in writing to the Issuer, require the Issuer to make all subsequent payments in respect of the Instruments to or to the order of the Trustee and not to the Issuing and Paying Agent or Canadian Paying Agent, as applicable, and with effect from the receipt of any such notice by the Issuer, until such notice is withdrawn, the first proviso to Clause 2.3 (Covenant to Pay) shall cease to have effect.

**2.6Rate of Interest after a Default**

If the Instruments bear interest at a floating or other variable rate and they become immediately payable under the Conditions following an Event of Default, the rate of interest payable in respect of them shall continue to be calculated by the Calculation Agent in accordance with the Conditions (with consequential amendments as necessary) except that the rates of interest need not be notified to Instrumentholders. The first period in respect of which interest shall be so calculable shall commence on the expiry of the Interest Period during which the Instruments become so repayable.

**3Form of the Instruments**

**3.1The Global Certificates**

The Instruments shall initially be represented by one or more Temporary Global Certificates in the nominal amount of the Tranche being issued. Each Global Certificate shall be printed or typed substantially in the form set out in Part A of Schedule 1 and may be a facsimile. Interests in the Temporary Global Certificate shall be exchangeable for interests in a Permanent Global Certificate upon expiration of the Restricted Period and certification of non-U.S. beneficial ownership.

Following termination of the Restricted Period and receipt by the Issuing and Paying Agent of copies of certificates from Euroclear and Clearstream, Luxembourg (if available) certifying that they have received certification of non-U.S. beneficial ownership of 100 per cent. of the aggregate principal amount of each Temporary Global Certificate, the Issuing and Paying Agent or Canadian Paying Agent, as applicable, shall complete a Permanent Global Certificate (being substantially in the form set out in Schedule 1 Part A of the Trust Deed) in an aggregate nominal amount up to that of the relevant Tranche, authenticate it (or cause its agent on its behalf to do so), and deliver the Permanent Global Certificate to the Common Safekeeper which is holding the Temporary Global Certificate representing the Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg together with instructions to the Common Safekeeper to effectuate the same, and, in each case, procure the exchange of interests in such Temporary Global Certificate for interests in an equal nominal amount of such Permanent Global Certificate in accordance with such Temporary Global Certificate. In the case of a total exchange of interests in the Temporary

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Global Certificate, the Issuing and Paying Agent or Canadian Paying Agent, as applicable, shall cancel or arrange for the cancellation of the Temporary Global Certificate.

**3.2Temporary Global Certificate Legend**

The Temporary Global Certificate shall bear a legend in substantially the following form:

"BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON, AS DEFINED IN THE U.S. SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), NOR IS IT PURCHASING FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON, AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT."

**3.3The Certificates**

The Certificates shall be printed in accordance with applicable legal and stock exchange requirements substantially in the form set out in Part B of Schedule 1. The Certificates (other than the Global Certificates) shall be endorsed with the Conditions.

**3.4Signature**

The Instruments and Certificates (other than the Instruments settling in CDS) shall be signed manually or in facsimile by an authorised signatory of the Issuer and the Certificates shall be authenticated by or on behalf of the Registrar. Instruments and Certificates settling in CDS will be signed manually by an authorised signatory of the Issuer (unless CDS agrees that it will accept a facsimile or electronic signature) and such Certificates shall be authenticated manually by or on behalf of the Canadian Paying Agent (unless CDS agrees that it will accept a facsimile or electronic authentication signature). The Issuer may use the facsimile signature of any person who at the date of this Trust Deed is such an authorised signatory even if at the time of issue of any Instruments or Certificates he no longer holds that office. In the case of a Global Certificate which is held under the NSS, the Issuing and Paying Agent or the Registrar shall also instruct the Common Safekeeper to effectuate the same. Certificates so executed and authenticated (and effectuated, if applicable) shall represent binding and valid obligations of the Issuer. Execution in facsimile of any Instruments and any photostatic copying or other duplication of any Global Certificates (in unauthenticated form, but executed manually on behalf of the Issuer as stated above) shall represent binding obligations upon the Issuer in the same manner as if such Certificates were signed manually by such signatories.

**3.5Title**

The holder of any Instrument whose name is entered in the Register as being entitled to such Instrument shall (save as otherwise required by law) be treated as its absolute owner for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any interest in it, any writing on it or its theft or loss) and no person will be liable for so treating the holder.

**4Stamp Duties and Taxes**

**4.1Stamp Duties** 

The Issuer shall pay any stamp, issue, documentary or other similar taxes and duties payable in the United States of America in respect of the creation, issue and offering of the

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Instruments and/or Certificates issued by it and the execution or delivery of this Trust Deed. The Issuer shall also indemnify the Trustee and the relevant Instrumentholders from and against all stamp, issue, documentary or other similar taxes paid by any of them in any jurisdiction in connection with any action taken by or on behalf of the Trustee or, as the case may be (where entitled to do so), the relevant Instrumentholders to enforce the Issuer's obligations under this Trust Deed or the relevant Instruments or Certificates.

**4.2Change of Taxing Jurisdiction**

If the Issuer becomes subject generally to the taxing jurisdiction of a territory or a taxing authority of or in that territory with power to tax other than, or in addition to, the United States of America or any political sub-division of the United States of America then the Issuer shall (unless the Trustee otherwise agrees) give the Trustee an undertaking satisfactory to the Trustee in terms corresponding to the terms of Condition 6 with the substitution for, or (as the case may require) the addition to, the references in that Condition to the United States of America of references to that other or additional territory or authority to whose taxing jurisdiction the Issuer has become so subject. In such event this Trust Deed and the relevant Instruments and Certificates shall be read accordingly.

**5Application of Moneys Received by the Trustee**

**5.1Declaration of Trust**

All moneys received by the Trustee in respect of the Instruments or amounts payable under this Trust Deed shall, despite any appropriation of all or part of them by the Issuer, be held by the Trustee on trust to apply them (subject to Clause 5.2 (Accumulation)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.1**first, in payment of all costs, charges, expenses and liabilities properly incurred by the Trustee (including remuneration payable to it) in carrying out its functions under this Trust Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.2**secondly, in payment of any amounts owing in respect of the relevant Instruments *pari passu* and rateably; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.3**thirdly, in payment of any balance to the Issuer for itself.

If the Trustee holds any moneys which represent principal, premium or interest in respect of Instruments which have become void in accordance with the Conditions the Trustee shall hold them on these trusts.

**5.2Accumulation**

If the amount of the moneys at any time available for payment in respect of the Instruments under Clause 5.1 (Declaration of Trust) is less than 10 per cent. of the nominal amount of the Instruments then outstanding, the Trustee may, at its discretion, invest such moneys as provided in Clause 5.3 (Investment). The Trustee may retain such investments and accumulate the resulting income until the investments and the accumulations, together with any other funds for the time being under its control and available for such payment, amount to at least 10 per cent. of the nominal amount of the Instruments then outstanding and then such investments, accumulations and funds (after deduction of, or provision for, any applicable taxes) shall be applied as specified in Clause 5.1 (Declaration of Trust).

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**5.3Investment**

Moneys held by the Trustee may be invested in its name or under its control in any investments or other assets anywhere, whether or not they produce income, or deposited in its name or under its control at such bank or other financial institution in such currency as the Trustee may, in its absolute discretion, think fit. If that bank or institution is the Trustee or a subsidiary, parent or associated undertaking of the Trustee, it need only account for an amount of interest equal to the standard amount of interest payable by it on such a deposit to an independent customer. The Trustee may at any time vary or transpose any such investments or assets or convert any moneys so deposited into any other currency, and shall not be responsible for any resulting loss, whether by depreciation in value, change in exchange rates or otherwise.

**6Covenants**

So long as any Instrument issued by it is outstanding, the Issuer shall:

**6.1Books of Account**

Keep, and procure that each of its subsidiary undertakings keeps, proper books of account and, at any time after an Event of Default has occurred or if the Trustee reasonably believes that such an event has occurred, so far as permitted by applicable law, allow, and procure that each such subsidiary undertaking shall allow, the Trustee and anyone appointed by it to whom the Issuer and/or the relevant subsidiary undertaking has no reasonable objection, access to its books of account at all reasonable times during normal business hours.

**6.2Notice of Events of Default**

Notify the Trustee in writing immediately on becoming aware of the occurrence of any Event of Default or Potential Event of Default.

**6.3Information**

So far as permitted by applicable law, give the Trustee such information as it reasonably requires to perform its functions.

**6.4Financial Statements etc.**

Send to the Trustee at the time of their issue and, in the case of annual financial statements, in any event within 180 days of the end of each financial year, three copies in English of every balance sheet, profit and loss account, report or other notice, statement or circular issued, or that legally or contractually should be issued, to the members or creditors (or any class of them) of the Issuer or any parent undertaking of it generally in their capacity as such.

**6.5Certificate of a Director, etc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.1**Send to the Trustee, within 14 days of its annual audited financial statements being made available to its members, and also within 21 days of any request by the Trustee a certificate of the Issuer signed by a director that, having made all reasonable enquiries, to the best of the knowledge, information and belief of the Issuer as at a date (the "**Certification Date**") not more than five days before the date of the certificate no Event of Default or Potential Event of Default had occurred

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(and, in the case of a Potential Event of Default, was continuing) since the Certification Date of the last such certificate or (if none) the date of this Trust Deed or, if such an event had occurred (and, in the case of a Potential Event of Default, was continuing), giving details of it and certifying that it has complied with its obligations under this Trust Deed or, to the extent that it has failed so to comply, stating such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.2**Give to the Trustee, as soon as reasonably practicable after the acquisition of any company which thereby becomes a Principal Subsidiary or after any transfer is made to any member of the Group (as defined in Condition 8) which thereby becomes a Principal Subsidiary, a certificate by the auditors of the Issuer at that time (the "**Auditors**") addressed to the Trustee to such effect.

**6.6Notices to Instrumentholders**

Obtain the prior written approval of the Trustee to, and promptly give to the Trustee two copies of, the form of every notice given to the Instrumentholders in accordance with Condition 13 (such approval, unless so expressed, not to constitute approval for the purposes of Section 21 of the Financial Services and Markets Act 2000 of a communication within the meaning of that section).

**6.7Further Acts**

So far as permitted by applicable law, do such further things as may be necessary in the reasonable opinion of the Trustee to give effect to this Trust Deed.

**6.8Notice of Late Payment**

Forthwith upon request by the Trustee (if the Trustee determines such notice is necessary) give notice to the Instrumentholders of any unconditional payment to the Issuing and Paying Agent (or the Canadian Paying Agent, as applicable) or the Trustee of any sum due in respect of the Instruments made after the due date for such payment.

**6.9Listing** 

If the Instruments are so listed, use all reasonable endeavours to maintain the listing of the Instruments but, if it is unable to do so, having used such endeavours, or if the maintenance of such listing is agreed by the Trustee to be unduly onerous and the Trustee is satisfied that the interests of the Instrumentholders would not by such action be materially prejudiced, instead use all reasonable endeavours to obtain and maintain a listing of the Instruments on another stock exchange approved in writing by the Trustee.

**6.10Change in Agents**

Give at least 14 days' prior notice to the Instrumentholders in accordance with the Conditions of any future appointment, resignation or removal of an Agent or of any change by an Agent of its specified office.

**6.11Provision of Legal Opinions**

Procure the delivery of legal opinions addressed to the Trustee dated the date of such delivery, in form and content acceptable to the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11.1**from Allen Overy Shearman Sterling LLP as to the laws of England and as New York Counsel and the Issuer's internal counsel as to the laws of the United States

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(or such other legal advisers as may be agreed between the Issuer and the Trustee) before the first issue of Instruments occurring after each anniversary of this Trust Deed or, if later, 12 months after the date of delivery of the latest such legal opinion and on the date of any amendment to this Trust Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11.2**unless the Issuer has notified the Dealers and the Trustee in writing that it does not intend to issue Instruments under the Programme for the time being, from legal advisers reasonably acceptable to the Trustee as to such law as may reasonably be requested by the Trustee and in such form and with such content as the Trustee may require, on such occasions as the Trustee so requests on the basis that the Trustee considers it prudent in view of a change (or proposed change) in (or in the interpretation or application of) any applicable law, regulation or circumstance materially affecting the Issuer, the Trustee, the relevant Instruments, the Certificates, this Trust Deed or the Agency Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11.3**on each occasion on which a legal opinion is given to any Dealer pursuant to the Dealer Agreement from the legal adviser giving such opinion.

**6.12Instruments Held by the Issuer**

Send to the Trustee as soon as practicable after being so requested by the Trustee a certificate of the Issuer signed by any director or the Company Secretary stating the number of Instruments held at the date of such certificate by or on behalf of the Issuer or its subsidiary undertakings.

**6.13Obligations of Agents**

Comply with and perform all its obligations under the Agency Agreement and use all reasonable endeavours to procure that the Agents comply with and perform all their respective obligations thereunder and not make any amendment or modification to the Agency Agreement without the prior written approval of the Trustee.

**6.14Copies of Dealer Agreement**

Provide the Trustee promptly with copies of all supplements and/or amendments to, and/or restatements of, the Dealer Agreement.

**7Remuneration and Indemnification of the Trustee**

**7.1Normal Remuneration**

So long as any Instrument is outstanding the Issuer shall pay the Trustee as remuneration for its services as Trustee such sum on such dates in each case as they may from time to time agree. Such remuneration shall accrue from day to day from the date of this Trust Deed. However, if any payment to an Instrumentholder of moneys due in respect of any Instrument is improperly withheld or refused, such remuneration shall again accrue as from the date of such withholding or refusal until payment to such Instrumentholder is duly made.

**7.2Extra Remuneration**

If (i) an Event of Default, Potential Event of Default or Benchmark Event shall have occurred or (ii) in any other case, the Trustee finds it expedient or necessary or is requested by the Issuer to undertake duties that they both agree to be of an exceptional

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nature or otherwise outside the scope of the Trustee's normal duties under this Trust Deed, the Issuer shall pay such additional remuneration as they may agree (and which may be calculated by reference to the Trustee's normal hourly rates in force from time to time) or, failing agreement as to any of the matters in this Clause 7 (or as to such sums referred to in Clause 7.1 (Normal Remuneration)), as such matters shall be determined by a financial institution (acting as an expert) selected by the Trustee and approved by the Issuer or, failing such approval, nominated by the President for the time being of The Law Society of England and Wales. The expenses involved in such nomination and such person's fee shall be shared equally between the Trustee and the Issuer. The determination of the relevant financial institution shall be conclusive and binding on the Issuer, the Trustee and the relevant Instrumentholders.

**7.3Expenses**

The Issuer shall also, on demand by the Trustee, pay or discharge all costs, charges, liabilities and expenses properly incurred by the Trustee in the preparation and execution of this Trust Deed and the performance of its functions under this Trust Deed including, but not limited to, legal and travelling expenses and any United Kingdom stamp, documentary or other taxes or duties paid by the Trustee in connection with any legal proceedings reasonably brought or contemplated by the Trustee against the Issuer to enforce any provision of this Trust Deed, the relevant Instruments and in addition shall pay to the Trustee (if required) an amount equal to the amount of any value added tax or similar tax chargeable in respect of the Trustee's remuneration under this Trust Deed. Such costs, charges, liabilities and expenses shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.1**in the case of payments made by the Trustee before such demand, carry interest from the date of the demand at the rate of the Trustee's cost of funding on the date on which the Trustee made such payments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.2**in other cases, carry interest at such rate from 30 days after the date of the demand or (where the demand specifies that payment is to be made on an earlier date) from such earlier date provided that in such event no such interest shall accrue unless payment is actually made on such earlier date.

**7.4Notice of Costs**

The Trustee shall wherever practicable give prior notice to the Issuer of any costs, charges and expenses properly to be incurred and of payments to be made by the Trustee in the lawful exercise of its powers under this Trust Deed so as to afford the Issuer a reasonable opportunity to meet such costs, charges and expenses itself or to put the Trustee in funds to make payment of such costs, charges and expenses. However, failure of the Trustee to give any such prior notice shall not prejudice its rights to reimbursement of such costs, charges and expenses under this Clause 7.

**7.5Indemnity**

The Issuer shall indemnify the Trustee in respect of all liabilities and expenses properly incurred by it or by anyone appointed by it or to whom any of its functions may be delegated by it in the carrying out of its functions and against any loss, liability, cost, claim, action, demand or expense (including, but not limited to, all costs, charges and expenses properly paid or incurred in disputing or defending any of the foregoing) which any of them may incur in relation to the Issuer or that may be made against any of them arising out of

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or in relation to or in connection with, its appointment or the exercise of its functions in relation to the Issuer.

**7.6Continuing Effect**

Clauses 7.3 (Expenses) and 7.5 (Indemnity) shall continue in full force and effect as regards the Trustee even if it no longer is Trustee.

**7.7Determination of Series**

The Trustee shall be entitled in its absolute discretion to determine in respect of which Series of Instruments any costs, charges, liabilities and expenses incurred under this Trust Deed have been incurred or to allocate any such costs, charges, liabilities and expenses between the Instruments of any two or more Series.

**8Provisions Supplemental to the Trustee Acts**

**8.1Advice**

The Trustee may act on the opinion or advice of, or information obtained from, any expert (including, without limitation, any report or advice received from an independent financial adviser or from any accountant pursuant to the Conditions), whether or not (1) such opinion, advice or information is addressed to the Trustee or any other person, and (2) such expert's liability in respect of the same is limited by reference to a monetary cap or otherwise and shall not be responsible to anyone for any loss occasioned by so acting. Any such opinion, advice or information may be sent or obtained by letter, email or fax and the Trustee shall not be liable to anyone for acting in good faith on any opinion, advice or information purporting to be conveyed by such means even if it contains some error or is not authentic.

**8.2Trustee to Assume Performance**

The Trustee need not notify anyone of the execution of this Trust Deed or do anything to find out if an Event of Default, Potential Event of Default or Benchmark Event has occurred. Until it has actual knowledge or express notice to the contrary, the Trustee may assume that no such event has occurred and that the Issuer is performing all of its obligations under this Trust Deed and the relevant Instruments provided that the Trustee shall not be treated for any purposes as having any notice or knowledge which has been obtained by it or any officer or employee of it in some capacity other than as Trustee under this Trust Deed or in a private or confidential capacity such that it would not be proper to disclose to third parties.

**8.3Resolutions of Instrumentholders**

The Trustee shall not be responsible for having acted in good faith on a resolution purporting (i) to have been passed at a meeting of Instrumentholders in respect of which minutes have been made and signed, or (ii) to be a Written Resolution or an Electronic Consent made in accordance with paragraphs 26, 27 and 28 of Schedule 3 of this Trust Deed, even if it is later found that there was a defect in the constitution of the meeting or the passing of the resolution or that the resolution was not valid or binding on the Instrumentholders.

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**8.4Certificate Signed by Directors, etc.**

If the Trustee, in the exercise of its functions, requires to be satisfied or to have information as to any fact or the expediency of any act, it may call for and accept as sufficient evidence of that fact or the expediency of that act a certificate signed by any two directors of the Issuer as to that fact or to the effect that, in their opinion, that act is expedient and the Trustee need not call for further evidence and shall not be responsible for any loss occasioned by acting on such a certificate.

**8.5Deposit of Documents**

The Trustee may deposit this Trust Deed and any other documents with any bank or entity whose business includes the safe custody of documents or with any lawyer or firm of lawyers believed by it to be of good repute and may pay all sums due in respect of them.

**8.6Discretion**

The Trustee shall have absolute and uncontrolled discretion as to the exercise of its functions and shall not be responsible for any loss, liability, cost, claim, action, demand, expense or inconvenience which may result from their exercise or non-exercise.

**8.7Agents**

Whenever it considers it expedient in the interests of the Instrumentholders, the Trustee may, in the conduct of its trust business, instead of acting personally, employ and pay an agent selected by it, whether or not a lawyer or other professional person, to transact or conduct, or concur in transacting or conducting, any business and to do or concur in doing all acts required to be done by the Trustee (including the receipt and payment of money). The Trustee shall not be responsible to anyone for any misconduct or omission by any such agent so employed by it or be bound to supervise the proceedings or acts of any such agent.

**8.8Delegation**

Whenever it considers it expedient in the interests of the Instrumentholders, the Trustee may delegate to any person on any terms (including power to sub-delegate) all or any of its functions. If the Trustee exercises reasonable care in selecting such delegate, it shall not have any obligation to supervise such delegate or be responsible for any loss, liability, cost, claim, action, demand or expense incurred by reason of any misconduct or default by any such delegate or sub-delegate.

**8.9Nominees**

In relation to any asset held by it under this Trust Deed, the Trustee may appoint any person to act as its nominee on any terms.

**8.10Forged Instruments**

The Trustee shall not be liable to the Issuer or any relevant Instrumentholder by reason of having accepted as valid or not having rejected any relevant Instrument or Certificate purporting to be such and later found to be forged or not authentic.

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**8.11Confidentiality**

Unless ordered to do so by a court of competent jurisdiction, the Trustee shall not be required to disclose to any Instrumentholder any confidential financial or other information made available to the Trustee by the Issuer.

**8.12Determinations Conclusive**

As between itself and the Instrumentholders, the Trustee may determine all questions and doubts arising in relation to any of the provisions of this Trust Deed. Such determinations, whether made upon such a question actually raised or implied in the acts or proceedings of the Trustee, shall be conclusive and shall bind the Trustee and the Instrumentholders.

**8.13Currency Conversion**

Where it is necessary or desirable to convert any sum from one currency to another, it shall (unless otherwise provided hereby or required by law) be converted at such rate or rates, in accordance with such method and as at such date as may reasonably be specified by the Trustee but having regard to current rates of exchange, if available. Any rate, method and date so specified shall be binding on the Issuer and the relevant Instrumentholders.

**8.14Payment for and Delivery of Instruments**

The Trustee shall not be responsible for the receipt or application by the Issuer of the proceeds of the issue of any relevant Instruments, any exchange of relevant Instruments or the delivery of relevant Instruments to the persons entitled to them.

**8.15Trustee's consent**

Any consent given by the Trustee for the purposes of this Trust Deed may be given on such terms as the Trustee thinks fit. In giving such consent the Trustee may require the Issuer to agree to such modifications or additions to this Trust Deed as the Trustee may deem expedient in the interest of the Instrumentholders.

**8.16Instruments Held by the Issuer etc.**

In the absence of knowledge or express notice to the contrary, the Trustee may assume without enquiry (other than requesting a certificate under Clause 6.12 (Instruments Held by the Issuer)) that no Instruments are for the time being held by or on behalf of the Issuer or its subsidiary undertakings.

**8.17Legal Opinions**

The Trustee shall not be responsible to any person for failing to request, require or receive any legal opinion relating to any Instruments or for checking or commenting upon the content of any such legal opinion.

**8.18Programme Limit**

The Trustee shall not be concerned, and need not enquire, as to whether or not any Instruments are issued in breach of the Programme Limit.

**8.19Events of Default**

The Trustee may determine whether or not an Event of Default is in its opinion capable of remedy or (in relation to Condition 8(b)) materially prejudicial to the interests of relevant

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Instrumentholders. Any such determination shall be conclusive and binding on the Issuer and the relevant Instrumentholders.

**8.20Appointment of Independent Financial Adviser**

In connection with the Trustee's right to appoint an independent financial adviser pursuant to Clause 8.1 (if applicable), the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.20.1**shall use its reasonable endeavours to identify and appoint the independent financial adviser but shall have no liability to any person if, having used its reasonable endeavours, it is unable to identify and appoint a suitable independent financial adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.20.2**shall not be responsible for carrying on the role of independent financial adviser itself during the time it is attempting to identify such independent financial adviser or thereafter if it is unable to find such independent financial adviser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.20.3**shall not be required to take any action to find an independent financial adviser unless it has been previously indemnified and/or secured to its satisfaction or expend any of its own funds in the appointment of such an independent financial adviser.

**8.21Illegality**

No provision of this Trust Deed or the Conditions shall require the Trustee to do anything which may in its opinion be illegal or contrary to applicable law or regulation.

**8.22Banker, Lawyer, Broker or other Professional acting as Trustee**

Any trustee being a banker, lawyer, broker or other person engaged in any profession or business shall be entitled to charge and be paid all usual professional and other charges for business transacted and acts done by him or his partner or firm on matters arising in connection with the trusts of this Trust Deed and also his properly incurred charges in addition to disbursements for all other work and business done and all time spent by him or his partner or firm on matters arising in connection with the Trust Deed, including matters which might or should have been attended to in person by a trustee not being a banker, lawyer, broker or other professional person.

**8.23No Obligation to Risk Own Funds or Incur Financial Liability**

Nothing contained in this Trust Deed shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties or the exercise of any right, power, authority or discretion hereunder if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not assured to it.

**8.24No Obligation to Act without Indemnity, Security or Prefunding**

The Trustee shall not be bound to take any steps to enforce the performance of any provisions of this Trust Deed, the Instruments to appoint an independent financial advisor pursuant to the Conditions of the Instruments unless it shall be indemnified and/or secured and/or prefunded by the relevant Instrumentholders to its satisfaction against all proceedings, claims and demands to which it may be liable and against all costs, charges, liabilities and expenses which may be incurred by it in connection with such enforcement or

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appointment, including the cost of its managements' time and/or other internal resources, calculated using its normal hourly rates in force from time to time.

**8.25Evaluation of Risk**

When determining whether an indemnity or any security is satisfactory to it, the Trustee shall be entitled to evaluate its risk in given circumstances by considering the worst-case scenario and, for this purpose, it may take into account, without limitation, the potential costs of defending or commencing proceedings in England or elsewhere and the risk however remote, of any award of damages against it in England or elsewhere.

**8.26Quality of Indemnity or Security**

The Trustee shall be entitled to require that any indemnity or security given to it by the Instrumentholders or any of them be given on a joint and several basis and be supported by evidence satisfactory to it as to the financial standing and creditworthiness of each counterparty and/or as to the value of the security and an opinion as to the capacity, power and authority of each counterparty and/or the validity and effectiveness of the security.

**9Disapplication and Trustee Liability**

**9.1Disapplication**

Section 1 of the Trustee Act 2000 shall not apply to the duties of the Trustee in relation to the trusts constituted by this Trust Deed. Where there are any inconsistencies between the Trustee Acts and the provisions of this Trust Deed, the provisions of this Trust Deed shall, to the extent allowed by law, prevail and, in the case of any such inconsistency with the Trustee Act 2000, the provisions of this Trust Deed shall constitute a restriction or exclusion for the purposes of that Act.

**9.2Trustee Liability**

Subject to Sections 750 and 751 of the Companies Act 2006 (if applicable) and notwithstanding anything to the contrary in this Trust Deed, the Instruments or the Agency Agreement, the Trustee shall not be liable to any person for any matter or thing done or omitted in any way in connection with or in relation to this Trust Deed, the Instruments or the Agency Agreement save in relation to its own gross negligence, wilful default or fraud.

**10Waiver and Proof of Default**

**10.1Waiver**

The Trustee may, without the consent of the Instrumentholders and without prejudice to its rights in respect of any subsequent breach, from time to time and at any time, if in its opinion the interests of the Instrumentholders will not be materially prejudiced thereby, waive or authorise, on such terms as seem expedient to it, any breach or proposed breach by the Issuer of this Trust Deed or the Conditions or determine that an Event of Default or Potential Event of Default shall not be treated as such provided that the Trustee shall not do so in contravention of an express direction given by an Extraordinary Resolution or a request made pursuant to Condition 8. No such direction or request shall affect a previous waiver, authorisation or determination. Any such waiver, authorisation or determination shall be binding on the relevant Instrumentholders and, if the Trustee so requires, shall be notified to the Instrumentholders as soon as practicable.

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**10.2Proof of Default**

Proof that the Issuer has failed to pay a sum due to the holder of any one Instrument shall (unless the contrary be proved) be sufficient evidence that it has made the same default as regards all other Instruments which are then payable.

**11Trustee not Precluded from Entering into Contracts**

The Trustee and any other person, whether or not acting for itself, may acquire, hold or dispose of any Instrument, Certificate or other security (or any interest therein) of the Issuer or any other person, may enter into or be interested in any contract or transaction with any such person and may act on, or as depositary or agent for, any committee or body of holders of any securities of any such person in each case with the same rights as it would have had if the Trustee were not acting as Trustee and need not account for any profit.

**12Modification and Substitution**

**12.1Modification**

The Trustee may agree without the consent of the Instrumentholders to any modification to this Trust Deed of a formal, minor or technical nature or to correct a manifest error. The Trustee may also agree to any other modification to this Trust Deed which is in its opinion not materially prejudicial to the interests of the Instrumentholders of the relevant Series, but such power does not extend to any such modification as is mentioned in the proviso to paragraph 2 of Schedule 3 (Provisions for Meetings of Instrumentholders). In addition, the Trustee shall be obliged to concur with the Issuer in using its reasonable endeavours to effect any Benchmark Amendments in the circumstances and as otherwise set out in Condition 3.10 without the consent or approval of the Instrumentholders, provided that the Trustee shall not be obliged so to concur if in the opinion of the Trustee doing so would impose more onerous obligations upon it or expose it to any additional duties, responsibilities or liabilities or reduce or amend the rights and/or the protective provisions afforded to it in the Conditions and/or any documents to which it is a party (including, for the avoidance of doubt, any supplemental trust deed) in any way. Any such modification, authorisation or waiver shall be binding on the relevant Instrumentholders and if the Trustee so requires, such modification shall be notified to the relevant Instrumentholders as soon as practicable.

**12.2Substitution**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2.1**The Trustee may, without the consent of the Instrumentholders, agree to the substitution of any other company (the "**Substituted Obligor**") in place of the Issuer (or of any previous substitute under this Clause 12) as the principal debtor under this Trust Deed and the relevant Instruments provided that such substitution would not, in the opinion of the Trustee, be materially prejudicial to the interests of the Instrumentholders, and **further provided that**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a deed is executed or undertaking given by the Substituted Obligor to the Trustee, in form and manner satisfactory to the Trustee, agreeing to be bound by this Trust Deed and the relevant Instruments (with consequential amendments as the Trustee may deem appropriate) as if the Substituted

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Obligor had been named in this Trust Deed and the relevant Instruments and Certificates as the principal debtor in place of the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)if the Substituted Obligor is subject generally to the taxing jurisdiction of a territory or any authority of or in that territory with power to tax (the "**Substituted Territory**") other than the territory to the taxing jurisdiction of which (or to any such authority of or in which) the Issuer is subject generally (the "**Issuer's Territory**"), the Substituted Obligor shall (unless the Trustee otherwise agrees) give to the Trustee an undertaking satisfactory to the Trustee in terms corresponding to Condition 6 with the substitution for the references in that Condition to the Issuer's Territory of references to the Substituted Territory whereupon the Trust Deed, and the relevant Instruments and Certificates shall be read accordingly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)if any two directors of the Substituted Obligor certify that it will be solvent immediately after such substitution, the Trustee need not have regard to the Substituted Obligor's financial condition, profits or prospects or compare them with those of the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)the Issuer and the Substituted Obligor comply with such other requirements as the Trustee may direct in the interests of the relevant Instrumentholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)the Trustee is satisfied that (i) the Substituted Obligor has obtained all necessary governmental and regulatory approvals and consents necessary for its assumption of liability as principal debtor in respect of the relevant Instruments in place of the Issuer (or a previous substitute), (ii) all necessary governmental and regulatory approvals and consents necessary for or in connection with the assumption by the Substituted Obligor of its obligations under the relevant Instruments and (iii) such approvals and consents are at the time of substitution in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2.2Release of Substituted Issuer**

An agreement by the Trustee pursuant to Clause 12.2 (Substitution) shall, if so expressed, release the Issuer (or a previous substitute) from any or all of its obligations under this Trust Deed and the relevant Instruments. Notice of the substitution shall be given to the Instrumentholders within 14 days of the execution of such documents and compliance with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2.3Completion of Substitution**

On completion of the formalities set out in Clause 12.2 (Substitution), the Substituted Obligor shall be deemed to be named in this Trust Deed and the relevant Instruments and Certificates as the principal debtor in place of the Issuer (or of any previous substitute) and this Trust Deed and the relevant Instruments and Certificates, shall be deemed to be amended as necessary to give effect to the substitution.

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**13Appointment, Retirement and Removal of the Trustee**

**13.1Appointment**

The Issuer has the power of appointing new trustees but no one may be so appointed unless previously approved by an Extraordinary Resolution. The Trustee shall at all times be a trust corporation and such trust corporation may be the sole Trustee. Any appointment of a new Trustee shall be notified by the Issuer to its Instrumentholders in accordance with Condition 13 as soon as practicable.

**13.2Retirement and Removal**

Any Trustee may retire at any time on giving at least three months' written notice to the Issuer without giving any reason or being responsible for any costs occasioned by such retirement and the Instrumentholders may by Extraordinary Resolution remove any Trustee provided that the retirement or removal of a sole trust corporation shall not be effective until a trust corporation is appointed as successor Trustee. If a sole trust corporation gives notice of retirement or an Extraordinary Resolution is passed for its removal, it shall use all reasonable endeavours to procure that another trust corporation is appointed as Trustee.

**13.3Co-Trustees**

The Trustee may, despite Clause 13.1 (Appointment), by written notice to (i) the Issuer, appoint anyone to act as an additional Trustee jointly with the Trustee, or (ii) the Issuer appoint anyone to act as a separate Trustee in respect of any issue or:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.1**if the Trustee considers the appointment to be in the interests of the Instrumentholders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.2**to conform with a legal requirement, restriction or condition in a jurisdiction in which a particular act is to be performed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.3**to obtain a judgment or to enforce a judgment or any provision of this Trust Deed in any jurisdiction.

Subject to the provisions of this Trust Deed the Trustee may, in the instrument of appointment, confer on any person so appointed such functions as it thinks fit. The Trustee may by written notice to the Issuer and that person remove that person. At the Trustee's request, the Issuer shall forthwith do all things as may be required to perfect such appointment or removal and the Issuer irrevocably appoints the Trustee as its attorney in its name and on its behalf to do so.

Before appointing such person to act as separate Trustee or additional Trustee the Trustee shall (unless it is not, in the opinion of the Trustee, reasonably practicable to do so) give notice to the Issuer of its intention to make such appointment (and the reason for that) and shall give due consideration to representations made by the Issuer concerning such appointment. Where, as a result of this provision, not all the Instruments have the same Trustee, the provisions of this Trust Deed shall apply in respect of each such Trustee as if each were named as a party to this Trust Deed.

**13.4Competence of a Majority of Trustees**

If there are more than two Trustees the majority of them shall be competent to perform the Trustee's functions provided the majority includes a trust corporation.

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**14Instruments held in Clearing Systems** 

**14.1Instruments Held in Clearing Systems**

So long as any Instruments represented by a Global Certificate are held on behalf of a clearing system, in considering the interests of Instrumentholders, the Trustee may have regard to any information provided to it by such clearing system or its operator as to the identity (either individually or by category) of its accountholders or participants with entitlements to any such Instrument and may consider such interests on the basis that such accountholders or participants were the holder(s) of such Instrument.

**14.2Evidence of Holdings**

The Trustee and the Issuer may call for and, except in the case of manifest error, shall be at liberty to accept and place full reliance on as sufficient evidence thereof any certificate, letter of confirmation or other document issued on behalf of the relevant clearing system or any form of record made by the relevant clearing system or such other evidence and/or information and/or certification as it shall, in its absolute discretion, think fit to the effect that at any particular time or throughout any particular period any particular person is, was, or will be, shown in its records as the holder of a particular nominal amount of Instruments represented by a Global Certificate and if the Trustee or the Issuer does so rely, such letter of confirmation, form of record, evidence, information or certification shall be conclusive and binding on all concerned for all purposes. Any such certificate may comprise any form of statement or print out of electronic records provided by the relevant clearing system (including Euroclear's EUCLID or Clearstream, Luxembourg's Creation Online system) in accordance with its usual procedures and in which the holder of a particular nominal amount of Instruments is clearly identified together with the amount of such holding. Neither the Issuer nor the Trustee shall be liable to any person by reason of having accepted as valid or not having rejected any certificate or other document to such effect purporting to be issued by the relevant clearing system and subsequently found to be forged or not authentic.

**15Currency Indemnity**

**15.1Currency of Account and Payment**

The Contractual Currency is the sole currency of account and payment for all sums payable by the Issuer under or in connection with this Trust Deed and the Instruments, including damages.

**15.2Extent of Discharge**

An amount received or recovered in a currency other than the Contractual Currency (whether as a result of, or of the enforcement of, a judgment or order of a court of any jurisdiction, in the insolvency, winding-up or dissolution of the Issuer), by the Trustee or any Instrumentholder in respect of any sum expressed to be due to it from the Issuer, shall only discharge the Issuer to the extent of the Contractual Currency amount which the recipient is able to purchase with the amount so received or recovered in that other currency on the date of that receipt or recovery (or, if it is not practicable to make that purchase on that date, on the first date on which it is practicable to do so).

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**15.3Indemnity**

If that Contractual Currency amount is less than the Contractual Currency amount expressed to be due to the recipient under this Trust Deed or the Instruments, the Issuer shall indemnify the recipient against any loss sustained by it as a result. In any event, the Issuer shall indemnify the recipient against the cost of making any such purchase.

**15.4Indemnity Separate**

The indemnities in this Clause 15 and in Clause 7.5 (Indemnity) constitute separate and independent obligations from the other obligations in this Trust Deed, shall give rise to a separate and independent course of action, shall apply irrespective of any indulgence granted by the Trustee and/or any Instrumentholder and shall continue in full force and effect despite any judgment, order, claim or proof for a liquidated amount in respect of any sum due under this Trust Deed or the Instruments or any other judgment or order.

**16Enforcement**

**16.1Trustee to enforce**

Only the Trustee may enforce the rights of the Instrumentholders against the Issuer, whether the same arise under the general law, this Trust Deed, the Instruments or otherwise, and no Instrumentholder shall be entitled to proceed directly against the Issuer unless the Trustee, having become bound to proceed, fails to do so within a reasonable time and such failure is continuing.

**16.2Trustee's Indemnity**

The Trustee shall not be bound to take any steps to enforce the performance of any provisions of this Trust Deed or the Instruments or to appoint an independent financial advisor pursuant to the Conditions of the Instruments unless it shall be indemnified and/or secured and/or prefunded by the relevant Instrumentholders to its satisfaction against all proceedings, claims and demands to which it may be liable and against all costs, charges, liabilities and expenses which may be incurred by it in connection with such enforcement or appointment, including the cost of its managements' time and/or other internal resources, calculated using its normal hourly rates in force from time to time.

**16.3Legal proceedings**

If the Trustee (or any Instrumentholder where entitled in accordance with this Trust Deed so to do) institutes legal proceedings against the Issuer to enforce any obligations under this Trust Deed, proof in such proceedings that as regards any specified Instrument the Issuer has made default in paying any principal or interest due to the relevant Instrumentholder shall (unless the contrary be proved) be sufficient evidence that the Issuer has made the same default as regards all other Instruments which are then repayable or, as the case may be, in respect of which interest is then payable.

**16.4Powers additional to general powers**

The powers conferred on the Trustee by this Clause 16 shall be in addition to any powers which may from time to time be vested in the Trustee by general law or as the holder of any Instruments.

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**17Communications**

**17.1Method**

Each communication under this Trust Deed shall be made by electronic communication or otherwise in writing. Each communication or document to be delivered to any party under this Trust Deed shall be sent to that party at the electronic address, or address, and marked for the attention of the person (if any), from time to time designated by that party to each other party for the purpose of this Trust Deed. The initial telephone number, electronic address, address and person so designated by the parties under this Trust Deed are set out in the Procedures Memorandum.

**17.2Deemed Receipt**

Any communication from any party to any other under this Trust Deed shall be effective, (if in writing) when delivered and (if by electronic communication) when the relevant receipt of such communication being read is given, or where no read receipt is requested by the sender, at the time of sending, provided that no delivery failure notification is received by the sender within 24 hours of sending such communication (provided always that any electronic communication to the Trustee shall only be treated as having been received upon confirmation of receipt by the Trustee and an automatically generated "read" or "received" receipt shall not constitute such confirmation); provided that any electronic communication which is received (or deemed to take effect in accordance with the foregoing) after 5:00pm on a business day or on a non-business day in the place of receipt shall be deemed to take effect at the opening of business on the next following business day in such place. Any communication delivered to any party under this Trust Deed which is to be sent by electronic communication will be written legal evidence.

**18Governing Law and Jurisdiction**

**18.1Governing Law**

This Trust Deed and any non-contractual obligations arising out of or in connection with it shall be governed by, and construed in accordance with, English law.

**18.2Jurisdiction**

The courts of England are to have exclusive jurisdiction to settle any disputes that may arise out of or in connection with this Trust Deed or the Instruments and accordingly any legal action or proceedings arising out of or in connection with this Trust Deed or the Instruments ("**Proceedings**") may be brought in such courts. The Issuer irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in such courts on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This Clause is for the benefit of each of the Trustee and the relevant Instrumentholders and shall not limit the right of any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not).

**18.3Service of Process**

The Issuer irrevocably appoints National Grid plc of 1-3 Strand, London WC2N 5EH to receive, for it and on its behalf, service of process in any Proceedings in England. Such

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service shall be deemed completed on delivery to such process agent (whether or not it is forwarded to and received by the Issuer). If for any reason such process agent ceases to be able to act as such or no longer has an address in England the Issuer irrevocably agrees to appoint a substitute process agent acceptable to the Trustee and shall immediately notify the Trustee of such appointment. Nothing shall affect the right to serve process in any other manner permitted by law.

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**Schedule 1<br>Part A<br>Form of Global Certificates**

**Form of Global Certificate (Euroclear, Clearstream, Luxembourg and other Clearing Systems (other than CDS))**

ISIN:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Common Code:

[BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON, AS DEFINED IN THE U.S. SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), NOR IS IT PURCHASING FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON, AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT.]<sup>\*</sup>

**NATIONAL GRID NORTH AMERICA INC.**<br>(incorporated in the State of Delaware, United States of America)

**EURO MEDIUM TERM NOTE PROGRAMME<br>Series No. [•]<br>Tranche No. [•]**

**[TEMPORARY / PERMANENT] GLOBAL CERTIFICATE**

**Global Certificate No. [●]**

This Global Certificate is issued in respect of the Instruments (the "**Instruments**") of the Tranche and Series specified in Part A of the Schedule hereto of National Grid North America Inc. (the "**Issuer**"). This Global Certificate certifies that the person whose name is entered in the Register (the "**Registered Holder**") is registered as the holder of an issue of Instruments of the nominal amount, specified currency and specified denomination set out in Part A of the Schedule hereto.

**Interpretation and Definitions**

References in this Global Certificate to the "Conditions" are to the Terms and Conditions applicable to the Instruments (which are in the form set out in Schedule 2 (*Terms and Conditions of the Instruments*) to the amended and restated trust deed (as amended or supplemented as at the Issue Date, the "**Trust Deed**") dated 21 August 2025 between the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this Global Certificate (including the supplemental definitions and any modifications or additions set out the Schedule hereto), which in the event of any conflict shall prevail). Other capitalised terms used in this Global Certificate shall have the meanings given to them in the Conditions or the Trust Deed.

**Promise to Pay**

The Issuer, for value received, promises to pay to the holder of the Instruments represented by this Global Certificate (subject to surrender of this Global Certificate if no further payment falls to be made in respect of such Instruments) on the Maturity Date (or on such earlier date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions) the amount payable upon redemption under the Conditions in respect of the

<sup>\*</sup>&nbsp;&nbsp;&nbsp;&nbsp;To be included on the face of the Temporary Global Certificate and may be removed no earlier than 40 days after the issue date upon certification of non-U.S. beneficial ownership.

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Instruments represented by this Global Certificate and (unless the Instruments represented by this Certificate do not bear interest) to pay interest in respect of such Instruments from the Interest Commencement Date in arrear at the rates, on the dates for payment, and in accordance with the methods of calculation provided for in the Conditions, save that the calculation is made in respect of the total aggregate amount of the Instruments represented by this Global Certificate, together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions. Each payment will be made to, or to the order of, the person whose name is entered on the Register at the close of business on the record date which shall be on the Clearing System Business Day immediately prior to the date for payment, where "**Clearing System Business Day**" means Monday to Friday inclusive except 25 December and 1 January.

For the purposes of this Global Certificate, (a) the holder of the Instruments represented by this Global Certificate is bound by the provisions of the Agency Agreement, (b) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Instruments represented by this Global Certificate, (c) this Global Certificate is evidence of entitlement only, (d) title to the Instruments represented by this Global Certificate passes only on due registration on the Register, and (e) only the holder of the Instruments represented by this Global Certificate is entitled to payments in respect of the Instruments represented by this Global Certificate.

**Transfer of Instruments represented by Global Certificates**

If the Schedule hereto states that the Instruments are to be represented by a Global Certificate on issue, transfers of the holding of Instruments represented by this Global Certificate pursuant to Condition 17(a) may only be made in part:

(i)if the Instruments represented by this Global Certificate are held on behalf of Euroclear or Clearstream, Luxembourg or any other clearing system (an "**Alternative Clearing System**") other than CDS and any such clearing system is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so; or

(ii)with the consent of the Issuer,

(iii)provided that, in the case of the first transfer of part of a holding pursuant to (i) above, the holder of the Instruments represented by this Global Certificate has given the Registrar not less than 30 days' notice at its specified office of such holder's intention to effect such transfer. Where the holding of Instruments represented by this Global Certificate is only transferable in its entirety, the Certificate issued to the transferee upon transfer of such holding shall be a Global Certificate. Where transfers are permitted in part, Certificates issued to transferees shall not be Global Certificates unless the transferee so requests and certifies to the Registrar that it is, or is acting as a nominee for, Clearstream, Luxembourg, Euroclear and/or an Alternative Clearing System.

**Meetings**

For the purposes of any meeting of Instrumentholders, the holder of the Instruments represented by this Global Certificate shall (unless this Global Certificate represents only one Instrument) be treated as two persons for the purposes of any quorum requirements of a meeting of Instrumentholders and as being entitled to one vote in respect of each integral currency unit of the Specified Currency of the Instruments.

This Global Certificate shall not become valid for any purpose until authenticated by or on behalf of the Registrar and in the case of instruments held under the NSS only, effectuated by the entity appointed as Common Safekeeper by the relevant Clearing Systems.

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This Global Certificate and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with English law.

321354559429

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**In witness** whereof the Issuer has caused this Global Certificate to be signed on its behalf.

Dated as of the Issue Date.

**NATIONAL GRID NORTH AMERICA INC.**

By:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**CERTIFICATE OF AUTHENTICATION**

This Global Certificate is authenticated<br>by or on behalf of the Registrar.

**THE BANK OF NEW YORK MELLON SA/NV, DUBLIN BRANCH** as Registrar

By:

Authorised Signatory

For the purposes of authentication only.

**[Effectuation**

This Global Certificate is effectuated<br>by or on behalf of the Common Safekeeper

**CLEARSTREAM BANKING S.A.**<br> as Common Safekeeper

By:

Authorised Signatory<br>For the purposes of effectuation of Instruments held through the NSS only.]

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**Form of Transfer**

**For value received** the undersigned transfers to

....................................................................

....................................................................

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF TRANSFEREE)

[●] nominal amount of the Instruments represented by this Global Certificate, and all rights under them.

Dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;........................................................

Signed .............................................&nbsp;&nbsp;&nbsp;&nbsp;Certifying Signature

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the holder of the Instruments represented by this Global Certificate or (if such signature corresponds with the name as it appears on the face of this Global Certificate) be certified by a notary public or a recognised bank or be supported by such other evidence as a Transfer Agent or the Registrar may reasonably require.

A representative of the Instrumentholder should state the capacity in which he signs e.g. executor.

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**Schedule**

[Insert the provisions of the relevant Final Terms that relate to the Conditions or the Global Certificate as the Schedule.]

321354559432

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**Form of Global Certificate (CDS)**<sup>\*</sup>

Unless this certificate is presented by an authorised representative of CDS Clearing and Depository Services Inc. ("**CDS**") to National Grid North America Inc. or its agent for registration of transfer, exchange or payment, and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such other name as is requested by an authorised representative of CDS (and any payment is made to CDS & CO. or to such other entity as is requested by an authorised representative of CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered holder hereof, CDS & CO., has a property interest in the securities represented by this certificate herein and it is a violation of its rights for another person to hold, transfer or deal with this certificate.

ISIN:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

CUSIP:

[Common Code:]

[BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON, AS DEFINED IN THE U.S. SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), NOR IS IT PURCHASING FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON, AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT.]<sup>†</sup>

**NATIONAL GRID NORTH AMERICA INC.**<br>(incorporated in the State of Delaware, United States of America)

**EURO MEDIUM TERM NOTE PROGRAMME<br>[Title of Instruments]<br>Series No. [•]<br>Tranche No. [•]**

**[TEMPORARY / PERMANENT] GLOBAL CERTIFICATE**

**Global Certificate No. [●]**

This Global Certificate is issued in respect of the Instruments (the "**Instruments**") of the Tranche and Series specified in Part A of the Schedule hereto of National Grid North America Inc. (the "**Issuer**"). This Global Certificate certifies that the person whose name is entered in the Register being CDS & CO. of 100 Adelaide Street West, Toronto, Ontario, Canada M5H 1S3 (the "**Registered Holder**") is registered as the holder of an issue of Instruments of the nominal amount, specified currency and specified denomination set out in Part A of the Schedule hereto.

**Interpretation and Definitions**

References in this Global Certificate to the "Conditions" are to the Terms and Conditions applicable to the Instruments (which are in the form set out in Schedule 2 (*Terms and Conditions of the Instruments*) to the amended and restated trust deed (as amended or supplemented as at the Issue Date, the "**Trust Deed**") dated 21 August 2025 between the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this Global Certificate (including the supplemental definitions and any modifications or additions set out the Schedule hereto), which in the event of any conflict shall

<sup>\*</sup>&nbsp;&nbsp;&nbsp;&nbsp;CDS requires manual "wet ink" signatures. Master note cannot be used.

<sup>†</sup>&nbsp;&nbsp;&nbsp;&nbsp;To be included on the face of the Temporary Global Certificate and may be removed no earlier than 40 days after the issue date upon certification of non-U.S. beneficial ownership.

321354559433

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prevail). Other capitalised terms used in this Global Certificate shall have the meanings given to them in the Conditions or the Trust Deed.

**Promise to Pay**

The Issuer, for value received, promises to pay to the holder of the Instruments represented by this Global Certificate (subject to surrender of this Global Certificate if no further payment falls to be made in respect of such Instruments) on the Maturity Date (or on such earlier date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions) the amount payable upon redemption under the Conditions in respect of the Instruments represented by this Global Certificate and (unless the Instruments represented by this Certificate do not bear interest) to pay interest in respect of such Instruments from the Interest Commencement Date in arrear at the rates, on the dates for payment, and in accordance with the methods of calculation provided for in the Conditions, save that the calculation is made in respect of the total aggregate amount of the Instruments represented by this Global Certificate, together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions. Each payment will be made to, or to the order of, the person whose name is entered on the Register at the close of business on the record date which shall be on the Clearing System Business Day immediately prior to the date for payment, where "**Clearing System Business Day**" means a day on which CDS is open for business.

For the purposes of this Global Certificate, (a) the holder of the Instruments represented by this Global Certificate is bound by the provisions of the Agency Agreement, (b) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Instruments represented by this Global Certificate, (c) this Global Certificate is evidence of entitlement only, (d) title to the Instruments represented by this Global Certificate passes only on due registration on the Register, (e) only the holder of the Instruments represented by this Global Certificate is entitled to payments in respect of the Instruments represented by this Global Certificate, and (f) the rights of a person holding an interest in any Instruments held in or through CDS are subject to the rules and procedures of CDS (as amended or replaced from time to time), established by CDS, together with any procedures (as amended or replaced from time to time), established by CDS in respect of the CDSX system.

**Transfer of Instruments represented by Global Certificates**

If the Schedule hereto states that the Instruments are to be represented by a Global Certificate on issue, transfers of the holding of Instruments represented by this Global Certificate pursuant to Condition 17(a) may only be made in part:

(i)if the Global Certificate is held by or on behalf of CDS and (A) CDS has notified the Issuer that it is unwilling or unable to continue to act as a depositary for the Instruments and a successor depositary is not appointed by the Issuer within 90 working days after receiving such notice; or (B) CDS ceases to be a recognised clearing agency under applicable Canadian or provincial securities legislation and no successor clearing system satisfactory to the Trustee is available within 90 working days after the Issuer becomes aware that CDS is no longer so recognised; or

(ii)with the consent of the Issuer.

(iii)Where the holding of Instruments represented by this Global Certificate is only transferable in its entirety, the Certificate issued to the transferee upon transfer of such holding shall be a Global Certificate. Where transfers are permitted in part, Certificates issued to transferees shall not

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be Global Certificates unless the transferee so requests and certifies to the Registrar that it is, or is acting as a nominee for, CDS and/or an Alternative Clearing System.

**Meetings**

For the purposes of any meeting of Instrumentholders, the holder of the Instruments represented by this Global Certificate shall (unless this Global Certificate represents only one Instrument) be treated as two persons for the purposes of any quorum requirements of a meeting of Instrumentholders and as being entitled to one vote in respect of each integral currency unit of the Specified Currency of the Instruments.

This Global Certificate shall not become valid for any purpose until authenticated by or on behalf of the Canadian Paying Agent and in the case of instruments held under the NSS only, effectuated by the entity appointed as Common Safekeeper by the relevant Clearing Systems.

This Global Certificate and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with English law.

321354559435

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**In witness** whereof the Issuer has caused this Global Certificate to be signed on its behalf.

Dated [*include actual issue date for Instruments settling in CDS*].

**NATIONAL GRID NORTH AMERICA INC.**

By:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**CERTIFICATE OF AUTHENTICATION**

This Global Certificate is authenticated<br>by or on behalf of the Canadian Paying Agent.

**COMPUTERSHARE ADVANTAGE TRUST OF CANADA** 

as Canadian Paying Agent

By:

Authorised Signatory

For the purposes of authentication only.

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**Form of Transfer**

**For value received** the undersigned transfers to

....................................................................

....................................................................

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF TRANSFEREE)

[●] nominal amount of the Instruments represented by this Global Certificate, and all rights under them.

Dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;........................................................

Signed .............................................&nbsp;&nbsp;&nbsp;&nbsp;Certifying Signature

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the holder of the Instruments represented by this Global Certificate or (if such signature corresponds with the name as it appears on the face of this Global Certificate) be certified by a notary public or a recognised bank or be supported by such other evidence as a Transfer Agent or the Registrar may reasonably require.

A representative of the Instrumentholder should state the capacity in which he signs e.g. executor.

321354559437

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**Schedule**

[Insert the provisions of the relevant Final Terms that relate to the Conditions or the Global Certificate as the Schedule.]

321354559438

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**Schedule 1<br>Part B<br>Form of Certificate**

**NATIONAL GRID NORTH AMERICA INC.**<br>(incorporated in the State of Delaware, United States of America)

**EURO MEDIUM TERM NOTE PROGRAMME**

**Series No. [●]**

**Tranche No. [●]**

**[Title of issue]**

This Certificate certifies that [●] of [●] (the "**Registered Holder**") is, as at the date hereof, registered as the holder of [*nominal amount*] of Instruments of the Series of Instruments referred to above (the "**Instruments**") of National Grid North America Inc. (the "**Issuer**"), designated as specified in the title hereof. The Instruments are subject to the Terms and Conditions (the "**Conditions**") endorsed hereon and are issued subject to, and with the benefit of, the Trust Deed referred to in the Conditions. Expressions defined in the Conditions have the same meanings in this Certificate.

The Issuer, for value received, promises to pay to the holder of the Instrument(s) represented by this Certificate (subject to surrender of this Certificate if no further payment falls to be made in respect of such Instruments) on the Maturity Date (or on such earlier date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions) the amount payable upon redemption under the Conditions in respect of the Instruments represented by this Certificate and (unless the Instrument(s) represented by this Certificate do not bear interest) to pay interest in respect of such Instruments from the Interest Commencement Date in arrear at the rates, in the amounts and on the dates for payment provided for in the Conditions together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

For the purposes of this Certificate, (a) the holder of the Instrument(s) represented by this Certificate is bound by the provisions of the Agency Agreement, (b) the Issuer certifies that the Registered Holder is, at the date hereof, entered in the Register as the holder of the Instrument(s) represented by this Certificate, (c) this Certificate is evidence of entitlement only, (d) title to the Instrument(s) represented by this Certificate passes only on due registration on the Register, and (e) only the holder of the Instrument(s) represented by this Certificate is entitled to payments in respect of the Instrument(s) represented by this Certificate.

This Certificate shall not become valid for any purpose until authenticated by or on behalf of the Registrar.

321354559439

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**In witness** whereof the Issuer has caused this Certificate to be signed on its behalf.

Dated as of the Issue Date.

**NATIONAL GRID NORTH AMERICA INC.**

By:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**CERTIFICATE OF AUTHENTICATION**

This Certificate is authenticated<br>by or on behalf of the Registrar.

**THE BANK OF NEW YORK MELLON SA/NV, DUBLIN BRANCH**

as Registrar

By:

Authorised Signatory<br>For the purposes of authentication only.

321354559440

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On the back:

**Terms and Conditions of the Instruments**

[The Terms and Conditions that are set out in Schedule 2 to the Trust Deed as amended by and incorporating any additional provisions forming part of such Terms and Conditions and set out in Part A of the relevant Final Terms shall be set out here.]

321354559441

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**Form of Transfer**

**For value received** the undersigned transfers to

....................................................................

....................................................................

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF TRANSFEREE)

[●] nominal amount of the Instruments represented by this Certificate, and all rights under them.

Dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;........................................................

Signed .............................................&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certifying Signature

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The signature of the person effecting a transfer shall conform to a list of duly authorised specimen signatures supplied by the holder of the Instruments represented by this Certificate or (if such signature corresponds with the name as it appears on the face of this Certificate) be certified by a notary public or a recognised bank or be supported by such other evidence as a Transfer Agent or the Registrar may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)A representative of the Instrumentholder should state the capacity in which he signs.

Unless the context otherwise requires capitalised terms used in this Form of Transfer have the same meaning as in the amended and restated Trust Deed dated 21 August 2025 between the Issuer and the Trustee, [OTHER].

[TO BE COMPLETED BY TRANSFEREE:

[INSERT ANY REQUIRED TRANSFEREE REPRESENTATIONS, CERTIFICATIONS, ETC.]]

ISSUING AND PAYING AGENT, TRANSFER AGENT, CALCULATION AGENT AND REGISTRAR

ISSUING AND PAYING AGENT AND TRANSFER AGENT AND CALCULATION AGENT

**The Bank of New York Mellon, London Branch** <br> 160 Queen Victoria Street<br>London EC4V 4LA

REGISTRAR AND TRANSFER AGENT

**The Bank of New York Mellon SA/NV, Dublin Branch**

Riverside Two

Sir John Rogerson's Quay

Grand Canal Dock

Dublin 2

Ireland<br>

PAYING AGENT AND TRANSFER AGENT

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**Quintet Private Bank (Europe) S.A.**<br> 43 Boulevard Royal<br>L-2955 Luxembourg

321354559443

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**Schedule 2<br>Terms and Conditions of the Instruments**

321354559444

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**Schedule 3<br>Provisions for Meetings of Instrumentholders**

**Interpretation**

**1**In this Schedule:

**1.1**references to a meeting are to a physical meeting, a virtual meeting or a hybrid meeting of Instrumentholders of a single Series of Instruments issued by the Issuer and include, unless the context otherwise requires, any adjournment;

**1.2**references to "**Instruments**" and "**Instrumentholders**" are only to the Instruments of the Series in respect of which a meeting has been, or is to be, called, and to the holders of these Instruments, respectively;

**1.3**"**agent**" means a holder of a voting certificate or a proxy for, or representative of, an Instrumentholder;

**1.4**"**Alternative Clearing System**" means any clearing system (including without limitation CDS or The Depositary Trust Company ("**DTC**")) other than Euroclear or Clearstream, Luxembourg;

**1.5**"**Electronic Consent**" has the meaning set out in paragraph 27;

**1.6**"**electronic platform**" means any form of telephony or electronic platform or facility and includes, without limitation, telephone and video conference call and application technology systems;

**1.7**"**Extraordinary Resolution**" means a resolution passed at (a) a meeting duly convened and held in accordance with this Trust Deed by a majority of at least 75 per cent. of the votes cast, (b) by Written Resolution or (c) by an Electronic Consent;

**1.8**"**hybrid meeting**" means a combined physical meeting and virtual meeting convened pursuant to this Schedule by the Issuer or the Trustee at which persons may attend either at the physical location specified in the notice of such meeting or via an electronic platform

**1.9**"**meeting**" means a meeting convened pursuant to this Schedule by the Issuer or the Trustee and whether held as a physical meeting or as a virtual meeting or as a hybrid meeting;

**1.10**"**physical meeting**" means any meeting attended by persons present in person at the physical location specified in the notice of such meeting;

**1.11**"**present**" means physically present in person at a physical meeting or a hybrid meeting, or able to participate in or join a virtual meeting or a hybrid meeting held via an electronic platform;

**1.12**"**virtual meeting**" means any meeting held via an electronic platform;

**1.13**"**voting certificate**" means a certificate issued in accordance with paragraphs 5, 6, 7 and 17;

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**1.14**"**Written Resolution**" means a resolution in writing signed by the holders of not less than 95 per cent. in nominal amount of the Instruments outstanding;

**1.15**references to persons representing a proportion of the Instruments are to Instrumentholders or agents holding or representing in the aggregate at least that proportion in nominal amount of the Instruments for the time being outstanding; and

**1.16**where Instruments are held in Euroclear or Clearstream, Luxembourg or an Alternative Clearing System, references herein to the deposit or release or surrender of Instruments shall be construed in accordance with the usual practices (including in relation to the blocking of the relevant account) of Euroclear or Clearstream, Luxembourg or such Alternative Clearing System.

**Powers of meetings**

**2**A meeting shall, subject to the Conditions and without prejudice to any powers conferred on other persons by this Trust Deed, have power by Extraordinary Resolution:

**2.1**to sanction any proposal by the Issuer or the Trustee for any modification, abrogation, variation or compromise of, or arrangement in respect of, the rights of the Instrumentholders against the Issuer whether or not those rights arise under this Trust Deed;

**2.2**to sanction the exchange or substitution for the Instruments of, or the conversion of the Instruments into, shares, bonds or other obligations or securities of the Issuer or any other entity;

**2.3**to assent to any modification of this Trust Deed or the Instruments proposed by the Issuer or the Trustee;

**2.4**to authorise anyone to concur in and do anything necessary to carry out and give effect to an Extraordinary Resolution;

**2.5**to give any authority, direction or sanction required to be given by Extraordinary Resolution;

**2.6**to appoint any persons (whether Instrumentholders or not) as a committee or committees to represent the Instrumentholders' interests and to confer on them any powers or discretions which the Instrumentholders could themselves exercise by Extraordinary Resolution;

**2.7**to approve a proposed new Trustee and to remove a Trustee;

**2.8**to approve the substitution of any entity for the Issuer (or any previous substitute) as principal debtor under this Trust Deed; and

**2.9**to discharge or exonerate the Trustee from any liability in respect of any act or omission for which it may become responsible under this Trust Deed or the Instruments,

**provided that** the special quorum provisions in paragraph 13 shall apply to any Extraordinary Resolution (a "**special quorum resolution**") for the purpose of sub-paragraph 2.2 or 2.8, any of the proposals listed in Condition 10.1 or any amendment to this proviso.

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**Convening a meeting**

**3**The Issuer or the Trustee may at any time convene a meeting. If it receives a written request by Instrumentholders holding at least 10 per cent. in nominal amount of the Instruments of any Series for the time being outstanding and is indemnified to its satisfaction against all costs and expenses, the Trustee shall convene a meeting of the Instrumentholders of that Series. Every physical meeting shall be held at a time and place approved by the Trustee. Every virtual meeting shall be held via an electronic platform and at a time approved by the Trustee. Every hybrid meeting shall be held at a time and place and *via* an electronic platform approved by the Trustee.

**4**At least 21 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day of the meeting) shall be given to the Instrumentholders. A copy of the notice shall be given by the party convening the meeting to the other parties. The notice shall specify the day and time of the meeting and manner in which it is to be held, and if a physical meeting or hybrid meeting is to be held, the place of the meeting and, unless the Trustee otherwise agrees, the nature of the resolutions to be proposed and shall explain how Instrumentholders may appoint proxies or representatives, obtain voting certificates and use block voting instructions and the details of the time limits applicable. With respect to a virtual meeting or a hybrid meeting, each notice shall set out further details as required under paragraph 32.

**Cancellation of meeting**

**5**A meeting that has been validly convened in accordance with paragraph 3 above, may be cancelled by the person who convened such meeting by giving at least 5 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day of the meeting) to the Instrumentholders (with a copy to the Trustee where such meeting was convened by the Issuer or to the Issuer where such meeting was convened by the Trustee). Any meeting cancelled in accordance with this paragraph 5 shall be deemed not to have been convened.

**Arrangements for voting**

**6**If a holder of an Instrument wishes to obtain a voting certificate in respect of it for a meeting, the holder must deposit it for that purpose at least 48 hours before the time fixed for the meeting with a Paying Agent or to the order of a Paying Agent with a bank or other depositary nominated by the Paying Agent for the purpose. The Paying Agent shall then issue a voting certificate in respect of it.

**7**A voting certificate shall:

**7.1**be a document in the English language;

**7.2**be dated;

**7.3**specify the meeting concerned and the serial numbers of the Instruments deposited; and

**7.4**entitle, and state that it entitles, its bearer to attend and vote at that meeting in respect of those Instruments.

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**8**Once a Paying Agent has issued a voting certificate for a meeting in respect of an Instrument, it shall not release the Instrument until either:

**8.1**the meeting has been concluded; or

**8.2**the voting certificate has been surrendered to the Paying Agent.

**9**

**9.1**A holder of an Instrument may, by an Instrument in writing in the form available from the specified office of a Transfer Agent in the English language executed by or on behalf of the holder and delivered to the Transfer Agent at least 24 hours before the time fixed for a meeting, appoint any person (a "**proxy**") to act on his behalf in connection with that meeting. A proxy need not be an Instrumentholder.

**9.2**A corporation which holds an Instrument may, by delivering to a Transfer Agent at least 24 hours before the time fixed for a meeting a certified copy of a resolution of its directors or other governing body (with, if it is not in English, a certified translation into English), authorise any person to act as its representative (a "**representative**") in connection with that meeting.

**Chair**

**10**The chair of a meeting shall be such person as the Trustee may nominate in writing, but if no such nomination is made or if the person nominated is not present within 15 minutes after the time fixed for the meeting the Instrumentholders or agents present shall choose one of their number to be chair, failing which the Issuer may appoint a chair.

**11**The chair need not be an Instrumentholder or agent. The chair of an adjourned meeting need not be the same person as the chair of the original meeting.

**Attendance**

**12**The following may attend and speak at a meeting:

**12.1**Instrumentholders and agents;

**12.2**the chair;

**12.3**the Issuer and the Trustee (through their respective representatives) and their respective financial and legal advisers; and

**12.4**the Dealers and their advisers.

No one else may attend, participate and/or speak.

**Quorum and Adjournment**

**13**No business (except choosing a chair) shall be transacted at a meeting unless a quorum is present at the commencement of business. If a quorum is not present within 15 minutes from the time initially fixed for the meeting, it shall, if convened on the requisition of Instrumentholders or if the Issuer and the Trustee agree, be dissolved. In any other case it shall be adjourned until such date, not less than 14 nor more than 42 days later, and time

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and place or manner in which it is to be held as the chair may decide. If a quorum is not present within 15 minutes from the time fixed for a meeting so adjourned, the meeting shall be dissolved.

**14**Two or more Instrumentholders or agents present at the meeting shall be a quorum:

**14.1**in the cases marked "No minimum proportion" in the table below, whatever the proportion of the Instruments which they represent; and

**14.2**in any other case, only if they represent the proportion of the Instruments shown by the table below.

---

| | | |
|:---|:---|:---|
| **Column 1** | **Column 2** | **Column 3** |
| Purpose of meeting | Any meeting except one referred to in column 3 | Meeting previously adjourned through want of a quorum |
|  | Required proportion | Required proportion |
| To pass a special quorum resolution | Two thirds | One third |
| To pass any other Extraordinary Resolution | A clear majority | No minimum proportion |
| Any other purpose | 10 per cent. | No minimum proportion |

---

**15**The chair, may with the consent of (and shall if directed by) a meeting, adjourn the meeting from time to time and from place to place and alternate manner. Only business which could have been transacted at the original meeting may be transacted at a meeting adjourned in accordance with this paragraph or paragraph 13.

**16**At least 10 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day of the adjourned meeting) of a meeting adjourned through want of a quorum shall be given in the same manner as for an original meeting and that notice shall state the quorum required at the adjourned meeting. However, no notice need otherwise be given of an adjourned meeting.

**Voting**

**17**At a meeting which is held only as a physical meeting, each question submitted to such meeting shall be decided by a show of hands unless a poll is (before, or on the declaration of the result of, the show of hands) demanded by the chair, the Issuer, the Trustee or one or more persons holding one or more Instruments or voting certificates or representing not less than 2 per cent. of the Instruments.

**18**Unless a poll is demanded a declaration by the chair that a resolution has or has not been passed shall be conclusive evidence of the fact without proof of the number or proportion of the votes cast in favour of or against it.

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**19**If a poll is demanded, it shall be taken in such manner and (subject as provided below) either at once or after such adjournment as the chair directs. The result of the poll shall be deemed to be the resolution of the meeting at which it was demanded as at the date it was taken. A demand for a poll shall not prevent the meeting continuing for the transaction of business other than the question on which it has been demanded.

**20**A poll demanded on the election of a chair or on a question of adjournment shall be taken at once.

**21**On a show of hands every person who is present in person and who produces a Certificate of which he is the registered holder or a voting certificate or is a proxy or representative has one vote. On a poll every such person has one vote in respect of each integral currency unit of the Specified Currency of such Series of Instruments so produced or represented by the voting certificate so produced or for which he is a proxy or representative. Without prejudice to the obligations of proxies, a person entitled to more than one vote need not use them all or cast them all in the same way.

**22**In case of equality of votes the chair shall both on a show of hands and on a poll have a casting vote in addition to any other votes which he may have.

**23**At a virtual meeting or a hybrid meeting, a resolution put to the vote of the meeting shall be decided on a poll in accordance with paragraph 34, and any such poll will be deemed to have been validly demanded at the time fixed for holding the meeting to which it relates.

**Effect and Publication of an Extraordinary Resolution**

**24**An Extraordinary Resolution shall be binding on all the Instrumentholders, whether or not present at the meeting, and each of them shall be bound to give effect to it accordingly. The passing of such a resolution shall be conclusive evidence that the circumstances justify its being passed. The Issuer shall give notice of the passing of an Extraordinary Resolution to Instrumentholders within 14 days but failure to do so shall not invalidate the resolution.

**Minutes**

**25**Minutes shall be made of all resolutions and proceedings at every meeting and, if purporting to be signed by the chair of that meeting or of the next succeeding meeting, shall be conclusive evidence of the matters in them. Until the contrary is proved every meeting for which minutes have been so made and signed shall be deemed to have been duly convened and held and all resolutions passed or proceedings transacted at it to have been duly passed and transacted.

**Written Resolution and Electronic Consent**

**26**A resolution in writing signed by or on behalf of the holders of not less than 95 per cent. in nominal amount of the Instruments who for the time being are entitled to receive notice of a meeting in accordance with the provisions of this Schedule shall for all purposes be as valid and effectual as an Extraordinary Resolution passed at a meeting of such Instrumentholders duly convened and held in accordance with the provisions of this

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Schedule. Subject to the following sentence, a Written Resolution may be contained in one document or in several documents in like form, each signed by or on behalf of one or more of the Instrumentholders.

For so long as the Instruments are in the form of a Global Certificate held on behalf of one or more of Euroclear, Clearstream, Luxembourg or an Alternative Clearing System, then, in respect of any resolution proposed by the Issuer or the Trustee:

**27Electronic Consent**: where the terms of the resolution proposed by the Issuer or the Trustee (as the case may be) have been notified to the Instrumentholders through the relevant clearing system(s) as provided in sub-paragraph (i) and/or (ii) below, each of the Issuer and the Trustee shall be entitled to rely upon approval of such resolution given by way of electronic consents communicated through the electronic communications systems of the relevant clearing system(s) to the relevant Paying Agent or another specified agent in accordance with their operating rules and procedures by or on behalf of the holders of not less than 95 per cent. in nominal amount of the Instruments outstanding (the "**Required Proportion**") ("**Electronic Consent**") by close of business on the Relevant Date. The relevant Paying Agent shall confirm the result of voting on any Electronic Consent in writing to the Issuer and the Trustee (in a form satisfactory to the Trustee), specifying (as of the Relevant Date): (i) the outstanding nominal amount of the Instruments and (ii) the outstanding nominal amount of the Instruments in respect of which consent to the resolution has been given in accordance with this provision. The Issuer and the Trustee may act without further enquiry on any such confirmation from the relevant Paying Agent and shall have no liability or responsibility to anyone as a result of such reliance or action. The Trustee shall not be bound to act on any Electronic Consent in the absence of such a confirmation from the relevant Paying Agent in a form satisfactory to it. Any resolution passed in such manner shall be binding on all Instrumentholders, even if the relevant consent or instruction proves to be defective. The Issuer shall not be liable or responsible to anyone for such reliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)When a proposal for a resolution to be passed as an Electronic Consent has been made, at least 14 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day on which affirmative consents will be counted) shall be given to the Instrumentholders through the relevant clearing system(s). The notice shall specify, in sufficient detail to enable Instrumentholders to give their consents in relation to the proposed resolution, the method by which their consents may be given (including, where applicable, blocking of their accounts in the relevant clearing system(s)) and the time and date (the "**Relevant Date**") by which they must be received in order for such consents to be validly given, in each case subject to and in accordance with the operating rules and procedures of the relevant clearing system(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If, on the Relevant Date on which the consents in respect of an Electronic Consent are first counted, such consents do not represent the Required Proportion, the resolution shall be deemed to be defeated. Such determination shall be notified in writing to the other party or parties to the Trust Deed by the relevant Paying Agent. Alternatively, the party proposing such resolution (the "**Proposer**") may give a further notice to Instrumentholders in accordance with (i) above that the resolution will be proposed again. Such notice must inform Instrumentholders that insufficient

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consents were received in relation to the original resolution and the information specified in sub-paragraph (i) above. For the purpose of such further notice, references to "Relevant Date" shall be construed accordingly.

For the avoidance of doubt, an Electronic Consent may only be used in relation to a resolution proposed by the Issuer or the Trustee which is not then the subject of a meeting that has been validly convened in accordance with paragraph 3 above, unless that meeting is or shall be cancelled or dissolved; and

**28Written Resolution**: where Electronic Consent is not being sought, for the purpose of determining whether a Written Resolution has been validly passed, the Issuer and the Trustee shall be entitled to rely on consent or instructions given in writing directly to the Issuer and/or the Trustee, as the case may be, (a) by accountholders in the clearing system(s) with entitlements to such Global Certificates and/or, (b) where the accountholders hold any such entitlement on behalf of another person, on written consent from or written instruction by the person identified by that accountholder as the person for whom such entitlement is held. For the purpose of establishing the entitlement to give any such consent or instruction, the Issuer and the Trustee shall be entitled to rely on any certificate or other document issued by, in the case of (a) above, Euroclear, Clearstream, Luxembourg or any other relevant Alternative Clearing System and, in the case of (b) above, the relevant clearing systems and the accountholder identified by the relevant clearing systems for the purposes of (b) above.

Any resolution passed in such manner shall be binding on all Instrumentholders, even if the relevant consent or instruction proves to be defective. Any such certificate or other document shall, be conclusive and binding for all purposes. Any such certificate or other document may comprise any form of statement or print out of electronic records provided by the relevant clearing systems in accordance with their usual procedures and in which the accountholder of a particular nominal amount of the Instruments is clearly identified together with the amount of such holding. Neither the Issuer, nor the Trustee shall be liable to any person by reason of having accepted as valid or not having rejected any certificate or other document to such effect purporting to be issued by any such person and subsequently found to be forged or not authentic.

A Written Resolution or Electronic Consent shall take effect as an Extraordinary Resolution. A Written Resolution and/or Electronic Consent will be binding on all Instrumentholders, whether or not they participated in such Written Resolution and/or Electronic Consent.

**Trustee's Power to Prescribe Regulations**

**29**Subject to all other provisions in this Trust Deed the Trustee may without the consent of the Instrumentholders prescribe or approve such further regulations regarding the holding of meetings and attendance and voting at them as it in its sole discretion determines or as proposed by the Issuer including (without limitation) such requirements as the Trustee thinks reasonable to satisfy itself that the persons who purport to make any requisition in accordance with this Trust Deed are entitled to do so and as to the form of voting certificates or block voting instructions so as to satisfy itself that persons who purport to attend or vote at a meeting are entitled to do so.

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**30**The holder of a Global Certificate shall (unless such Global Certificate represents only one Instrument) be treated as two persons for the purposes of any quorum requirements of a meeting of Instrumentholders.

**31**The above provisions of this Schedule shall have effect subject to the following provisions:

**31.1**Meetings of Instrumentholders of separate Series will normally be held separately. However, the Trustee may from time to time determine that meetings of Instrumentholders of separate Series shall be held together.

**31.2**A resolution that in the opinion of the Trustee affects one Series alone shall be deemed to have been duly passed if passed at a separate meeting of the Instrumentholders of the Series concerned.

**31.3**A resolution that in the opinion of the Trustee affects the Instrumentholders of more than one Series but does not give rise to a conflict of interest between the Instrumentholders of the different Series concerned shall be deemed to have been duly passed if passed at a single meeting of the Instrumentholders of the relevant Series provided that for the purposes of determining the votes an Instrumentholder is entitled to cast pursuant to paragraph 20, each Instrumentholder shall have one vote in respect of each whole Euro 1.00 nominal amount of Instruments held, converted, if such Instruments are not denominated in Euro, in accordance with Clause 8.13 (Currency Conversion).

**31.4**A resolution that in the opinion of the Trustee affects the Instrumentholders of more than one Series and gives or may give rise to a conflict of interest between the Instrumentholders of the different Series concerned shall be deemed to have been duly passed only if it shall be duly passed at separate meetings of the Instrumentholders of the relevant Series.

**31.5**To all such meetings as previously set out all the preceding provisions of this Schedule shall *mutatis mutandis* apply as though references therein to Instruments and to Instrumentholders were references to the Instruments and Instrumentholders of the Series concerned.

**Additional provisions applicable to Virtual and/or Hybrid Meetings** 

**32**The Issuer (with the Trustee's prior approval) or the Trustee in its sole discretion may decide to hold a virtual meeting or a hybrid meeting and, in such case, shall provide details of the means for Instrumentholders or their proxies or representatives to attend, participate in and/or speak at the meeting, including the electronic platform to be used.

**33**The Issuer or the chair (in each case, with the Trustee's prior approval) or the Trustee in its sole discretion may make any arrangement and impose any requirement or restriction as is necessary to ensure the identification of those entitled to take part in the virtual meeting or hybrid meeting and the suitability of the electronic platform. All documentation that is required to be passed between persons at or for the purposes of the virtual meeting or persons attending the hybrid meeting via the electronic platform (in each case, in whatever capacity) shall be communicated by email (or such other medium of electronic communication as the Trustee may approve).

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**34**All resolutions put to a virtual meeting or a hybrid meeting shall be voted on by a poll in accordance with paragraphs 19-22 above (inclusive).

**35**Persons seeking to attend, participate in, speak at or join a virtual meeting or a hybrid meeting via the electronic platform shall be responsible for ensuring that they have access to the facilities (including, without limitation, IT systems, equipment and connectivity) which are necessary to enable them to do so.

**36**In determining whether persons are attending, participating in or joining a virtual meeting, or a hybrid meeting via the electronic platform it is immaterial whether any two or more members attending it are in the same physical location as each other or how they are able to communicate with each other.

**37**Two or more persons who are not in the same physical location as each other attend a virtual meeting or a hybrid meeting if their circumstances are such that if they have (or were to have) rights to speak or vote at that meeting, they are (or would be) able to exercise them.

**38**The chair of the meeting reserves the right to take such steps as the chair shall determine in its absolute discretion to avoid or minimise disruption at the meeting, which steps may include (without limitation), in the case of a virtual meeting or a hybrid meeting, muting the electronic connection to the meeting of the person causing such disruption for such period of time as the chair may determine

**39**The Issuer (with the Trustee's prior approval) or the Trustee in its sole discretion may make whatever arrangements they consider appropriate to enable those attending a virtual meeting or a hybrid meeting to exercise their rights to speak or vote at it.

**40**A person is able to exercise the right to speak at a virtual meeting or a hybrid meeting when that person is in a position to communicate to all those attending the meeting, during the meeting, as contemplated by the relevant provisions of this Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**40.1**A person is able to exercise the right to vote at a virtual meeting or a hybrid meeting when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**40.2**that person is able to vote, during the meeting, on resolutions put to the vote at the meeting; and

that person's vote can be taken into account in determining whether or not such resolutions are passed at the same time as the votes of all the other persons attending the meeting who are entitled to vote at such meeting.

**41**The Trustee shall not be responsible or liable to the Issuer or any other person for the security of the electronic platform used for any virtual meeting or hybrid meeting or for accessibility or connectivity or the lack of accessibility or connectivity to any virtual meeting or hybrid meeting.

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**In witness** of which this Trust Deed is delivered on the date stated at the beginning.

---

| |
|:---|
| **EXECUTED AND DELIVERED AS A DEED BY NATIONAL GRID NORTH AMERICA INC.**<br>y: |
| <br>By: /s/ Alexandra Lewis |

---

3213545594*SIGNATURE PAGE TO THE AMENDED AND RESTATED TRUST DEED*

------

**EXECUTED AS A DEED FOR AND ON BEHALF OF THE LAW DEBENTURE TRUST CORPORATION p.l.c. BY:**<br>/s/<br>Director: <br>/s/<br>Representing Law Debenture Corporate Services Limited, Secretary<br>

3213545594*SIGNATURE PAGE TO THE AMENDED AND RESTATED TRUST DEED*

## Ex-2.(B)4

EXECUTION VERSION

Exhibit 2(b).4

![image_0a.jpg](image_0a.jpg)

---

| |
|:---|
| Amended and Restated Trust Deed |
| relating to National Grid plc and National Grid Electricity Transmission plc<br>Euro 20,000,000,000 Euro Medium Term Note Programme arranged by HSBC Bank plc |
| Dated 19 August 2025 |
| NATIONAL GRID PLC<br>and<br>NATIONAL GRID ELECTRICITY TRANSMISSION PLC<br>as Issuers<br>and<br>THE LAW DEBENTURE TRUST CORPORATION P.L.C.<br>as Trustee |
| Ref: L-363322 |

---

------

**Table of Contents**

**Contents &nbsp;&nbsp;&nbsp;&nbsp;Page**

[2](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Issue of Instruments and Covenant to Pay](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[7](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[3](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Form of the Instruments](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[9](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[4](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Stamp Duties and Taxes](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[10](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[5](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Application of Moneys Received by the Trustee](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[10](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[6](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Covenants](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[11](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[7](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Remuneration and Indemnification of the Trustee](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[14](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[8](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Provisions Supplemental to the Trustee Acts](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[16](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[9](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Disapplication and Trustee Liability](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[19](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[10](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Waiver and Proof of Default](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[20](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[11](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Trustee not Precluded from Entering into Contracts](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[20](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[12](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Modification and Substitution](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[20](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[13](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Appointment, Retirement and Removal of the Trustee](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[22](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[14](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Instruments held in Clearing Systems and Couponholders](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[23](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[15](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Currency Indemnity](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[24](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[16](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Enforcement](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[25](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[17](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Communications](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[26](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[18](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[Governing Law and Jurisdiction](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[26](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[Schedule 1 Part A Form of CGN Temporary Global Instrument](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)[28](#i364d21a9f9454c12a1eaba1ccb5d0dd6_7)

[Schedule 1 Part B Form of CGN Permanent Global Instruments](#i364d21a9f9454c12a1eaba1ccb5d0dd6_10)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_10)[35](#i364d21a9f9454c12a1eaba1ccb5d0dd6_10)

[Schedule 1 Part C Form of NGN Temporary Global Instrument](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)[55](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)

[Schedule 1 Part D Form of NGN Permanent Global Instrument](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)[61](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)

[Schedule 2 Part A Form of Definitive Instrument](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)[68](#i364d21a9f9454c12a1eaba1ccb5d0dd6_13)

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[Schedule 2 Part B Terms and Conditions of the Instruments](#i364d21a9f9454c12a1eaba1ccb5d0dd6_16)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_16)[71](#i364d21a9f9454c12a1eaba1ccb5d0dd6_16)

[Schedule 2 Part C Form of Coupon](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)[132](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)

[Schedule 2 Part D Form of Talon](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)[134](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)

[Schedule 3 Provisions for Meetings of Instrumentholders](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)[&nbsp;&nbsp;&nbsp;&nbsp;](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)[136](#i364d21a9f9454c12a1eaba1ccb5d0dd6_19)

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**This Amended and Restated Trust Deed** is made on 19 August 2025 **between**:

**(1)NATIONAL GRID plc** ("**National Grid**") **AND NATIONAL GRID ELECTRICITY TRANSMISSION plc** ("**NGET**"), (each an "**Issuer**" and together, the "**Issuers**"); and

**(2)THE LAW DEBENTURE TRUST CORPORATION p.l.c.**, (the "**Trustee**", which expression, where the meaning so admits, includes any other trustee for the time being of this Trust Deed).

**Whereas**:

(A)The Issuers propose to issue from time to time bearer debt instruments and Australian Domestic Instruments (as defined below) (collectively, the "**Instruments**") in an aggregate nominal amount outstanding at any one time, including Instruments previously issued under the Programme, not exceeding the Programme Limit in accordance with the Dealer Agreement (the "**Programme**") and to be constituted by this Trust Deed (other than the Australian Domestic Instruments, which are to be constituted by the Deed Poll).

(B)The Trustee has agreed to act as trustee of this Trust Deed on the following terms and conditions.

(C)For the purposes of the Programme, the Issuers and the Trustee entered into an amended and restated trust deed dated 11 August 2022 (the "**Original Trust Deed**") and have agreed to make certain amendments to the Original Trust Deed.

**This Deed** witnesses and it is declared as follows:

**1Interpretation**

**1.1Definitions**

In this Trust Deed:

"**Agency Agreement**" means the amended and restated agency agreement (as amended, supplemented and/or restated from time to time) relating to the Programme dated 11 August 2022, between the Issuers, the Trustee, The Bank of New York Mellon as Issuing and Paying Agent and the other agent(s) mentioned in it;

"**Agents**" has the meaning given to it in the Agency Agreement;

"**Australian Domestic Instruments**" means Instruments in registered uncertificated (or inscribed) form, constituted by the Deed Poll and issued by an Issuer in the Australian domestic capital markets;

"**Australian Issuing and Paying Agent**" means, in relation to all or any series of Australian Domestic Instruments, the person named as such in the Conditions or any Successor Australian Issuing and Paying Agent in each case at its specified office;

"**Australian Registrar**" means, in relation to all or any series of Australian Domestic Instruments, BTA Institutional Services Australia Limited ACN 002 916 393 or, if applicable, any Successor Australian Registrar;

"**Australian Agency and Registry Agreement**" means the agreement, as amended and/or supplemented from time to time, dated 10 September 2012 between the Issuers and the Australian Registrar pursuant to which the Issuers have appointed the Australian Registrar, and any other agreement for the time being in force appointing further or other Australian

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registrars, or in connection with its or their duties, the terms of which have previously been approved in writing by the Trustee, together with any agreement for the time being in force amending, modifying or replacing with the prior written approval of the Trustee any of the aforesaid agreements;

"**Calculation Agent**" means any person named as such in the Conditions or any Successor Calculation Agent;

"**Canadian Paying Agent**" means Computershare Advantage Trust of Canada as Canadian Paying Agent under the Agency Agreement (or such other Canadian Paying Agent as may be appointed from time to time under the Agency Agreement);

"**CGN**" means a temporary Global Instrument in the form set out in Part A of Schedule 1 or a permanent Global Instrument in the form set out in Part B of Schedule 1;

"**Common Safekeeper**" means, in relation to a Series, the common safekeeper for Euroclear and Clearstream, Luxembourg appointed in respect of such Instruments.

"**Clearstream, Luxembourg**" means Clearstream Banking S.A.;

"**Conditions**" means in respect of the Instruments of each Series the terms and conditions applicable to them which shall be substantially in the form set out in Part B of Schedule 2 (Terms and Conditions of the Instruments) as modified, with respect to any Instruments represented by a Global Instrument, by the provisions of such Global Instrument, and shall incorporate any additional provisions forming part of such terms and conditions set out in Part A of the Final Terms relating to the Instruments of that Series and shall be endorsed on the Definitive Instruments subject to amendment and completion as referred to in the first paragraph of Part A of Schedule 2 (Form of Definitive Instrument) and any reference to a particularly numbered Condition shall be construed accordingly;

"**Contractual Currency**" means, in relation to any payment obligation of any Instrument, the currency in which that payment obligation is expressed and, in relation to Clause 8 (Provisions supplemental to the Trustee Acts), pounds sterling or such other currency as may be agreed between the relevant Issuer and the Trustee from time to time;

"**Coupons**" means the coupons relating to interest bearing Instruments or, as the context may require, a specific number of them and includes any replacement Coupons issued pursuant to the Conditions;

"**Dealer Agreement**" means the amended and restated dealer agreement (as amended, supplemented and/or restated from time to time) relating to the Programme dated 19 August 2025 between the Issuers, the Arranger and the dealers named in it;

"**Deed Poll**" means the deed poll dated 10 September 2012 made by the Issuers and by which the Australian Domestic Instruments are constituted;

"**Definitive Instrument**" means an Instrument in definitive form having, where appropriate, Coupons and/or a Talon attached on issue and, unless the context requires otherwise, includes any replacement Instrument issued pursuant to the Conditions;

"**Effective Date**" means the date on which the Arranger has received, on behalf of the Dealers, each of the condition precedent documents listed in Schedule 2 to the Dealer Agreement and that each is, in form and substance, satisfactory to it;

"**Euroclear**" means Euroclear Bank SA/NV;

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"**Event of Default**" means an event described in Condition 9 and that, if so required by that Condition, has been certified by the Trustee to be, in its opinion, materially prejudicial to the interests of the Instrumentholders;

"**Extraordinary Resolution**" has the meaning set out in Schedule 3 (Provisions for Meetings of Instrumentholders);

"**Final Terms**" means, in relation to a Tranche, the final terms document substantially in the form set out in the Prospectus which will be completed at or around the time of the agreement to issue each Tranche of Instruments and which will constitute final terms for the purposes of the UK Prospectus Regulation. For avoidance of doubt, in the case of Instruments issued under the Programme which are not admitted to trading on the London Stock Exchange's Main Market, all references to the Final Terms shall be construed as references to the pricing supplement substantially in the form set forth in the Prospectus;

"**Global Instrument**" means a temporary Global Instrument and/or, as the context may require, a permanent Global Instrument, a CGN or a NGN, as the context may require;

"**holder**" in relation to an Instrument, Coupon or Talon, and "**Couponholder**" and "**Instrumentholder**" have the meanings given to them in the Conditions;

"**Instruments**" means the bearer debt instruments and the Australian Domestic Instruments to be issued by each of the Issuers pursuant to the Dealer Agreement, constituted by this Trust Deed, or in the case of the Australian Domestic Instruments, by the Deed Poll, and for the time being outstanding or, as a specific context may require, a specific number of them. For the avoidance of doubt, the provisions of this Trust Deed relating to Global Instruments, Coupons and Talons do not apply to Australian Domestic Instruments;

"**Issuing and Paying Agent**" means the person named as such in the Conditions or any Successor Issuing and Paying Agent in each case at its specified office;

"**month**" means a calendar month;

"**NGN**" means a temporary Global Instrument in the form set out in Part C of Schedule 1 or a permanent Global Instrument in the form set out in Part D of Schedule 1;

"**outstanding**" means, in relation to the Instruments, all the Instruments issued except (a) those that have been redeemed in accordance with the Conditions, (b) those in respect of which the date for redemption has occurred and the redemption moneys (including all interest accrued on such Instruments to the date for such redemption and any interest payable after such date) have been duly paid to the Trustee or to the Issuing and Paying Agent as provided in Clause 2 (Issue of Instruments and Covenant to Pay) and remain available for payment against presentation and surrender of Instruments and/or Coupons, as the case may be, (c) those which have become void or in respect of which claims have become prescribed, (d) those which have been purchased and cancelled as provided in the Conditions, (e) those mutilated or defaced Instruments which have been surrendered in exchange for replacement Instruments, (f) (for the purpose only of determining how many Instruments are outstanding and without prejudice to their status for any other purpose) those Instruments alleged to have been lost, stolen or destroyed and in respect of which replacement Instruments have been issued, and (g) any temporary Global Instrument to the extent that it shall have been exchanged for a permanent Global Instrument and any Global Instrument to the extent that it shall have been exchanged for one or more

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Definitive Instruments, in either case pursuant to its provisions provided that for the purposes of (i) ascertaining the right to attend and vote at any meeting of the Instrumentholders, (ii) the determination of how many Instruments are outstanding for the purposes of Conditions 9 and 11 and Schedule 3 (Provisions for Meetings of Instrumentholders), (iii) the exercise of any discretion, power or authority that the Trustee is required, expressly or impliedly, to exercise in or by reference to the interests of the Instrumentholders and (iv) the certification (where relevant) by the Trustee as to whether a Potential Event of Default is in its opinion materially prejudicial to the interests of the Instrumentholders, those Instruments which are beneficially held by or on behalf of the relevant Issuer or any of its subsidiary undertakings and not cancelled shall (unless no longer so held) be deemed not to remain outstanding. Save for the purposes of the proviso herein, in the case of each NGN, the Trustee shall rely on the records of Euroclear and Clearstream, Luxembourg in relation to any determination of the nominal amount outstanding of each NGN. In relation to Australian Domestic Instruments, the definition of "Outstanding" in the schedule to the Deed Poll shall apply in lieu of the foregoing definition;

"**Paying Agents**" means the persons (including the Issuing and Paying Agent) referred to as such in the Conditions or any Successor Paying Agents in each case at their respective specified offices;

"**permanent Global Instrument**" means a Global Instrument representing Instruments of one or more Tranches of the same Series, either on issue or upon exchange of a temporary Global Instrument, or part of it, and which shall be substantially in the form set out in Part B or Part D of Schedule 1, as the case may be (Form of Permanent Global Instrument);

"**Potential Event of Default**" means an event or circumstance that could with the giving of notice, lapse of time, issue of a certificate and/or fulfilment of any other requirement provided for in Condition 9 become an Event of Default;

"**Programme Limit**" means the maximum aggregate nominal amount of Instruments which may be issued and outstanding at any time under the Programme, as such limit may be increased pursuant to the Dealer Agreement;

"**Procedures Memorandum**" means administrative procedures and guidelines in respect of non-syndicated issues relating to the terms of Instruments which may be issued and the settlement of issues of Instruments as shall be agreed upon from time to time by the relevant Issuer, the Trustee, the Permanent Dealers and the Issuing and Paying Agent and which are set out in Schedule 5 (Procedures Memorandum) of the Agency Agreement, where "**Permanent Dealers**" means all Dealers other than those appointed as such solely in respect of one or more specified Tranches;

"**Prospectus**" means the prospectus prepared in connection with the Programme and constituting (i) a base prospectus in respect of each Issuer for the purposes of the UK Prospectus Regulation and (ii) listing particulars in respect of each Issuer for the purposes of Listing Rule 2.2.11 of the Listing Rules of the Financial Conduct Authority, as revised, supplemented or amended from time to time by the Issuers including any documents which are from time to time incorporated in the Prospectus by reference except that in relation to each Tranche of Instruments only the applicable Final Terms shall be deemed to be included in the Prospectus;

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"**Redemption Amount**" means the Final Redemption Amount, Early Redemption Amount or Optional Redemption Amount, as the case may be, all as defined in the Conditions;

"**Series**" means a series of Instruments comprising one or more Tranches, whether or not issued on the same date, that (except in respect of the first payment of interest and their issue price) have identical terms on issue and are expressed to have the same series number;

"**specified office**" means, in relation to a Paying Agent, the office identified with its name at the end of the Conditions or any other office approved by the Trustee and notified to Instrumentholders pursuant to Clause 6.6 (Notices to Instrumentholders);

"**Successor**" means, in relation to an Agent, the Australian Issuing and Paying Agent or the Australian Registrar, such other or further person as may from time to time be appointed by either of the Issuers as such Agent, Australian Issuing and Paying Agent or Australian Registrar, as the case may be, with the written approval of, and on terms approved in writing by, the Trustee and notice of whose appointment is given to Instrumentholders pursuant to Clause 6.6 (Notices to Instrumentholders);

"**successor in business**" means (a) an entity which acquires all or substantially all of the undertaking and/or assets of either Issuer or of a successor in business of either Issuer; or (b) any entity into which any of the previously referred to entity is amalgamated, merged or reconstructed and is itself not the continuing company;

"**T2**" means the real time gross settlement system operated by the Eurosystem, or any successor system.

"**Talons**" mean talons for further Coupons or, as the context may require, a specific number of them and includes any replacement Talons issued pursuant to the Conditions;

"**temporary Global Instrument**" means a Global Instrument representing Instruments of one or more Tranches of the same Series on issue and which shall be substantially in the form set out in Part A or Part C of Schedule 1, as the case may be (Form of Temporary Global Instrument);

"**Tranche**" means, in relation to a Series, those Instruments of that Series which are issued on the same date at the same issue price and in respect of which the first payment of interest is identical;

"**trust corporation**" means a trust corporation (as defined in the Law of Property Act 1925) or a corporation entitled to act as a trustee pursuant to applicable foreign legislation relating to trustees;

"**Trustee Acts**" means both the Trustee Act 1925 and the Trustee Act 2000 of England and Wales; and

"**UK Prospectus Regulation**" means Regulation 2017/1129 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

**1.2Construction of Certain References**

Unless the context otherwise requires, all references in this Trust Deed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.1**the records of Euroclear and Clearstream, Luxembourg shall be to the records that each of Euroclear and Clearstream, Luxembourg holds for its customers which reflect the amount of such customers' interests in the Instruments;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.2**costs, charges, remuneration or expenses include any value added, turnover or similar tax charged in respect of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.3**an action, remedy or method of judicial proceedings for the enforcement of creditors' rights include references to the action, remedy or method of judicial proceedings in jurisdictions other than England as shall most nearly approximate to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.4**the Trustee's approval or consent shall, unless expressed otherwise, be subject to the requirement that any such approval or consent shall not be unreasonably withheld or delayed, such reasonableness to be determined by reference to acting in the interests of Instrumentholders as a whole; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.5**the appointment or employment of or delegation to any person by the Trustee shall be deemed to include a reference to, if in the opinion of the Trustee it is reasonably practicable, the prior notification of and consultation with the Issuers and, in any event, the notification forthwith of such appointment, employment or delegation, as the case may be.

**1.3Amendment and Restatement**

The Original Trust Deed shall be amended and restated on the terms of this Trust Deed, such amendment and restatement to take effect from the Effective Date. Any Instruments issued on or after the Effective Date shall be issued pursuant to this Trust Deed. This does not affect any Instruments issued prior to the Effective Date or any Instruments issued on or after the Effective Date so as to be consolidated and form a single Series with the Instruments of any Series issued prior to the Effective Date. Subject to such amendment and restatement, the Original Trust Deed shall continue in full force and effect.

**1.4Headings**

Headings shall be ignored in construing this Trust Deed.

**1.5Contracts**

References in this Amended and Restated Trust Deed to this Trust Deed or any other document are to this Amended and Restated Trust Deed or those documents as amended, supplemented or replaced from time to time in relation to the Programme and include any document that amends, supplements or replaces them.

**1.6Schedules**

The Schedules are part of this Trust Deed and have effect accordingly.

**1.7Alternative Clearing System**

References in this Trust Deed to Euroclear and/or Clearstream, Luxembourg shall, wherever the context so permits, be deemed to include reference to any additional or alternative clearing system approved by the relevant Issuer, the Trustee and the Issuing and Paying Agent. In the case of NGNs, such alternative clearing system must also be authorised to hold Instruments as eligible collateral for Eurosystem monetary policy and intra-day credit operations.

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**1.8Other Terms**

Other terms defined in the Conditions have the same meaning in this Trust Deed.

**1.9Contracts (Rights of Third Parties) Act 1999**

A person who is not a party to this Trust Deed has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Trust Deed.

**2Issue of Instruments and Covenant to Pay**

**2.1Issue of Instruments**

Each of the Issuers may from time to time issue Instruments in Tranches of one or more Series on a continuous basis with no minimum issue size in accordance with the Dealer Agreement. Before issuing any Tranche and not later than, (i) in case of Instruments other than Australian Domestic Instruments, 3.00 p.m. (London time) on the second business day in London which for this purpose shall be a day on which commercial banks are open for general business in London preceding each proposed issue date; or (ii) in case of Australian Domestic Instruments, 3.00 p.m. (Sydney time) on the second business day in Sydney which for this purpose shall be a day on which commercial banks are open for general business in Sydney preceding each proposed issue date, the relevant Issuer shall give written notice or procure that it is given to the Trustee of the proposed issue of such Tranche, specifying the details to be included in the relevant Final Terms. Upon the issue by either of the Issuers of any Instruments expressed to be constituted by this Trust Deed, such Instruments shall forthwith be constituted by this Trust Deed without any further formality and irrespective of whether or not the issue of such debt securities contravenes any covenant or other restriction in this Trust Deed or the Programme Limit. For the avoidance of doubt, the parties acknowledge that the Australian Domestic Instruments are not constituted by this Trust Deed.

**2.2Separate Series**

The provisions of Clauses 2.3 (Covenant to Pay), 2.4 (Discharge), 2.5 (Payment after a Default) and 2.6 (Rate of Interest after a Default) and of Clauses 3 (Form of the Instruments) to 15 (Currency Indemnity) and Schedule 3 (Provisions for Meetings of Instrumentholders) (all inclusive) shall apply *mutatis mutandis* separately and independently to the Instruments of each Series and in such Clauses and Schedule the expressions "**Instrumentholders**", "**Coupons**", "**Couponholders**" and "**Talons**", together with all other terms that relate to Instruments or their Conditions, shall be construed as referring to those of the particular Series in question and not of all Series unless expressly so provided, so that each Series shall be constituted by a separate trust pursuant to Clause 2.3 (Covenant to Pay) and that, unless expressly provided, events affecting one Series shall not affect any other.

**2.3Covenant to Pay**

The relevant Issuer shall on any date when any Instruments become due to be redeemed, in whole or in part, unconditionally pay to or to the order of the Trustee in the Contractual Currency, in the case of any Contractual Currency other than Euro, in the principal financial centre for the Contractual Currency and, in the case of Euro, in a city in which banks have access to the TARGET System, in same day funds the Redemption Amount of the

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Instruments becoming due for redemption on that date together with any applicable premium and shall (subject to the Conditions and other than in respect of Zero Coupon Instruments) until such payment (both before and after judgment) unconditionally so pay to or to the order of the Trustee interest in respect of the nominal amount of the Instruments outstanding as set out in the Conditions (subject to Clause 2.6 (Rate of Interest after a Default)) provided that (a) subject to the provisions of Clause 2.5 (Payment after a Default), payment of any sum due in respect of the Instruments made to the Issuing and Paying Agent or Canadian Paying Agent, as applicable, as provided in the Agency Agreement shall, to that extent, satisfy such obligation except to the extent that there is failure in its subsequent payment to the relevant Instrumentholders or Couponholders under the Conditions and (b) a payment made after the due date or as a result of the Instrument becoming repayable following an Event of Default shall be deemed to have been made when the full amount due has been received by the Issuing and Paying Agent or Canadian Paying Agent, as applicable, or the Trustee and notice to that effect has been given to the Instrumentholders (if required under Clause 6.8 (Notice of Late Payment)), except to the extent that there is failure in its subsequent payment to the relevant Instrumentholders or Couponholders under the Conditions. This covenant shall only have effect each time Instruments are issued and outstanding, when the Trustee shall hold the benefit of this covenant on trust for the Instrumentholders and Couponholders of the relevant Series. For the avoidance of doubt, the parties acknowledge that this Clause does not apply to Australian Domestic Instruments.

**2.4Discharge**

Subject to Clause 2.5 (Payment after a Default), any payment to be made in respect of the Instruments or the Coupons by the relevant Issuer or the Trustee may be made as provided in the Conditions and any payment so made shall (subject to Clause 2.5 (Payment after a Default)) to that extent be a good discharge to such Issuer or the Trustee, as the case may be (including, in the case of Instruments represented by a NGN, whether or not the corresponding entries have been made in the records of Euroclear and Clearstream, Luxembourg), except to the extent that there is failure in its subsequent payment to the relevant Instrumentholders or Couponholders under the Conditions.

**2.5Payment after a Default**

At any time after an Event of Default or a Potential Event of Default has occurred the Trustee may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.1**by notice in writing to the relevant Issuer and the Paying Agents, require the Paying Agents, until notified by the Trustee to the contrary, so far as permitted by applicable law:

to act as Paying Agents of the Trustee under this Trust Deed and the Instruments (other than the Australian Domestic Instruments) on the terms of the Agency Agreement (with consequential amendments as necessary and except that the Trustee's liability for the indemnification, remuneration and expenses of the Paying Agents shall be limited to the amounts for the time being held by the Trustee in respect of the Instruments (other than the Australian Domestic Instruments) on the terms of this Trust Deed) and thereafter to hold all Instruments (other than the Australian Domestic Instruments), Coupons and Talons and all moneys, documents and records

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held by them in respect of Instruments (other than the Australian Domestic Instruments), Coupons and Talons to the order of the Trustee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;to deliver all Instruments (other than the Australian Domestic Instruments), Coupons and Talons and all moneys, documents and records held by them in respect of the Instruments (other than the Australian Domestic Instruments), Coupons and Talons to the Trustee or as the Trustee directs in such notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.2**by notice in writing to the relevant Issuer, require such Issuer to make all subsequent payments in respect of the Instruments (other than the Australian Domestic Instruments), Coupons and Talons to or to the order of the Trustee and not to the Issuing and Paying Agent or Canadian Paying Agent, as applicable, and with effect from the receipt of any such notice by such Issuer, until such notice is withdrawn, the first proviso to Clause 2.3 (Covenant to Pay) shall cease to have effect.

**2.6Rate of Interest after a Default**

If the Instruments bear interest at a floating or other variable rate and they become immediately payable under the Conditions following an Event of Default, the rate of interest payable in respect of them shall continue to be calculated by the Calculation Agent in accordance with the Conditions (with consequential amendments as necessary) except that the rates of interest need not be notified to Instrumentholders. The first period in respect of which interest shall be so calculable shall commence on the expiry of the Interest Period during which the Instruments become so repayable.

**3Form of the Instruments**

**3.1The Global Instruments**

The Instruments (other than the Australian Domestic Instruments) shall initially be represented by a temporary Global Instrument or a permanent Global Instrument in the nominal amount of the Tranche being issued. Interests in a temporary Global Instrument shall be exchangeable for Definitive Instruments or interests in a permanent Global Instrument as set out in each temporary Global Instrument. Interests in a permanent Global Instrument shall be exchangeable for Definitive Instruments as set out in such permanent Global Instrument.

**3.2The Definitive Instruments**

The Definitive Instruments, Coupons and Talons shall be security printed in accordance with applicable legal and stock exchange requirements substantially in the forms set out in Schedule 2. The Instruments shall be endorsed with the Conditions.

**3.3Signature**

The Instruments (other than the Australian Domestic Instruments and Instruments settling in CDS Clearing and Depository Services Inc. ("**CDS**")), Coupons and Talons shall be signed manually or in facsimile by an authorised signatory of the relevant Issuer and the Instruments (other than the Australian Domestic Instruments) shall be authenticated by or on behalf of the Issuing and Paying Agent. The relevant Issuer may use the facsimile signature of any person who at the date of this Trust Deed is such an authorised signatory

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even if at the time of issue of any Instruments, Coupons or Talons he no longer holds that office. In the case of a Global Instrument which is a NGN, the Issuing and Paying Agent shall also instruct the Common Safekeeper to effectuate the same. Instruments settling in CDS will be signed manually by an authorised signatory of the relevant Issuer (unless CDS agrees that it will accept a facsimile or electronic signature) and the Instruments shall be authenticated manually by or on behalf of the Canadian Paying Agent (unless CDS agrees that it will accept a facsimile or electronic authentication signature). The Australian Domestic Instruments will be inscribed in a register maintained by the Australian Registrar in accordance with the Australian Agency and Registry Agreement. Instruments, Coupons and Talons so executed and authenticated (and effectuated, if applicable) shall be binding and valid obligations of the relevant Issuer. Execution in facsimile of any Instruments and any photostatic copying or other duplication of any Global Instruments (in unauthenticated form, but executed manually on behalf of the relevant Issuer as stated above) shall be binding upon such Issuer in the same manner as if such Instruments were signed manually by such signatories.

**3.4Title**

The holder of any Instrument, Coupon or Talon shall (save as otherwise required by law) be treated as its absolute owner for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any interest in it, any writing on it or its theft or loss) and no person will be liable for so treating the holder.

**4Stamp Duties and Taxes**

**4.1Stamp Duties**

Each Issuer shall pay any stamp, issue, documentary or other taxes and duties, payable in the United Kingdom or Australia, in respect of the creation, issue and offering of the Instruments issued by it and the related Coupons and Talons and the execution or delivery of this Trust Deed. Each Issuer shall also indemnify the Trustee, the relevant Instrumentholders and the Couponholders from and against all stamp, issue, documentary or other taxes paid by any of them in any jurisdiction in connection with any action taken by or on behalf of the Trustee or, as the case may be (where entitled to do so), the relevant Instrumentholders or the Couponholders to enforce the relevant Issuer's obligations under this Trust Deed or the relevant Instruments, Coupons or Talons.

**4.2Change of Taxing Jurisdiction**

If an Issuer becomes subject generally to the taxing jurisdiction of a territory or a taxing authority of or in that territory with power to tax other than or in addition to the United Kingdom or any such authority of or in such territory then such Issuer shall (unless the Trustee otherwise agrees) give the Trustee an undertaking satisfactory to the Trustee in terms corresponding to the terms of Condition 7 with the substitution for, or (as the case may require) the addition to, the references in that Condition to the United Kingdom of references to that other or additional territory or authority to whose taxing jurisdiction such Issuer has become so subject. In such event this Trust Deed and the relevant Instruments, Coupons and Talons shall be read accordingly.

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**5Application of Moneys Received by the Trustee**

**5.1Declaration of Trust**

All moneys received by the Trustee in respect of the Instruments or amounts payable under this Trust Deed shall, despite any appropriation of all or part of them by the relevant Issuer, be held by the Trustee on trust to apply them (subject to Clause 5.2 (Accumulation)):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.1**first, in payment of all costs, charges, expenses and liabilities properly incurred by the Trustee (including remuneration payable to it) in carrying out its functions under this Trust Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.2**secondly, in payment of any amounts owing in respect of the relevant Instruments or Coupons *pari passu* and rateably; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.3**thirdly, in payment of any balance to such Issuer for itself.

If the Trustee holds any moneys which represent principal, premium or interest in respect of Instruments or Coupons which have become void in accordance with the Conditions the Trustee shall hold them on these trusts.

**5.2Accumulation**

If the amount of the moneys at any time available for payment in respect of the Instruments under Clause 5.1 (Declaration of Trust) is less than 10 per cent. of the nominal amount of the Instruments then outstanding, the Trustee may, at its discretion, invest such moneys as provided in Clause 5.3 (Investment). The Trustee may retain such investments and accumulate the resulting income until the investments and the accumulations, together with any other funds for the time being under its control and available for such payment, amount to at least 10 per cent. of the nominal amount of the Instruments then outstanding and then such investments, accumulations and funds (after deduction of, or provision for, any applicable taxes) shall be applied as specified in Clause 5.1 (Declaration of Trust).

**5.3Investment**

Moneys held by the Trustee may be invested in its name or under its control in any investments or other assets anywhere, whether or not they produce income, or deposited in its name or under its control at such bank or other financial institution in such currency as the Trustee may, in its absolute discretion, think fit. If that bank or institution is the Trustee or a subsidiary, parent or associated undertaking of the Trustee, it need only account for an amount of interest equal to the standard amount of interest payable by it on such a deposit to an independent customer. The Trustee may at any time vary or transpose any such investments or assets or convert any moneys so deposited into any other currency, and shall not be responsible for any resulting loss, whether by depreciation in value, change in exchange rates or otherwise.

**6Covenants**

So long as any Instrument issued by it is outstanding, each of the Issuers shall:

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**6.1Books of Account**

Keep, and procure that each of its subsidiary undertakings keeps, proper books of account and, at any time after an Event of Default has occurred or if the Trustee reasonably believes that such an event has occurred, so far as permitted by applicable law, allow, and procure that each such subsidiary undertaking shall allow, the Trustee and anyone appointed by it to whom the relevant Issuer and/or the relevant subsidiary undertaking has no reasonable objection, access to its books of account at all reasonable times during normal business hours.

**6.2Notice of Events of Default**

Notify the Trustee in writing immediately on becoming aware of the occurrence of any Event of Default or Potential Event of Default.

**6.3Information**

So far as permitted by applicable law, give the Trustee such information as it reasonably requires to perform its functions.

**6.4Financial Statements etc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4.1**send to the Trustee at the time of their issue and, in the case of annual financial statements, in any event within 180 days of the end of each financial year, three copies in English of every balance sheet, profit and loss account, report or other notice, statement or circular issued, or that legally or contractually should be issued, to the members or creditors (or any class of them) of the relevant Issuer or any parent undertaking of it generally in their capacity as such; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4.2**National Grid shall, forthwith upon becoming aware of the occurrence of a National Grid Restructuring Event, provide the Trustee with the Directors' Report.

**6.5Certificate of Director, etc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.1**send to the Trustee, within 14 days of its annual audited financial statements being made available to its members, and also within 21 days of any request by the Trustee a certificate of the relevant Issuer signed by a director that, having made all reasonable enquiries, to the best of the knowledge, information and belief of such Issuer as at a date (the "**Certification Date**") not more than five days before the date of the certificate no Event of Default or Potential Event of Default had occurred (and, in the case of a Potential Event of Default, was continuing) since the Certification Date of the last such certificate or (if none) the date of this Trust Deed or, if such an event had occurred (and, in the case of a Potential Event of Default, was continuing), giving details of it and certifying that it has complied with its obligations under this Trust Deed or, to the extent that it has failed so to comply, stating such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.2**National Grid shall, forthwith upon becoming aware of the occurrence of a National Grid Restructuring Event, notify the Trustee in writing of the occurrence of an National Grid Restructuring Event and provide the Trustee with the directors' Report; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5.3**in relation to Instruments issued by it, National Grid shall give to the Trustee, as soon as reasonably practicable after the acquisition or disposal of any company

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which thereby becomes a Principal Subsidiary or after any transfer is made to any member of the National Grid Group (as defined in Condition 9(c)) which thereby becomes a Principal Subsidiary, a certificate by the Issuer addressed to the Trustee to such effect.

**6.6Notices to Instrumentholders**

Obtain the prior written approval of the Trustee to, and promptly give to the Trustee two copies of, the form of every notice given to the Instrumentholders in accordance with Condition 14 (such approval, unless so expressed, not to constitute approval for the purposes of Section 21 of the Financial Services and Markets Act 2000 any such notice which is a communication within the meaning of that section).

**6.7Further Acts**

So far as permitted by applicable law, do such further things as may be necessary in the reasonable opinion of the Trustee to give effect to this Trust Deed.

**6.8Notice of Late Payment**

Forthwith upon request by the Trustee (if the Trustee determines such notice is necessary) give notice to the Instrumentholders of any unconditional payment to the Issuing and Paying Agent (or the Australian Issuing and Paying Agent or the Canadian Paying Agent, as applicable) or the Trustee of any sum due in respect of the Instruments or Coupons made after the due date for such payment.

**6.9Listing** 

If the Instruments are so listed, use all reasonable endeavours to maintain the listing of the Instruments but, if it is unable to do so, having used such endeavours, or if the maintenance of such listing is agreed by the Trustee to be unduly onerous and the Trustee is satisfied that the interests of the Instrumentholders would not by such action be materially prejudiced, instead use all reasonable endeavours to obtain and maintain a listing of the Instruments on another stock exchange approved in writing by the Trustee.

**6.10Change in Agents**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10.1**Give at least 14 days' prior notice to the Instrumentholders (other than holders of an Australian Domestic Instrument) in accordance with the Conditions of any future appointment, resignation or removal of an Agent or of any change by an Agent of its specified office; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10.2**Give at least 14 days' prior notice to the holders of Australian Domestic Instruments in accordance with the Conditions of any future appointment, resignation or removal of the Australian Issuing and Paying Agent or Australian Registrar.

**6.11Provision of Legal Opinions**

Procure the delivery of legal opinions addressed to the Trustee dated the date of such delivery, in form and content acceptable to the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11.1**from Allen Overy Shearman Sterling LLP (or such other firm of legal advisers as may be agreed between the relevant Issuer and the Trustee) as to the laws of England before the first issue of Instruments occurring after each anniversary of

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this Trust Deed or, if later, 12 months after the date of delivery of the latest such legal opinion and on the date of any amendment to this Trust Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11.2**from Herbert Smith Freehills (or such other firm of legal advisers as may be agreed between the relevant Issuer and the Trustee) as to the laws of New South Wales before the first issue of Australian Domestic Instruments occurring after the date of this Trust Deed and after each anniversary of this Trust Deed and on the date of any amendment to the Deed Poll or the Australian Agency and Registry Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11.3**unless the relevant Issuer has notified the Dealers and the Trustee in writing that it does not intend to issue Instruments under the Programme for the time being, from legal advisers reasonably acceptable to the Trustee as to such law as may reasonably be requested by the Trustee and in such form and with such content as the Trustee may require, on such occasions as the Trustee so requests on the basis that the Trustee considers it prudent in view of a change (or proposed change) in (or in the interpretation or application of) any applicable law, regulation or circumstance materially affecting the relevant Issuer, the Trustee, the relevant Instruments, the Coupons, the Talons, this Trust Deed or the Agency Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11.4**on each occasion on which a legal opinion is given to any Dealer pursuant to the Dealer Agreement from the legal adviser giving such opinion;

**6.12Instruments Held by an Issuer**

Send to the Trustee as soon as practicable after being so requested by the Trustee a certificate of the relevant Issuer signed by any director or the Company Secretary stating the number of Instruments held at the date of such certificate by or on behalf of such Issuer or its subsidiary undertakings.

**6.13Obligations of Agents**

Comply with and perform all its obligations under the Agency Agreement and the Australian Agency and Registry Agreement and use all reasonable endeavours to procure that the Agents and the Australian Registrar comply with and perform all their respective obligations thereunder and not make any amendment or modification to the Agency Agreement or the Australian Agency and Registry Agreement without the prior written approval of the Trustee.

**6.14Copies of Dealer Agreement**

Provide the Trustee promptly with copies of all supplements and/or amendments to, and/or restatements of, the Dealer Agreement.

**7Remuneration and Indemnification of the Trustee**

**7.1Normal Remuneration**

So long as any Instrument is outstanding the relevant Issuer shall pay the Trustee as remuneration for its services as Trustee such sum on such dates in each case as they may from time to time agree. Such remuneration shall accrue from day to day from the date of this Trust Deed. However, if any payment to an Instrumentholder or Couponholder of moneys due in respect of any Instrument or Coupon is improperly withheld or refused,

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such remuneration shall again accrue as from the date of such withholding or refusal until payment to such Instrumentholder or Couponholder is duly made.

**7.2Extra Remuneration**

If (i) an Event of Default, Potential Event of Default or Benchmark Event shall have occurred or (ii) in any other case, the Trustee finds it expedient or necessary or is requested by an Issuer to undertake duties that the Trustee and the relevant Issuer both agree to be of an exceptional nature or otherwise outside the scope of the Trustee's normal duties under this Trust Deed, such Issuer shall pay such additional remuneration as shall be agreed between them (and which may be calculated by reference to the Trustee's normal hourly rates in force from time to time). In the event of the Trustee and the relevant Issuer failing to agree as to any of the matters in this Clause 7 (or as to such sums referred to in Clause 7.1 (Normal Remuneration)), such matters shall be determined by a financial institution (acting as an expert) selected by the Trustee and approved by such Issuer or, failing such approval, nominated by the President for the time being of The Law Society of England and Wales. The expenses involved in such nomination and such financial institution's fee shall be shared equally between the Trustee and the relevant Issuer. The determination of the relevant financial institution shall be conclusive and binding on the relevant Issuer, the Trustee, the relevant Instrumentholders and the relevant Couponholders.

**7.3Expenses**

Each of the Issuers (in respect of itself and, where applicable, Instruments issued by it) shall also, on demand by the Trustee, pay or discharge all costs, charges, liabilities and expenses properly incurred by the Trustee in the preparation and execution of this Trust Deed and the performance of its functions under this Trust Deed in relation to that Issuer including, but not limited to, legal and travelling expenses and any United Kingdom or Australian stamp, documentary or other taxes or duties paid by the Trustee in connection with any legal proceedings reasonably brought or contemplated by the Trustee against an Issuer (in respect of Instruments issued by it) to enforce any provision of this Trust Deed, the relevant Instruments, the Coupons or the Talons and in addition shall pay to the Trustee (if required) an amount equal to the amount of any value added tax or similar tax chargeable in respect of the Trustee's remuneration under this Trust Deed. Such costs, charges, liabilities and expenses shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.1**in the case of payments made by the Trustee before such demand, carry interest from the date specified in the demand at the rate of Trustee's cost of funding on the date on which the Trustee made such payments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.2**in other cases, carry interest at such rate from 30 days after the date of the demand or (where the demand specifies that payment is to be made on an earlier date) from such earlier date provided that in such event no such interest shall accrue unless payment is actually made on such earlier date.

**7.4Notice of Costs**

The Trustee shall wherever practicable give prior notice to the relevant Issuer of any costs, charges and expenses properly to be incurred and of payments to be made by the Trustee in the lawful exercise of its powers under this Trust Deed so as to afford such Issuer a reasonable opportunity to meet such costs, charges and expenses itself or to put the

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Trustee in funds to make payment of such costs, charges and expenses. However, failure of the Trustee to give any such prior notice shall not prejudice its rights to reimbursement of such costs, charges and expenses under this Clause 7.

**7.5Indemnity**

Each of the Issuers (in respect of itself and, where applicable, any Instruments issued by it) shall indemnify the Trustee in respect of all liabilities and expenses properly incurred by it or by anyone appointed by it or to whom any of its functions may be delegated by it in the carrying out of its functions and against any loss, liability, cost, claim, action, demand or expense (including, but not limited to, all costs, charges and expenses properly paid or incurred in disputing or defending any of the foregoing) which any of them may incur in relation to the relevant Issuer or that may be made against any of them arising out of or in relation to or in connection with, its appointment or the exercise of its functions in relation to that Issuer.

**7.6Continuing Effect**

Clauses 7.3 (Expenses) and 7.5 (Indemnity) shall continue in full force and effect as regards the Trustee even if it no longer is Trustee.

**7.7Determination of Series**

The Trustee shall be entitled in its absolute discretion to determine in respect of which Series of Instruments any costs, charge, liabilities and expenses incurred under this Trust Deed have been incurred or to allocate any such costs, charges, liabilities and expenses between the Instruments of any two or more Series.

**8Provisions Supplemental to the Trustee Acts**

**8.1Advice**

The Trustee may act on the opinion or advice of, or information obtained from, any expert (including, without limitation, any report or advice received from an independent financial adviser or from any accountant pursuant to the Conditions), whether or not (1) such opinion, advice or information is addressed to the Trustee or any other person, and (2) such expert's liability in respect of the same is limited by reference to a monetary cap or otherwise and shall not be responsible to anyone for any loss occasioned by so acting. Any such opinion, advice or information may be sent or obtained by letter, email or fax and the Trustee shall not be liable to anyone for acting in good faith on any opinion, advice or information purporting to be conveyed by such means even if it contains some error or is not authentic.

**8.2Trustee to Assume Performance**

The Trustee need not notify anyone of the execution of this Trust Deed or do anything to find out if a National Grid Restructuring Event, NGET Restructuring Event, an Event of Default, Potential Event of Default or Benchmark Event has occurred. Until it has actual knowledge or express notice to the contrary, the Trustee may assume that no such event has occurred and that each Issuer is performing all of its obligations under this Trust Deed and the relevant Instruments, Coupons and Talons provided that the Trustee shall not be treated for any purposes as having any notice or knowledge which has been obtained by it

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or any officer or employee of it in some capacity other than as Trustee under this Trust Deed or in a private or confidential capacity such that it would not be proper to disclose to third parties.

**8.3Resolutions of Instrumentholders**

The Trustee shall not be responsible for having acted in good faith on a resolution purporting: (i) to have been passed at a meeting of Instrumentholders in respect of which minutes have been made and signed, or (ii) to be a written resolution or by way of electronic consent made in accordance with paragraph 33 of Schedule 3, even if it is later found that there was a defect in the constitution of the meeting or the passing of the resolution or that the resolution was not valid or binding on the Instrumentholders or Couponholders.

**8.4Certificate Signed by Directors, etc.**

If the Trustee, in the exercise of its functions, requires to be satisfied or to have information as to any fact or the expediency of any act, it may call for and accept as sufficient evidence of that fact or the expediency of that act a certificate signed by any two directors of the relevant Issuer as to that fact or to the effect that, in their opinion, that act is expedient and the Trustee need not call for further evidence and shall not be responsible for any loss occasioned by acting on such a certificate.

**8.5Deposit of Documents**

The Trustee may deposit this Trust Deed and any other documents with any bank or entity whose business includes the safe custody of documents or with any lawyer or firm of lawyers believed by it to be of good repute and may pay all sums due in respect of them.

**8.6Discretion**

The Trustee shall have absolute and uncontrolled discretion as to the exercise of its functions and shall not be responsible for any loss, liability, cost, claim, action, demand, expense or inconvenience which may result from their exercise or non-exercise.

**8.7Agents**

Whenever it considers it expedient in the interests of the Instrumentholders, the Trustee may, in the conduct of its trust business, instead of acting personally, employ and pay an agent selected by it, whether or not a lawyer or other professional person, to transact or conduct, or concur in transacting or conducting, any business and to do or concur in doing all acts required to be done by the Trustee (including the receipt and payment of money). The Trustee shall not be responsible to anyone for any misconduct or omission by any such agent so employed by it or be bound to supervise the proceedings or acts of any such agent.

**8.8Delegation**

Whenever it considers it expedient in the interests of the Instrumentholders, the Trustee may delegate to any person on any terms (including power to sub-delegate) all or any of its functions. If the Trustee exercises reasonable care in selecting such delegate, it shall not have any obligation to supervise such delegate or be responsible for any loss, liability, cost,

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claim, action, demand or expense incurred by reason of any misconduct or default by any such delegate or sub-delegate.

**8.9Nominees**

In relation to any asset held by it under this Trust Deed, the Trustee may appoint any person to act as its nominee on any terms.

**8.10Forged Instruments**

The Trustee shall not be liable to the relevant Issuer or any relevant Instrumentholder or Couponholder by reason of having accepted as valid or not having rejected any relevant Instrument, Certificate, Coupon or Talon purporting to be such and later found to be forged or not authentic.

**8.11Confidentiality**

Unless ordered to do so by a court of competent jurisdiction, the Trustee shall not be required to disclose to any Instrumentholder or Couponholder any confidential financial or other information made available to the Trustee by the relevant Issuer.

**8.12Determinations Conclusive**

As between itself and the Instrumentholders and Couponholders, the Trustee may determine all questions and doubts arising in relation to any of the provisions of this Trust Deed. Such determinations, whether made upon such a question actually raised or implied in the acts or proceedings of the Trustee, shall be conclusive and shall bind the Trustee, the Instrumentholders and the Couponholders.

**8.13Currency Conversion**

Where it is necessary or desirable to convert any sum from one currency to another, it shall (unless otherwise provided hereby or required by law) be converted at such rate or rates, in accordance with such method and as at such date as may reasonably be specified by the Trustee but having regard to current rates of exchange, if available. Any rate, method and date so specified shall be binding on the relevant Issuer and the relevant Instrumentholders and Couponholders.

**8.14Payment for and Delivery of Instruments**

The Trustee shall not be responsible for the receipt or application by the relevant Issuer of the proceeds of the issue of any relevant Instruments, any exchange of relevant Instruments or the delivery of relevant Instruments to the persons entitled to them.

**8.15Trustee's consent**

Any consent given by the Trustee for the purposes of this Trust Deed may be given on such terms as the Trustee thinks fit. In giving such consent the Trustee may require the Issuers to agree to such modifications or additions to this Trust Deed as the Trustee may deem expedient in the interest of the Instrumentholders.

**8.16Instruments Held by an Issuer etc.**

In the absence of knowledge or express notice to the contrary, the Trustee may assume without enquiry (other than requesting a certificate under Clause 6.12 (Instruments Held by

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an Issuer)) that no Instruments are for the time being held by or on behalf of an Issuer or its subsidiary undertakings.

**8.17Legal Opinions**

The Trustee shall not be responsible to any person for failing to request, require or receive any legal opinion relating to any Instruments or for checking or commenting upon the content of any such legal opinion.

**8.18Programme Limit**

The Trustee shall not be concerned, and need not enquire, as to whether or not any Instruments are issued in breach of the Programme Limit.

**8.19Events of Default**

The Trustee may determine whether or not an Event of Default is in its opinion capable of remedy or (in relation to Condition 9(b)) materially prejudicial to the interests of relevant Instrumentholders. Any such determination shall be conclusive and binding on the relevant Issuer and the relevant Instrumentholders.

**8.20Appointment of Independent Financial Adviser**

In connection with the Trustee's right to appoint an independent financial adviser pursuant to Condition 5.6.2 (if applicable), the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.20.1**shall use its reasonable endeavours to identify and appoint the independent financial adviser but shall have no liability to any person if, having used its reasonable endeavours, it is unable to identify and appoint a suitable independent financial adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.20.2**shall not be responsible for carrying on the role of independent financial adviser itself during the time it is attempting to identify such independent financial adviser or thereafter if it is unable to find such independent financial adviser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.20.3**shall not be required to take any action to find an independent financial adviser unless it has been previously indemnified and/or secured to its satisfaction or expend any of its own funds in the appointment of such an independent financial adviser.

**8.21Illegality**

No provision of the Trust Deed or the Conditions shall require the Trustee to do anything which may in its opinion be illegal or contrary to applicable law or regulation.

**9Disapplication and Trustee Liability**

**9.1Disapplication**

Section 1 of the Trustee Act 2000 shall not apply to the duties of the Trustee in relation to the trusts constituted by this Trust Deed. Where there are any inconsistencies between the Trustee Acts and the provisions of this Trust Deed, the provisions of this Trust Deed shall, to the extent allowed by law, prevail and, in the case of any such inconsistency with the Trustee Act 2000, the provisions of this Trust Deed shall constitute a restriction or exclusion for the purposes of that Act.

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**9.2Trustee Liability**

Subject to Sections 750 and 751 of the Companies Act 2006 (if applicable) and notwithstanding anything to the contrary in this Trust Deed, the Instruments or the Paying Agency Agreement, the Trustee shall not be liable to any person for any matter or thing done or omitted in any way in connection with or in relation to this Trust Deed, the Instruments or the Agency Agreement save in relation to its own gross negligence, wilful default or fraud.

**10Waiver and Proof of Default**

**10.1Waiver**

The Trustee may, without the consent of the Instrumentholders or Couponholders and without prejudice to its rights in respect of any subsequent breach, from time to time and at any time, if in its opinion the interests of the Instrumentholders will not be materially prejudiced thereby, waive or authorise, on such terms as seem expedient to it, any breach or proposed breach by an Issuer of this Trust Deed or the Conditions or determine that an Event of Default or Potential Event of Default shall not be treated as such provided that the Trustee shall not do so in contravention of an express direction given by an Extraordinary Resolution or a request made pursuant to Condition 9. No such direction or request shall affect a previous waiver, authorisation or determination. Any such waiver, authorisation or determination shall be binding on the relevant Instrumentholders and the Couponholders and, if the Trustee so requires, shall be notified to the Instrumentholders as soon as practicable.

**10.2Proof of Default**

Proof that the relevant Issuer has failed to pay a sum due to the holder of any one Instrument or Coupon shall (unless the contrary be proved) be sufficient evidence that it has made the same default as regards all other Instruments or Coupons which are then payable.

**11Trustee not Precluded from Entering into Contracts**

The Trustee and any other person, whether or not acting for itself, may acquire, hold or dispose of any Instrument, Coupon, Talon or other security (or any interest therein) of either of the Issuers or any other person, may enter into or be interested in any contract or transaction with any such person and may act on, or as depositary or agent for, any committee or body of holders of any securities of any such person in each case with the same rights as it would have had if the Trustee were not acting as Trustee and need not account for any profit.

**12Modification and Substitution**

**12.1Modification**

The Trustee may agree without the consent of the Instrumentholders or Couponholders to any modification to this Trust Deed of a formal, minor or technical nature or to correct a manifest error. The Trustee may also so agree to any other modification to this Trust Deed which is in its opinion not materially prejudicial to the interests of the Instrumentholders of the relevant Series, but such power does not extend to any such modification as is

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mentioned in the proviso to paragraph 2 of Schedule 3 (Provisions for Meetings of Instrumentholders). In addition, the Trustee shall be obliged to concur with the relevant Issuer in using its reasonable endeavours to effect any Benchmark Amendments or Benchmark Replacement Conforming Changes or any amendments or modifications to the Conditions to give effect to provisions of Condition 3.2.3(e)(C) (as applicable) in the circumstances and as otherwise set out in Condition 3.10 or Condition 3.11 without the consent or approval of the Instumentholders or Couponholders, provided that the Trustee shall not be obliged so to concur if in the opinion of the Trustee doing so would impose more onerous obligations upon it or expose it to any additional duties, responsibilities or liabilities or reduce or amend the rights and/or the protective provisions afforded to it in the Conditions and/or any documents to which it is a party (including, for the avoidance of doubt, any supplemental trust deed) in any way. Any such modification, authorisation or waiver shall be binding on the relevant Instrumentholders and Couponholders and if the Trustee so requires, such modification shall be notified to the relevant Instrumentholders as soon as practicable.

**12.2Substitution**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2.1**The Trustee may, without the consent of the Instrumentholders or Couponholders, agree to the substitution of any other company (the "**Substituted Obligor**") in place of such Issuer (or of any previous substitute under this Clause 12) as the principal debtor under this Trust Deed (or, in the case of Australian Domestic Instruments, under the Deed Poll) and the relevant Instruments, Coupons and Talons provided that such substitution would not, in the opinion of the Trustee, be materially prejudicial to the interests of the Instrumentholders, and further provided that:

a deed is executed or undertaking given by the Substituted Obligor to the Trustee, in form and manner satisfactory to the Trustee, agreeing to be bound by this Trust Deed (and, in the case of Australian Domestic Instruments, the Deed Poll) and the relevant Instruments, Coupons and Talons (with consequential amendments as the Trustee may deem appropriate) as if the Substituted Obligor had been named in this Trust Deed (and, in the case of Australian Domestic Instruments, the Deed Poll) and the relevant Instruments, Coupons and Talons as the principal debtor in place of such Issuer;

if the Substituted Obligor is subject generally to the taxing jurisdiction of a territory or any authority of or in that territory with power to tax (the "**Substituted Territory**") other than the territory to the taxing jurisdiction of which (or to any such authority of or in which) such Issuer is subject generally (the "**Issuer's Territory**"), the Substituted Obligor shall (unless the Trustee otherwise agrees) give to the Trustee an undertaking satisfactory to the Trustee in terms corresponding to Condition 7 with the substitution for the references in that Condition to such Issuer's Territory of references to the Substituted Territory whereupon the Trust Deed (and, in the case of Australian Domestic Instruments, the Deed Poll), and the relevant Instruments, Coupons and Talons shall be read accordingly;

if any two directors of the Substituted Obligor certify that it will be solvent immediately after such substitution, the Trustee need not have regard to the

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Substituted Obligor's financial condition, profits or prospects or compare them with those of such Issuer;

such Issuer and the Substituted Obligor comply with such other requirements as the Trustee may direct in the interests of the relevant Instrumentholders; and

the Trustee is satisfied (i) the Substituted Obligor has obtained all necessary governmental and regulatory approvals and consents necessary for its assumption of liability as principal debtor in respect of the relevant Instruments in place of such Issuer (or a previous substitute), (ii) all necessary governmental and regulatory approvals and consents necessary for or in connection with the assumption by the Substituted Obligor of its obligations under the relevant Instruments and Coupons and (iii) such approvals and consents are at the time of substitution in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2.2Release of Substituted Issuer**

An agreement by the Trustee pursuant to Clause 12.2 (Substitution) shall, if so expressed, release the relevant Issuer (or a previous substitute) from any or all of its obligations under this Trust Deed (and, in the case of Australian Domestic Instruments, under the Deed Poll) and the relevant Instruments, Coupons and Talons. Notice of the substitution shall be given to the Instrumentholders within 14 days of the execution of such documents and compliance with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2.3Completion of Substitution**

On completion of the formalities set out in Clause 12.2 (Substitution), the Substituted Obligor shall be deemed to be named in this Trust Deed (and, in the case of Australian Domestic Instruments, the Deed Poll) and the relevant Instruments, Coupons and Talons as the principal debtor in place of the relevant Issuer (or of any previous substitute) and this Trust Deed (and, in the case of Australian Domestic Instruments, the Deed Poll) and the relevant Instruments, Coupons and Talons shall be deemed to be amended as necessary to give effect to the substitution.

**13Appointment, Retirement and Removal of the Trustee**

**13.1Appointment**

Each of the Issuers has the power of appointing new trustees but no one may be so appointed unless previously approved by an Extraordinary Resolution. The Trustee shall at all times be a trust corporation and such trust corporation may be the sole Trustee. Any appointment of a new Trustee shall be notified by each of the Issuers to its Instrumentholders in accordance with Condition 14 as soon as practicable.

**13.2Retirement and Removal**

Any Trustee may retire at any time on giving at least three months' written notice to each of the Issuers without giving any reason or being responsible for any costs occasioned by such retirement and the Instrumentholders may by Extraordinary Resolution remove any Trustee provided that the retirement or removal of a sole trust corporation shall not be

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effective until a trust corporation is appointed as successor Trustee. If a sole trust corporation gives notice of retirement or an Extraordinary Resolution is passed for its removal, it shall use all reasonable endeavours to procure that another trust corporation is appointed as Trustee.

**13.3Co-Trustees**

The Trustee may, despite Clause 13.1 (Appointment), by written notice to each of the Issuers, appoint anyone to act either as a separate Trustee in respect of any Issue or as an additional Trustee jointly with the Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.1**if the Trustee considers the appointment to be in the interests of the Instrumentholders and/or the Couponholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.2**to conform with a legal requirement, restriction or condition in a jurisdiction in which a particular act is to be performed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3.3**to obtain a judgment or to enforce a judgment or any provision of this Trust Deed in any jurisdiction.

Subject to the provisions of this Trust Deed the Trustee may, in the instrument of appointment, confer on any person so appointed such functions as it thinks fit. The Trustee may by written notice to each of the Issuers and that person remove that person. At the Trustee's request, each Issuer shall forthwith do all things as may be required to perfect such appointment or removal and each of the Issuers irrevocably appoints the Trustee as its attorney in its name and on its behalf to do so.

Before appointing such person to act as separate Trustee or additional Trustee the Trustee shall (unless it is not, in the opinion of the Trustee, reasonably practicable to do so) give notice to each of the Issuers of its intention to make such appointment (and the reason for that) and shall give due consideration to representations made by each of the Issuers concerning such appointment. Where, as a result of this provision, not all the Instruments have the same Trustee, the provisions of this Trust Deed shall apply in respect of each such Trustee as if each were named as a party to this Trust Deed.

**13.4Competence of a Majority of Trustees**

If there are more than two Trustees the majority of them shall be competent to perform the Trustee's functions provided the majority includes a trust corporation.

**14Instruments held in Clearing Systems and Couponholders**

**14.1Instruments Held in Clearing Systems**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.1.1**So long as any Global Instrument is held on behalf of a clearing system, in considering the interests of Instrumentholders, the Trustee may have regard to any information provided to it by the relevant clearing system or its operator as to the identity (either individually or by category) of its accountholders or participants with entitlements to any such Global Instrument and may consider such interests on the basis that such accountholders or participants were the holder(s) of such Global Instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.1.2**Subject to Clause 3.4, so long as any Australian Domestic Instrument is held in a clearing system, in considering the interests of Instrumentholders, the Trustee may

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have regard to any information provided to it by the relevant clearing system or its operator as to the identity (either individually or by category) of its accountholders or participants with entitlements to any such Australian Domestic Instrument and may consider such interests on the basis that such accountholders or participants were the holder(s) of such Australian Domestic Instrument.

**14.2Reliance on Instruments Held in Clearing Systems**

The Trustee and any Issuer may call for and, except in the case of manifest error, shall be at liberty to accept and place full reliance on as sufficient evidence thereof any certificate, letter of confirmation or other document issued on behalf of the relevant clearing system or any form of record made by any of them or such other evidence and/or information and/or certification as it shall, in its absolute discretion, think fit to the effect that at any particular time or throughout any particular period any particular person is, was, or will be, shown in its records as the holder of a particular nominal amount of Instruments represented by a Global Instrument or an Australian Domestic Instrument and if the Trustee or any Issuer does so rely, such letter of confirmation, form of record, evidence, information or certification shall be conclusive and binding on all concerned for all purposes. Any such certificate may comprise any form of statement or print out of electronic records provided by the relevant clearing system (including Euroclear's EUCLID or Clearstream, Luxembourg's Creation Online system) in accordance with its usual procedures and in which the holder of a particular nominal amount of Instruments is clearly identified together with the amount of such holding. Neither an Issuer nor the Trustee shall be liable to any person by reason of having accepted as valid or not having rejected any certificate or other document to such effect purporting to be issued by the relevant clearing system and subsequently found to be forged or not authentic.

**14.3Couponholders**

No notices need be given to Couponholders. They shall be deemed to have notice of the contents of any notice given to Instrumentholders. Even if it has express notice to the contrary, in exercising any of its functions by reference to the interests of the Instrumentholders, the Trustee shall assume that the holder of each Instrument is the holder of all Coupons and Talons relating to it.

**15Currency Indemnity**

**15.1Currency of Account and Payment**

The Contractual Currency is the sole currency of account and payment for all sums payable by each of the Issuers under or in connection with this Trust Deed, the Instruments and the Coupons, including damages.

**15.2Extent of Discharge**

An amount received or recovered in a currency other than the Contractual Currency (whether as a result of, or of the enforcement of, a judgment or order of a court of any jurisdiction, in the insolvency, winding-up or dissolution of either of the Issuers or otherwise), by the Trustee or any Instrumentholder or Couponholder in respect of any sum expressed to be due to it from the relevant Issuer, shall only discharge such Issuer to the extent of the Contractual Currency amount which the recipient is able to purchase with the amount so received or recovered in that other currency on the date of that receipt or

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recovery (or, if it is not practicable to make that purchase on that date, on the first date on which it is practicable to do so).

**15.3Indemnity**

If that Contractual Currency amount is less than the Contractual Currency amount expressed to be due to the recipient under this Trust Deed, the Instruments or the Coupons, the relevant Issuer shall indemnify the recipient against any loss sustained by it as a result. In any event, the relevant Issuer shall indemnify the recipient against the cost of making any such purchase.

**15.4Indemnity Separate**

The indemnities in this Clause 15 and in Clause 7.5 (Indemnity) constitute separate and independent obligations from the other obligations in this Trust Deed, shall give rise to a separate and independent course of action, shall apply irrespective of any indulgence granted by the Trustee and/or any Instrumentholder or Couponholder and shall continue in full force and effect despite any judgment, order, claim or proof for a liquidated amount in respect of any sum due under this Trust Deed, the Instruments and/or the Coupons or any other judgment or order.

**16Enforcement**

**16.1Trustee to enforce**

Only the Trustee may enforce the rights of the Instrumentholders and Couponholders against the relevant Issuer, whether the same arise under the general law, this Trust Deed, the Instruments, the Coupons or otherwise, and no Instrumentholder or Couponholder shall be entitled to proceed directly against the relevant Issuer unless the Trustee, having become bound to proceed, fails to do so within a reasonable time and such failure is continuing.

**16.2Trustee's Indemnity**

The Trustee shall not be bound to take any steps to enforce the performance of any provisions of this Trust Deed, the Instruments or the Coupons or to appoint an independent financial advisor pursuant to the Conditions of the Instruments unless it shall be indemnified and/or secured and/or prefunded by the relevant Instrumentholders and/or Couponholders to its satisfaction against all proceedings, claims and demands to which it may be liable and against all costs, charges, liabilities and expenses which may be incurred by it in connection with such enforcement or appointment, including the costs of its managements' time and/or other internal resources, calculated using its normal hourly rates in force from time to time.

**16.3Legal proceedings**

If the Trustee (or any Instrumentholder or Couponholder where entitled in accordance with this Trust Deed so to do) institutes legal proceedings against the relevant Issuer to enforce any obligations under this Trust Deed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.3.1**proof in such proceedings that as regards any specified Instrument such Issuer has made default in paying any principal or interest due to the relevant Instrumentholder shall (unless the contrary be proved) be sufficient evidence that

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such Issuer has made the same default as regards all other Instruments which are then repayable or, as the case may be, in respect of which interest is then payable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.3.2**proof in such proceedings that as regards any specified Coupon such Issuer has made default in paying any sum due to the relevant Couponholder shall (unless the contrary be proved) be sufficient evidence that such Issuer has made the same default as regards all other Coupons which are then payable.

**16.4Powers additional to general powers**

The powers conferred on the Trustee by this Clause 16 shall be in addition to any powers which may from time to time be vested in the Trustee by general law or as the holder of any Instruments or Coupons.

**17Communications**

**17.1Method**

Each communication under this Trust Deed shall be made by electronic communication or otherwise in writing. Each communication or document to be delivered to any party under this Trust Deed shall be sent to that party at the electronic address or postal address, and marked for the attention of the person (if any), from time to time designated by that party to each other party for the purpose of this Trust Deed. The initial telephone number, electronic address, postal address and person so designated by the parties under this Trust Deed are set out in the Procedures Memorandum.

**17.2Deemed Receipt**

Any communication from any party to any other under this Trust Deed shall be effective, (if in writing) when delivered and (if by electronic communication) when the relevant receipt of such communication being read is given, or where no read receipt is requested by the sender, at the time of sending, provided that no delivery failure notification is received by the sender within 24 hours of sending such communication (provided always that any electronic communication to the Trustee shall only be treated as having been received upon confirmation of receipt by the Trustee and an automatically generated "read" or "received" receipt shall not constitute such confirmation); provided that any electronic communication which is received (or deemed to take effect in accordance with the foregoing) after 5:00pm on a business day or on a non-business day in the place of receipt shall be deemed to take effect at the opening of business on the next following business day in such place. Any communication delivered to any party under this Trust Deed which is to be sent by electronic communication will be written legal evidence.

**18Governing Law and Jurisdiction**

**18.1Governing Law**

This Trust Deed and any non-contractual obligations arising out of in connection with it shall be governed by, and construed in accordance with, English law.

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**18.2Jurisdiction**

The courts of England are to have jurisdiction to settle any disputes that may arise out of or in connection with this Trust Deed, the Instruments (other than the Australian Domestic Instruments), the Coupons or the Talons and accordingly any legal action or proceedings arising out of or in connection with this Trust Deed, the Instruments (other than the Australian Domestic Instruments), the Coupons or the Talons ("**Proceedings**") may be brought in such courts. Each of the Issuers irrevocably submits to the jurisdiction of such courts and waives any objection to Proceedings in such courts on the ground of venue or on the ground that the Proceedings have been brought in an inconvenient forum. This clause is for the benefit of each of the Trustee and the relevant Instrumentholders (other than the holders of Australian Domestic Instruments) and Couponholders and shall not limit the right of any of them to take Proceedings in any other court of competent jurisdiction nor shall the taking of Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not).

**18.3Australian Courts Jurisdiction**

The courts of New South Wales, Australia and any courts of appeal from them are to have jurisdiction to settle any disputes that may arise out of or in connection with the Australian Domestic Instruments and accordingly any legal action or proceedings arising out of or in connection with the Australian Domestic Instruments ("**Australian Proceedings**") may be brought in such courts. Each of the Issuers irrevocably submits to the jurisdiction of such courts and waives any objections to Australian Proceedings in such courts on the ground of venue or on the ground that the Australian Proceedings have been brought in an inconvenient forum. This submission is for the benefit of each of the Trustee and the holders of Australian Domestic Instruments and shall not limit the right of any of them to take Australian Proceedings in any other court of competent jurisdiction nor shall the taking of Australian Proceedings in any one or more jurisdictions preclude the taking of Australian Proceedings in any other jurisdiction (whether concurrently or not).

For so long as any Australian Domestic Instruments are outstanding, each Issuer will appoint an agent as specified in the relevant Final Terms for the time being to accept service of process on its behalf in New South Wales in respect of any Australian Proceedings. In the event of such agent ceasing to act, the relevant Issuer will appoint another agent.

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**Schedule 1<br>Part A<br>Form of CGN Temporary Global Instrument**

**Form of Global CGN Temporary Global Instrument (Euroclear, Clearstream, Luxembourg and other Clearing Systems (other than CDS))**

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>\*</sup>

(Incorporated with limited liability in England and Wales<br>under the Companies Act 1985 with registered number [04031152/02366977]<sup>\*</sup>)

**EURO MEDIUM TERM NOTE PROGRAMME**

**Series No. [●]**

**Tranche No. [●]**

**TEMPORARY GLOBAL INSTRUMENT**

**Temporary Global Instrument No. [●]**

This temporary Global Instrument is issued without Coupons in respect of the Instruments (the "**Instruments**") of the Tranche and Series specified in the Second Schedule to this temporary Global Instrument of [National Grid plc/National Grid Electricity Transmission plc]<sup>\*</sup> (the "**Issuer**").

**1Interpretation and Definitions**

References in this temporary Global Instrument to the "**Conditions**" are to the Terms and Conditions applicable to the Instruments (which are in the form set out in Part B of Schedule 2 (Terms and Conditions of the Instruments) to the amended and restated trust deed (as amended or supplemented as at the Issue Date, the "**Trust Deed**") dated 19 August 2025 between, *inter alios*, the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this temporary Global Instrument (including the supplemental definitions and any modifications or additions set out in the Second Schedule hereto), which in the event of any conflict shall prevail). Other capitalised terms used in this temporary Global Instrument shall have the meanings given to them in the Conditions or the Trust Deed. If the Second Schedule to this temporary Global Instrument specifies that the applicable TEFRA exemption is either "C Rules" or "not applicable", this temporary Global Instrument is a "C Rules Instrument", otherwise this temporary Global Instrument is a "D Rules Instrument".

**2Aggregate Nominal Amount**

The aggregate nominal amount from time to time of this temporary Global Instrument shall be an amount equal to the aggregate nominal amount of the Instruments as shall be shown by the latest entry in the fourth column of the First Schedule to this temporary Global Instrument, which shall be completed by or on behalf of the Issuing and Paying Agent upon (a) the issue of Instruments represented by this temporary Global Instrument, (b) the exchange of the whole or a part of this temporary Global Instrument for a corresponding

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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interest in a permanent Global Instrument or, as the case may be, for Definitive Instruments and/or (c) the redemption or purchase and cancellation of Instruments represented by this temporary Global Instrument all as described below.

**3Promise to Pay**

Subject as provided in this temporary Global Instrument, the Issuer, for value received, by this temporary Global Instrument promises to pay to the bearer of this temporary Global Instrument, upon presentation and (when no further payment is due in respect of this temporary Global Instrument) surrender of this temporary Global Instrument, on the Maturity Date (or on such earlier date or, if the Maturity Date is specified to be perpetual, on such date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions) the amount payable upon redemption under the Conditions in respect of the aggregate nominal amount of Instruments represented by this temporary Global Instrument and (unless this temporary Global Instrument does not bear interest) to pay interest in respect of the Instruments from the Interest Commencement Date in arrear at the rates, on the dates for payment, and in accordance with the methods of calculation provided for in the Conditions, save that the calculation is made in respect of the total aggregate amount of the Instruments, together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

**4Exchange**

On or after the first day following the expiry of 40 days after the Issue Date (the "**Exchange Date**"), this temporary Global Instrument may be exchanged (free of charge to the holder) in whole or (in the case of a D Rules Instrument only) from time to time in part by its presentation and, on exchange in full, surrender to or to the order of the Issuing and Paying Agent for interests in a permanent Global Instrument or, if so specified in the Second Schedule to this temporary Global Instrument, for Definitive Instruments in an aggregate nominal amount equal to the nominal amount of this temporary Global Instrument submitted for exchange **provided that**, in the case of any part of a D Rules Instrument submitted for exchange for a permanent Global Instrument or Definitive Instruments, there shall have been Certification with respect to such nominal amount submitted for such exchange dated no earlier than the Exchange Date.

"**Certification**" means the presentation to the Issuing and Paying Agent of a certificate or certificates with respect to one or more interests in this temporary Global Instrument, signed by Euroclear or Clearstream, Luxembourg, substantially to the effect set out in Schedule 3 (Provisions for Meetings of Instrumentholders) to the Trust Deed to the effect that it has received a certificate or certificates substantially to the effect set out in Schedule 3 to the Agency Agreement with respect to it and that no contrary advice as to the contents of the certificate has been received by Euroclear or Clearstream, Luxembourg, as the case may be.

Upon the whole or a part of this temporary Global Instrument being exchanged for a permanent Global Instrument, such permanent Global Instrument shall be exchangeable in accordance with its terms for Definitive Instruments.

The Definitive Instruments, for which this temporary Global Instrument or a permanent Global Instrument may be exchangeable, shall be duly executed and authenticated, shall,

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in the case of Definitive Instruments, have attached to them all Coupons (and, where appropriate, Talons) in respect of interest which have not already been paid on this temporary Global Instrument or the permanent Global Instrument, as the case may be, shall be security printed and shall be substantially in the form set out in the relevant Schedules to the Trust Deed as supplemented and/or modified and/or superseded by the terms of the Second Schedule to this temporary Global Instrument.

On any exchange of a part of this temporary Global Instrument for an equivalent interest in a permanent Global Instrument or for Definitive Instruments, as the case may be, the portion of the nominal amount of this temporary Global Instrument so exchanged shall be endorsed by or on behalf of the Issuing and Paying Agent in Part 1 of the First Schedule to this temporary Global Instrument, whereupon the nominal amount of this temporary Global Instrument shall be reduced for all purposes by the amount so exchanged and endorsed.

**5Benefit of Conditions**

Except as otherwise specified in this temporary Global Instrument, this temporary Global Instrument is subject to the Conditions and the Trust Deed and, until the whole of this temporary Global Instrument is exchanged for equivalent interests in a permanent Global Instrument or for Definitive Instruments, as the case may be, the holder of this temporary Global Instrument shall in all respects be entitled to the same benefits as if it were the holder of the permanent Global Instrument (or the relevant part of it) or the Definitive Instruments, as the case may be, for which it may be exchanged as if such permanent Global Instrument or Definitive Instruments had been issued on the Issue Date.

**6Payments**

No person shall be entitled to receive any payment in respect of the Instruments represented by this temporary Global Instrument which falls due on or after the Exchange Date unless, upon due presentation of this temporary Global Instrument for exchange, delivery of (or, in the case of a subsequent exchange, due endorsement of) a permanent Global Instrument or delivery of Definitive Instruments, as the case may be, is improperly withheld or refused by or on behalf of the Issuer.

Payments due in respect of a D Rules Instrument before the Exchange Date shall only be made in relation to such nominal amount of this temporary Global Instrument with respect to which there shall have been Certification dated no earlier than such due date for payment.

Any payments which are made in respect of this temporary Global Instrument shall be made to its holder against presentation and (if no further payment falls to be made on it) surrender of it at the specified office of the Issuing and Paying Agent or of any other Paying Agent provided for in the Conditions. If any payment in full of principal is made in respect of any Instrument represented by this temporary Global Instrument, the portion of this temporary Global Instrument representing such Instrument shall be cancelled and the amount so cancelled shall be endorsed by or on behalf of the Issuing and Paying Agent in the First Schedule to this temporary Global Instrument (such endorsement being prima facie evidence that the payment in question has been made) upon which the nominal amount of this temporary Global Instrument shall be reduced for all purposes by the amount so cancelled and endorsed. If any other payments are made in respect of the Instruments represented by this temporary Global Instrument, a record of each such

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payment shall be endorsed by or on behalf of the Issuing and Paying Agent on an additional schedule to this temporary Global Instrument (such endorsement being prima facie evidence that the payment in question has been made).

For the purposes of any payments made in respect of this temporary Global Instrument, the words "in the relevant place of presentation" shall not apply in the definition of "**business day**" in Condition 6.7 (Non-Business Days).

**7Cancellation**

Cancellation of any Instrument represented by this temporary Global Instrument which is required by the Conditions to be cancelled (other than upon its redemption) shall be effected by reduction in the nominal amount of this temporary Global Instrument representing such Instrument on its presentation to or to the order of the Issuing and Paying Agent for endorsement in the First Schedule to this temporary Global Instrument, upon which the nominal amount of this temporary Global Instrument shall be reduced for all purposes by the amount so cancelled and endorsed.

**8Notices**

Notices required to be given in respect of the Instruments represented by this temporary Global Instrument may be given by their being delivered (so long as this temporary Global Instrument is held on behalf of Euroclear and Clearstream, Luxembourg or any other clearing system) to Euroclear, Clearstream, Luxembourg or such other clearing system, as the case may be, or otherwise to the holder of this temporary Global Instrument, rather than by publication as required by the Conditions, except that, so long as the Instruments are listed and/or admitted to trading, notices required to be given to the holders of the Notes pursuant to the Conditions shall also be published (if such publication is required) in a manner which complies with the rules and regulations of any stock exchange or other relevant authority on which the Notes are listed/and or admitted to trading.

No provision of this temporary Global Instrument shall alter or impair the obligation of the Issuer to pay the principal and premium of and interest on the Instruments when due in accordance with the Conditions.

This temporary Global Instrument shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Issuing and Paying Agent.

This temporary Global Instrument and all matters arising from or connected with it shall be governed by and construed in accordance with English law.

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**In witness** of which the Issuer has caused this temporary Global Instrument to be duly signed on its behalf.

Dated as of the Issue Date.

**[NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>†</sup>

By:

**CERTIFICATE OF AUTHENTICATION OF THE ISSUING AND PAYING AGENT**

This temporary Global Instrument is authenticated<br>by or on behalf of the Issuing and Paying Agent.

**THE BANK OF NEW YORK MELLON**<br> as Issuing and Paying Agent

By:

Authorised Signatory

For the purposes of authentication only

**ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.**

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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**The First Schedule**

**Nominal amount of Instruments represented by this temporary Global Instrument**

The following (i) issue of Instruments initially represented by this temporary Global Instrument, (ii) exchanges of the whole or a part of this temporary Global Instrument for interests in a permanent Global Instrument or for Definitive Instruments and/or (iii) cancellations or forfeitures of interests in this temporary Global Instrument have been made, resulting in the nominal amount of this temporary Global Instrument specified in the latest entry in the fourth column below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of decrease in nominal amount of this temporary Global Instrument** | **Reason for decrease in nominal amount of this temporary Global Instrument (exchange, cancellation or forfeiture)** | **Nominal amount of this temporary Global Instrument on issue or following such decrease** | **Notation made by or on behalf of the Issuing and Paying Agent** |
| Issue Date | not applicable | not applicable |  |  |

---

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**The Second Schedule**

[Insert the provisions of Part A of the relevant Final Terms that relate to the Conditions or the Global Instruments as the Second Schedule]

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**Schedule 1<br>Part B<br>Form of CGN Permanent Global Instruments**

**Form of Global CGN Permanent Global Instrument (Euroclear, Clearstream, Luxembourg and other Clearing Systems (other than CDS))**

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>‡</sup>

(Incorporated with limited liability in England and Wales<br>under the Companies Act 1985 with registered number [04031152/02366977]<sup>\*</sup>)

**EURO MEDIUM TERM NOTE PROGRAMME**

**Series No. [●] Tranche No. [●]**

**PERMANENT GLOBAL INSTRUMENT**

**Permanent Global Instrument No. [●]**

This permanent Global Instrument is issued without Coupons in respect of the Instruments (the "**Instruments**") of the Tranche(s) and Series specified in the Third Schedule to this permanent Global Instrument of [National Grid plc/National Grid Electricity Transmission plc]\* (the "**Issuer**").

**1Interpretation and Definitions**

References in this permanent Global Instrument to the "**Conditions**" are to the Terms and Conditions applicable to the Instruments (which are in the form set out in Part B of Schedule 2 (Terms and Conditions of the Instruments) to the amended and restated trust deed (as amended or supplemented as at the Issue Date, the "**Trust Deed**") dated 19 August 2025 between, *inter alios*, the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this permanent Global Instrument (including the supplemental definitions and any modifications or additions set out in the Third Schedule to this permanent Global Instrument), which in the event of any conflict shall prevail). Other capitalised terms used in this permanent Global Instrument shall have the meanings given to them in the Conditions or the Trust Deed.

**2Aggregate Nominal Amount**

The aggregate nominal amount from time to time of this permanent Global Instrument shall be an amount equal to the aggregate nominal amount of the Instruments as shall be shown by the latest entry in the fourth column of the First Schedule to this permanent Global Instrument, which shall be completed by or on behalf of the Issuing and Paying Agent upon (a) the exchange of the whole or a part of the temporary Global Instrument initially representing the Instruments for a corresponding interest in this permanent Global Instrument (in the case of Instruments represented by a temporary Global Instrument upon issue), (b) the issue of the Instruments represented by this permanent Global Instrument (in the case of Instruments represented by this permanent Global Instrument upon issue), (c) the exchange of the whole of this permanent Global Instrument for Definitive

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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Instruments and/or (d) the redemption or purchase and cancellation of Instruments represented by this permanent Global Instrument, all as described below.

**3Promise to Pay**

Subject as provided in this permanent Global Instrument, the Issuer, for value received, by this permanent Global Instrument promises to pay to the bearer of this permanent Global Instrument, upon presentation and (when no further payment is due in respect of this permanent Global Instrument) surrender of this permanent Global Instrument, on the Maturity Date (or on such earlier date or, if the Maturity Date is specified to be perpetual on such date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions), the amount payable upon redemption under the Conditions in respect of the aggregate nominal amount of Instruments represented by this permanent Global Instrument and (unless this permanent Global Instrument does not bear interest) to pay interest in respect of the Instruments from the Interest Commencement Date in arrear at the rates, on the dates for payment, and in accordance with the methods of calculation provided for in the Conditions, save that the calculation is made in respect of the total aggregate amount of the Instruments, together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

**4Exchange**

This permanent Global Instrument is exchangeable (free of charge to the holder) on or after the Exchange Date in whole but not in part for the Definitive Instruments if this permanent Global Instrument is held on behalf of Euroclear or Clearstream, Luxembourg or any other clearing system (an "**Alternative Clearing System**") and any such clearing system is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so. 

"**Exchange Date**" means a day falling not less than 60 days, or in the case of failure to pay principal when due 30 days, after that on which the notice requiring exchange is given and on which banks are open for business in the city in which the specified office of the Issuing and Paying Agent is located and, except in the case of exchange pursuant to the first paragraph of this section above, in the cities in which Euroclear and Clearstream, Luxembourg or, if relevant, the Alternative Clearing System, are located.

Any such exchange may be effected on or after an Exchange Date by the holder of this permanent Global Instrument surrendering this permanent Global Instrument. In exchange for this permanent Global Instrument the Issuer shall deliver, or procure the delivery of, duly executed and authenticated Definitive Instruments in an aggregate nominal amount equal to the nominal amount of this permanent Global Instrument submitted for exchange (if appropriate, having attached to them all Coupons (and, where appropriate, Talons) in respect of interest which have not already been paid on this permanent Global Instrument), security printed and substantially in the form set out in Schedule 2 to the Trust Deed as supplemented and/or modified and/or superseded by the terms of the Third Schedule to this permanent Global Instrument.

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**5Benefit of Conditions**

Except as otherwise specified in this permanent Global Instrument, this permanent Global Instrument is subject to the Conditions and the Trust Deed and, until the whole of this permanent Global Instrument is exchanged for Definitive Instruments, the holder of this permanent Global Instrument shall in all respects be entitled to the same benefits as if it were the holder of the Definitive Instruments for which it may be exchanged and as if such Definitive Instruments had been issued on the Issue Date.

**6Payments**

No person shall be entitled to receive any payment in respect of the Instruments represented by this permanent Global Instrument that falls due after an Exchange Date for such Instruments, unless upon due presentation of this permanent Global Instrument for exchange, delivery of Definitive Instruments is improperly withheld or refused by or on behalf of the Issuer or the Issuer does not perform or comply with any one or more of what are expressed to be its obligations under any Definitive Instruments.

Payments in respect of this permanent Global Instrument shall be made to its holder against presentation and (if no further payment falls to be made on it) surrender of it at the specified office of the Issuing and Paying Agent or of any other Paying Agent provided for in the Conditions. A record of each such payment shall be endorsed on the First or Second Schedule to this permanent Global Instrument, as appropriate, by the Issuing and Paying Agent or by the relevant Paying Agent, for and on behalf of the Issuing and Paying Agent, which endorsement shall (until the contrary is proved) be *prima facie* evidence that the payment in question has been made.

For the purposes of any payments made in respect of this permanent Global Instrument, the words "in the relevant place of presentation" shall not apply in the definition of "**business day**" in Condition 6.7 (Non-Business Days).

**7Prescription**

Claims in respect of principal and interest (as each such term is defined in the Conditions) in respect of this permanent Global Instrument shall become void unless it is presented for payment within a period of 10 years (in the case of principal) and five years (in the case of interest) from the appropriate Relevant Date.

**8Meetings**

For the purposes of any meeting of Instrumentholders, the holder of this permanent Global Instrument shall (unless this permanent Global Instrument represents only one Instrument) be treated as two persons for the purposes of any quorum requirements of a meeting of Instrumentholders and, at any such meeting, as having one vote in respect of each integral currency unit of the Specified Currency of the Instruments.

**9Cancellation**

Cancellation of any Instrument represented by this permanent Global Instrument which is required by the Conditions to be cancelled (other than upon its redemption) shall be effected by reduction in the nominal amount of this permanent Global Instrument representing such Instrument on its presentation to or to the order of the Issuing and

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Paying Agent for endorsement in the First Schedule to this permanent Global Instrument, upon which the nominal amount of this permanent Global Instrument shall be reduced for all purposes by the amount so cancelled and endorsed.

**10Purchase**

Instruments may only be purchased by the Issuer, or any of its subsidiary undertakings if they are purchased together with the right to receive all future payments of interest (if any) on the Instruments being purchased.

**11Issuer's Options**

Any option of the Issuer provided for in the Conditions shall be exercised by the Issuer giving notice to the Instrumentholders within the time limits set out in and containing the information required by the Conditions, except that the notice shall not be required to contain the serial numbers of Instruments drawn in the case of a partial exercise of an option and accordingly no drawing of Instruments shall be required.

**12Instrumentholders' Redemption Option [and Restructuring Redemption Option]**<sup>§</sup>

Any option of the Instrumentholders provided for in the Conditions may be exercised by the holder of this permanent Global Instrument giving notice to the Issuing and Paying Agent within the time limits relating to the deposit of Instruments with a Paying Agent set out in the Conditions substantially in the form of the relevant notice available from any Paying Agent and stating the nominal amount of Instruments in respect of which the option is exercised and at the same time presenting this permanent Global Instrument to the Issuing and Paying Agent, or to a Paying Agent acting on behalf of the Issuing and Paying Agent, for notation accordingly in the Fourth Schedule to this permanent Global Instrument.

**13Notices**

Notices required to be given in respect of the Instruments represented by this permanent Global Instrument may be given by their being delivered (so long as this permanent Global Instrument is held on behalf of Euroclear, Clearstream, Luxembourg or any Alternative Clearing System) to Euroclear, Clearstream, Luxembourg or such Alternative Clearing System, as the case may be, or otherwise to the holder of this permanent Global Instrument, rather than by publication as required by the Conditions, except that, so long as the Instruments are listed and/or admitted to trading, notices required to be given to the holders of the Notes pursuant to the Conditions shall also be published (if such publication is required) in a manner which complies with the rules and regulations of any stock exchange or other relevant authority on which the Notes are listed/and or admitted to trading.

**14Negotiability**

This permanent Global Instrument is a bearer document and negotiable and accordingly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)is freely transferable by delivery and such transfer shall operate to confer upon the transferee all rights and benefits appertaining to this permanent Global Instrument

<sup>§</sup> &nbsp;&nbsp;&nbsp;&nbsp;If applicable.

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and to bind the transferee with all obligations appertaining to this permanent Global Instrument pursuant to the Conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the holder of this permanent Global Instrument is and shall be absolutely entitled as against all previous holders to receive all amounts by way of amounts payable upon redemption, interest or otherwise payable in respect of this permanent Global Instrument and the Issuer has waived against such holder and any previous holder of this permanent Global Instrument all rights of set-off or counterclaim which would or might otherwise be available to it in respect of the obligations evidenced by this permanent Global Instrument; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)payment upon due presentation of this permanent Global Instrument as provided in this permanent Global Instrument shall operate as a good discharge against such holder and all previous holders of this permanent Global Instrument.

No provisions of this permanent Global Instrument shall alter or impair the obligation of the Issuer to pay the principal and premium of and interest on the Instruments when due in accordance with the Conditions.

This permanent Global Instrument shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Issuing and Paying Agent.

This permanent Global Instrument and all matters arising from or connected with it shall be governed by, and construed in accordance with, English law.

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**In witness** of which the Issuer has caused this permanent Global Instrument to be duly signed on its behalf.

Dated as of the Issue Date.

**[NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>\*\*</sup>

By:

**CERTIFICATE OF AUTHENTICATION OF THE ISSUING AND PAYING AGENT**

This permanent Global Instrument is authenticated<br>by or on behalf of the Issuing and Paying Agent.

**THE BANK OF NEW YORK MELLON**<br> as Issuing and Paying Agent

By:

Authorised Signatory<br>For the purposes of authentication only

**ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.**

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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**The First Schedule<br>Nominal amount of Instruments <br>represented by this permanent Global Instrument**

The following (i) issue of Instruments initially represented by this permanent Global Instrument, (ii) exchanges of interests in a temporary Global Instrument for interests in this permanent Global Instrument or for Definitive Instruments and/or (iii) cancellations or forfeitures of interests in this permanent Global Instrument have been made, resulting in the nominal amount of this permanent Global Instrument specified in the latest entry in the fourth column below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of increase/decrease in nominal amount of this permanent Global Instrument** | **Reason for increase/decrease in nominal amount of this permanent Global Instrument (initial issue, exchange, cancellation, forfeiture or payment, stating amount of payment made)** | **Nominal amount of this permanent Global Instrument on issue or following such increase/decrease** | **Notation made by or on behalf of the Issuing and Paying Agent** |

---

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**The Second Schedule<br>Payments of Interest**

The following payments of interest or Interest Amount in respect of this permanent Global Instrument have been made:

---

| | | | |
|:---|:---|:---|:---|
| **Due date of payment** | **Date of payment** | **Amount of interest** | **Notation made by or on behalf of the Issuing and Paying Agent** |

---

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**The Third Schedule**

[Insert the provisions of Part A of the relevant Final Terms that relate to the Conditions or the Global Instruments as the Third Schedule.]

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**The Fourth Schedule<br>Exercise of Instrumentholders' Redemption Option <br>[and Restructuring Redemption Option]**<sup>††</sup>

The following exercises of the option of the Instrumentholders provided for in the Conditions have been made in respect of the stated nominal amount of this permanent Global Instrument:

---

| | | | |
|:---|:---|:---|:---|
| **Date of exercise** | **Nominal amount of this permanent Global Instrument in respect of which exercise is made** | **Date on which exercise of such option is effective** | **Notation made by or on behalf of the Issuing and Paying Agent** |

---

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;If applicable.

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**Form of Global CGN Permanent Global Instrument (CDS)**<sup>‡‡</sup>

**[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. ("CDS") TO [NATIONAL GRID PLC] [NATIONAL GRID ELECTRICITY TRANSMISSION PLC] (THE "ISSUER") OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE.]** 

**ISIN:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CUSIP:**

**Common Code:**

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>§§</sup>

(Incorporated with limited liability in England and Wales<br>under the Companies Act 1985 with registered number [04031152/02366977]<sup>\*</sup>)

**EURO MEDIUM TERM NOTE PROGRAMME**

**[*Title of Instruments*]**

**Series No. [●] Tranche No. [●]**

**PERMANENT GLOBAL INSTRUMENT**

**Permanent Global Instrument No. [●]**

This permanent Global Instrument is issued without Coupons in respect of the Instruments (the "**Instruments**") of the Tranche(s) and Series specified in the Third Schedule to this permanent Global Instrument of [National Grid plc/National Grid Electricity Transmission plc]\* (the "**Issuer**").

**1Interpretation and Definitions**

References in this permanent Global Instrument to the "**Conditions**" are to the Terms and Conditions applicable to the Instruments (which are in the form set out in Part B of Schedule 2 (Terms and Conditions of the Instruments) to the amended and restated trust deed (as amended or supplemented as at the Issue Date, the "**Trust Deed**") dated 19 August 2025 between, *inter alios*, the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this permanent Global Instrument (including the supplemental definitions and

<sup>‡‡</sup>&nbsp;&nbsp;&nbsp;&nbsp;CDS requires manual wet ink signatures. Master note cannot be used.

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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any modifications or additions set out in the Third Schedule to this permanent Global Instrument), which in the event of any conflict shall prevail). Other capitalised terms used in this permanent Global Instrument shall have the meanings given to them in the Conditions or the Trust Deed.

**2Aggregate Nominal Amount**

The aggregate nominal amount from time to time of this permanent Global Instrument shall be an amount equal to the aggregate nominal amount of the Instruments as shall be shown by the latest entry in the fourth column of the First Schedule to this permanent Global Instrument, which shall be completed by or on behalf of the Canadian Paying Agent upon (a) the issue of the Instruments represented by this permanent Global Instrument (in the case of Instruments represented by this permanent Global Instrument upon issue), (b) the exchange of the whole of this permanent Global Instrument for Definitive Instruments and/or (c) the redemption or purchase and cancellation of Instruments represented by this permanent Global Instrument, all as described below.

**3Promise to Pay**

Subject as provided in this permanent Global Instrument, the Issuer, for value received, by this permanent Global Instrument promises to pay to the bearer of this permanent Global Instrument, upon presentation and (when no further payment is due in respect of this permanent Global Instrument) surrender of this permanent Global Instrument, on the Maturity Date (or on such earlier date or, if the Maturity Date is specified to be perpetual on such date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions), the amount payable upon redemption under the Conditions in respect of the aggregate nominal amount of Instruments represented by this permanent Global Instrument and (unless this permanent Global Instrument does not bear interest) to pay interest in respect of the Instruments from the Interest Commencement Date in arrear at the rates, on the dates for payment, and in accordance with the methods of calculation provided for in the Conditions, save that the calculation is made in respect of the total aggregate amount of the Instruments, together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

**4Exchange**

This permanent Global Instrument is exchangeable (free of charge to the holder) on or after the Exchange Date in whole but not in part for the Definitive Instruments if this permanent Global Instrument is held on behalf of CDS Clearing and Depository Services Inc. ("**CDS**") and (i) CDS has notified the Issuer that it is unwilling or unable to continue to act as a depository for the Instruments and a successor depository is not appointed by the Issuer within 90 working days after receiving such notice; or (ii) CDS ceases to be a recognised clearing agency under applicable Canadian or provincial securities legislation and no successor clearing system satisfactory to the Trustee is available within 90 working days after the Issuer becoming aware that CDS is no longer so recognised.

"**Exchange Date**" means a day falling not less than 60 days, or in the case of failure to pay principal when due 30 days, after that on which the notice requiring exchange is given and on which banks are open for business in the city in which the specified office of the

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Canadian Paying Agent is located and, except in the case of exchange pursuant to the first paragraph of this section above, in the cities in which CDS is located.

Any such exchange may be effected on or after an Exchange Date by the holder of this permanent Global Instrument surrendering this permanent Global Instrument. In exchange for this permanent Global Instrument the Issuer shall deliver, or procure the delivery of, duly executed and authenticated Definitive Instruments in an aggregate nominal amount equal to the nominal amount of this permanent Global Instrument submitted for exchange (if appropriate, having attached to them all Coupons (and, where appropriate, Talons) in respect of interest which have not already been paid on this permanent Global Instrument), security printed and substantially in the form set out in Schedule 2 to the Trust Deed as supplemented and/or modified and/or superseded by the terms of the Third Schedule to this permanent Global Instrument.

**5Benefit of Conditions**

Except as otherwise specified in this permanent Global Instrument, this permanent Global Instrument is subject to the Conditions and the Trust Deed and, until the whole of this permanent Global Instrument is exchanged for Definitive Instruments, the holder of this permanent Global Instrument shall in all respects be entitled to the same benefits as if it were the holder of the Definitive Instruments for which it may be exchanged and as if such Definitive Instruments had been issued on the Issue Date.

**6Payments**

No person shall be entitled to receive any payment in respect of the Instruments represented by this permanent Global Instrument that falls due after an Exchange Date for such Instruments, unless upon due presentation of this permanent Global Instrument for exchange, delivery of Definitive Instruments is improperly withheld or refused by or on behalf of the Issuer or the Issuer does not perform or comply with any one or more of what are expressed to be its obligations under any Definitive Instruments.

Payments in respect of this permanent Global Instrument shall be made to its holder against presentation and (if no further payment falls to be made on it) surrender of it at the specified office of the Canadian Paying Agent or of any other Paying Agent provided for in the Conditions. A record of each such payment shall be endorsed on the First or Second Schedule to this permanent Global Instrument, as appropriate, by the Canadian Paying Agent or by the relevant Paying Agent, for and on behalf of the Canadian Paying Agent, which endorsement shall (until the contrary is proved) be *prima facie* evidence that the payment in question has been made.

For the purposes of any payments made in respect of this permanent Global Instrument, the words "in the relevant place of presentation" shall not apply in the definition of "**business day**" in Condition 6.7 (Non-Business Days).

**7Prescription**

Claims in respect of principal and interest (as each such term is defined in the Conditions) in respect of this permanent Global Instrument shall become void unless it is presented for payment within a period of 10 years (in the case of principal) and five years (in the case of interest) from the appropriate Relevant Date.

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**8Meetings**

For the purposes of any meeting of Instrumentholders, the holder of this permanent Global Instrument shall (unless this permanent Global Instrument represents only one Instrument) be treated as two persons for the purposes of any quorum requirements of a meeting of Instrumentholders and, at any such meeting, as having one vote in respect of each integral currency unit of the Specified Currency of the Instruments.

**9Cancellation**

Cancellation of any Instrument represented by this permanent Global Instrument which is required by the Conditions to be cancelled (other than upon its redemption) shall be effected by reduction in the nominal amount of this permanent Global Instrument representing such Instrument on its presentation to or to the order of the Canadian Paying Agent for endorsement in the First Schedule to this permanent Global Instrument, upon which the nominal amount of this permanent Global Instrument shall be reduced for all purposes by the amount so cancelled and endorsed.

**10Purchase**

Instruments may only be purchased by the Issuer, or any of its subsidiary undertakings if they are purchased together with the right to receive all future payments of interest (if any) on the Instruments being purchased.

**11Issuer's Options**

Any option of the Issuer provided for in the Conditions shall be exercised by the Issuer giving notice to the Instrumentholders within the time limits set out in and containing the information required by the Conditions, except that the notice shall not be required to contain the serial numbers of Instruments drawn in the case of a partial exercise of an option and accordingly no drawing of Instruments shall be required.

**12Instrumentholders' Redemption Option [and Restructuring Redemption Option]**<sup>\*\*\*</sup>

Any option of the Instrumentholders provided for in the Conditions may be exercised by the holder of this permanent Global Instrument giving notice to the Canadian Paying Agent within the time limits relating to the deposit of Instruments with a Paying Agent set out in the Conditions substantially in the form of the relevant notice available from any Paying Agent and stating the nominal amount of Instruments in respect of which the option is exercised and at the same time presenting this permanent Global Instrument to the Canadian Paying Agent, or to a Paying Agent acting on behalf of the Canadian Paying Agent, for notation accordingly in the Fourth Schedule to this permanent Global Instrument.

**13Notices**

Notices required to be given in respect of the Instruments represented by this permanent Global Instrument may be given by their being delivered (so long as this permanent Global Instrument is held on behalf of CDS or any alternative clearing system) CDS or such alternative clearing system, as the case may be, or otherwise to the holder of this

<sup>\*\*\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;If applicable.

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permanent Global Instrument, rather than by publication as required by the Conditions, except that, so long as the Instruments are listed and/or admitted to trading, notices required to be given to the holders of the Notes pursuant to the Conditions shall also be published (if such publication is required) in a manner which complies with the rules and regulations of any stock exchange or other relevant authority on which the Notes are listed/and or admitted to trading.

**14Negotiability**

This permanent Global Instrument is a bearer document and negotiable and accordingly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)is freely transferable by delivery and such transfer shall operate to confer upon the transferee all rights and benefits appertaining to this permanent Global Instrument and to bind the transferee with all obligations appertaining to this permanent Global Instrument pursuant to the Conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the holder of this permanent Global Instrument is and shall be absolutely entitled as against all previous holders to receive all amounts by way of amounts payable upon redemption, interest or otherwise payable in respect of this permanent Global Instrument and the Issuer has waived against such holder and any previous holder of this permanent Global Instrument all rights of set-off or counterclaim which would or might otherwise be available to it in respect of the obligations evidenced by this permanent Global Instrument; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)payment upon due presentation of this permanent Global Instrument as provided in this permanent Global Instrument shall operate as a good discharge against such holder and all previous holders of this permanent Global Instrument.

No provisions of this permanent Global Instrument shall alter or impair the obligation of the Issuer to pay the principal and premium of and interest on the Instruments when due in accordance with the Conditions.

This permanent Global Instrument shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Canadian Paying Agent.

This permanent Global Instrument and all matters arising from or connected with it shall be governed by, and construed in accordance with, English law.

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**In witness** of which the Issuer has caused this permanent Global Instrument to be duly signed on its behalf.

Dated as of [*Insert the Issue Date*].

**[NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>†††</sup>

By:

**CERTIFICATE OF AUTHENTICATION OF THE ISSUING AND PAYING AGENT**

This permanent Global Instrument is authenticated<br>by or on behalf of the Issuing and Paying Agent.

**Computershare Advantage Trust of Canada**<br> as Canadian Paying Agent

By:

Authorised Signatory<br>For the purposes of authentication only

**ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.**

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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**The First Schedule<br>Nominal amount of Instruments <br>represented by this permanent Global Instrument**

The following (i) issue of Instruments initially represented by this permanent Global Instrument, (ii) exchanges of interests in a temporary Global Instrument for interests in this permanent Global Instrument or for Definitive Instruments and/or (iii) cancellations or forfeitures of interests in this permanent Global Instrument have been made, resulting in the nominal amount of this permanent Global Instrument specified in the latest entry in the fourth column below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date** | **Amount of increase/decrease in nominal amount of this permanent Global Instrument** | **Reason for increase/decrease in nominal amount of this permanent Global Instrument (initial issue, exchange, cancellation, forfeiture or payment, stating amount of payment made)** | **Nominal amount of this permanent Global Instrument on issue or following such increase/decrease** | **Notation made by or on behalf of the Canadian Paying Agent** |

---

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**The Second Schedule<br>Payments of Interest**

The following payments of interest or Interest Amount in respect of this permanent Global Instrument have been made:

---

| | | | |
|:---|:---|:---|:---|
| **Due date of payment** | **Date of payment** | **Amount of interest** | **Notation made by or on behalf of the Canadian Paying Agent** |

---

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**The Third Schedule**

[Insert the provisions of Part A of the relevant Final Terms that relate to the Conditions or the Global Instruments as the Third Schedule.]

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**The Fourth Schedule<br>Exercise of Instrumentholders' Redemption Option <br>[and Restructuring Redemption Option]**<sup>‡‡‡</sup>

The following exercises of the option of the Instrumentholders provided for in the Conditions have been made in respect of the stated nominal amount of this permanent Global Instrument:

---

| | | | |
|:---|:---|:---|:---|
| **Date of exercise** | **Nominal amount of this permanent Global Instrument in respect of which exercise is made** | **Date on which exercise of such option is effective** | **Notation made by or on behalf of the Canadian Paying Agent** |

---

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;If applicable.

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**Schedule 1<br>Part C<br>Form of NGN Temporary Global Instrument**

**[NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>§§§</sup>

(Incorporated with limited liability in England and Wales<br>under the Companies Act 1985 with registered number [04031152/02366977]\*)

**EURO MEDIUM TERM NOTE PROGRAMME<br>Series No. [•]<br>Tranche No. [•]**

**TEMPORARY GLOBAL INSTRUMENT<br>Temporary Global Instrument No. [•]**

This temporary Global Instrument is issued without Coupons in respect of the Instruments (the "**Instruments**") of the Tranche and Series specified in Part A of the Schedule to this temporary Global Instrument of [National Grid plc/National Grid Electricity Transmission plc]\* (the "**Issuer**").

**1Interpretation and Definitions**

References in this temporary Global Instrument to the "**Conditions**" are to the Terms and Conditions applicable to the Instruments (which are in the form set out in Part B of Schedule 2 *(Terms and Conditions of the Instruments)* to the amended and restated trust deed (as amended or supplemented as at the Issue Date, the "**Trust Deed**") dated 19 August 2025 between, *inter alios*, the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this temporary Global Instrument (including the supplemental definitions and any modifications or additions set out in Part A of the Schedule hereto), which in the event of any conflict shall prevail). Other capitalised terms used in this temporary Global Instrument shall have the meanings given to them in the Conditions or the Trust Deed. If the Schedule to this temporary Global Instrument specifies that the applicable TEFRA exemption is either "C Rules" or "not applicable", this temporary Global Instrument is a "C Rules Instrument", otherwise this temporary Global Instrument is a "D Rules Instrument".

**2Aggregate Nominal Amount**

The aggregate nominal amount from time to time of this temporary Global Instrument shall be an amount equal to the aggregate nominal amount of the Instruments from time to time entered in the records of both Euroclear and Clearstream, Luxembourg (together the "**relevant Clearing Systems**"), which shall be completed by or on behalf of the Issuing and Paying Agent upon (a) the issue of Instruments represented by this temporary Global Instrument, (b) the exchange of the whole or a part of this temporary Global Instrument for a corresponding interest recorded in the records of the relevant Clearing Systems in a permanent Global Instrument or, as the case may be, for Definitive Instruments and/or (c) the redemption or purchase and cancellation of Instruments represented by this temporary Global Instrument, all as described below.

The records of the relevant Clearing Systems (which expression in this temporary Global Instrument means the records that each relevant Clearing System holds for its customers which reflect the amount of such customers' interests in the Instruments) shall be conclusive evidence of

<sup>\*</sup>&nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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the nominal amount of the Instruments represented by this temporary Global Instrument and, for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon request) stating the nominal amount of Instruments represented by the temporary Global Instrument at any time shall be conclusive evidence of the records of the relevant Clearing Systems at that time.

**3Promise to Pay**

Subject as provided in this temporary Global Instrument, the Issuer, for value received by this temporary Global Instrument, promises to pay to the bearer of this temporary Global Instrument, upon presentation and (when no further payment is due in respect of this temporary Global Instrument) surrender of this temporary Global Instrument, on the Maturity Date (or on such earlier date or, if the Maturity Date is specified to be perpetual, on such date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions) the amount payable upon redemption under the Conditions in respect of the aggregate nominal amount of Instruments represented by this temporary Global Instrument and (unless this temporary Global Instrument does not bear interest) to pay interest in respect of the Instruments from the Interest Commencement Date in arrear at the rates, on the dates for payment, and in accordance with the methods of calculation provided for in the Conditions, save that the calculation is made in respect of the total aggregate amount of the Instruments, together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

**4Exchange**

On or after the first day following the expiry of 40 days after the Issue Date (the "**Exchange Date**"), this temporary Global Instrument may be exchanged (free of charge to the holder) in whole or (in the case of a D Rules Instrument only) from time to time in part by its presentation and, on exchange in full, surrender to or to the order of the Issuing and Paying Agent for interests recorded in the records of the relevant Clearing Systems in a permanent Global Instrument or, if so specified in Part A of the Schedule to this temporary Global Instrument, for Definitive Instruments in an aggregate nominal amount equal to the nominal amount of this temporary Global Instrument submitted for exchange provided that, in the case of any part of a D Rules Instrument submitted for exchange for interests recorded in the records of the relevant Clearing Systems in a permanent Global Instrument or Definitive Instruments, there shall have been Certification with respect to such nominal amount submitted for such exchange dated no earlier than the Exchange Date.

"**Certification**" means the presentation to the Issuing and Paying Agent of a certificate or certificates with respect to one or more interests in this temporary Global Instrument, signed by Euroclear or Clearstream, Luxembourg, substantially to the effect set out in Schedule 3 *(Provisions for Meetings of Instrumentholders)* to the Trust Deed to the effect that it has received a certificate or certificates substantially to the effect set out in Schedule 2 to the Trust Deed with respect to it and that no contrary advice as to the contents of the certificate has been received by Euroclear or Clearstream, Luxembourg, as the case may be.

Upon the whole or a part of this temporary Global Instrument being exchanged for a permanent Global Instrument, such permanent Global Instrument shall be exchangeable in accordance with its terms for Definitive Instruments.

The Definitive Instruments, for which this temporary Global Instrument or a permanent Global Instrument may be exchangeable, shall be duly executed and authenticated, shall, in the case of Definitive Instruments, have attached to them all Coupons (and, where appropriate, Talons) in

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respect of interest which have not already been paid on this temporary Global Instrument or the permanent Global Instrument, as the case may be, shall be security printed and shall be substantially in the form set out in the relevant Schedules to the Trust Deed as supplemented and/or modified and/or superseded by the terms of Part A of the Schedule to this temporary Global Instrument.

On any exchange of a part of this temporary Global Instrument for an equivalent interest recorded in the records of the relevant Clearing Systems in a permanent Global Instrument or for Definitive Instruments, as the case may be, the Issuer shall procure that details of the portion of the nominal amount hereof so exchanged shall be entered *pro rata* in the records of the relevant Clearing Systems and upon any such entry being made, the nominal amount of the Instruments recorded in the records of the relevant Clearing Systems and represented by this temporary Global Instrument shall be reduced for all purposes by an amount equal to such portion so exchanged.

**5Benefit of Conditions**

Except as otherwise specified in this temporary Global Instrument, this temporary Global Instrument is subject to the Conditions and the Trust Deed and, until the whole of this temporary Global Instrument is exchanged for equivalent interests in a permanent Global Instrument or for Definitive Instruments, as the case may be, the holder of this temporary Global Instrument shall in all respects be entitled to the same benefits as if it were the holder of the permanent Global Instrument (or the relevant part of it) or the Definitive Instruments, as the case may be, for which it may be exchanged as if such permanent Global Instrument or Definitive Instruments had been issued on the Issue Date.

**6Payments**

No person shall be entitled to receive any payment in respect of the Instruments represented by this temporary Global Instrument which falls due on or after the Exchange Date unless, upon due presentation of this temporary Global Instrument for exchange, delivery of (or, in the case of a subsequent exchange, a corresponding entry being recorded in the records of the relevant Clearing Systems) a permanent Global Instrument or delivery of Definitive Instruments, as the case may be, is improperly withheld or refused by or on behalf of the Issuer.

Payments due in respect of a D Rules Instrument before the Exchange Date shall only be made in relation to such nominal amount of this temporary Global Instrument with respect to which there shall have been Certification dated no earlier than such due date for payment.

Any payments which are made in respect of this temporary Global Instrument shall be made to its holder against presentation and (if no further payment falls to be made on it) surrender of it at the specified office of the Issuing and Paying Agent or of any other Paying Agent provided for in the Conditions and each payment so made will discharge the Issuer's obligations in respect thereof. Any failure to make the entries in the records of the relevant Clearing Systems referred to herein shall not affect such discharge. If any payment in full or in part of principal is made in respect of any Instrument represented by this temporary Global Instrument, the Issuer shall procure that details of such payment shall be entered pro rata in the records of the relevant Clearing Systems and, upon any such entry being made, the nominal amount of the Instruments recorded in the records of the relevant Clearing Systems and represented by this temporary Global Instrument shall be reduced by the aggregate nominal amount of the Instruments so redeemed. If any other payments are made in respect of the Instruments represented by this temporary Global Instrument, the Issuer shall procure that a record of each such payment shall be entered pro rata in the records of the relevant Clearing Systems).

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For the purposes of any payments made in respect of this temporary Global Instrument, the words "in the relevant place of presentation" shall not apply in the definition of "**business day**" in Condition 6.7 (Non-Business Days).

**7Cancellation**

On cancellation of any Instrument represented by this temporary Global Instrument which is required by the Conditions to be cancelled (other than upon its redemption), the Issuer shall procure that details of such cancellation shall be entered pro rata in the records of the relevant Clearing Systems and, upon any such entry being made, the nominal amount of the Instrument recorded in the records of the relevant Clearing Systems and represented by this temporary Global Instrument shall be reduced by the aggregate nominal amount of the Instruments so cancelled.

**8Notices**

Notices required to be given in respect of the Instruments represented by this temporary Global Instrument may be given by their being delivered (so long as this temporary Global Instrument is held on behalf of Euroclear and Clearstream, Luxembourg or any other clearing system) to Euroclear, Clearstream, Luxembourg or such other clearing system, as the case may be, or otherwise to the holder of this temporary Global Instrument, rather than by publication as required by the Conditions, except that, so long as the Instruments are listed and/or admitted to trading, notices required to be given to the holders of the Notes pursuant to the Conditions shall also be published (if such publication is required) in a manner which complies with the rules and regulations of any stock exchange or other relevant authority on which the Notes are listed/and or admitted to trading.

No provision of this temporary Global Instrument shall alter or impair the obligation of the Issuer to pay the principal and premium of and interest on the Instruments when due in accordance with the Conditions.

This temporary Global Instrument shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Issuing and Paying Agent and effectuated by the entity appointed as Common Safekeeper by the relevant Clearing Systems.

This temporary Global Instrument and all matters arising from or connected with it shall be governed by and construed in accordance with English law.

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**In witness** of which the Issuer has caused this temporary Global Instrument to be duly signed on its behalf.

Dated as of the Issue Date.

[**NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc**] <sup>\*\*\*\*</sup>

By:

Authorised Signatory

**CERTIFICATE OF AUTHENTICATION OF THE ISSUING AND PAYING AGENT**

This temporary Global Instrument is authenticated by or on behalf of the Issuing and Paying Agent.

**THE BANK OF NEW YORK MELLON**

as Issuing and Paying Agent

By:

Authorised Signatory<br>For the purposes of authentication only

**Effectuation**

This temporary Global Instrument

Is effectuated by

[**COMMON SAFEKEEPER**]

As Common Safekeeper

By:

Authorised Signatory<br>For the purposes of effectuation only

**ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.**

<sup>\*</sup>&nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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**The Schedule**

[Insert the provisions of the relevant Final Terms that relate to the Conditions or the Global Instruments as the Schedule]

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**Schedule 1<br>Part D<br>Form of NGN Permanent Global Instrument**

**[NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>††††</sup>

(Incorporated with limited liability in England and Wales<br>under the Companies Act 1985 with registered number [04031152/02366977]\*)

**EURO MEDIUM TERM NOTE PROGRAMME<br>Series No. [•]<br>Tranche No. [•]**

**PERMANENT GLOBAL INSTRUMENT<br>Permanent Global Instrument No. [•]**

This permanent Global Instrument is issued without Coupons in respect of the Instruments (the "**Instruments**") of the Tranche(s) and Series specified in Part A of the Schedule to this permanent Global Instrument of [National Grid plc/National Grid Electricity Transmission plc]\* (the "**Issuer**").

**1Interpretation and Definitions**

References in this permanent Global Instrument to the "Conditions" are to the Terms and Conditions applicable to the Instruments (which are in the form set out in Part B of Schedule 2 *(Terms and Conditions of the Instruments)* to the amended and restated trust deed (as amended or supplemented as at the Issue Date, the "**Trust Deed**") dated 19 August 2025 between, *inter alios*, the Issuer and The Law Debenture Trust Corporation p.l.c. as trustee, as such form is supplemented and/or modified and/or superseded by the provisions of this permanent Global Instrument (including the supplemental definitions and any modifications or additions set out in the Third Schedule to this permanent Global Instrument), which in the event of any conflict shall prevail). Other capitalised terms used in this permanent Global Instrument shall have the meanings given to them in the Conditions or the Trust Deed.

**2Aggregate Nominal Amount**

The aggregate nominal amount from time to time of this permanent Global Instrument shall be an amount equal to the aggregate nominal amount of the Instruments from time to time entered in the records of both Euroclear and Clearstream, Luxembourg (together, the "**relevant Clearing Systems**"), which shall be completed and/or amended as the case may be upon (a) the exchange of the whole or a part of the interests recorded in the records of the relevant Clearing Systems in the temporary Global Instrument initially representing the Instruments for a corresponding interest in this permanent Global Instrument (in the case of Instruments represented by a temporary Global Instrument upon issue), (b) the issue of the Instruments represented by this permanent Global Instrument (in the case of Instruments represented by this permanent Global Instrument upon issue), (c) the exchange of the whole of this permanent Global Instrument for Definitive Instruments and/or (d) the redemption or purchase and cancellation of Instruments represented by this permanent Global Instrument, all as described below.

The records of the relevant Clearing Systems (which expression in this permanent Global Instrument means the records that each relevant Clearing System holds for its customers which reflect the amount of such customers' interests in the Instruments) shall be conclusive evidence of

<sup>\*</sup>&nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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the nominal amount of the Instruments represented by this permanent Global Instrument and, for these purposes, a statement issued by a relevant Clearing System (which statement shall be made available to the bearer upon request) stating the nominal amount of Instruments represented by this permanent Global Instrument at any time shall be conclusive evidence of the records of the relevant Clearing System at that time.

**3Promise to Pay**

Subject as provided in this permanent Global Instrument, the Issuer, for value received, by this permanent Global Instrument promises to pay to the bearer of this permanent Global Instrument, upon presentation and (when no further payment is due in respect of this permanent Global Instrument) surrender of this permanent Global Instrument, on the Maturity Date (or on such earlier date or, if the Maturity Date is specified to be perpetual on such date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions), the amount payable upon redemption under the Conditions in respect of the aggregate nominal amount of Instruments represented by this permanent Global Instrument and (unless this permanent Global Instrument does not bear interest) to pay interest in respect of the Instruments from the Interest Commencement Date in arrear at the rates, on the dates for payment, and in accordance with the methods of calculation provided for in the Conditions, save that the calculation is made in respect of the total aggregate amount of the Instruments, together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

**4Exchange**

This permanent Global Instrument is exchangeable (free of charge to the holder) on or after the Exchange Date in whole but not in part for the Definitive Instruments if this permanent Global Instrument is held on behalf of Euroclear or Clearstream, Luxembourg or any other clearing system (an "**Alternative Clearing System**") and any such clearing system is closed for business for a continuous period of 14 days (other than by reason of holidays, statutory or otherwise) or announces an intention permanently to cease business or does in fact do so.

"**Exchange Date**" means a day falling not less than 60 days, or in the case of failure to pay principal when due, 30 days after that on which the notice requiring exchange is given and on which banks are open for business in the city in which the specified office of the Issuing and Paying Agent is located and, except in the case of exchange pursuant to the first paragraph of this section above, in the cities in which Euroclear and Clearstream, Luxembourg or, if relevant, the Alternative Clearing System, are located.

Any such exchange may be effected on or after an Exchange Date by the holder of this permanent Global Instrument surrendering this permanent Global Instrument. In exchange for this permanent Global Instrument the Issuer shall deliver, or procure the delivery of, duly executed and authenticated Definitive Instruments in an aggregate nominal amount equal to the nominal amount of this permanent Global Instrument submitted for exchange (if appropriate, having attached to them all Coupons (and, where appropriate, Talons) in respect of interest which have not already been paid on this permanent Global Instrument), security printed and substantially in the form set out in Schedule 2 to the Trust Deed as supplemented and/or modified and/or superseded by the terms of Part A of the Schedule to this permanent Global Instrument.

**5Benefit of Conditions**

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Except as otherwise specified in this permanent Global Instrument, the Issuer shall procure that this permanent Global Instrument is subject to the Conditions and the Trust Deed and, until the whole of this permanent Global Instrument is exchanged for Definitive Instruments, the holder of this permanent Global Instrument shall in all respects be entitled to the same benefits as if it were the holder of the Definitive Instruments for which it may be exchanged and as if such Definitive Instruments had been issued on the Issue Date.

**6Payments**

No person shall be entitled to receive any payment in respect of the Instruments represented by this permanent Global Instrument that falls due after an Exchange Date for such Instruments, unless upon due presentation of this permanent Global Instrument for exchange, delivery of Definitive Instruments is improperly withheld or refused by or on behalf of the Issuer or the Issuer does not perform or comply with any one or more of what are expressed to be its obligations under any Definitive Instruments.

Payments in respect of this permanent Global Instrument shall be made to its holder against presentation and (if no further payment falls to be made on it) surrender of it at the specified office of the Issuing and Paying Agent or of any other Paying Agent provided for in the Conditions and each payment so made will discharge the Issuer's obligations in respect thereof. Any failure to make the entries in the records of the relevant Clearing Systems referred to herein shall not affect such discharge. The Issuer shall procure that details of each such payment shall be entered pro rata in the records of the relevant Clearing Systems and in the case of any payment of principal and upon any such entry being made, the nominal amount of the Instruments recorded in the records of the relevant Clearing Systems and represented by this permanent Global Instrument shall be reduced by the aggregate nominal amount of the Instruments so redeemed.

For the purposes of any payments made in respect of this permanent Global Instrument, the words "in the relevant place of presentation" shall not apply in the definition of "**business day**" in Condition 6.7 (Non-Business Days).

**7Prescription**

Claims in respect of principal and interest (as each is defined in the Conditions) in respect of this permanent Global Instrument shall become void unless it is presented for payment within a period of 10 years (in the case of principal) and 5 years (in the case of interest) from the appropriate Relevant Date.

**8Meetings**

For the purposes of any meeting of Instrumentholders the holder of this permanent Global Instrument shall (unless this permanent Global Instrument represents only one Instrument) be treated as two persons for the purposes of any quorum requirements of a meeting of Instrumentholders and, at any such meeting, as having one vote in respect of each integral currency unit of the specified currency of the Instruments.

**9Cancellation**

On cancellation of any Instrument represented by this permanent Global Instrument which is required by the Conditions to be cancelled (other than upon its redemption) the Issuer shall procure that details of such cancellation shall be entered *pro rata* in the records of the relevant Clearing Systems and, upon any such entry being made, the nominal amount of the Instruments recorded in the records of the relevant Clearing Systems and represented by this permanent

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Global Instrument shall be reduced by the aggregate nominal amount of the Instruments so cancelled.

**10Purchase**

Instruments may only be purchased by the Issuer or any of its subsidiary undertakings if they are purchased together with the right to receive all future payments of interest on the Instruments being purchased.

**11Issuer's Options**

Any option of the Issuer provided for in the Conditions shall be exercised by the Issuer giving notice to the Instrumentholders and the relevant Clearing Systems (or procuring that such notice is given on its behalf) within the time limits set out in and containing the information required by the Conditions, except that the notice shall not be required to contain the serial numbers of Instruments drawn in the case of a partial exercise of an option and accordingly no drawing of Instruments shall be required. In the case of a partial exercise of an option, the rights of accountholders with a clearing system in respect of the Instruments will be governed by the standard procedures of Euroclear and/or Clearstream, Luxembourg and shall be reflected in the records of Euroclear and/or Clearstream, Luxembourg as either a pool factor or a reduction in nominal amount, at their discretion. Following the exercise of any such option, the Issuer shall procure that the nominal amount of the Instruments recorded in the records of the relevant Clearing Systems and represented by this permanent Global Instrument shall be reduced accordingly.

**12Instrumentholders' Options Option [and Restructuring Redemption Option]**<sup>‡‡‡‡</sup>

Any option of the Instrumentholders provided for in the Conditions may be exercised by the holder of this permanent Global Instrument giving notice to the Issuing and Paying Agent within the time limits relating to the deposit of Instruments with a Paying Agent set out in the Conditions substantially in the form of the notice available from any Paying Agent, except that the notice shall not be required to contain the certificate numbers of the Instruments in respect of which the option has been exercised, following the exercise of any such option, the Issuer shall procure that the nominal amount of the Instruments recorded in the records of the relevant Clearing Systems and represented by this permanent Global Instrument shall be reduced by the aggregate nominal amount stated in the relevant exercise notice.

**13Notices**

Notices required to be given in respect of the Instruments represented by this permanent Global Instrument may be given by their being delivered (so long as this permanent Global Instrument is held on behalf of Euroclear and Clearstream, Luxembourg or any other clearing system) to Euroclear, Clearstream, Luxembourg or such other clearing system, as the case may be, or otherwise to the holder of this permanent Global Instrument, rather than by publication as required by the Conditions, except that, so long as the Instruments are listed and/or admitted to trading, notices required to be given to the holders of the Notes pursuant to the Conditions shall also be published (if such publication is required) in a manner which complies with the rules and regulations of any stock exchange or other relevant authority on which the Notes are listed/and or admitted to trading.

<sup>‡‡‡‡</sup> &nbsp;&nbsp;&nbsp;&nbsp;If applicable.

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**14Negotiability**

This permanent Global Instrument is a bearer document and negotiable and accordingly:

(a)is freely transferable by delivery and such transfer shall operate to confer upon the transferee all rights and benefits appertaining to this permanent Global Instrument and to bind the transferee with all obligations appertaining to this permanent Global Instrument pursuant to the Conditions;

(b)the holder of this permanent Global Instrument is and shall be absolutely entitled as against all previous holders to receive all amounts by way of amounts payable upon redemption, interest or otherwise payable in respect of this permanent Global Instrument and the Issuer has waived against such holder and any previous holder of this permanent Global Instrument all rights of set-off or counterclaim which would or might otherwise be available to it in respect of the obligations evidenced by this permanent Global Instrument; and

(c)payment upon due presentation of this permanent Global Instrument as provided in this permanent Global Instrument shall operate as a good discharge against such holder and all previous holders of this permanent Global Instrument.

No provisions of this permanent Global Instrument shall alter or impair the obligation of the Issuer to pay the principal and premium of and interest on the Instruments when due in accordance with the Conditions.

This permanent Global Instrument shall not be valid or become obligatory for any purpose until authenticated by or on behalf of the Issuing and Paying Agent and effectuated by the entity appointed as common safekeeper by the relevant Clearing Systems.

This permanent Global Instrument and all matters arising from or connected with it shall be governed by, and construed in accordance with, English law.

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**In witness** of which the Issuer has caused this permanent Global Instrument to be duly signed on its behalf.

Dated as of the Issue Date.

[**NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc**]<sup>§§§§</sup>

By:

Authorised Signatory

**CERTIFICATE OF AUTHENTICATION OF THE ISSUING AND PAYING AGENT**

This permanent Global Instrument is authenticated<br>by or on behalf of the Issuing and Paying Agent.

**THE BANK OF NEW YORK MELLON**<br> as Issuing and Paying Agent

By:

Authorised Signatory<br>For the purposes of authentication only

**Effectuation**

This permanent Global Instrument

is effectuated by

[**COMMON SAFEKEEPER**]

As Common Safekeeper

By:

Authorised Signatory

For the purposes of effectuation only.

**ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.**

<sup>\*</sup>&nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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**The Schedule**

[Insert the provisions of the relevant Final Terms that relate to the Conditions or the Global Instruments as the Schedule.]

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**Schedule 2<br>Part A<br>Form of Definitive Instrument**

On the front:

---

| | | | |
|:---|:---|:---|:---|
| **[Denomination]** | **[ISIN]** | **[Series]** | **[Certif. No.]** |

---

[Currency and denomination]

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>\*\*\*\*\*</sup>

(Incorporated with limited liability in England and Wales<br>under the Companies Act 1985 with registered number [04031152/02366977]<sup>\*</sup>)

**EURO MEDIUM TERM NOTE PROGRAMME**

**Series No. [●]**

**Tranche No. [●]**

**[Title of issue]**

This Instrument forms one of the Series of Instruments referred to above (the "**Instruments**") of [National Grid plc/National Grid Electricity Transmission plc]<sup>\*</sup> (the "**Issuer**") designated as specified in the title of this Instrument. The Instruments are subject to the Terms and Conditions (the "**Conditions**") endorsed on this Instrument and are issued subject to, and with the benefit of, the Trust Deed referred to in the Conditions. Expressions defined in the Conditions have the same meanings in this Instrument.

The Issuer, for value received, promises to pay to the bearer of this Instrument, on presentation, and (when no further payment is due in respect of this Instrument) surrender, of this Instrument on the Maturity Date (or on such earlier date or, if the Maturity Date is specified to be perpetual, on such date as the amount payable upon redemption under the Conditions may become repayable in accordance with the Conditions) the amount payable upon redemption under the Conditions and (unless this Instrument does not bear interest) to pay interest from the Interest Commencement Date in arrear at the rates, in the amounts and on the dates for payment provided for in the Conditions together with such other sums and additional amounts (if any) as may be payable under the Conditions, in accordance with the Conditions.

This Instrument shall not become valid or obligatory for any purpose until authenticated by or on behalf of the Issuing and Paying Agent.

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

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**In witness** of which the Issuer has caused this Instrument to be signed on its behalf.

Dated as of the Issue Date.

**[NATIONAL GRID plc/NATIONAL GRID ELECTRICITY TRANSMISSION plc]**\*

By:

**CERTIFICATE OF AUTHENTICATION OF THE ISSUING AND PAYING AGENT**

This Instrument is authenticated<br>by or on behalf of the Issuing and Paying Agent.

**THE BANK OF NEW YORK MELLON**<br> as Issuing and Paying Agent

By:

Authorised Signatory<br>For the purposes of authentication only

**ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.**

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On the back:

**Terms and Conditions of the Instruments**

[The Terms and Conditions which are set out in Part B of Schedule 2 (Terms and Conditions of the Instruments) to the Trust Deed, as amended by and incorporating any additional provisions forming part of such Terms and Conditions, and set out in Part A of the relevant Final Terms shall be set out here.]

**ISSUING AND PAYING AGENT**

**The Bank of New York Mellon**<br> One Canada Square<br>London E14 5AL <br>

**PAYING AGENTS**

**Quintet Private Bank (Europe) S.A.**<br> 43 Boulevard Royal<br>L-2955 Luxembourg

**Computershare Advantage Trust of Canada**<br> 88A East Beaver Creek Rd<br>Richmond Hill, ON, L4B 4A8<br>Canada

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**Schedule 2<br>Part B<br>Terms and Conditions of the Instruments**

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**Schedule 2<br>Part C<br>Form of Coupon**

On the front:

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>†††††</sup>

**EURO MEDIUM TERM NOTE PROGRAMME**

**Series No. [●]**

**Tranche No. [●]**

**[Title of issue]**

Coupon for [[set out amount due, if known]/the amount] due on [the Interest Payment Date falling in]<sup>‡‡‡‡‡</sup> [●], [●].

[Coupon relating to the Instrument in the nominal amount of [●]]<sup>§§§§§</sup>

This Coupon is payable to bearer (subject to the Conditions endorsed on the Instrument to which this Coupon relates, which shall be binding upon the holder of this Coupon whether or not it is for the time being attached to such Instrument) at the specified offices of the Issuing and Paying Agent and the Paying Agents set out on the reverse of this Coupon (or any other Issuing and Paying Agent or further or other Paying Agents or specified offices duly appointed or nominated and notified to the Instrumentholders).

[If the Instrument to which this Coupon relates shall have become due and payable before the maturity date of this Coupon, this Coupon shall become void and no payment shall be made in respect of it.]<sup>\*\*\*\*\*\*</sup>

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j)) AND 1287(a) OF THE INTERNAL REVENUE CODE.

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>\*</sup>

By:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **[Cp. No.]** | **[Denomination]** | **[ISIN]** | **[Series]** | **[Certif. No.]** |

---

<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

<sup>\*\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;[Only necessary where Interest Payment Dates are subject to adjustment in accordance with a Business Day Convention, otherwise the particular Interest Payment Date should be specified.]

<sup>\*\*\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;[Only required for Coupons relating to Floating Rate or Index Linked Interest Instruments that are issued in more than one denomination.]

<sup>\*\*\*\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;[Delete if Coupons are not to become void upon early redemption of Instrument.]

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On the back:

**ISSUING AND PAYING AGENT**

**The Bank of New York Mellon**<br>One Canada Square<br>London E14 5AL

**PAYING AGENTS**

**Quintet Private Bank (Europe) S.A.**<br> 43 Boulevard Royal<br>L-2955 Luxembourg

**Computershare Advantage Trust of Canada**<br> 88A East Beaver Creek Rd<br>Richmond Hill, ON, L4B 4A8<br>Canada

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**Schedule 2<br>Part D<br>Form of Talon**

On the front:

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>††††††</sup>

**EURO MEDIUM TERM NOTE PROGRAMME**

**Series No. [●]**

**Tranche No. [●]**

**[Title of issue]**

Talon for further Coupons falling due on [the Interest Payment Dates falling in]<sup>‡‡‡‡‡‡</sup> [●] [●].

[Talon relating to the Instrument in the nominal amount of [●]]<sup>§§§§§§</sup>

After all the Coupons relating to the Instrument to which this Talon relates have matured, further Coupons (including if appropriate a Talon for further Coupons) shall be issued at the specified office of the Issuing and Paying Agent set out on the reverse of this Talon (or any other Issuing and Paying Agent or specified office duly appointed or nominated and notified to the Instrumentholders) upon production and surrender of this Talon.

[If the Instrument to which this Talon relates shall have become due and payable before the original due date for exchange of this Talon, this Talon shall become void and no exchange shall be made in respect of it.]<sup>\*\*\*\*\*\*\*</sup>

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

**[NATIONAL GRID plc/<br>NATIONAL GRID ELECTRICITY TRANSMISSION plc]**<sup>\*</sup>

By:

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| | | | |
|:---|:---|:---|:---|
| **[Talon No.]** | **[ISIN]** | **[Series]** | **[Certif. No.]** |

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<sup>\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;Delete as applicable.

<sup>\*\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;[The maturity dates of the relevant Coupons should be set out if known, otherwise reference should be made to the months and years in which the Interest Payment Dates fall.]

<sup>\*\*\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;[Only when required where the Series comprises Instruments of more than one denomination.]

<sup>\*\*\*\*</sup> &nbsp;&nbsp;&nbsp;&nbsp;[Delete if Talon is not to become void upon early redemption of the Instrument.]

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On the back:

**ISSUING AND PAYING AGENT**

**The Bank of New York Mellon**<br>One Canada Square<br>London E14 5AL

**PAYING AGENTS**

**Quintet Private Bank (Europe) S.A.**<br>43 Boulevard Royal<br>L-2955 Luxembourg

**Computershare Advantage Trust of Canada**<br> 88A East Beaver Creek Rd<br>Richmond Hill, ON, L4B 4A8<br>Canada

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**Schedule 3<br>Provisions for Meetings of Instrumentholders**

For the avoidance of doubt, these provisions do not apply to Australian Domestic Instruments.

**Interpretation**

**1**In this Schedule:

**1.1**references to a meeting are to a physical meeting, a virtual meeting or a hybrid meeting of Instrumentholders of a single Series of Instruments issued by the relevant Issuer and include, unless the context otherwise requires, any adjournment;

**1.2**references to "**Instruments**" and "**Instrumentholders**" are only to the Instruments of the Series in respect of which a meeting has been, or is to be, called, and to the holders of these Instruments, respectively;

**1.3**"**agent**" means a holder of a voting certificate or a proxy for, or representative of, an Instrumentholder;

**1.4**"**Alternative Clearing System**" means any clearing system (including without limitation The Depositary Trust Company ("**DTC**")) other than Euroclear or Clearstream, Luxembourg;

**1.5**"**block voting instruction**" means an instruction issued in accordance with paragraphs 9 to 15;

**1.6**"**Electronic Consent**" has the meaning set out in paragraph 33;

**1.7**"**electronic platform**" means any form of telephony or electronic platform or facility and includes, without limitation, telephone and video conference call and application technology systems;

**1.8**"**Extraordinary Resolution**" means a resolution passed (a) at a meeting duly convened and held in accordance with this Trust Deed by a majority of at least 75 per cent. of the votes cast, (b) by a Written Resolution or (c) by an Electronic Consent;

**1.9**"**hybrid meeting**" means a combined physical meeting and virtual meeting convened pursuant to this Schedule by the relevant Issuer or the Trustee at which persons may attend either at the physical location specified in the notice of such meeting or via an electronic platform;

**1.10**"**meeting**" means a meeting convened pursuant to this Schedule by the relevant Issuer or the Trustee and whether held as a physical meeting or as a virtual meeting or as a hybrid meeting;

**1.11**"**physical meeting**" means any meeting attended by persons present in person at the physical location specified in the notice of such meeting;

**1.12**"**present**" means physically present in person at a physical meeting or a hybrid meeting, or able to participate in or join a virtual meeting or a hybrid meeting held via an electronic platform;

**1.13**"**virtual meeting**" means any meeting held via an electronic platform;

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**1.14**"**voting certificate**" means a certificate issued in accordance with paragraphs 6 to 8;

**1.15**"**Written Resolution**" means a resolution in writing signed by the holders of not less than 95 per cent. in nominal amount of the Instruments outstanding;

**1.16**references to persons representing a proportion of the Instruments are to Instrumentholders or agents holding or representing in the aggregate at least that proportion in nominal amount of the Instruments for the time being outstanding; and

**1.17**where Instruments are held in Euroclear or Clearstream, Luxembourg or an Alternative Clearing System, references herein to the deposit or release or surrender of Instruments shall be construed in accordance with the usual practices (including in relation to the blocking of the relevant account) of Euroclear or Clearstream, Luxembourg or such Alternative Clearing System.

**Powers of meetings**

**2**A meeting shall, subject to the Conditions and without prejudice to any powers conferred on other persons by this Trust Deed, have power by Extraordinary Resolution:

**2.1**to sanction any proposal by the relevant Issuer or the Trustee for any modification, abrogation, variation or compromise of, or arrangement in respect of, the rights of the Instrumentholders and/or the Couponholders against such Issuer whether or not those rights arise under this Trust Deed;

**2.2**to sanction the exchange or substitution for the Instruments of, or the conversion of the Instruments into, shares, bonds or other obligations or securities of the relevant Issuer or any other entity;

**2.3**to assent to any modification of this Trust Deed, the Instruments, the Talons or the Coupons proposed by the relevant Issuer or the Trustee;

**2.4**to authorise anyone to concur in and do anything necessary to carry out and give effect to an Extraordinary Resolution;

**2.5**to give any authority, direction or sanction required to be given by Extraordinary Resolution;

**2.6**to appoint any persons (whether Instrumentholders or not) as a committee or committees to represent the Instrumentholders' interests and to confer on them any powers or discretions which the Instrumentholders could themselves exercise by Extraordinary Resolution;

**2.7**to approve a proposed new Trustee and to remove a Trustee;

**2.8**to approve the substitution of any entity for the relevant Issuer (or any previous substitute) as principal debtor under this Trust Deed; and

**2.9**to discharge or exonerate the Trustee from any liability in respect of any act or omission for which it may become responsible under this Trust Deed, the Instruments, the Talons or the Coupons,

**provided that** the special quorum provisions in paragraph 20 shall apply to any Extraordinary Resolution (a "**special quorum resolution**") for the purpose of sub-

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paragraph 2.2 or 2.7, any of the proposals listed in Condition 11.1 or any amendment to this proviso.

**Convening a meeting**

**3**The relevant Issuer or the Trustee may at any time convene a meeting. If it receives a written request by Instrumentholders holding at least 10 per cent. in nominal amount of the Instruments of any Series for the time being outstanding and is indemnified to its satisfaction against all costs and expenses, the Trustee shall convene a meeting of the Instrumentholders of that Series. Every physical meeting shall be held at a time and place approved by the Trustee. Every virtual meeting shall be held via an electronic platform and at a time approved by the Trustee. Every hybrid meeting shall be held at a time and place and via an electronic platform approved by the Trustee.

**4**At least 21 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day of the meeting) shall be given to the Instrumentholders. A copy of the notice shall be given by the party convening the meeting to the other parties. The notice shall specify the day and time of the meeting and manner in which it is to be held, and if a physical meeting or hybrid meeting is to be held, the place of the meeting and, unless the Trustee otherwise agrees, the nature of the resolutions to be proposed and shall explain how Instrumentholders may appoint proxies or representatives, obtain voting certificates and use block voting instructions and the details of the time limits applicable. With respect to a virtual meeting or hybrid meeting, each such notice shall set out such other and further details as are required under paragraph 38.

**Cancellation of meeting**

**5**A meeting that has been validly convened in accordance with paragraph 3 above, may be cancelled by the person who convened such meeting by giving at least 5 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day of the meeting) to the Instrumentholders (with a copy to the Trustee where such meeting was convened by the Issuer or to the Issuer where such meeting was convened by the Trustee). Any meeting cancelled in accordance with this paragraph 5 shall be deemed not to have been convened.

**Arrangements for voting on Instruments (whether in definitive form or represented by a Global Instrument and whether held within or outside a Clearing System) – Voting Certificates**

**6**If a holder of an Instrument wishes to obtain a voting certificate in respect of it for a meeting, the holder must deposit such Instrument for that purpose at least 48 hours before the time fixed for the meeting with a Paying Agent or to the order of a Paying Agent with a bank or other depositary nominated by the Paying Agent for the purpose. The Paying Agent shall then issue a voting certificate in respect of it.

**7**A voting certificate shall:

**7.1**be a document in the English language;

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**7.2**be dated;

**7.3**specify the meeting concerned and the serial numbers of the Instruments deposited;

**7.4**entitle, and state that it entitles, its bearer to attend and vote at that meeting in respect of those Instruments; and

**7.5**specify details of evidence of the identity of the bearer of such voting certificate.

**8**Once a Paying Agent has issued a voting certificate for a meeting in respect of an Instrument, it shall not release the Instrument until either:

**8.1**the meeting has been concluded; or

**8.2**the voting certificate has been surrendered to the Paying Agent.

**Arrangements for voting on Instruments (whether in definitive form or represented by a Global Instrument and whether held within or outside a Clearing System) – Block Voting Instructions**

**9**If a holder of an Instrument wishes the votes attributable to it to be included in a block voting instruction for a meeting, then, at least 48 hours before the time fixed for the meeting, (i) the holder must deposit the Instrument for that purpose with a Paying Agent or to the order of a Paying Agent with a bank or other depositary nominated by the Paying Agent for the purpose and (ii) the holder or a duly authorised person on their behalf must direct the Paying Agent how those votes are to be cast. The Paying Agent shall issue a block voting instruction in respect of the votes attributable to all Instruments so deposited.

**10**A block voting instruction shall:

**10.1**be a document in the English language;

**10.2**be dated;

**10.3**specify the meeting concerned;

**10.4**list the total number and serial numbers of the Instruments deposited, distinguishing with regard to each resolution between those voting for and those voting against it;

**10.5**certify that such list is in accordance with Instruments deposited and directions received as provided in paragraphs 9, 12 and 15; and

**10.6**appoint one or more named person (a "**proxy**") to vote at that meeting in respect of those Instruments and in accordance with that list.

A proxy need not be an Instrumentholder.

**11**Once a Paying Agent has issued a block voting instruction for a meeting in respect of the votes attributable to any Instruments:

**11.1**it shall not release the Instruments, except as provided in paragraph 12, until the meeting has been concluded; and

**11.2**the directions to which it gives effect may not be revoked or altered during the 48 hours before the time fixed for the meeting.

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**12**If the receipt for an Instrument deposited with or to the order of a Paying Agent in accordance with paragraph 9 is surrendered to the Paying Agent at least 48 hours before the time fixed for the meeting, the Paying Agent shall release the Instrument and exclude the votes attributable to it from the block voting instruction.

**13**Each block voting instruction shall be deposited at least 24 hours before the time fixed for the meeting at such place or delivered by another method as the Trustee shall designate or approve, and in default the block voting instruction shall not be valid unless the chair of the meeting decides otherwise before the meeting proceeds to business. If the Trustee requires, a certified copy of each block voting instruction shall be produced by the proxy at the meeting or delivered to the Trustee prior to the meeting but the Trustee need not investigate or be concerned with the validity of the proxy's appointment.

**14**A vote cast in accordance with a block voting instruction shall be valid even if it or any of the Instrumentholders' instructions pursuant to which it was executed has previously been revoked or amended, unless written intimation of such revocation or amendment is received from the relevant Paying Agent by the relevant Issuer or the Trustee at its registered office or by the chair of the meeting in each case at least 24 hours before the time fixed for the meeting.

**15**No Instrument may be deposited with or to the order of a Paying Agent at the same time for the purposes of both paragraph 6 and paragraph 9 for the same meeting.

**Chair**

**16**The chair of a meeting shall be such person as the Trustee may nominate in writing, but if no such nomination is made or if the person nominated is not present within 15 minutes after the time fixed for the meeting the Instrumentholders or agents present shall choose one of their number to be chair, failing which the relevant Issuer may appoint a chair.

**17**The chair need not be an Instrumentholder or agent. The chair of an adjourned meeting need not be the same person as the chair of the original meeting.

**Attendance**

**18**The following may attend and speak at a meeting:

**18.1**Instrumentholders and agents;

**18.2**the chair;

**18.3**the relevant Issuer and the Trustee (through their respective representatives) and their respective financial and legal advisers; and

**18.4**the Dealers and their advisers.

No one else may attend, participate and/or speak.

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**Quorum and Adjournment**

**19**No business (except choosing a chair) shall be transacted at a meeting unless a quorum is present at the commencement of business. If a quorum is not present within 15 minutes from the time initially fixed for the meeting, it shall, if convened on the requisition of Instrumentholders or if the relevant Issuer and the Trustee agree, be dissolved. In any other case it shall be adjourned until such date, not less than 14 nor more than 42 days later, and time and place or manner in which it is to be held as the chair may decide. If a quorum is not present within 15 minutes from the time fixed for a meeting so adjourned, the meeting shall be dissolved.

**20**Two or more Instrumentholders or agents present at the meeting shall be a quorum:

**20.1**in the cases marked "No minimum proportion" in the table below, whatever the proportion of the Instruments which they represent; and

**20.2**in any other case, only if they represent the proportion of the Instruments shown by the table below.

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| | | |
|:---|:---|:---|
| **Column 1** | **Column 2** | **Column 3** |
| Purpose of meeting | Any meeting except one referred to in column 3 | Meeting previously adjourned through want of a quorum |
|  | Required proportion | Required proportion |
| To pass a special quorum resolution | Two thirds | One third |
| To pass any other Extraordinary Resolution | A clear majority | No minimum proportion |
| Any other purpose | 10 per cent. | No minimum proportion |

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**21**The chair, may with the consent of (and shall if directed by) a meeting, adjourn the meeting from time to time and from place to place and alternate manner. Only business which could have been transacted at the original meeting may be transacted at a meeting adjourned in accordance with this paragraph or paragraph 18.

**22**At least 10 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day of the adjourned meeting) of a meeting adjourned through want of a quorum shall be given in the same manner as for an original meeting and that notice shall state the quorum required at the adjourned meeting. However, no notice need otherwise be given of an adjourned meeting.

**Voting**

**23**At a meeting which is held only as a physical meeting, each question submitted to such meeting shall be decided by a show of hands unless a poll is (before, or on the declaration of the result of, the show of hands) demanded by the chair, the relevant Issuer, the Trustee

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or one or more persons holding one or more Instruments or voting certificates or representing not less than 2 per cent. of the Instruments.

**24**Unless a poll is demanded a declaration by the chair that a resolution has or has not been passed shall be conclusive evidence of the fact without proof of the number or proportion of the votes cast in favour of or against it.

**25**If a poll is demanded, it shall be taken in such manner and (subject as provided below) either at once or after such adjournment as the chair directs. The result of the poll shall be deemed to be the resolution of the meeting at which it was demanded as at the date it was taken. A demand for a poll shall not prevent the meeting continuing for the transaction of business other than the question on which it has been demanded.

**26**A poll demanded on the election of a chair or on a question of adjournment shall be taken at once.

**27**On a show of hands every person who is present in person and who produces an Instrument or a voting certificate or is a proxy or representative has one vote. On a poll every such person has one vote in respect of each integral currency unit of the Specified Currency of such Series of Instruments so produced or represented by the voting certificate so produced or for which he is a proxy or representative. Without prejudice to the obligations of proxies, a person entitled to more than one vote need not use them all or cast them all in the same way.

**28**In case of equality of votes the chair shall both on a show of hands and on a poll have a casting vote in addition to any other votes which he may have.

**29**At a virtual meeting or a hybrid meeting, a resolution put to the vote of the meeting shall be decided on a poll in accordance with paragraph 40, and any such poll will be deemed to have been validly demanded at the time fixed for holding the meeting to which it relates.

**Effect and Publication of an Extraordinary Resolution**

**30**An Extraordinary Resolution shall be binding on all the Instrumentholders, whether or not present at the meeting, and on all the Couponholders and each of them shall be bound to give effect to it accordingly. The passing of such a resolution shall be conclusive evidence that the circumstances justify its being passed. The relevant Issuer shall give notice of the passing of an Extraordinary Resolution to Instrumentholders within 14 days but failure to do so shall not invalidate the resolution.

**Minutes**

**31**Minutes shall be made of all resolutions and proceedings at every meeting and, if purporting to be signed by the chair of that meeting or of the next succeeding meeting, shall be conclusive evidence of the matters in them. Until the contrary is proved every meeting for which minutes have been so made and signed shall be deemed to have been duly convened and held and all resolutions passed or proceedings transacted at it to have been duly passed and transacted.

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**Written Resolution and Electronic Consent**

**32**Subject to the following sentence, a Written Resolution may be contained in one document or in several documents in like form, each signed by or on behalf of one or more of the Instrumentholders.

For so long as the Instruments are in the form of a Global Instrument held on behalf of one or more of Euroclear, Clearstream, Luxembourg or Alternative Clearing System, then, in respect of any resolution proposed by the Issuer or the Trustee:

**33Electronic Consent**: where the terms of the resolution proposed by the Issuer or the Trustee (as the case may be) have been notified to the Instrumentholders through the relevant Clearing System(s) as provided in sub-paragraphs (i) and/or (ii) below, each of the Issuer and the Trustee shall be entitled to rely upon approval of such resolution given by way of electronic consents communicated through the electronic communications systems of the relevant Clearing System(s) to the Principal Paying Agent or another specified agent in accordance with their operating rules and procedures by or on behalf of the holders of not less than 95 per cent. in nominal amount of the Instruments outstanding (the "**Required Proportion**") ("**Electronic Consent**") by close of business on the Relevant Date. The Principal Paying Agent shall confirm the result of voting on any Electronic Consent in writing to the Issuer and the Trustee (in a form satisfactory to the Trustee), specifying (as of the Relevant Date): (i) the outstanding principal amount of the Instruments and (ii) the outstanding principal amount of the Instruments in respect of which consent to the resolution has been given in accordance with this provision. The Issuer and the Trustee may act without further enquiry on any such confirmation from the Principal Paying Agent and shall have no liability or responsibility to anyone as a result of such reliance or action. The Trustee shall not be bound to act on any Electronic Consent in the absence of such a confirmation from the Principal Paying agent in a form satisfactory to it. Any resolution passed in such manner shall be binding on all Instrumentholders and Couponholders, even if the relevant consent or instruction proves to be defective. The Issuer shall not be liable or responsible to anyone for such reliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)When a proposal for a resolution to be passed as an Electronic Consent has been made, at least 14 days' notice (exclusive of the day on which the notice is given or deemed to be given and of the day on which affirmative consents will be counted) shall be given to the Instrumentholders through the relevant Clearing System(s). The notice shall specify, in sufficient detail to enable Instrumentholders to give their consents in relation to the proposed resolution, the method by which their consents may be given (including, where applicable, blocking of their accounts in the relevant clearing system(s)) and the time and date (the "**Relevant Date**") by which they must be received in order for such consents to be validly given, in each case subject to and in accordance with the operating rules and procedures of the relevant Clearing System(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If, on the Relevant Date on which the consents in respect of an Electronic Consent are first counted, such consents do not represent the Required Proportion, the resolution shall be deemed to be defeated. Such determination shall be notified in writing to the other party or parties to the Trust Deed by the Principal Paying Agent. Alternatively, the party proposing such resolution (the "**Proposer**") may give a

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further notice to Instrumentholders in accordance with (i) above that the resolution will be proposed again. Such notice must inform Instrumentholders that insufficient consents were received in relation to the original resolution and the information specified in sub-paragraph (a) above. For the purpose of such further notice, references to "Relevant Date" shall be construed accordingly.

For the avoidance of doubt, an Electronic Consent may only be used in relation to a resolution proposed by the Issuer or the Trustee which is not then the subject of a meeting that has been validly convened in accordance with paragraph 3 above, unless that meeting is or shall be cancelled or dissolved; and

**34Written Resolution**: where Electronic Consent is not being sought, for the purpose of determining whether a Written Resolution has been validly passed, the Issuer and the Trustee shall be entitled to rely on consent or instructions given in writing directly to the Issuer and/or the Trustee, as the case may be, (a) by accountholders in the clearing system(s) with entitlements to such Global Instruments and/or, (b) where the accountholders hold any such entitlement on behalf of another person, on written consent from or written instruction by the person identified by that accountholder as the person for whom such entitlement is held. For the purpose of establishing the entitlement to give any such consent or instruction, the Issuer and the Trustee shall be entitled to rely on any certificate or other document issued by, in the case of (a) above, Euroclear, Clearstream, Luxembourg or any other relevant alternative clearing system and, in the case of (b) above, the relevant Clearing Systems and the accountholder identified by the relevant Clearing Systems for the purposes of (b) above.

Any resolution passed in such manner shall be binding on all Instrumentholders and Couponholders, even if the relevant consent or instruction proves to be defective. Any such certificate or other document shall, be conclusive and binding for all purposes. Any such certificate or other document may comprise any form of statement or print out of electronic records provided by the relevant Clearing Systems in accordance with its usual procedures and in which the accountholder of a particular principal or nominal amount of the Instruments is clearly identified together with the amount of such holding. Neither the Issuer, nor the Trustee shall be liable to any person by reason of having accepted as valid or not having rejected any certificate or other document to such effect purporting to be issued by any such person and subsequently found to be forged or not authentic.

A Written Resolution or Electronic Consent shall take effect as an Extraordinary Resolution. A Written Resolution and/or Electronic Consent will be binding on all Instrumentholders and holders of Coupons and Talons, whether or not they participated in such Written Resolution and/or Electronic Consent.

**Trustee's Power to Prescribe Regulations**

**35**Subject to all other provisions in this Trust Deed the Trustee may without the consent of the Instrumentholders prescribe or approve such further regulations regarding the holding of meetings and attendance and voting at them as it in its sole discretion determines or as proposed by the relevant Issuer including (without limitation) such requirements as the Trustee thinks reasonable to satisfy itself that the persons who purport to make any requisition in accordance with this Trust Deed are entitled to do so and as to the form of

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voting certificates or block voting instructions so as to satisfy itself that persons who purport to attend or vote at a meeting are entitled to do so.

**36**The holder of a Global Instrument shall (unless such Global Instrument represents only one Instrument) be treated as two persons for the purposes of any quorum requirements of a meeting of Instrumentholders.

**37**The above provisions of this Schedule shall have effect subject to the following provisions:

**37.1**Meetings of Instrumentholders of separate Series will normally be held separately. However, the Trustee may from time to time determine that meetings of Instrumentholders of separate Series shall be held together.

**37.2**A resolution that in the opinion of the Trustee affects one Series alone shall be deemed to have been duly passed if passed at a separate meeting of the Instrumentholders of the Series concerned.

**37.3**A resolution that in the opinion of the Trustee affects the Instrumentholders of more than one Series but does not give rise to a conflict of interest between the Instrumentholders of the different Series concerned shall be deemed to have been duly passed if passed at a single meeting of the Instrumentholders of the relevant Series provided that for the purposes of determining the votes an Instrumentholder is entitled to cast pursuant to paragraph 27, each Instrumentholder shall have one vote in respect of each whole Euro 1.00 nominal amount of Instruments held, converted, if such Instruments are not denominated in Euro, in accordance with Clause 8.13 (*Currency Conversion*).

**37.4**A resolution that in the opinion of the Trustee affects the Instrumentholders of more than one Series and gives or may give rise to a conflict of interest between the Instrumentholders of the different Series concerned shall be deemed to have been duly passed only if it shall be duly passed at separate meetings of the Instrumentholders of the relevant Series.

**37.5**To all such meetings as previously set out all the provisions of this Schedule shall *mutatis mutandis* apply as though references therein to Instruments and to Instrumentholders were references to the Instruments and Instrumentholders of the Series concerned.

**Additional provisions applicable to Virtual and/or Hybrid Meetings** 

**38**The relevant Issuer (with the Trustee's prior approval) or the Trustee in its sole discretion may decide to hold a virtual meeting or a hybrid meeting and, in such case, shall provide details of the means for Instrumentholders or their proxies or representatives to attend, participate in and/or speak at the meeting, including the electronic platform to be used.

**39**The relevant Issuer or the chair (in each case, with the Trustee's prior approval) or the Trustee in its sole discretion may make any arrangement and impose any requirement or restriction as is necessary to ensure the identification of those entitled to take part in the virtual meeting or hybrid meeting and the suitability of the electronic platform. All documentation that is required to be passed between persons at or for the purposes of the virtual meeting or persons attending the hybrid meeting via the electronic platform (in each

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case, in whatever capacity) shall be communicated by email (or such other medium of electronic communication as the Trustee may approve).

**40**All resolutions put to a virtual meeting or a hybrid meeting shall be voted on by a poll in accordance with paragraphs 25-28 above (inclusive).

**41**Persons seeking to attend, participate in, speak at or join a virtual meeting or a hybrid meeting via the electronic platform, shall be responsible for ensuring that they have access to the facilities (including, without limitation, IT systems, equipment and connectivity) which are necessary to enable them to do so.

**42**In determining whether persons are attending, participating in or joining a virtual meeting or a hybrid meeting via the electronic platform, it is immaterial whether any two or more members attending it are in the same physical location as each other or how they are able to communicate with each other.

**43**Two or more persons who are not in the same physical location as each other attend a virtual meeting or a hybrid meeting if their circumstances are such that if they have (or were to have) rights to speak or vote at that meeting, they are (or would be) able to exercise them.

**44**The chair of the meeting reserves the right to take such steps as the chair shall determine in its absolute discretion to avoid or minimise disruption at the meeting, which steps may include (without limitation), in the case of a virtual meeting or a hybrid meeting, muting the electronic connection to the meeting of the person causing such disruption for such period of time as the chair may determine.

**45**The relevant Issuer (with the Trustee's prior approval) or the Trustee in its sole discretion may make whatever arrangements they consider appropriate to enable those attending a virtual meeting or a hybrid meeting to exercise their rights to speak or vote at it.

**46**A person is able to exercise the right to speak at a virtual meeting or a hybrid meeting when that person is in a position to communicate to all those attending the meeting, during the meeting, as contemplated by the relevant provisions of this Schedule.

**47**A person is able to exercise the right to vote at a virtual meeting or a hybrid meeting when:

**47.1**that person is able to vote, during the meeting, on resolutions put to the vote at the meeting; and

**47.2**that person's vote can be taken into account in determining whether or not such resolutions are passed at the same time as the votes of all the other persons attending the meeting who are entitled to vote at such meeting.

**48**The Trustee shall not be responsible or liable to the relevant Issuer or any other person for the security of the electronic platform used for any virtual meeting or hybrid meeting or for accessibility or connectivity or the lack of accessibility or connectivity to any virtual meeting or hybrid meeting.

48.1 146

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**In witness** of which this Trust Deed has been executed as a deed on the date stated at the beginning.

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| |
|:---|
| **EXECUTED AS A DEED BY AFFIXING THE COMMON SEAL of NATIONAL GRID plc** |
| in the presence of: |
| /s/ Harriet Hill |

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<br> <br> <br>

SIGNATURE PAGE TO THE TRUST DEED

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| |
|:---|
| **EXECUTED AND DELIVERED AS A DEED BY NATIONAL GRID ELECTRICITY TRANSMISSION plc**<br>By: /s/ Alexandra Lewis |
| Director |
| in the presence of: /s/ Harriet Hill |

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<br> <br> <br>

SIGNATURE PAGE TO THE TRUST DEED

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| |
|:---|
| **EXECUTED AS A DEED FOR AND ON BEHALF OF THE LAW DEBENTURE TRUST CORPORATION p.l.c.**<br>By: /s/ |
| Director |
| <br>By: /s/<br>Representing Law Debenture Corporate Services Limited, Secretary |

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SIGNATURE PAGE TO THE TRUST DEED

## Ex-4.(C)6

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GBR01/120794093_2 1 NATIONAL GRID UK LIMITED and ZOE YUJNOVICH SERVICE AGREEMENT

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GBR01/120794093_2 i This agreement is made between (1) NATIONAL GRID UK LIMITED incorporated in England & Wales with registered number 04508773and whose registered office is at 1-3 Strand, London WC2N 5EH (the "Company''); and (2) ZOE YUJNOVICH of Mariners, Christchurch Road, Virginia Water, GU25 4PJ (the "Executive"). This agreement records the terms on which the Executive will serve as an Executive Director of National Grid plc, from time to time, and an employee of the Company. 1. Interpretation 1.1 In this agreement the following terms have the following meanings: 1.1.1 "Board" means the board of directors of the Parent Company at any time or any person or committee nominated by the board of directors as its representative for the purposes of this agreement; 1.1.2 "Employment" means the employment governed by this agreement; 1.1.3 "Group" means the Company's ultimate holding company from time to time (currently National Grid plc) and its associates (as defined in section 435 of the Insolvency Act 1986) from time to time which will include the Company; 1.1.4 "Group Company" means a member of the Group and "Group Companies" will be interpreted accordingly; 1.1.5 "holding company" has the meaning given in section 1159 of the Companies Act 2006; 1.1.6 "LPDT Rules" means the UK Listing Rules, Prospectus Regulation Rules, Disclosure Guidance and Transparency Rules issued by the Financial Conduct Authority; 1.1.7 "Parent Company" means National Grid plc; 1.1.8 "Persons Closely Associated" has the meaning attributed to it by Article 3(1)(26) of UK MAR; 1.1.9 "Recognised Investment Exchange" means any body corporate or unincorporated association which is a recognised investment exchange for the purposes of the Financial Services and Markets Act 2000; 1.1.10 "Remuneration Committee" means the remuneration committee of the Board; 1.1.11 "Termination Date" means the date on which the Employment terminates; 1.1.12 "UK Listing Rules" means the listing rules made by the Financial Conduct Authority in exercise of its functions as a competent authority pursuant to Part VI of the Financial Services and Markets Act 2000; 1.1.13 "UK MAR" means the UK version of the EU Market Abuse Regulation (2014/596/EU) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018; and 1.1.14 "UK Prospectus Regulation" means the UK version of the EU Prospectus Regulation (2017/1129/EU) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.

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GBR01/120794093_2 ii 2. Representations and warranties 2.1 The Executive represents and warrants to the Company that, and acknowledges that in entering into this agreement the Company has relied upon the representations and warranties by the Executive in the following terms: 2.1.1 the Executive is presently employed by Shell Australia Pty Ltd (the "Former Employer") and her employment is due to terminate with effect from the day before the Commencement Date; 2.1.2 upon the termination of the Executive's employment with the Former Employer and save for this agreement, the Executive will not be party to any contract of service or for the provision of services (except as otherwise disclosed to the Company in respect of their approved non-executive director role) or be a member of any partnership and, by virtue of entering into this agreement and performing the duties set out in this agreement, will not be in breach of any contract of service or for the provision of services or any partnership agreement; 2.1.3 upon the termination of the Executive's employment with the Former Employer and save for this agreement, the Executive will, save as implied by law, be (except as otherwise disclosed to the Company) free from all agreements, arrangements or other restrictions seeking to restrict the Executive's right to compete with any person or to deal with or solicit clients or solicit, employ or engage employees of any person or in any way restricting the Executive from entering into and performing this agreement in accordance with its terms; 2.1.4 the Executive has not (directly or indirectly) misappropriated, or otherwise made any unlawful use or disclosure of, any confidential information and/or intellectual property belonging to or relating to the business of any other person (including, for the avoidance of doubt, the Executive's previous employer(s)) and will not do so whether prior to the commencement of the Executive's Employment or otherwise; 2.1.5 the Executive is not prohibited by law from being a director; 2.1.6 the Executive is entitled to work in the United Kingdom without any additional approvals and will notify the Company immediately if they cease to be so entitled during the Employment; 2.1.7 so far as the Executive is aware, the Executive has any necessary licences, permissions, consents, approvals, qualifications and memberships required for them to perform their duties under this agreement and the Executive is not and has not been subject to any prohibition, censure, criticism or disciplinary sanction by any professional, regulatory or other body or authority which would prevent the Executive from performing any duties under this agreement or undermine the confidence of the Board in their Employment by the Company; and 2.1.8 the curriculum vitae and other details provided by the Executive to the Company or a third party in relation to the Executive's application for employment by the Company are complete and accurate. 3. Commencement of Employment 3.1 The Employment will start on a date to be mutually agreed between the parties, which is currently anticipated to be 1 September 2025 (the "Commencement Date"). The Employment will continue until terminated in accordance with the provisions of this agreement. The Executive's period of continuous service will start on the Commencement Date.

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GBR01/120794093_2 iii 4. Appointment and Duties of the Executive 4.1 The Executive will be employed by the Company as Group Chief Executive Officer Designate from the Commencement Date until (and including) 15 November 2025 and as Group Chief Executive Officer from 16 November 2025, or in any other executive capacity (provided such other executive capacity is commensurate with the Executive's skills, level of experience, and seniority) as the Executive and the Company may agree from time to time (which shall include serving as an Executive Director of the Parent Company with effect from the Commencement Date). 4.2 The Executive will comply with their fiduciary and legal duties during the continuance of their directorship and/or Employment (as applicable) and, in particular, will: 4.2.1 where applicable, comply with the provisions of Part 10 of the Companies Act 2006, including the: (A) duty to act within powers; (B) duty to promote the success of that company; (C) duty to exercise independent judgment; (D) duty to exercise reasonable care, skill and diligence; (E) duty to avoid conflicts of interest; (F) duty not to accept benefits from third parties; and (G) duty to declare interests in proposed transactions or arrangements; 4.2.2 save where on authorised leave (for holiday or sickness or other reason) and save as modified by the provisions of this agreement where the Executive is placed on garden leave or suspended in accordance with clauses 14 or 13.9, devote the whole of their working time, attention and skill to the Employment (save as permitted under clause 6.2); 4.2.3 properly perform their duties and exercise their powers; 4.2.4 accept any offices or directorships with any Group Company as reasonably required by the Board; 4.2.5 so far as is within the Executive's control, comply with all laws, codes of conduct, rules and regulations (as amended from time to time) relevant to (i) the Parent Company and/or (iii) the Executive as a director of the Parent Company (as applicable), including: (a) pursuant to UK MAR, the UK Prospectus Regulations and the LPDT Rules; and (b) the Parent Company's Code of Employee Conduct and Standards of Ethical Business Conduct; 4.2.6 exercise only such powers as are consistent with the Executive's duties and act only in accordance with the Articles of Association of the Company or, where their duties relate to the business or interests of a Group Company, of that company; 4.2.7 obey the reasonable and lawful directions of the Board; and 4.2.8 use their best endeavours to promote the interests and reputation of the Company for the benefit of its members as a whole and, save where there is any conflict with the success of the Company, the success of all Group Companies. 4.3 The Executive accepts that with their consent (which the Executive will not unreasonably withhold or delay):

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GBR01/120794093_2 iv 4.3.1 the Company may require them to perform duties commensurate with the Executive's skills, level of experience, and seniority for any other Group Company (including the holding of any office or appointment on behalf of any Group Company) whether for the whole or part of their working time. In performing those duties, clause 4.2.5 will apply as if references to the Parent Company are to the appropriate Group Company. The Company will remain responsible for the payments and benefits the Executive is entitled to receive under this agreement; and 4.3.2 the Company may appoint any other person to act jointly with them during any period of garden leave or suspension in accordance with clauses 14 or 13.9 or long term sick leave; and 4.3.3 the Company may transfer the Employment to any other Group Company. 4.4 The Executive will keep the Board (and, where necessary and appropriate the board of directors of any other Group Company) fully informed of their conduct of the business, finances or affairs of the Company or any other Group Company (if applicable) in a prompt and timely manner. The Executive will provide information to the Board in writing if requested. 4.5 The Executive will promptly disclose to the Board full details of any knowledge or suspicion the Executive has of any wrongdoing committed (or planned to be committed) by any employee of any Group Company (including the Executive) where that wrongdoing is material to that employee's employment by the relevant company or to the interests or reputation of any Group Company. 4.6 At any time during the Employment the Company may require the Executive to undergo a medical examination by a medical practitioner appointed by the Company (at the expense of the Company). The Executive authorises that medical practitioner to disclose to the Company any report or test results or diagnosis or prognosis prepared or obtained as a result of that examination and to discuss with it any matters arising out of the examination which are relevant to the Employment or which might prevent the Executive properly performing the duties of the Employment. The Executive acknowledges that the Company will process their personal data and special categories of personal data contained in such medical report, diagnosis or prognosis or matters arising therefrom in accordance with the Group Data Privacy Policy referred to in clause 21.1 of this agreement. 4.7 The Executive is required to comply with the Company's, the Parent Company's and/or any other applicable Group Company's policies and procedures which may be amended or introduced from time to time, provided such amendment or introduction has been notified to the Executive. These are available on the relevant company's intranet. If there is any conflict between those polices and this agreement, the terms of this agreement will prevail. 5. Hours 5.1 The Executive will comply with the Company's normal hours of work and will also work any additional hours which may be reasonably necessary to perform their duties to the reasonable satisfaction of the Board. The Executive will not receive any further remuneration for any hours worked in addition to the normal working hours. 5.2 The Executive and the Company agree that the Executive is a managing executive of the Parent Company for the purposes of the Working Time Regulations 1998 (the "Regulations") and is able to determine the duration of their working time themself. As such, the exemptions in Regulation 20 of the Regulations will apply to the Employment. 6. Interests of the Executive 6.1 The Executive will disclose promptly in writing to the Board all their interests (for example, shareholdings or directorships) whether or not of a commercial or business nature except

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GBR01/120794093_2 v their interests in any Group Company. It is agreed that this disclosure obligation will not extend to investments which amount to no more than three per cent of the issued investments of any class of any one company listed or quoted on any Recognised Investment Exchange or investments which are managed by an external manager or advisor where the Executive does not have oversight in relation to any specific investment decisions. 6.2 Subject to the prior written agreement of the Board (not to be unreasonably withheld or delayed), the Executive may accept one external appointment as a non-executive director of a company outside of the Group and may retain the fees the Executive receives for such appointment, provided always that such appointment does not conflict in any way with the Executive being properly able to perform the duties set out in this agreement and/or the interests of the Company, the Parent Company and/or any other Group Company. 6.3 Subject to clause 6.4, and save with the prior written consent of the Chair of the Board (not to be unreasonably withheld), during the Employment, the Executive will not be directly or indirectly engaged or concerned in the conduct of any activity which is similar to or competes with any activity carried on by any Group Company (except as a representative of the Company, any Group Company, or with the written consent of the Board). 6.4 Save with the prior written agreement of the Company, or where those investments are managed by an external manager or advisor where the Executive does not have oversight in relation to any specific investment decisions, the Executive may not hold or be interested in investments which amount to more than three per cent of the issued investments of any class of any one company whether or not those investments are listed or quoted on any Recognised Investment Exchange. 7. Share dealings 7.1 The Executive will at all times comply with every rule of law, and every regulation of any applicable Recognised Investment Exchange or regulatory authority in relation to inside information regarding, and any transactions in any shares in, or financial instruments issued by, any company, including the legal and regulatory requirements in relation to civil offences of market abuse and the criminal offence of insider dealing. 7.2 During the Executive's Employment and, if later and as applicable, until the Executive ceases to be a director of the Parent Company, the Executive will notify the Company Secretary and the Financial Conduct Authority (if applicable) in writing of any transaction involving the Executive in the shares or debt of any Group Company, or any derivatives or any other financial instrument linked thereto, including the grant, acceptance, exercise, acquisition or disposal of any option or other right or obligation to acquire, subscribe or dispose of any interest in shares or debt, derivatives or other financial instruments, as required by UK MAR (seeking assistance from the Company in making such notifications as necessary). The notification will contain all information required by UK MAR including the Executive's name, the reason for the responsibility to notify, a description of the financial instruments, the nature of the transaction, the date on which and the place where the transaction was effected and the price and volume of the transaction. 7.3 The Executive will notify their Persons Closely Associated in writing of their disclosure obligations under UK MAR including that they must advise the Company immediately after they have conducted any transaction in any Group Company's shares or derivatives or any other financial instrument, and will, if required by the Company's share dealing code or UK MAR and on receipt of a notification from the Company that a closed period of any Group Company has been commenced, advise their Persons Closely Associated in writing of the dates of the closed periods of any Group Company. 7.4 Without prejudice to clauses 7.2 , 7.3 and 7.5, the Executive will at all times comply with the restrictions in UK MAR in relation to transactions in any Group Company's shares, and debt, and derivatives or other financial instruments relating thereto, in the closed periods prior to the publication of results and will at all times comply with the Company's Share

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GBR01/120794093_2 vi Dealing Policy in force from time to time, a copy of which is available from the Company Secretary. 7.5 The Executive will not act (and will use best endeavours to procure that their Persons Closely Associated will not act) so as to commit an offence of insider dealing under Part V of the Criminal Justice Act 1993, nor engage in behaviour amounting to market abuse under UK MAR in relation to the Company's shares or other financial instruments. 8. Location 8.1 The Executive will work at 1-3 Strand, London WC2N 5EH or anywhere else within Greater London reasonably required by the Board, on reasonable notice to the Executive. The Executive may be permitted to work from such other location from time to time as is consistent with the Company's flexible (or home) working policy in force from time to time. The Executive may be required to travel and work outside the United Kingdom from time to time but, unless otherwise agreed with the Board, will not be required to live outside the United Kingdom and will not be required to work outside the United Kingdom for any continuous period of more than one month. 9. Base salary and Benefits 9.1 From the Commencement Date the Company will pay the Executive a base salary of £1,300,000 per annum. Base salary will be paid in equal monthly instalments, partly in arrears and partly in advance, by bank credit transfer on or about the 15th day of each month and will accrue from day to day. Base salary will be reviewed annually. For the avoidance of doubt, the Executive's base salary may not be reduced by the Company without the Executive's prior written approval. The review will usually take place in June, with the first such review for the Executive being in June 2026. The Company is under no obligation to award an increase following a salary review. There will be no review of salary after notice has been given by either party to terminate this agreement under clause 13. 9.2 The base salary referred to in clause 9.1 includes director's fees from the Group Companies and any other companies in which the Executive is required to accept a directorship under the terms of this Employment. To achieve this: 9.2.1 the Executive will repay any fees they receive to the Company; or 9.2.2 their base salary will be reduced by the amount of those fees; or 9.2.3 a combination of the methods set out in clauses 9.2.1 and 9.2.2 will be applied, in each case excluding, for the avoidance of doubt, the fees permitted to be retained by the Executive pursuant to clause 6.2. 9.3 For the first twelve months of the Employment only, the Company will pay to the Executive a net relocation and disturbance allowance of £12,500 each month (the "Allowance"). The Allowance will be paid in monthly instalments alongside the Executive's monthly basic salary instalment and will be grossed-up for income tax and National Insurance Contributions such that the Executive will receive, in total, £150,000 of Allowance on a net of tax basis. For the avoidance of doubt, the Allowance will not be taken into consideration for the purposes of any bonus, pension and/or benefits arrangements and is not repayable in any circumstances. 9.4 The Executive may, at the discretion of the Remuneration Committee, be invited to participate in any bonus plan for Executive Directors operated by the Parent Company and as introduced or amended from time to time, including, from the Commencement Date, in respect of the financial year in which her Commencement Date falls. . If so invited, the Executive's participation in such bonus plan and the amount (if any) payable under any bonus plan will be at the discretion of the Remuneration Committee and/or in accordance with the rules of any such plan in force from time to time and the Parent Company's prevailing remuneration policy. Participation in a bonus plan for one year will not entitle the Executive

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GBR01/120794093_2 vii to participation in any bonus plan for any other year. The Executive acknowledges that during the continuance of their Employment and on its termination, the Executive has no right to receive a bonus and that the Remuneration Committee is under no obligation to operate a bonus plan. In the event the Executive is awarded a discretionary bonus under any such bonus plan, the Executive will be notified of such award in writing and (subject to the below) the date such award is intended to be paid (the "Discretionary Bonus Payment Date"). Once notified, any such bonus will, subject to the exercise of discretion on the part of the Remuneration Committee to deem you to be a 'good leaver', generally only be paid to the Executive provided that on the Discretionary Bonus Payment Date the Executive remains employed by the Company. The Remuneration Committee has discretion to deem an individual to be a 'good leaver', in which case a pro-rata discretionary payment could be paid, based on performance (as measured at the end of the financial year) and the achievement of individual objectives during the financial year up to termination, provided that treatment is consistent with the Parent's Company's prevailing remuneration policy at the time of termination. In circumstances where on the Discretionary Bonus Payment Date the Executive is subject to any disciplinary proceedings or investigation, no such payment will be made in respect of this bonus, until such time (if at all) it is determined by the Company that no disciplinary sanction (whether financial or otherwise) will be imposed on the Executive, at which time it will be paid promptly by the Company. If the Executive is subject to any disciplinary sanction, then the Executive will forthwith forfeit any eligibility to receive such bonus. For the avoidance of doubt, the Executive will not be entitled to any payment for the loss of any rights under any bonus plan as part of any compensation for loss of employment, office or otherwise, unless determined otherwise by the Remuneration Committee acting in accordance with the Parent Company's prevailing remuneration policy. Any bonus which becomes payable will not be included in the calculation of pension and associated benefits. 9.5 Without prejudice to clauses 9.4, 9.7 and 9.19, a proportion of any bonus awarded may be deferred into Parent Company shares at the discretion of the Remuneration Committee in accordance with the Parent Company's prevailing remuneration policy, and subject to the terms of such deferred bonus plan as may be operated from time to time by the Parent Company. Any part of any bonus awarded that is deferred into Parent Company shares will be treated consistently with the Parent Company's prevailing remuneration policy on termination of the Employment. 9.6 The Executive may, at the discretion of the Remuneration Committee, be invited to participate in such long term incentive plan as may be operated by the Parent Company (details of which are available from the Company Secretary) and as introduced or amended from time to time. If so invited, the Executive's participation in such long term incentive plan (including, without limitation, the terms, and level, of such participation) will be at the discretion of the Remuneration Committee and/or in accordance with the terms of any such plan in force from time to time and the Parent Company's prevailing remuneration policy. Participation in a long term incentive plan for one year will not entitle the Executive to participation in any long term incentive plan for any other year. The Executive acknowledges that during the continuance of their Employment and on its termination, the Executive has no right to an award or grant under any long term incentive plan and that the Remuneration Committee is under no obligation to operate a long term incentive plan. On termination of employment, outstanding awards under any such long term incentive plan will be treated in accordance with the relevant plan rules approved by shareholders. 9.7 The Executive will be subject to and comply with (i) such malus and clawback requirements and (ii) any shareholding requirements, as operated by the Company from time to time (during the continuance of the Employment and after its termination) consistent with the Parent Company's prevailing remuneration policy. 9.8 During the continuance of the Employment, the Company will provide the Executive with either a car for the Executive's use (on condition of the Executive holding a valid United Kingdom driving licence) in accordance with the rules of the Company car scheme, as

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GBR01/120794093_2 viii amended, from time to time; or, at the Executive's election, a non-pensionable, taxable car allowance, in accordance with the Company's policy for executives in the United Kingdom, to be paid at the same time and in the same manner as the instalment of the Executive's salary. The Executive will also be provided with use of a car and driver when required at the Company's cost. Tax arising in respect of such benefit shall be covered by the Company (save for in respect of costs associated with the provision of the driver for personal use, which shall include costs associated with commuting to the Company's offices at 1-3 Strand). 9.9 The Executive will be eligible to participate in the Company's defined contribution group personal pension scheme (or any other registered pension scheme as may be designated by the Company from time to time) (the "Pension Scheme") subject to and in accordance with the terms of the Pension Scheme from time to time in force (the "Scheme Terms"). The Pension Scheme may be amended or terminated at any time in accordance with the Scheme Terms and applicable legislation. 9.10 The Company will pay contributions at the rate of up to 12% of the Executive's gross basic salary (which, for the avoidance of doubt, will not include any bonus and/or other cash benefits paid to the Executive) to the Pension Scheme (or to a personal pension plan of their choice subject to the prior approval by the Company) each year, provided always that (unless agreed otherwise) the payments made by the Company will, provided the Executive has appropriately notified the Company in advance of applicable limits, not exceed the maximum contributions that can be made in any particular tax year without causing the annual allowance, determined from time to time in accordance with section 228 of the Finance Act 2004 and ignoring any unused annual allowance which the Executive is entitled to carry forward from previous tax years, to be exceeded by virtue of such payments. The Company will pay its contributions in monthly instalments during the Employment, at or around the same time as the instalments of salary to which they relate. Further information about the Pension Scheme, including the Scheme Terms which formally govern its operation and set out the benefits it is obliged to pay, is available from the Company Secretary. 9.11 The Executive may elect for the Company to exercise its discretion (which applies in respect of directors of the Company) not to automatically enrol the Executive into a qualifying pension scheme (including the Pension Scheme). In addition, the Executive may choose at any time to opt out of the Pension Scheme. In such circumstances, subject to clause 9.12 below and subject to the Executive providing the Company with appropriate written notification, during the continuance of the Employment, the Company will provide the Executive with a salary supplement equivalent to 12% of the Executive's gross basic salary (less legally required deductions and which, for the avoidance of doubt, will not include any bonus or other cash benefits paid to the Executive) (in lieu of the contributions referred to at clause 9.10 above) paid at the same time and in the same manner as the instalments of the Executive's salary. The salary supplement will not be taken into account for calculating any eligibility for or entitlement to any bonus or incentive or other remuneration or benefit of any kind. In consultation with the Company and with appropriate notice, the Executive may elect to receive part of their overall pension contribution eligibility by way of contributions to the Pension Scheme and part by way of salary supplement, as anticipated by the terms of this clause 9.11. The salary supplement, when aggregated with any Company contributions to the Pension Scheme in accordance with clause 9.10, will not exceed 12% of gross basic salary. 9.12 The Executive acknowledges that the Company may be required to enrol, or re-enrol, the Executive into a pension scheme (and the Company may be required to contribute in respect of the Executive) in order to comply with its statutory duties, even if the Executive has previously opted out. In this case, or if the Executive otherwise become an active member of the Company's pension scheme (including the Pension Scheme) at any time or if the Executive elects for the Company to make contributions into a personal pension plan of their choice approved by the Company, it is agreed that the Company will no longer provide the Executive with the salary supplement in lieu of pension equivalent to the amount of such contributions.

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GBR01/120794093_2 ix 9.13 Subject to the arrangements regarding holiday which are set out at clause 9.15 below and which take precedence, the Executive is eligible to participate in the Company's flexible benefits scheme as introduced or amended from time to time, currently "Your Flexible Benefits", which provides access to a range of optional benefits (including, without limitation, eligibility to participate in such life assurance, personal accident insurance and tax- advantaged all-employee share plans operated by the Company from time to time). The Executive should note that some of the benefits provided under the scheme may be taxable benefits. The Executive should note the range of flexible benefits offered and the flexible benefits package itself does not form part of the Executive's contract of employment and the Company reserves the right, at any time, to withdraw and/or amend the flexible benefits scheme and the benefits provided under it at its absolute discretion (provided that the Executive is treated no less favourably than other Executive Directors of the Parent Company). 9.14 To the extent the Executive complies with any eligibility requirements or other conditions set by the Company and any insurer appointed by the Company ("Insurer"), the Executive and their spouse and children under 21 years of age who reside with the Executive or in full time education up to the age of 24 may participate in the Company's private health insurance arrangements at the Company's expense (albeit subject to an appropriate tax charge to the Executive in respect of income tax and employee National Insurance Contributions) and subject to the terms of those arrangements in force from time to time. The Company reserves the right at any time to withdraw this benefit or to amend the terms upon which it is provided (provided that the Executive is treated no less favourably than other Executive Directors of the Parent Company). The Executive understands and agrees that if the Insurer fails or refuses to provide them with any benefit under the insurance arrangement provided by the Company, the Executive will have no right of action against the Company in respect of such failure or refusal. 9.15 The Executive is entitled to 28 days' paid holiday in each year (in addition to English bank and other public holidays) subject to any election the Executive may choose to make pursuant to the Parent Company's flexible benefits scheme. Any election the Executive may choose to make pursuant to the Parent Company's flexible benefits scheme to increase their holiday entitlement will be subject to prior Board approval. All holiday must be taken at times approved in advance by the Board. The Executive's holiday year commences in the month of their birth and ends on the preceding month in the following year. Holidays may not be carried forward from one year to the next without the Board's prior approval. The Executive agrees the provisions of Regulations 15(1)-(4) inclusive of the Regulations (dates on which leave is taken) do not apply to the Employment. 9.16 Holiday entitlement will accrue from day to day. For part years, the Executive's holiday entitlement for the year will be pro-rated to the length of their service in that year. The Executive will be paid for any accrued holiday not taken at the Termination Date. The Company may require the Executive to take any accrued holiday during any notice period. If on the Termination Date the Executive has exceeded their accrued holiday entitlement, the excess may be deducted from any sums due to them. The formula for calculating the amount of holiday due to the Executive and any payments or repayments to be made is 1/260 of the Executive's annual base salary. 9.17 The rules governing sickness absence are set out in the Company's Sickness Absence Policy which is available on the Company's intranet. The Executive must comply with these rules. Without prejudice to any right of the Company to terminate the Employment at any time pursuant to clause 13, if the Executive is absent from work as a result of sickness or injury then provided that the rules are complied with, the Executive will be entitled to sick pay as detailed below: 9.17.1 during any rolling period of twenty-four months: (i) an allowance equal to base salary will be paid for the first six months (in

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GBR01/120794093_2 x aggregate) of such absence; and (ii) after the expiration of the six month period, an allowance equal to half of base salary will be paid for a further period of up to six months (in aggregate); and, for the avoidance of doubt, any allowance provided in any prior period of twelve months will be deducted from the above entitlement. 9.17.2 the amount of any benefit which the Executive is entitled to claim during that period of absence under any Social Security or National Insurance Scheme in England and Wales and/or any scheme of which the Executive is a non-contributory member by virtue of the Employment will be deducted from any base salary paid to them. The Company will pay the Executive statutory sick pay under the Social Security Contributions and Benefits Act 1992 (as amended) ("SSP") and any base salary paid to them will be deemed to include statutory sick pay. 9.17.3 any sick pay or allowances in excess of SSP paid after the end of the periods referred to above is entirely at the Company's discretion. 9.18 If the Executive is absent from work due to sickness or injury which is caused by the fault of another person, and as a consequence recovers from that person or another person any sum representing compensation for loss of base salary under this agreement, the Executive will repay to the Company any money it has paid to them as base salary in respect of the same period of absence (provided at all times that the Executive is not required to repay to the Company more money than it has recovered from that other person). 9.19 In accordance with the Companies Act 2006, all remuneration payments (including payments for loss of office) due to the Executive (including any such payment due pursuant to this agreement) will only be payable if and to the extent that they are either consistent with the most recent remuneration policy approved by members of the Parent Company pursuant to section 439A of the Companies Act 2006 or are separately approved by resolution of the members of the Parent Company, and any provision of this agreement relating to the making of any such payment will only be enforceable to such extent. 9.20 During the Employment, the Company shall provide the Executive with an annual allowance (less legally required deductions) of up to such maximum annual sum as may be reasonably agreed in advance by the Board and the Executive from time to time, to enable the Executive to take individual tax advice, including relating to the completion of the Executive's UK and Australian annual personal tax returns (and such other tax returns as may be required in any other jurisdictions from time to time). 10. Expenses 10.1 The Company will refund to the Executive all reasonable expenses properly incurred by them in performing their duties under this agreement, provided that these are incurred in accordance with Company policy in force from time to time. The Company will require the Executive to produce receipts or other documents as proof that the Executive has incurred any expenses they claim. 10.2 If the Executive is provided with a credit or charge card by the Company, this must normally be used for expenses which they incur in performing the duties of the Employment. It may be used for personal expenses only in exceptional circumstances. 11. Confidentiality 11.1 Without prejudice to the common law duties which the Executive owes to the Company and the Parent Company, the Executive agrees that they will not, except in the proper performance of their duties, or with the prior approval of the Company, or as required by law, copy, use or disclose to any person any of the Company's trade secrets or confidential

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GBR01/120794093_2 xi information. This restriction will continue to apply after the termination of the Employment without limit in time but will not apply to trade secrets or confidential information which become public other than through unauthorised disclosure by the Executive. The Executive will use their best endeavours to prevent the unauthorised copying, misuse or disclosure of such information and will not remove or authorise others to remove (including, for the avoidance of doubt, by emailing any confidential information to third parties, any of the Executive's personal email accounts and/or saving any confidential information on any cloud based storage), from the premises of the Company or any of its Group Companies any records of confidential information, except to the extent strictly necessary for the proper performance of the Executive's duties to the Company or any of its Group Companies, with the prior approval of the Company, or as required by law. For the purposes of this agreement, "trade secrets" and "confidential information" include but will not be limited to: 11.1.1 technical data, know-how, information technology and know-how relating to the Company, customer lists, pricing information, information relating to the Company's or any other Group Company's marketing and financial strategies, marketing materials, financial information, information relating to business methods, corporate plans, future business strategy, management systems, maturing new business opportunities and any other information concerning the affairs of the Company which is for the time being confidential, which the Executive is told is confidential or which by its nature is obviously confidential and whether such information is in written, oral, visual, electronic or any other form; 11.1.2 all and any information relating to research or development projects or both; 11.1.3 all and any information concerning the curriculum vitae, remuneration details, work- related experience, attributes and other personal information concerning those employed or engaged by the Company or any other Group Company; 11.1.4 all and any information relating to marketing or sales of any past present or future product or service of the Company or of any other Group Company including sales targets and statistics, market share and pricing statistics, marketing surveys and strategies, marketing research reports, sales techniques, price lists, mark-ups, discounts, rebates, tenders, advertising and promotional material, credit and payment policies and procedures, and lists and details of customers, prospective customers, suppliers and prospective suppliers including their identities, personnel, business requirements and contractual negotiations and arrangements with the Company or any Group Company; 11.1.5 all and any information which is a trade secret as defined in Regulation 2 of the Trade Secrets (Enforcement, etc.) Regulations 2018; and 11.1.6 any inside information (as defined by Article 11 of UK MAR), but excluding any information which: (i) is part of the Executive's own stock in trade; (ii) is readily ascertainable to persons not connected with the Company or any Group Company without significant expenditure of labour, skill or money; or (iii) which becomes available to the public generally other than by reason of a breach by the Executive of their obligations under this agreement. 11.2 In the course of the Employment the Executive is likely to obtain trade secrets and confidential information belonging or relating to other Group Companies, in particular the

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GBR01/120794093_2 xii Parent Company, and other persons. The Executive will treat such information as if it fails within the terms of clause 11.1, and clause 11.1 will apply with any necessary amendments to such information. If reasonably requested to do so by the Company, the Executive will enter into an agreement with other Group Companies in the same terms as clause 11.1 with any amendments necessary to give effect to this provision. 11.3 Nothing in this agreement will prevent the Executive from: 11.3.1 making a "protected disclosure" in accordance with the provisions of the Employment Rights Act 1996 (as amended from time to time); 11.3.2 reporting an offence to the police or to a law enforcement agency; 11.3.3 co-operating with a criminal investigation or prosecution; 11.3.4 reporting misconduct or a serious breach of regulatory requirement to a body responsible for supervising or regulating relevant matters; 11.3.5 reporting, in the public interest, any serious wrongdoing to a law enforcement agency or relevant regulator or an equivalent person or entity which has a proper interest in receiving that information in the public interest; 11.3.6 communicating in confidence with the Executive's professional advisors (including any tax, legal, medical and/or therapeutic advisors) and/or with the Executive's spouse or registered civil partner or common-law spouse; 11.3.7 acting with statutory authority or complying with any order of, or giving evidence to, a court or tribunal of competent jurisdiction; 11.3.8 disclosing information to HM Revenue & Customs for the purposes of establishing or paying (or recouping) tax and national insurance liabilities from the Executive's employment or its termination; 11.3.9 complying with any law, any regulations of any statutory or regulatory authority, or any request of any government body (including, for the avoidance of doubt, HM Revenue & Customs); 11.3.10 using any relevant information for the purpose of representation at any investigation or proceedings brought by an applicable regulatory or professional body relating to matters arising from the Employment; and/or 11.3.11 from exercising the Executive's employment rights other than where there is a legally binding settlement agreement or ACAS settlement. This includes protected disclosures or reports made about matters previously disclosed to another recipient. 12. Intellectual Property Rights For the purposes of this clause, "Intellectual Property" means patents, trade marks, service marks, registered designs (including applications for and rights to apply for any of them), inventions, unregistered design rights, logos, trade or business names, copyrights, database rights, confidential information, knowhow and any similar rights in any country. 12.1 The Executive acknowledges that (i) it is part of their normal duties to develop the products and services of the Company; and (ii) because of the nature of their position they have a special obligation to further the interests of the Company. All Intellectual Property which the Executive develops or produces in the course of the Employment duties, or outside such duties but relating to the business of the Company, will be owned by the Company to the fullest extent permitted by law. The Executive agrees, at the Company's expense, to sign all

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GBR01/120794093_2 xiii documents and carry out all such acts as will be necessary to vest such Intellectual Property in the Company, and to obtain protection and enforce the Company's rights anywhere in the world. The Executive also hereby waives all moral rights in all Intellectual Property which is owned by the Company, or will be owned by the Company, further to this clause. The Executive will not copy, disclose or make use of any Intellectual Property belonging to the Company (whether or not subject to this clause) except to the extent necessary for the proper performance of their duties. Rights and obligations under this clause will continue after the termination of this agreement in respect of all Intellectual Property arising during the Employment. 12.2 The Executive must disclose promptly to the Company any discovery or invention, secret process or improvement in procedure made or discovered by the Executive during their Employment in connection with or in any way affecting or relating to the business of the Company or any Group Company or capable of being used or adapted for use in or in connection with any such company ("Inventions") which Inventions will belong to and be the absolute property of the Company or such other person, firm, company or organisation as the Company may require, 12.3 If requested by the Board (whether during or after the termination of their Employment) the Executive will, at the expense of the Company, apply or join in applying for letters patent or other similar protection in the United Kingdom or any other part of the world for all Inventions and will do everything reasonably necessary (including executing documents) for vesting letters patent or other similar protection when obtained; and all rights and title to and Interest in all Inventions in the Company absolutely and as sole beneficial owner or in such other person, firm, company or organisation as the Company may require. 12.4 The Executive will (both during and after the termination of their Employment) at the Company's expense anywhere in the world and at any time, on reasonable notice, promptly do everything (including executing documents) that may be reasonably required by the Board to defend or protect for the benefit of the Company all Inventions and the right and title of the Company to them. 12.5 The provisions of clauses 12.1 to 12.4 (inclusive) are without prejudice to the provisions of the Patents Act 1977. 12.6 The entire copyright and all similar rights (including future copyright, the right to register trade marks or service marks and the right to register designs and design rights) throughout the world in works of any description produced by the Executive in the course of or in connection with their Employment ("Works") will vest in and belong to the Company absolutely throughout the world for the full periods of protection available in law including all renewals and extensions. 12.7 The Executive will (both during and after the termination of their Employment) at the Company's request and expense anywhere in the world and at any time, on reasonable notice, promptly do everything (including executing documents) that may be reasonably required by the Board to assure, defined or protect the rights of the Company in all Works. 12.8 For the purposes of this clause 12 the Executive hereby irrevocably and unconditionally waives in favour of the Company the moral rights conferred on the Executive by Chapter IV Part 1 of the Copyright Designs and Patents Act 1988 in respect of any Inventions or Works in which the copyright is vested in the Company under this clause 12 or otherwise. 12.9 The Executive will not make copies of any computer files belonging to any Group Company or their service providers and will not introduce any of their own computer files into any computer used by any Group Company in breach of any Group Company policy, unless they have obtained the consent of the Board. 12.10 By entering into this agreement the Executive irrevocably appoints the Company to act on their behalf to execute any document and do anything in their name for the purpose of giving

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GBR01/120794093_2 xiv the Company (or its nominee) the full benefit of the provision of clause 12 or the Company's entitlement under statute. If there is any doubt as to whether such a document (or other thing) has been carried out within the authority conferred by this clause 12.10, a certificate in writing (signed by any director or the secretary of the Company) will be sufficient to prove that the act or thing falls within that authority. 13. Termination and Suspension 13.1 The Employment will continue until terminated by either party giving written notice as set out in clause 13.2. 13.2 Either party may terminate the Employment by giving not less than 12 months' written notice to the other. 13.3 The Company may at its sole and absolute discretion terminate the Executive's employment immediately by giving the Executive written notice (given in accordance with clause 19) that it will make a payment of such sum as would have been payable to the Executive by the Company as base salary alone (as referred to in clause 9.1, at the rate in force at the time such payment is made) in lieu of any unexpired period of notice (including in circumstances where the Executive has spent part of their notice on garden leave) (less any deductions the Company is required by law to make). For the avoidance of doubt, the Executive is not entitled to participate in or benefit from any severance, termination or redundancy plan operated by any member of the Group (save where participation by Executive Directors is not prohibited by the plan and provided any such entitlements are consistent with the terms of the Parent Company's prevailing remuneration policy). The Company may, in its absolute discretion, pay any sums to the Executive under this clause in equal monthly instalments until the date on which the notice period under clause 13.2 would have expired if full notice had been given. The Executive will be under an obligation to seek alternative income during such period and notify the Company of any income received during this period. Any monthly instalments will be reduced by the amount of any such alternative income which the Executive receives during or in relation to such part. 13.4 The Company may terminate the Employment by giving written notice to take immediate effect if the Executive: 13.4.1 commits any serious or, after written warning, persistent breach of any term of this agreement; or 13.4.2 fails or refuses, after written warning, to carry out any of the reasonable duties properly assigned to the Executive under this agreement; or 13.4.3 is guilty of any gross misconduct or conducts themselves (whether in connection with the Employment or not) in a way which is, in the Company's reasonable opinion, harmful to any Group Company, and/or is reasonably likely to bring the Executive into disrepute; or 13.4.4 is guilty of or confesses to dishonesty or is convicted of or confesses to an offence (other than a motoring offence which does not result in imprisonment) whether in connection with the Employment or not; or 13.4.5 commits (or is reasonably believed by the Board to have committed) a breach of any legislation in force which may materially affect or relate to the business of any Group Company; or 13.4.6 becomes bankrupt or has a receiving order made against them or makes any general composition with their creditors or takes advantage of any statute affording relief for insolvent debtors; or 13.4.7 becomes disqualified from being a director of a company or the Executive's

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GBR01/120794093_2 xv directorship of the Parent Company terminates without the consent or concurrence of the Company or the Parent Company, save for (i) in circumstances where the Executive has offered themselves for re-election to their office as a director of the Parent Company or of any Group Company of which they have been appointed a director, and they are not re-elected to such office or (ii) where removed by shareholders at a general meeting or otherwise; or (iii) where otherwise the directorship terminates under the articles of association of any relevant Group Company; or 13.4.8 becomes disqualified from maintaining registration with any regulatory body, membership of which is reasonably required by the Company for the Executive to carry out their duties. 13.5 Where the Company terminates the Employment by giving written notice to take immediate effect in accordance with clause 13.4, for the avoidance of doubt there is no obligation to give notice as set out in clause 13.1 or any other period of notice or to make any payment in lieu of notice. 13.6 If, during the Employment, the Executive ceases to be a director of the Parent Company or any Group Company (except where (i) the Executive is notified of termination of employment under clause 13.4.7 or (ii) in the event of the Executive's mandatory retirement from office in accordance with the terms of the relevant Articles of Association, the Executive fails to offer themselves for re-election), the Executive's employment will continue with the Executive as an employee only and the terms of this agreement (other than those relating to the holding of office or directorship) shall continue in full force and effect. 13.7 The Executive will have no claim for damages or any other remedy against the Parent Company or Company if the Employment is validly terminated for any of the reasons set out in clause 13.4. 13.8 When the Employment terminates the Company may deduct from any money due to the Executive (including remuneration) any amount which the Executive owes to any Group Company. 13.9 The Company may suspend the Executive from the Employment on full base salary (and contractual benefits) at any time, and for any reason for a reasonable period to investigate any matter in which the Executive is implicated or involved (whether directly or indirectly) and to conduct any related disciplinary proceedings and may do any or all of the following: 13.9.1 exclude the Executive from all or any premises of the Company or any Group Company; or 13.9.2 require the Executive to abstain from engaging in any contact (whether or not initiated by the Executive) which concerns any of the business affairs of the Company, the Parent Company or any other Group Company with any customer, client, supplier, intermediary, other business connection, employee, director, officer, consultant, partner or agent of the Company, the Parent Company or any other Group Company (other than purely social contact); or 13.9.3 require the Executive to deliver up to the Company (to whomever the Board specifies), without destruction, deletion or redaction of any data or images, any correspondence, documents, laptops, computer drives, computer disks and other computer equipment, tapes, mobile telephones, smartphones, or tablets (or similar equipment) in their possession or under their control and which belong to the Company, the Parent Company or any of its Group Companies, and to provide to the Company full details of all then current passwords or other privacy or security measures used by the Executive in respect of any such equipment (and for the avoidance of doubt to the extent that the Executive is required to deliver up

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GBR01/120794093_2 xvi anything that they require in order to discharge any ongoing duties as a director they may retain copies or access to the extent required for this purpose); or 13.9.4 suspend or limit the Executive's access to the Company's and any Group Company's computer, e-mail, telephone, voicemail and other communication systems or databases. 14. Garden Leave 14.1 Neither the Company nor any Group Company is under any obligation to provide the Executive with any work. At any time after notice to terminate the Employment is given by either party under clause 13 above, or if the Executive resigns without giving due notice and the Company does not accept their resignation, the Company may, at its absolute discretion, require the Executive to take a period of absence called garden leave for some or all of any period of notice (the "Garden Leave Period"). The provisions of this clause will apply to any Garden Leave Period. 14.2 During any such Garden Leave Period, the Company may require that the Executive will not, without prior written consent of the Board: 14.2.1 enter or attend the premises of the Company, the Parent Company or any other Group Company; or 14.2.2 carry out some or any duties; 14.2.3 contact or have any communication with any customer, client, supplier, intermediary and/or any other business connection of the Company, the Parent Company or any other Group Company in relation to the business of the Company, the Parent Company or any other Group Company (other than purely social contact); or 14.2.4 contact or have any communication with any employee, officer, director, agent or consultant of the Company, the Parent Company or any other Group Company (other than purely social contact of which no matters relating to the Company, the Parent Company or any Group Company are discussed); or 14.2.5 remain or become involved in any aspect of the business of the Company, the Parent Company or any other Group Company except as required by such companies; or 14.2.6 access the Company's, the Parent Company's or any Group Company's information technology (including email or other communication systems and databases) or telecommunications systems (which may be suspended by the Company in any event). 14.3 The Company may require the Executive: 14.3.1 to comply with the provisions of clause 17, save that the Executive will not be required to return any Company car during any Garden Leave Period; and 14.3.2 to immediately resign from any directorship, trusteeships or other offices which the Executive holds in the Company, any other Group Company or any other company where such directorship or other office is held as a consequence or requirement of the Employment, unless they are required to perform duties to which any such directorship, trusteeship or other office relates in which case the Executive may retain such directorships, trusteeships or other offices while those duties are ongoing (as well as access to such information technology or telecommunications systems or documents required to perform such duties, to the extent necessary). The Executive hereby irrevocably appoints the Company to be their attorney to

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GBR01/120794093_2 xvii execute any instrument and do anything in their name and on their behalf reasonably necessary to effect their resignation if the Executive fails to do so in accordance with this clause 14.3.2. 14.4 During the Garden Leave Period, the Executive will be entitled to receive their base salary and all contractual benefits in accordance with the terms of this agreement, save that the Executive will not accrue any bonuses or be entitled to receive any new grants or awards under any long term incentive arrangements (unless otherwise agreed by the Company and such treatment is permitted by the rules of any applicable bonus plan and/or share plan and is consistent with the Parent Company's prevailing remuneration policy) . Any unused holiday accrued at the commencement of the Garden Leave Period and any holiday accrued during any such period will be taken by the Executive during the Garden Leave Period, at such times as may be agreed between the Company from time to time. 14.5 During the Garden Leave Period: 14.5.1 the Executive will provide such assistance as the Company or any Group Company may reasonably require to effect an orderly handover of their responsibilities to any individual or individuals appointed by the Company or any Group Company to take over their role or responsibilities (to the extent any such individual has been appointed); 14.5.2 the Executive will make themself available to deal with requests for information, provide assistance, be available for meetings and to advise on matters relating to work (unless the Company has agreed that the Executive may be unavailable for a period and unless the Executive is on holiday, or on sickness absence); and 14.5.3 the Company may appoint another person to carry out their duties in substitution for the Executive. 14.6 All duties of the Employment (whether express or implied), including without limitation the Executive's duties of fidelity, good faith and exclusive service, will continue throughout the Garden Leave Period save as expressly varied by this clause 14. 14.7 The Executive agrees that the exercise by the Company of its rights pursuant to this clause 14 will not entitle the Executive to claim that they have been constructively dismissed. 15. Restrictions after Termination of Employment 15.1 In this clause, the following terms will have the following meanings: 15.1.1 "Competing Business" means any business carried on within England and/or Wales and/or Scotland and/or Northern Ireland and/or New York State and/or Rhode Island and/or Massachusetts and/or any other country in which the Company, the Parent Company or any other Group Company as at the Relevant Date carries on or proposes to carry on (in the immediate or foreseeable future) any business, which wholly or partly competes or proposes to compete with any business which at the Relevant Date the Company, the Parent Company or any other Group Company carries on, save for any such business in any such country in which the Executive was not involved to any material extent at any time during the 12 months up to and including the Relevant Date and in relation to which the Executive did not possess material confidential information as at the Relevant Date; 15.1.2 "Prospective Business" shall mean any business carried on within England and/or Wales and/or Scotland and/or Northern Ireland and/or New York State and/or Rhode Island and/or Massachusetts and/or any other country in which the Company, the Parent Company or any other Group Company as at the Relevant Date carries on or proposes to carry on (in the immediate or foreseeable future) any business, which wholly or partly competes or proposes to compete with any

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GBR01/120794093_2 xviii business which at the Relevant Date the Company, the Parent Company or any other Group Company proposes to carry on in the immediate or foreseeable future, save for any such proposed business in any such country in relation to which the Executive was not involved in relevant discussions to any material extent at any time during the 12 months up to and including the Relevant Date and in relation to which the Executive did not possess material confidential information as at the Relevant Date; 15.1.3 "Relevant Date" means the Termination Date or, if earlier, the date on which the Executive commences any Garden Leave Period; and 15.1.4 "Restricted Period" means the period of 12 months, less any Garden Leave Period, commencing on the Termination Date. 15.2 The Executive is likely to obtain trade secrets and confidential information and personal knowledge of and influence over customers clients and employees of the Group during the course of the Employment. To protect these interests of the Group, the Executive agrees with the Company that they will be bound by the following covenants in clauses 15.3, 15.4 and 15.5. The Executive acknowledges that they have taken legal advice in relation to the restrictions contained in this clause 15 and that the Executive considers them reasonable and necessary for the protection of the legitimate interests of the Company and its Group Companies. 15.3 During the Restricted Period, except in the event of a termination of this agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly: 15.3.1 carry on or be interested in a Competing Business SAVE that the Executive may hold for investment: (i) up to 3% of any class of securities quoted or dealt in on a Recognised Investment Exchange; and (ii) up to 10% of any class of securities not so quoted or dealt; and (iii) investments which are managed by an external manager or advisor where the Executive does not have oversight in relation to any specific investment decisions. 15.3.2 act as a consultant or employee or worker or officer or partner in any executive, investment, sales, marketing, research or technical capacity in a Competing Business or provide technical, investment, commercial or professional advice to a Competing Business, SAVE to the extent that the Executive demonstrates to the reasonable satisfaction of the Board that their duties or work (i) shall relate exclusively to work of a kind or nature with which they were not concerned to any extent (other than de minimis) at any time during the 12 months up to and including the Relevant Date and (ii) shall not involve a material risk of deliberate or inadvertent disclosure or use of any of the confidential information possessed by the Executive; 15.3.3 act as a consultant or employee or worker or officer or partner in any executive, investment, sales, marketing, research or technical capacity in a Prospective Business or provide technical, investment, commercial or professional advice to a Prospective Business, SAVE to the extent that the Executive demonstrates to the reasonable satisfaction of the Board that their duties or work (i) shall relate exclusively to work of a kind or nature with which the Executive was not concerned to any extent (other than de minimis) at any time during the 12 months up to and including the Relevant Date and (ii) shall not involve a material risk of deliberate or

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GBR01/120794093_2 xix inadvertent disclosure or use of any of the confidential information possessed by the Executive. 15.4 During the Restricted Period, except in the event of termination of this agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly: 15.4.1 solicit, canvass or approach or endeavour to solicit, canvass or approach or cause to be solicited, canvassed or approached for the purpose of: (i) obtaining the supply of goods or services of the same type as or similar to any goods or services supplied to the Company, the Parent Company or any other Group Company at the Relevant Date; or (ii) interfering with or endeavouring to terminate or reduce the levels of such supplies to the Company, the Parent Company or any other Group Company, any person who, to their knowledge, supplied the Company, the Parent Company or any other Group Company with any such goods or services at any time during the 12 months up to and including the Relevant Date and with whom the Executive dealt (other than de minimis) at any time during the said 12 month period or in relation to whom as at the Relevant Date the Executive possessed a material amount of confidential information where it is reasonably likely that such soliciting, canvassing or approaching would, if successful, materially prejudice the ability of the Company, the Parent Company or any other Group Company to procure, or the terms on which it is able to procure the supply of such goods or services; 15.4.2 knowingly interfere with any arrangements between the Company, the Parent Company or any other Group Company and any third party or parties whereby the Company, the Parent Company or any other Group Company holds a licence or permission to carry on its business or benefits from discounts or other beneficial trading terms extended to it by a supplier of goods or services by virtue of such arrangements; or 15.4.3 knowingly or recklessly do anything which is or is calculated to be prejudicial to the interests of the Company, the Parent Company or any other Group Company or the business of the Company, the Parent Company or any other Group Company or which results or may result in the discontinuance of any contract or arrangements of benefit to the Company, the Parent Company or any other Group Company; and for these purposes any agreement between the Company, the Parent Company or any other Group Company and a third party whereby that third party sources customers or goods or services for the Company, the Parent Company or any other Group Company shall also be deemed to constitute a supply of a service by such third party. 15.5 During the Restricted Period, except in the event of a termination of this agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly: 15.5.1 solicit or entice away or endeavour to solicit or entice away or cause to be solicited or enticed away from the Company, the Parent Company or any other Group Company any person who is, and was at the Relevant Date, employed or directly or indirectly engaged by the Company, the Parent Company or any other Group Company in an executive, investment, sales, marketing, research, risk, compliance, financial, actuarial or technical capacity or whose departure from the Company, the Parent Company or any other Group Company would have a material adverse effect on the business of such company, and with whom the Executive worked (other than to a de minimis extent) at any time during the 12 months up to and including the Relevant Date or in relation to whom as at the Relevant Date the Executive possessed a material amount of confidential

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GBR01/120794093_2 xx information, with a view to inducing that person to leave such employment or engagement (whether or not such person would commit a breach of their contract of employment or engagement by reason of leaving); 15.5.2 solicit or endeavour to solicit or cause to be solicited any person who was at any time during the 12 months up to and including the Relevant Date employed or directly or indirectly engaged by the Company, the Parent Company or any other Group Company who, by reason of their employment or engagement, possesses a material amount of confidential information or is likely to be able to solicit away from the Company, the Parent Company or any other Group Company the custom of any person to whom the Company, the Parent Company or any other Group Company supplies goods or services, and with whom the Executive worked at any time during the 12 months up to and including the Relevant Date or in relation to whom as at the Relevant Date the Executive possessed a material amount of confidential information, with a view to inducing that person to act in the same or a materially similar capacity in relation to the same or a materially similar field of work for another person carrying on business in competition with the Company, the Parent Company or any other Group Company (whether or not such person would commit a breach of their contract of employment or engagement by reason of so acting). 15.6 Each of the restrictions in clauses 15.3.1, 15.3.2, 15.3.3, 15.4.1, 15.4.2, 15.4.3, 15.5.1 and 15.5.2 hereof is separate and severable and in the event of any such restriction (including the defined expressions in clauses 1.1.4, 11.1, 15.1.1, 15.1.2 and 15.1.3 being determined as being unenforceable in whole or in part for any reason such unenforceability shall not affect the enforceability of the remaining restrictions or, in the case of part of a restriction being unenforceable, the remainder of that restriction. The restrictions in clauses 15.3.1, 15.3.2 and 15.3.3 shall be deemed to be separate and severable in relation to each of the countries set out in sub-clauses 15.1.1 and 15.1.2. 15.7 Following the Termination Date, the Executive will not represent themself as being in any way connected with the businesses of the Company, the Parent Company or any other Group Company (except to the extent agreed by such a company). For the avoidance of doubt, nothing in this agreement prevents the Executive from maintaining their dates of employment with the Company or any other Group Company (as applicable) on any social media platforms (including, but not limited to, LinkedIn). 15.8 Subject to clause 11.3 and save as required by law or the regulations of any statutory or regulatory authority, the Executive shall not during their employment or after the Termination Date make, publish or cause to be made or published any statement or remark which is likely or intended to harm the business or reputation of the Company, the Parent Company or any other Group Company or any current or former officer, employee, consultant or agent of any such company. 15.9 Any benefit given or deemed to be given by the Executive to any Group Company under the terms of clause 15 is received and held on trust by the Company for the relevant Group Company. The Executive will enter into appropriate restrictive covenants directly with other Group Companies if reasonably asked to do so by the Company. 15.10 Without prejudice to the Executive's obligations under clauses 11 and 15, in the event that, during the continuance of this agreement or during the period for which all or any of the restrictions set out in this clause 15 (save in clauses 15.7 and/or 15.8) are expressed to apply, the Executive receives from any person an offer of employment or engagement (whether oral or in writing) which the Executive is considering accepting, the Executive shall provide to such offeror a copy of the restrictions contained in clauses 11 and 15 of this agreement. In the event that the Executive accepts any such offer, the Executive shall promptly inform the Board of the identity of the offeror and a description of the principal duties of the position accepted and shall confirm to the Board in writing that the Executive has

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GBR01/120794093_2 xxi provided a copy of the restrictions contained in clauses 11 and 15 of this agreement to such offeror. 16. Offers on Liquidation The Executive will have no claim against the Parent Company or the Company if the Employment is terminated by reason of liquidation in order to reconstruct or amalgamate the Company or by reason of any reorganisation of the Company and the Executive is offered employment with the company succeeding to the Company upon such liquidation or reorganisation and the new terms of employment offered to the Executive are no less favourable to them than the terms of this agreement. 17. Return of Company Property 17.1 At any time during the Employment (at the request of the Company) and in any event when the Employment terminates, the Executive will promptly: 17.1.1 return to the Company all documents and other materials (whether originals or copies) made or compiled by or delivered to the Executive during the Employment and concerning all the Group Companies. The Executive will not retain any copies of any materials or other information and all other property belonging or relating to any of the Group Companies; and 17.1.2 having forwarded a copy to the Company (to whomever the Board specifies), to the extent technically practicable irretrievably delete any and all confidential information from any laptops, computer drives, computer disks, tapes, mobile telephones, smartphones, tablets (and similar equipment) and other re-usable material and from any website and email account and cloud-based storage in the Executive's possession or under their control (but which do not belong to the Company or any of its Group Companies). 17.2 When the Employment terminates the Executive will promptly return to the Company any car provided to the Executive which is in the possession or under the control of the Executive. The Company car must be returned in good condition (allowing for fair wear and tear) (with any associated keys and documentation). 17.3 If the Executive commences garden leave in accordance with clause 14 the Executive may be required to comply with the provisions of clause 17.1. 18. Directorships 18.1 The Executive's office as a director of the Parent Company or any other Group Company (as applicable) is subject to the Articles of Association of the relevant company (as amended from time to time). If the provisions of this agreement conflict with the provisions of the Articles of Association, the Articles of Association will prevail. 18.2 The Executive must promptly resign from any office held in any Group Company if they are asked to do so by the Company. 18.3 If the Executive does not resign as an officer of a Group Company, having been requested to do so in accordance with clause 18.2, the Company will be appointed as their attorney to effect their resignation. By entering into this agreement, the Executive irrevocably appoints the Company as their attorney to act on their behalf to execute any document or do anything in their name necessary to effect their resignation in accordance with clause 18.2. If there is any doubt as to whether such a document (or other thing) has been carried out within the authority conferred by this clause 18.3, a certificate in writing (signed by any director or the secretary of the Company) will be sufficient to prove the act or thing falls within that authority. 18.4 The termination of any directorship or other office held by the Executive will not terminate the Executive's Employment or amount to a breach of terms of this agreement by the

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GBR01/120794093_2 xxii Company. 18.5 During the Employment the Executive will not do anything which could cause them to be disqualified from continuing to act as a director of any Group Company. 18.6 The Executive must not resign their office as a director of any Group Company without the agreement of the Company or if required to do so in accordance with the Articles of Association of any relevant Group Company 18.7 The Company shall ensure that directors' and officers' liability insurance is in place covering the Executive's directorship and holding of any office of the Company, the Parent Company or any Group Company, for the period of such directorships and offices and for no less than six years from the date on which the Executive ceases to hold the relevant directorship or office and, in each case, only to the extent that such insurance remains available on commercially reasonable terms and on equivalent terms to those in place from time to time for other Executive Directors of the Company, the Parent Company or any other Group Companies. 18.8 The Company shall ensure that the Executive benefits from a deed of indemnity, in relation to liability incurred by the Executive as an Executive Director of the Parent Company, on no less favourable terms than any current Executive Directors of the Parent Company. 19. Notices 19.1 Any notices given under this agreement must be given by letter or email. Notice to the Company must be addressed to its registered office at the time the notice is given. Notice to the Executive must be given to them personally or sent to their last known address. Notices sent by email must be sent to the email addresses specified for that addressee, as specified below: 19.1.1 in the case of the Executive: zyujnovich@gmail.com; 19.1.2 in the case of the Company: box.group.cosec@nationalgrid.com, for the attention of the Group Company Secretary. 19.2 Unless it is proved that it was received earlier (in which case such earlier date shall prevail) and subject to sub-clause 19.3 below, a notice is deemed to be received: 19.2.1 in the case of a notice given by hand, at the time when the notice is left at the relevant address or (in the case of notice to the Executive) with the Executive in person; and 19.2.2 in the case of a notice given by posted letter, on the third day after posting, or if posted to or from a place outside the United Kingdom, the seventh day after posting; and 19.2.3 in the case of a notice given by email, four hours after the time at which the email is sent to the email address(es) specified for that Party in clause 19.1, provided that the sender does not within that four hour period receive a delivery failure or delay notification in respect of the email address (or, if more than one email address is specified for that Party, in respect of all of the email addresses). 19.3 A notice received or deemed to be received in accordance with clause 19.1 above on a day which is not a Business Day, or after 5pm on any Business Day, shall be deemed to be received on the next following Business Day and for the purposes of this clause "Business

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GBR01/120794093_2 xxiii Day" shall mean a day (other than a Saturday or Sunday) on which banks are open for general business in London. 19.4 This clause does not apply to service of proceedings or other documents in any judicial proceedings. 20. Statutory Particulars 20.1 The written particulars of employment which the Executive is entitled to receive under the provisions of Part I of the Employment Rights Act 1996 are set out below, insofar as they are not set out elsewhere in this agreement. 20.1.1 The Company's disciplinary rules and dismissal, disciplinary and grievance procedures as set out in the Staff Handbook and as amended from time to time are applicable to the Executive. The disciplinary rules are contractual. The dismissal, disciplinary and grievance procedures are non-contractual. 20.1.2 The Company's normal hours of work are 9.00am to 5.00pm Monday to Friday. 20.1.3 There are no terms and conditions relating to collective agreements or to the requirement to work outside the United Kingdom. 21. Data Protection 21.1 The Executive acknowledges that the Company and Group Companies will collect, use, store, transfer and otherwise process the Executive's personal data (and, where relevant, that of the Executive's emergency contacts and, where applicable, dependants) including providing personal data to third parties and transferring personal data within and outside the UK and European Economic Area, in accordance with applicable data protection regulations. Further details relating to the processing of such personal data are set out in the Group Data Privacy Policy (which is non-contractual and may be amended from time to time), which is available on the Company's intranet. 21.2 The Executive agrees to use all reasonable endeavours to keep the Company informed and updated of any changes to their personal data, including, for example any change in the Executive's home address or other contact details. 21.3 The Executive agrees to familiarise themselves with the Company's Group Data Privacy Policy and Privacy Notice in force from time to time, available on the Company's intranet (and any other relevant policies and procedures relating to data protection in force from time to time including the Systems Acceptable Use Policy (available on the Company's intranet)) and agrees to act at all times in accordance with both the spirit and the letter of such policies and procedures when processing the personal data of others during the course of the Executive's Employment. This includes, without limitation, personal data relating to any employee or other worker, job candidate, customer, client, supplier or agent of the Company or any Group Company. 21.4 Failure to comply with the Company's policies (including those mentioned above) may lead to disciplinary action up to and including termination of employment. 22. Use of IT systems (including telephone, computer, e-mail and internet use) 22.1 The Executive acknowledges that all communications undertaken through the Company's systems (including, without limitation, email, text messages and instant messages) and all internet sites accessed by the Executive will be treated by the Company as work related. 22.2 The Executive acknowledges that the Company may intercept, record, and monitor their communications (whether sent or received and including the content of such communications) and systems use (including frequency of access of the systems and internet and the content viewed or accessed and security access records) subject to and in

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GBR01/120794093_2 xxiv accordance with the Company's Systems Acceptable Use Policy from time to time in force. Such monitoring may be routine or ad hoc and may be carried out without further notice to the Executive. The Executive acknowledges and agrees that intercepted and monitored communications may be used as evidence in disciplinary or legal proceedings. 22.3 The Executive must comply with the Company's Systems Acceptable Use Policy (which may be amended from time to time), available on the Company's intranet and any other relevant policies and procedures in force from time to time. 22.4 Failure to comply with the Company's policies (including those mentioned above) may lead to disciplinary action up to and including termination of employment. 23. Contracts (Rights of Third Parties) Act 1999 23.1 To the extent permitted by law, no person other than the parties to this agreement will have the right to enforce any term of this agreement under the Contracts (Rights of Third Parties) Act 1999. For the avoidance of doubt, save as expressly provided in this clause the application of the Contracts (Rights of Third Parties) Act 1999 is specifically excluded from this agreement, although this does not affect any other right or remedy of any third party which exists or is available other than under this Act. 24. Miscellaneous 24.1 This agreement may be entered into in any number of counterparts, all of which taken together will constitute one and the same instrument. Any party may enter into this agreement by executing any such counterpart. 24.2 This agreement may only be modified by the written agreement of the parties. 24.3 The Executive cannot assign this agreement to anyone else. 24.4 References in this agreement to rules, regulations, policies, handbooks or other similar documents which supplement it, are referred to in it or describe any pensions or other benefits arrangement are references to the versions or forms of the relevant documents as amended or updated from time to time. 24.5 This agreement (and the documents referred to herein) and the incentive agreement between the Executive and the Company of equal date supersede any previous written or oral agreement between the parties in relation to the matters dealt with in it. These (together with the Parent Company rules and policies) contain the whole agreement between the parties relating to the Employment at the date the agreement was entered into (except for those terms implied by law which cannot be excluded by the agreement of the parties). The Executive acknowledges that they have not been induced to enter into this agreement by any representation, warranty or undertaking not expressly incorporated into it. The Executive agrees and acknowledges that their only rights and remedies in relation to any representation, warranty or undertaking made or given in connection with this agreement (unless such representation, warranty or undertaking was made fraudulently) will be for breach of the terms of this agreement, to the exclusion of all other rights and remedies (including those in tort or arising under statute). 24.6 Neither party's rights or powers under this agreement will be affected if: 24.6.1 one party delays in enforcing any provision of this agreement; or 24.6.2 one party grants time to the other party. 24.7 The Interpretation Act 1978 will apply to this agreement in the same way as it applies to an enactment.

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GBR01/120794093_2 xxv 24.8 References to an enactment, EU instrument or statutory provision will include a reference to any subordinate legislation made under the relevant enactment, EU instrument or statutory provision and is a reference to that enactment, EU instrument, statutory provision or subordinate legislation as from time to time amended, modified, incorporated or reproduced and to any enactment, EU instrument, statutory provision or subordinate legislation that from time to time (with or without modifications) re-enacts, replaces, consolidates, incorporates or reproduces it. 24.9 Headings will be ignored in construing this agreement. 24.10 If either party agrees to waive their rights under a provision of this agreement, that waiver will only be effective if it is in writing and it is signed by them. A party's agreement to waive any breach of any term or condition of this agreement will not be regarded as a waiver of any subsequent breach of the same term or condition or a different term or condition. 24.11 This agreement is governed by and will be interpreted in accordance with the laws of England and Wales. Each of the parties submits to the exclusive jurisdiction of the English Courts as regards any claim or matter arising under this agreement. This agreement has been executed as a deed and is delivered on the date last shown below. EXECUTED as a DEED by) NATIONAL GRID UK LIMITED acting by)) JULIAN BADDELEY) ……………………………..……………………) (Signature of director) and)) CERI JAMOND) ……………………………..……………………) (Signature of secretary) DATED ____________________________________ EXECUTED as a DEED by)) ZOE YUJNOVICH) ……………………………..…………………… in the presence of) (Signature of executive)) Signature of witness ……………………………..…………………… Name of witness (in BLOCK CAPITALS) ……………………………..…………………… Address of witness ……………………………..…………………… ……………………………..…………………… ……………………………..…………………… DATED ____________________________________ 1 May 2025

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GBR01/120794093_2 xxv 24.8 References to an enactment, EU instrument or statutory provision will include a reference to any subordinate legislation made under the relevant enactment, EU instrument or statutory provision and is a reference to that enactment, EU instrument, statutory provision or subordinate legislation as from time to time amended, modified, incorporated or reproduced and to any enactment, EU instrument, statutory provision or subordinate legislation that from time to time (with or without modifications) re-enacts, replaces, consolidates, incorporates or reproduces it. 24.9 Headings will be ignored in construing this agreement. 24.10 If either party agrees to waive their rights under a provision of this agreement, that waiver will only be effective if it is in writing and it is signed by them. A party's agreement to waive any breach of any term or condition of this agreement will not be regarded as a waiver of any subsequent breach of the same term or condition or a different term or condition. 24.11 This agreement is governed by and will be interpreted in accordance with the laws of England and Wales. Each of the parties submits to the exclusive jurisdiction of the English Courts as regards any claim or matter arising under this agreement. This agreement has been executed as a deed and is delivered on the date last shown below. EXECUTED as a DEED by) NATIONAL GRID UK LIMITED acting by)) JULIAN BADDELEY) ……………………………..……………………) (Signature of director) and)) CERI JAMOND) ……………………………..……………………) (Signature of secretary) DATED ____________________________________ EXECUTED as a DEED by)) ZOE YUJNOVICH) ……………………………..…………………… in the presence of) (Signature of executive)) Signature of witness ……………………………..…………………… Name of witness (in BLOCK CAPITALS) ……………………………..…………………… Address of witness ……………………………..…………………… ……………………………..…………………… ……………………………..…………………… DATED ____________________________________ 1 May 2025

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## Exhibit 12.1

Exhibit 12.1

RULE 13a-14(a) CERTIFICATION

I, Zoë Yujnovich, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this annual report on Form 20-F of National Grid plc;

2. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. &nbsp;&nbsp;&nbsp;&nbsp;The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: 3 June 2026

/s/ Zoë Yujnovich

Zoë Yujnovich

Title: Chief Executive

National Grid plc

## Exhibit 12.2

Exhibit 12.2

RULE 13a-14(a) CERTIFICATION

I, Andrew Agg, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this annual report on Form 20-F of National Grid plc;

2. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. &nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. &nbsp;&nbsp;&nbsp;&nbsp;The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: 3 June 2026

/s/ Andrew Agg

Andrew Agg

Title: Chief Financial Officer

National Grid plc

## Exhibit 13.1

**Exhibit 13.1**

**RULE 13a-14(b) CERTIFICATION**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18 of the United States Code) each of the undersigned officers of National Grid plc, a public limited company incorporated under the laws of England and Wales (the "Company"), hereby certifies to such officer's knowledge, that:

The Annual Report on Form 20-F for the year ending 31 March 2026 (the "Report") of the Company fully complies with the requirements of section 13(a) or 15 (d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: 3 June 2026&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Zoë Yujnovich

Zoë Yujnovich

Title: Chief Executive

National Grid plc

Date: 3 June 2026&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Andrew Agg

Andrew Agg

Title: Chief Financial Officer

National Grid plc

## Exhibit 15.1

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

We consent to the incorporation by reference in Registration Statement No. 333-281812 on Form F-3 and Registration Statement Nos. 333-170716, 333-184558 and 333-293892 on Form S-8 of our reports dated 13 May 2026, relating to the consolidated financial statements of National Grid plc and the effectiveness of National Grid plc's internal control over financial reporting appearing in this Annual Report on Form 20-F for the year ended 31 March 2026

/s/ Deloitte LLP

London, United Kingdom

3 June 2026

<br>