National Grid unveils £22bn capital investment programme and rights issue
Louise Bateman
20th May 2010
National Grid, which operates electricity and gas networks, today announced a capital investment plan of £22 billion over the next five years to meet renewable energy needs and to replace ageing infrastructure.
National Grid said it was seeking a £3.2 billion
rights issue to step up its
capital investment programme.
The news came as the company unveiled its end of year results for the year to March 31, which showed that revenues fell to £13.9 billion from £15.62 billion, while pre-tax profits rose 57 per cent to £2.1 billion.
National Grid said funds from the rights issue would be added to a spending programme in the coming year that will see National Grid commit £3.6 billion to reinforcing onshore transmission networks and connecting new energy sources.
"We believe the rights issue announced today will give us the scope and appropriate financial flexibility to deliver the group’s strategy," said National Grid chief executive Steve Holliday.
That strategy includes playing a leading role in tackling the long-term issue of security of supply and climate change facing the energy industry, the company said.
National Grid confirmed that it had agreed with energy regulator Ofgem to fund over £200 million to 2012 to facilitate the connection of new
renewable generation assets.
The company also confirmed it had launched a smart meter package which it will roll out on a large scale following small trials this summer. The smart meter package, which has been developed by its OnStream business, includes an electricity smart meter and a stand-alone gas smart meter.
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Green investment newsRenewables newsRelated links:www.nationalgrid.com