Research · Sep 3, 2026
[NGG] National Grid Compounds Regulated Networks Through RIIO-T3 Price Control And US Rate Base Growth
National Grid plc is a London, United Kingdom-headquartered regulated electricity and gas utility company listed in the United States as an American Depositary Receipt under the NGG ticker, operating as one of the largest investor-owned regulated utility companies globally. The company has scaled through multiple decades of operations and through multiple portfolio-reshaping transactions that have progressively concentrated the portfolio on regulated electricity and gas network operations in the United Kingdom and the United States. The business operates across multiple reportable segments: UK Electricity Transmission owning and operating the high-voltage electricity transmission network in England and Wales; UK Electricity Distribution owning and operating regional electricity distribution networks; New England including regulated electricity and gas networks in Massachusetts, New Hampshire, and Rhode Island; New York including regulated electricity and gas networks in New York; and National Grid Ventures and adjacent segments including interconnectors and select non-regulated activities. On selected various aggregate disclosure, the fiscal 2025 financial profile reflects total revenue in the high-teens-billion-British-pound range, an underlying operating profit profile that is predominantly derived from regulated network operations, and a capital structure that supports a long-tenured dividend alongside a multi-year regulated capital investment program. The UK and US regulated electricity and gas transmission and distribution core franchise anchors revenue, supported by the predominantly regulated and inflation-linked revenue base, by the UK regulated networks operating under the RIIO price control framework providing multi-year revenue visibility, and by the US regulated networks in New England and New York operating under state-level rate-case regulation. The multi-cycle UK RIIO-T3 price control combined with the US rate base growth drives the multi-year regulated asset base expansion, with RIIO-T3 expected to support a meaningful step-up in UK electricity transmission capital investment to accommodate the UK energy-transition grid buildout and the US networks requiring continued capital investment in grid modernization and reliability. Capital structure carries meaningful debt characteristic of a regulated utility with leverage managed within the parameters of the regulated capital structure framework. The bull case anchors on predominantly regulated and inflation-linked revenue base, UK RIIO-T3 and US rate base growth, and long-tenured dividend; the bear case anchors on interest-rate sensitivity of the high-leverage capital structure, UK regulatory price-control variability through successive RIIO periods, and currency-translation volatility of multi-currency operations.