Business
Ofgem's RIIO-T3 Final Determination published
National Grid has received Ofgem's Final Determination for the RIIO-T3 framework, which includes a real allowed cost of equity of 6.12% at 60% gearing for its electricity transmission business from April 2026 to March 2031. The company acknowledges Ofgem's recognition of the need for significant investment to maintain reliability and increase power transfer capacity. National Grid will now thoroughly review the determination to assess its investability and workability, particularly concerning the incentive framework and totex mechanisms, with a response anticipated in early March 2026. Disclaimer*
About this update from National Grid Plc
[{"type":"text","content":"\n\n \n4 December 2025\nNational Grid plc\nOfgem's RIIO-T3 Final Determination published\n \nOfgem has today published its Final Determination for the RIIO-T3 framework covering our National Grid Electricity Transmission business for the period April 2026 to March 2031. The proposals include a real allowed cost of equity of 6.12% at 60% gearing.\nWe welcome Ofgem's recognition of the need for significant investment into the electricity transmission sector to continue to deliver world leading reliability whilst nearly doubling the amount of power we can transfer around the country.\nWe will now review in detail the full package contained within the Final Determination, to assess how Ofgem have addressed the critical points we raised in our Draft Determination response, and therefore whether it delivers an overall framework that is both investable and workable. This includes an incentive framework that allows high performing networks to achieve a globally competitive overall return and totex mechanisms that enable transmission owners to recover the efficient cost of their investments whilst progressing projects at the pace expected by our stakeholders.\nWe expect Ofgem to publish the proposed licence modifications for consultation soon. These important documents will inform our assessment of the incentive opportunities and overall workability of the framework. Throughout this period we will continue to work closely with Ofgem ahead of publication of its decision on the licence in February. Relevant parties will then have 20 working days to assess the licence modifications. We anticipate announcing our response in early March 2026.\n \nEnquiries and contacts\nInvestors and Analysts\n\n\n\n\nAngela Broad\n\n\n+44 (0) 7825 351 918\n\n\n\n\nTom Edwards\n\n\n+44 (0) 7976 962 791\n\n\n\n\nCerys Reece\n\n\n+44 (0) 7860 382 264\n\n\n\n\n\n\n\n\n\n\n\n\nMedia\n\n\n\n\nAlex Roache\n\n\n+44 (0) 7843 802 006\n\n\n\n\nBen Davis\n\n\n+44 (0) 7914 539 999\n\n\n\n\nDan Roberts, Brunswick\n\n\n+44 (0) 207 404 5959\n\n\n\n\n \n \nCautionary statement\nThis announcement 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 Secur...