Business
Upgraded 5-year framework and RIIO-T3 acceptance
National Grid has announced an extended and upgraded 5-year Financial Framework through FY31, committing to at least £70 billion in cumulative capital investment, driving approximately 10% asset growth CAGR, and targeting an upgraded underlying EPS CAGR of 8-10% from an FY26 baseline, while aiming to grow dividends in line with UK CPIH. The company has also accepted the RIIO-T3 regulatory framework for its UK Electricity Transmission Business, which, alongside positive US regulatory outcomes, provides enhanced visibility and momentum. This framework supports a significant increase in investment, with UK Electricity Transmission receiving approximately £31 billion, UK Electricity Distribution £9 billion, New York Regulated £17 billion, New England Regulated £12 billion, and National Grid Ventures £1 billion, expecting Group assets to reach around £115 billion by FY31. Disclaimer*
About this update from National Grid Plc
02 March 2026 National Grid plc Extended and upgraded 5-year Financial Framework and acceptance of RIIO-T3 National Grid today announces an extended and upgraded 5-year Financial Framework[1] to FY31, further underpinning our attractive investor proposition of growth and yield, with: · Cumulative capital investment of at least £70 billion; · Group asset growth CAGR of around 10%; · Upgraded underlying earnings per share CAGR of 8-10% from an FY26 baseline, more aligned with our asset growth; · A strong balance sheet, with credit metrics consistent with current Group rating; and · Aim to grow the dividend per share in line with UK CPIH. We are also announcing our acceptance of the RIIO-T3 regulatory framework for our UK Electricity Transmission Business, which along with constructive recent US regulatory outcomes and our progress in securing supply chain creates improved visibility and momentum across the Group over the next five years to FY31. Zoë Yujnovich, Chief Executive said: "Today marks a further step in accelerating investment in Britain and the US Northeast at a time when modern, resilient networks are fundamental to economic growth. Building on National Grid's strong track record of delivery, we are expanding our record levels of investment to at least £70 billion by FY31, driving around 10% asset growth and an upgraded underlying EPS CAGR of between 8 and 10%. Our focus is clear: disciplined execution, at scale, supported by regulatory frameworks that recognise the critical role of networks. We are delivering infrastructure that will ensure reliable, cleaner and increasingly affordable energy - for customers, communities and long‑term investors alike." National Grid's new 5-year Financial Framework to FY31 is supported by multiple investment drivers from decarbonisation and energy security to accelerating demand growth from data centres and the rise of AI, alongside the electrification of industrial demand. This, together with our robust delivery plans and strong balance sheet allows us to extend and upgrade our financial framework. Our investment plan represents a 70% increase relative to the prior 5 years reflecting a doubling of investment into UK electricity networks, and an almost 50% increase in investment into our US gas and electr...