National Grid profits up 6% as UK imports cheaper power from France

National Grid has seen its full-year profits rise by 6%. It jumped to £4.1 billion for the year to 31st March, the gas and electricity network operator announced. It stated […]

Register now!

By Priyanka Shrestha

National Grid has seen its full-year profits rise by 6%.

It jumped to £4.1 billion for the year to 31st March, the gas and electricity network operator announced.

It stated the French interconnector contributed to the increase in profits as the UK imported cheaper power from France.

A spokesperson told ELN the price of energy in France was cheaper than in the UK last year, which led to traders importing it and selling it at a higher price here.

Its report added: “The 2GW capacity French Interconnector delivered another year of strong performance, increasing operating profit to £123m (2014/15: £103m). This primarily reflected a high power price differential between France and the UK in the first half of the year, increasing the revenue generated from the auctions of the interconnector’s capacity.”

National Grid said construction of the interconnectors to Belgium and Norway has commenced.

The UK regulated businesses delivered “another year of solid operational performance”, with the grid operator “well positioned” to deliver asset growth in 2016/17 and beyond.

Profits from the UK electricity transmission business fell by 5% but gas transmission and distribution profits were up by 11% and 6% respectively.

Its total capital investment in 2015/16 was £3.9 billion.

It expects to “maintain performance broadly at the level seen last year” in the UK. The process for the sale of a majority interest in the UK Gas Distribution business “is on track” with separation activities ongoing.

CEO John Pettigrew said: “In 2015/16, alongside the strong performance, we also made good progress with important rate filings in the US and the start of a process to sell a majority interest in the UK Gas Distribution business, which is expected to complete in early 2017.

“The needs of our customers remain at the centre of our business, demonstrated by the significant investment in critical infrastructure in the UK and the US, and over £330 million of savings generated for customers in the UK in the last three years.”