National Grid plc (NGG): Business Model Canvas [Dec-2025 Updated]

You're looking at National Grid plc (NGG) right after they dropped their massive, near-term strategic shift-that £60 billion five-year investment plan. Honestly, as someone who spent a decade analyzing infrastructure giants, this isn't just maintenance; it's a full-scale pivot to secure regulated growth, targeting a 10.5% Regulated Asset Base increase in FY2025 alone while pouring £7.7 billion into green CapEx this year. We need to see how this colossal spending, which hit a record £9,847 million in capital expenditure for FY2025, translates into the stable, regulated returns shareholders expect, especially given their £5,357 million underlying operating profit. Dive in below for the full Business Model Canvas breakdown to see exactly how National Grid plc is structuring itself to deliver on these ambitious targets.

National Grid plc (NGG) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships National Grid plc relies on to execute its massive infrastructure buildout, which is definitely not a solo effort. These partnerships are the lifeblood for securing funding, building assets, and connecting new power sources.

UK and US Government Regulators (Ofgem, NYPSC) for Rate Case Approvals

Regulatory sign-off dictates the pace and investment envelope for National Grid plc's core businesses. In the US, the New York Public Service Commission (NYPSC) provided a major win in May 2025.

The NYPSC unanimously approved National Grid plc's three-year electric and gas delivery rate plan for upstate New York. This plan supports capital investments of $\text{\$1.4}$ billion in the electricity delivery system and $\text{\$351}$ million in the natural gas system in the first rate year. The approved settlement includes a 9.5% return on equity for the period running from May 2025 through March 2028. Also, the plan mandates over $\text{\$290}$ million in bill discounts for vulnerable Upstate New Yorkers over the term.

In the UK, engagement with Ofgem remains central, particularly concerning the National Energy System Operator (NESO) role. National Grid plc's investments, part of the Great Grid Upgrade, are projected to avoid $\textsterling 12$ billion in constraint costs for consumers.

Here's a snapshot of the regulatory environment:

Great Grid Partnership: Seven Industry Partners for Onshore ASTI Projects

National Grid plc launched the Great Grid Partnership in Spring 2024 to tackle the scale and pace needed for Accelerated Strategic Transmission Investment (ASTI) projects. This is an enterprise model involving seven initial partners.

The partnership focuses on delivering an initial nine major infrastructure projects across England and Wales by the end of the decade. This collaborative structure is part of a larger $\textsterling 9$ billion supply chain framework intended to support infrastructure projects beyond 2030.

The seven partners are split between design/consenting and construction:

• Design and Consenting Service Partners: AECOM-Arup (JV) and WSP.
• Construction Partners: Laing O'Rourke, Morgan Sindall Infrastructure, Morrison Energy Services, Murphy, and Omexom/Taylor Woodrow (OTW).

Supply Chain Partners for the $\textsterling 12$ Billion HVDC Framework

National Grid plc finalized a significant portion of its $\textsterling 59$ billion supply chain framework awards with the completion of the High Voltage Direct Current (HVDC) civil works framework, valued at $\textsterling 12$ billion. These contracts are secured for an initial five-year period, with an option to extend for another three years.

The $\textsterling 12$ billion is split across two lots:

• Lot 1 (HVDC converter civil works): Valued at approximately $\textsterling 9.07$ billion, awarded to six suppliers: Balfour Beatty, BAM Nuttall, Galliford Try, Laing O'Rourke, Skanska, and Taylor Woodrow.
• Lot 2 (HVDC onshore cable civil works): Estimated at $\textsterling 3.7$ billion, awarded to three suppliers: Balfour Beatty, Murphy, and VolkerFitzpatrick.

Separately, National Grid plc awarded contracts under the broader HVDC supply chain framework, including the HVDC Cable Framework (approx. $\textsterling 21.3$ billion) and the HVDC Converter Framework (approx. $\textsterling 24.6$ billion).

Renewable Energy Developers (e.g., Ørsted) for Grid Connections

The ability to connect renewable energy projects is directly tied to National Grid plc's grid upgrade strategy. The National Energy System Operator (NESO) finalized reforms in late 2025 to prioritize shovel-ready projects, aiming to unlock up to $\text{\$40}$ billion of annual investment in clean energy infrastructure.

Under the old system, over 700 GW of generation and storage projects were waiting in the connections queue. The new approach identifies 132 GW of projects aligned with the UK government's Clean Power by 2030 target.

In a related move, National Grid plc disposed of its interest in National Grid Renewables Development LLC (NG Renewables) to Brookfield Asset Management for cash consideration of $\text{£1.5}$ billion ($\text{\$2.1}$ billion) in the period ended September 30, 2025.

National Grid Ventures (NGV) has committed capex of around $\text{£1}$ billion over the five years to 2028/29, which includes maintenance investment across its six operational interconnectors.

Technology Providers (e.g., Siemens Energy) for Smart Grid Modernization

Technology partners are crucial for the digitalization and modernization required to handle the energy transition. Siemens Energy is a key player, particularly through its Grid Technologies business, which saw 32% year-on-year revenue growth based on its Q4 2024 earnings call context.

Siemens Energy was named a supplier on the HVDC Converter Framework, which is valued at approximately $\textsterling 24.6$ billion within the larger $\textsterling 59$ billion supply chain awards.

The parent company, Siemens, reported revenue of $\text{€78.9}$ billion and net income of $\text{€10.4}$ billion for its fiscal year ending September 30, 2025.

Key technology areas for partnership include:

• HVDC systems for connecting large-scale renewables.
• Grid stabilization solutions like synchronous condensers.
• Digital tools, where 74% of energy executives see smart grids and grid software as crucial enablers.

National Grid plc (NGG) - Canvas Business Model: Key Activities

National Grid plc's key activities center on the operation, maintenance, and significant expansion of regulated energy networks across the UK and the US, underpinning the energy transition.

Operating and maintaining high-voltage electricity transmission in England/Wales

National Grid Electricity Transmission plc owns and operates the regulated high-voltage electricity transmission network in England and Wales, ensuring safe, reliable, and efficient operation. The Regulated Asset Value (RAV) for this segment stood at £20,570 million as of March 31, 2025, representing an 11.4% increase from £18,462 million the prior year. Reliability for the UK Electricity Transmission network was 99.999832% for the year ended March 31, 2025. This operation facilitates the connection of generation assets directly to the transmission system.

Managing electricity and gas distribution networks in New England and New York

The US regulated businesses are a major focus for capital deployment and performance delivery. The five-year investment plan to 2028/29 allocates around £17 billion for New York and £11 billion for New England. Underlying operating profit growth in the year ended March 31, 2025, was 43% in New York and 16% in New England. The Smart Path Connect major transmission project in upstate New York is on track to energize by December 2025.

Executing the £60 billion five-year capital investment program to 2029

National Grid plc announced a new five-year financial framework targeting total cumulative capital investment of around £60 billion over the five years to March 2029. This is nearly double the investment level of the previous five years. The first year of this framework, for the period ended March 31, 2025, saw record capital investment of £9,847 million, a 20% increase from 2024. For the half year ended September 30, 2025, investment was a record £5 billion, on track for over £11 billion for the full 2025/26 year.

Here's a breakdown of the planned investment allocation across the five-year framework:

Delivering Accelerated Strategic Transmission Investment (ASTI) projects

The UK Electricity Transmission investment includes work across 17 ASTI projects, critical infrastructure for enabling the energy transition. As of March 31, 2025, all six Wave 1 ASTI projects were under construction. The company secured the supply chain for 12 onshore and Eastern Green Links 1 & 2 offshore ASTI projects, representing more than two-thirds of the total £60 billion investment plan.

Replacing leak-prone gas mains and installing Advanced Metering Infrastructure (AMI)

National Grid plc expects to invest the remainder of the capital plan into its gas business on pipeline replacement, safety, and resilience programs, with nearly 60% of the total investment going into electricity networks. Key activities include:

• Replacing leak-prone pipe across US gas networks; 352 miles replaced in 2024.
• Investment in leak-prone pipe replacements across gas networks increased by 16% in the year ended March 31, 2025.
• Advanced Metering Infrastructure (AMI) installations in the US for the half year ended September 30, 2025: over 360,000 meters in New York and around 220,000 in New England.

The company also has six operational interconnectors requiring maintenance investment, committed under National Grid Ventures (NGV) capex of around £1 billion over the five years to 2028/29.

National Grid plc (NGG) - Canvas Business Model: Key Resources

You're looking at the core assets National Grid plc leans on to execute its strategy, which is heavily focused on regulated networks now, post-divestitures. These resources are the bedrock of their stable, predictable growth profile.

The Regulated Asset Base (RAB) saw significant expansion in the first year of the new framework. Regulated asset growth for the year ended March 31, 2025, reached 10.5%. Overall asset growth for the group, however, was 9.0%, reflecting the impact of non-regulated business changes and divestments.

Here's a snapshot of the key financial and regulatory anchors supporting this resource base as of late 2025:

The sheer scale of the physical infrastructure is immense, backed by a massive capital commitment. National Grid plc has outlined a cumulative capital investment plan of around £60 billion over the five years through March 2029. This investment is directed toward maintaining and expanding the extensive network infrastructure.

The physical assets include:

• Transmission lines and substations across the UK Electricity Transmission business.
• US regulated assets in New York and New England.
• The UK Electricity Distribution (NGED) network, which spans over 230,000 km of overhead lines and underground cables.
• Gas pipelines across the US networks.

The specialized workforce is a critical, non-physical asset enabling the operation and expansion of this infrastructure. As of March 31, 2025, National Grid plc reported a total of 31,645 employees. The UK Distribution business alone directly supports over 7,100 jobs. This team is tasked with delivering on the ambitious investment plans, including securing supply chain partners for over three-quarters of the £60 billion five-year capital plan.

Long-term regulatory agreements provide the revenue visibility necessary to fund these capital-intensive resources. In the US, new rate cases were agreed for KEDNY, KEDLI, and MECO, with a joint proposal filed for NIMO. Furthermore, around 70% of the US investment planned for the five-year frame has been agreed upon with regulators. The UK RIIO-T3 framework, set to run from April 2026 to March 2031, is central to the UK asset base, with the submitted plan aiming to connect 35 GW of new generation and 19 GVA of demand customers. Finance: draft 13-week cash view by Friday.

National Grid plc (NGG) - Canvas Business Model: Value Propositions

You're looking at the core promises National Grid plc makes to its customers, regulators, and investors as it navigates the massive shift to clean energy. It's about keeping the lights on while building the future grid.

Highly reliable energy delivery remains a foundational promise, backed by operational excellence even when facing severe weather events.

• UK Electricity Transmission reliability reached 99.99983% in FY2025.
• Overall electricity network reliability was above 99.84% in FY2025.

The commitment to enabling the clean energy transition is quantified by an unprecedented investment scale. This is the engine for connecting new renewable sources and modernizing the system.

• Green capital investment aligned to the EU Taxonomy reached £7.7 billion in FY2025.
• This represented an increase of £1.7 billion on the prior year's green CapEx.
• The five-year financial framework targets cumulative capital investment of around £60 billion through to March 2029.
• For the first half of FY2026 (six months ended 30 September 2025), capital investment was a record £5.1 billion, on track for over £11 billion for the full year.

National Grid plc delivers secure and resilient network capacity for growing power demand by focusing investment heavily on electricity networks, targeting significant asset base growth.

Here's a quick look at the key metrics underpinning these value propositions:

For shareholders, the value proposition is regulated, stable returns, driven by the regulated asset base growth and the multi-year investment framework.

• The target for underlying Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) is 6-8%.
• This growth is targeted from a 2024/25 baseline underlying EPS of 73.3p.
• The company aims to maintain credit metrics above thresholds for its current investment-grade ratings through at least the end of the RIIO-T3 price control period.

Delivering affordable service through efficiency and customer support programs is a regulatory necessity, balancing investment needs with customer bills. The company is implementing rate plans on a levelised basis to reduce bill volatility for customers. For example, UK Electricity Distribution achieved a customer satisfaction score of 8.98 out of 10 in 2024/25. Still, UK Electricity Transmission satisfaction was lower at 6.5 out of 10 in the same period.

Finance: draft 13-week cash view by Friday.

National Grid plc (NGG) - Canvas Business Model: Customer Relationships

You're looking at how National Grid plc manages its relationships with the millions of customers and stakeholders it serves across the UK and US regulated markets. This is fundamentally a relationship built on long-term, regulated contracts, so the focus is less on transactional sales and more on service delivery, compliance, and social responsibility.

Regulated service agreements with long-term price controls define the core of the relationship for transmission and distribution services. Revenue here is not based on volume sold but on allowed revenues set by regulators like Ofgem under the RIIO model, which is structured as Revenues = Incentives + Innovation + Outputs. For the UK Electricity Distribution business, the regulatory gearing is currently at 61%, with a plan to trend back towards the high 60% range by the end of the RIIO-T3 price control period. This framework directly impacts the customer through investment decisions. For instance, the recent £28 billion funding package approved by Ofgem for the UK grid (estimated to rise to £90 billion by 2031) allocates £17.8 billion for gas network maintenance and £10.3 billion to strengthen the electricity transmission network. Ofgem projects this investment will result in a net increase to household bills of around £30 by 2031, but also suggests electricity grid expansion alone will reduce bills by £50 by 2031 due to lower reliance on imported gas.

National Grid Electricity Distribution plc serves 8.1 million homes and businesses, powering over 20 million customers across its network, which spans over 230,000 km of overhead lines and underground cables. These regulated activities mean that variances in service usage can result in revenue over-recoveries or under-recoveries against allowed revenues, which are adjusted in future periods based on the regulatory agreements.

The company maintains specific programs to support vulnerable customers. The Grid for Good Fund is a key relationship touchpoint here. National Grid announced a £13.8 million programme in February 2025 to support struggling UK and US households over three years. A recent allocation within this commitment was £2.3 million (the second phase, following an initial £1.2m in February 2025), aimed at helping more than 16,000 homes. This money flows through expert charities; for example, this latest round helps Citizens Advice support over 3,000 households with tailored energy advice. The Fuel Bank Foundation partnership has supported around 10,500 people since 2021 through emergency fuel vouchers.

For day-to-day interactions, National Grid plc is pushing for digital self-serve tools, largely enabled by smart meter deployment. In the US northeast, National Grid has deployed about 2.4 million smart meters and gas modules over several years. They recently added another 450,000 meters in central and eastern New York, with plans to expand that network to the western side of the state in January 2025. Smart meters provide customers with continuous access to energy usage data, allowing them to monitor usage, get individualized saving tips, and potentially lower their bill. Critically, smart meters allow for starting, stopping, or moving service without needing to set an appointment or wait for technicians, a major convenience improvement over conventional meters.

Stakeholder engagement with independent groups on business plans is extensive, especially ahead of regulatory price control submissions. For the T2 period business plan, National Grid plc conducted its most extensive engagement exercise ever, hearing from over 1,000 individuals representing all main stakeholder segments. This input incorporated the views of over 11,000 household consumers and over 750 business consumers via various channels. Furthermore, for infrastructure projects, historical data from the 2021-22 construction phase shows they wrote to over 36,900 homes and businesses about construction works, supported by six community relations agencies.

Direct communication for planned outages and safety information is a necessary operational relationship. While specific real-time communication metrics for late 2025 aren't available, the infrastructure engagement data shows that the primary channel for both inbound and outbound contact during construction works was email, with telephone being the second highest for inbound contacts. The company also manages complaints, with top reasons historically being light/dust/noise/vibration and traffic management.

Here's a quick view of the key relationship metrics:

The commitment to social support is quantified by the multi-year, multi-million-pound funding initiatives. The £13.8 million Grid for Good Energy Affordability Fund is a clear financial commitment to easing customer pressure. Also, the regulatory structure itself is a relationship contract, where the current regulatory gearing of 61% informs the capital structure decisions that underpin service reliability.

You can see the digital push through the deployment numbers; 2.4 million smart meters in the US northeast is a substantial base for remote service management. The engagement process for the T2 plan involved direct feedback from over 11,000 households, showing a deliberate effort to incorporate customer voice into the business strategy that dictates future service levels.

• Regulated revenue is based on pre-determined allowed revenues, not just usage.
• The RIIO model emphasizes incentives, innovation, and outputs.
• Smart meters enable remote service changes, avoiding appointments.
• The company aims for dividend growth in line with UK CPIH inflation.
• The total five-year capital investment plan is around £60 billion.

Finance: draft 13-week cash view by Friday.

National Grid plc (NGG) - Canvas Business Model: Channels

National Grid plc channels its energy delivery and services through a mix of regulated physical infrastructure and commercial/digital interfaces across the UK and the US Northeast.

High-voltage transmission networks (UK and US Northeast)

The UK Electricity Transmission (UK ET) segment operates the high voltage electricity transmission network across England and Wales. For the fiscal year ended 31 March 2025, UK ET reported a statutory operating profit of £1,277 million. This channel is focused on enabling the energy transition, with the RIIO-T3 business plan submitted to connect 35 GW of generation and 19 GVA of demand customers. As of FY2025, National Grid plc connected 2.2 GW of renewable generation in the UK, including 1.2 GW from the Dogger Bank wind farm. All six Wave 1 Accelerated Strategic Transmission Investment (ASTI) projects were under construction in FY2025.

In the US, National Grid plc owns and operates high voltage electric transmission lines across Massachusetts, New Hampshire, and Vermont, with the New England segment reporting a statutory operating profit of £1,008 million for FY2025. The Smart Path Connect major transmission project in New York is on track to energise by December 2025.

The core network assets are central to the five-year plan, with a total cumulative capital investment planned of around £60 billion through the five years to 2028/29, driving Group assets towards £100 billion by March 2029.

Local electricity and gas distribution networks (UK and US Northeast)

National Grid Electricity Distribution plc (NGED) in the UK powers the lives of over 20 million customers, connected to a network serving 8.1 million homes and businesses. NGED also operates the Distribution System Operator (DSO) function. In the US Northeast, National Grid plc serves electricity and gas customers in Massachusetts, New York, and Rhode Island. The company replaced a further 352 miles of leak-prone pipe across its US gas networks in FY2024.

National Grid Ventures (NGV) for interconnectors and commercial operations

National Grid Ventures (NGV) manages commercial assets, including interconnectors. For the six months ended 30 September 2025, NGV reported an operating profit of £121 million from Interconnectors and £91 million from Grain LNG. Total NGV operating profit and post-tax share of JVs for H1 2025/26 was £227 million. NGV committed capital expenditure of around £1 billion over the five years to 2028/29, including maintenance across its six operational interconnectors. In FY2025, NGV capital investment was £378 million. The company agreed the sale of its Grain LNG business for cash proceeds of £1.66 billion. The sale of the National Grid Renewables onshore business in the US was completed on 29 May 2025.

Digital platforms for customer service and smart meter data

Service quality is tracked through regulatory reporting in the US. For the quarter ended June 30, 2025, the System Average Interruption Frequency Index (SAIFI) for Niagara Mohawk Power Corporation was 0.52 outages per customer per year, against a target of less than or equal to 1.08. The Customer Average Interruption Duration Index (CAIDI) for the same period was 2.03 average hours per interruption, against a target of less than or equal to 2.10. Furthermore, the Distribution and sub-Transmission projects metric was 88.7% YTD through 06/30/2025.

Direct field service teams for maintenance and emergency response

Field service activity is reflected in investment figures for asset condition and maintenance. Capital investment in H1 2025/26 increased by 12% relative to the prior year period, driven by asset condition projects across US networks and UK Electricity Transmission. In FY2025, National Grid plc invested almost £10 billion across the Group.

• UK Electricity Distribution supports over 7,100 direct jobs.
• The company is securing the supply chain for more than three-quarters of its £60 billion five-year investment plan.

National Grid plc (NGG) - Canvas Business Model: Customer Segments

You're looking at the core groups National Grid plc serves across its regulated footprint in the UK and the US Northeast as of late 2025. These segments drive the massive capital investment plans we see.

Regulated customers: Residential, commercial, and industrial end-users in the UK and US Northeast

The sheer scale of the customer base in the regulated distribution networks is substantial. In the UK Electricity Distribution business, National Grid plc serves 8.1 million homes and businesses, which powers over 20 million customers. In the US, specifically across New York and Massachusetts, the company is responsible for delivering energy and customer service to approximately 6 million accounts.

The UK Electricity Distribution segment is broken down across four main areas:

• NGED South West: 1.7 million connections.
• NGED South Wales: 1.2 million connections.
• NGED East Midlands: 2.7 million connections.
• NGED West Midlands: 2.5 million connections.

For the transmission network upgrades under the RIIO-T3 plan, National Grid plc is planning to directly connect 19 GVA of demand customers in the UK. To give you a sense of the emerging industrial demand, data centers in the UK are projected to account for up to 9 percent of electricity demand by 2035, up from 2.6 percent today. One specific transmission project, the Uxbridge Moor substation, is set to deliver 1.8GW of new capacity to support over a dozen new data centers.

Energy generators: Offshore wind and solar farms needing grid connection

Connecting new, large-scale generation is a primary focus for the transmission business. In the fiscal year ending March 2025, National Grid plc connected 2.2 GW of renewable generation in the UK, which included 1.2 GW specifically from the Dogger Bank offshore wind farm. Across both the Transmission and Distribution networks in the UK for that same year, the company connected a total of 1.6 GW to Transmission and 0.6 GW to Distribution from renewable sources. The Great Grid Partnership is targeting connections of 50 GW of offshore wind by 2030. In the US Northeast, the Revolution Wind project in Rhode Island and Connecticut represents 704 MW of planned offshore wind capacity.

Here is a look at the generation connection targets and recent capacity additions:

Other utilities and system operators using the transmission network

While National Grid plc divested the UK Electricity System Operator (ESO) on October 1, 2024, the transmission network remains a shared asset. The UK Electricity Transmission business plan for RIIO-T3 includes provisions to avoid £12 billion of constraint costs, which is directly related to efficient network use by all parties, including generators and large users. The plan to reinforce and expand the grid involves 17 ASTI electricity transmission projects.

Large-scale industrial users requiring high-capacity connections

This segment includes major industrial users and the rapidly growing data center sector. In the UK Electricity Distribution network during 2024/25, National Grid plc connected 208 large demand projects, defined as those over 1 MW. The UK transmission network is preparing for significant new demand, with the RIIO-T3 plan aiming to connect 19 GVA of demand customers. Specifically, the development of AI Growth Zones, such as the one in the north-east of England, is expected to unlock £30 billion of investment, with National Grid working to connect 1.1 GW of demand across that zone alone.

National Grid plc (NGG) - Canvas Business Model: Cost Structure

You're looking at the hard costs National Grid plc incurs to keep the lights on and the gas flowing across its massive regulated asset base. This structure is dominated by long-term investment and the associated debt servicing.

Capital expenditure is a massive, planned outlay, directly tied to regulatory commitments like the Accelerated Strategic Transmission Investment (ASTI) projects and network resilience upgrades across the US and UK.

• Capital expenditure recorded in FY2025: £9,847 million.

Operating costs cover the day-to-day running of the networks, which includes everything from paying the engineers to procuring energy for balancing services. These costs are heavily influenced by pass-through items governed by regulatory frameworks.

The sheer scale of the asset base means depreciation and amortization is a significant, non-cash charge reflecting the wear and tear on billions of pounds worth of infrastructure.

• Depreciation, amortisation and impairment (Continuing Operations) for FY2025: £2,175 million.

Servicing the debt required to fund this investment is a major cash outflow. National Grid plc carries substantial leverage to finance its regulated asset value growth.

• Net debt as of September 30, 2025: £41.8 billion.
• Statutory net finance costs (FY2025): £1,357 million.

Finally, there are the costs associated with operating within a heavily regulated environment, which includes fees and compliance expenditures necessary to maintain licenses to operate in key jurisdictions.

• Regulatory compliance and license fees (Ofgem, NYPSC) are a necessary, ongoing cost.

Finance: draft 13-week cash view by Friday.

National Grid plc (NGG) - Canvas Business Model: Revenue Streams

You're looking at the core money-making engine for National Grid plc as of late 2025, which is heavily weighted toward regulated network charges. This is the bedrock of their revenue, driven by the assets they own and operate across the UK and US.

The primary revenue source comes from regulated transmission and distribution charges (tariffs) in the UK and US. These charges are directly linked to the size of the asset base they are allowed to operate, known as the Regulated Asset Base (RAB) or Rate Base. National Grid plc reported that the Group asset growth was around 10% in the fiscal year ending March 31, 2025, supported by record capital investment of almost £10 billion (specifically £9,847 million) during that period. This investment fuels the growth in the RAB, which in turn drives regulated returns.

The total Group asset base, or Rate Base, stood at £67.50 billion as of March 31, 2025. This massive base is segmented across their key regulated operations, which generate the bulk of their predictable income.

Here's a quick look at the key components of that asset base that generate these regulated revenues:

• UK Electricity Transmission RAV: £20.57 billion
• UK Electricity Distribution RAV: £12.24 billion
• New York and New England Networks: The remainder of the £67.50 billion base

The financial results for the fiscal year ending March 31, 2025, clearly show the strength of this regulated model, even with a dip in gross revenue. The Underlying operating profit for National Grid plc in FY2025 was reported at £5,357 million, up 12% from the prior year's £4,773 million. This profit growth is directly tied to the regulated asset growth.

You can see the key financial metrics for the period in this table:

Revenue from National Grid Ventures (NGV) is a smaller, more volatile component, representing non-regulated activities, including interconnectors. For FY2025, the statutory operating profit from National Grid Ventures was only £5 million, a sharp drop from £558 million the year before, primarily due to lower interconnector revenues as market spreads normalized. However, National Grid plc maintains a long-term commitment to this area, with a committed capital expenditure of around £1 billion over the five years to 2028/29, which includes maintenance across the six operational interconnectors.

Another significant, though non-recurring, cash inflow comes from proceeds from divestments, which streamlines the business back to its core networks focus. National Grid plc agreed to sell its Grain LNG business in August 2025 for total proceeds of approximately £1.66 billion, including a pre-completion dividend. This follows the completion of the sale of their NG Renewables business in May 2025. These sales provide capital to fund the core network investment plan.

For the upcoming year, National Grid plc expects underlying net revenue to increase by over £250 million compared to 2024/25, which they attribute primarily to higher allowances resulting from the growing RAB and indexation.