London, Feb 10, 2026, 09:01 GMT — Regular session on.
- National Grid shares ticked lower at the open but remained close to their 52-week peak.
- The company has wrapped up a significant overhead line upgrade along a crucial route linking England and Scotland.
- Ofgem’s upcoming licence decisions are on investors’ radar, with the unpredictable UK rates environment adding to the uncertainty.
National Grid slipped roughly 0.1% to 1,285 pence at 0901 GMT, holding close to its 52-week peak. The company pointed to new advances on network upgrades in northern England. 1
The power and gas network operator said Monday it’s finished upgrading the overhead line running from its Harker substation, just outside Carlisle, up to the Scottish border. Crews swapped out old circuits for higher-capacity wire and strung up a fresh 12-km circuit atop existing pylons to help clear the traffic jam on the grid. All told, over 90 km of overhead line was either replaced or newly installed. There’s still a 184-tonne transformer scheduled to arrive in March. Once that’s in, the new substations will feature gas-insulated switchgear without any sulphur hexafluoride (SF6)—the greenhouse gas that’s been a sticking point. “It improves reliability today and creates capacity for cleaner energy in the future,” construction director Mark Brindley said. 2
Timing is key here. Britain’s move to ramp up renewable energy is straining grid capacity and testing project timelines. The government, on Tuesday, announced its latest Contracts for Difference (CfD) auction landed 4.9 GW of solar and a total 6.2 GW in new renewables. CfDs, those government-backed price mechanisms, kick in when wholesale prices dip below a certain mark—topping up revenues—or pull money back when prices surge. Energy Secretary Ed Miliband says the plan is to “drive bills down for good” and shield consumers from wild swings in fossil fuel prices. 3
UK utilities are seeing active trading as political uncertainty rattles sterling and government bonds. Monday’s turmoil has investors on edge. “Changing the leadership … probably not going to change too much in reality,” said Nick Kennedy, FX strategist at Lloyds, as renewed questions swirl around Prime Minister Keir Starmer’s future. 4
Utility stocks often react to rate shifts, since their payouts go head-to-head with bond yields. When yields rise, those dividends lose some shine. On Tuesday, UK 10-year gilt yields slipped back to roughly 4.50%, retracing ground after Monday’s jump linked to the political turmoil. A gilt refers to a UK government bond. 5
Stepping back from the daily moves, regulation remains the wild card for National Grid. The company told investors it’s looking for Ofgem’s decision on RIIO-3 changes to its electricity transmission licence in February. After Ofgem rules, stakeholders get a 20-working-day window to review. National Grid says it’ll outline its own response sometime in early March. RIIO-3, for context, sets the multi-year revenue and incentive regime for network operators. 6
Ofgem continues to seek input on sections of the RIIO-3 package, specifically the “associated documents.” Stakeholders have until Feb. 26 to respond. 7
RIIO-3 kicks off April 1 and stretches through March 31, 2031, taking in both electricity transmission and the gas side—distribution and transmission alike. That timeline brings the licence decision, plus whatever negotiations might follow, to the forefront for UK network operators. 8
SSE’s network arm and other UK grid players are subject to the same regulatory forces. If the settlement turns harsher, it’s unlikely the impact will be limited to National Grid; the effects would probably sweep across the whole sector.
Still, the immediate risk isn’t one-sided. A sharper selloff in rates, fresh political turbulence in the UK, or tougher licence conditions could sour sentiment in a hurry — regardless of how solid the daily construction updates look.
The FTSE 100 slipped at the start, with utilities and other defensive stocks finding themselves overshadowed by bigger-picture macro news rather than setting the tone. 9
National Grid has the RIIO-3 licence decision slated for February; investors are watching for the company’s reaction in early March. The group’s full-year numbers for 2025/26 will land on May 14. 10
