London, Jan 6, 2026, 08:56 GMT — Regular session
- National Grid shares up 0.3% early Tuesday, hovering near 1,150p
- UK grid upgrade push and hiring needs back in focus after sector reporting
- Next watchpoints: UK rate outlook and National Grid’s Jan. 13 dividend date
National Grid (NG.L) shares edged up 0.3% to 1,153.5 pence by 0856 GMT on Tuesday, after trading between 1,141.0 and 1,155.5 earlier in the session, according to Investing.com data.
The stock has drawn renewed attention at the start of 2026 as investors weigh the scale of spending required to reinforce power networks and connect new demand, from renewables to data centres. For regulated utilities, those investment plans can lock in long-duration cashflows — but they also raise questions over funding costs and delivery risk.
Rate expectations are part of that equation. A British Retail Consortium survey cited by Reuters showed UK shop price inflation nudged up to 0.7% in December, while food price inflation rose to 3.3%, keeping inflation sensitivities on traders’ screens. Separately, money markets still expect the Bank of England to cut at least once more this year, with traders watching UK business activity figures alongside a run of global data. Reuters
Sector capacity is also in focus. The Financial Times reported that power network owners are accelerating recruitment to deliver grid upgrades, with Scottish Power Energy Networks chief executive Nicola Connelly calling it “the highest rate of recruitment … since the middle of the last century.” Financial Times
National Grid has framed the buildout as the centrepiece of its strategy on both sides of the Atlantic. In its most recent half-year results filing, it reiterated a five-year investment plan of around £60 billion and an underlying earnings-per-share growth target of 6%–8%, and said it was preparing a Massachusetts Gas “rate” filing in January — a request to regulators to reset tariffs and allowed returns. The same timetable lists an interim dividend of 16.35p payable on Jan. 13 and full-year results due on May 14. SEC
In the near term, traders are watching whether the shares can hold above the 1,150p area after early swings, with the session high at 1,155.5p. The stock remains below its 52-week high of 1,183.5p, a level that has capped rallies in recent months.
For investors, the appeal remains the predictable revenue base set by regulators — what the industry calls a “price control”, which caps what network operators can charge while rewarding delivery against targets. That framework can steady earnings, but it also leaves utilities exposed to tougher allowed returns if policymakers prioritise bill pressure over investment incentives.
The risk is that inflation proves stickier than markets expect, lifting bond yields and eroding the relative appeal of dividend payers. Delays in planning approvals, supply-chain bottlenecks or cost overruns on big transmission projects could also weigh, even for a business with largely regulated revenues.
