LONDON, April 27, 2026, 19:06 BST
- National Grid closed Monday in London at 1,293.60p, slipping 0.11%. Trading volume reached 6.20 million shares, according to LSEG data.
- With the UK pushing to fast-track renewables, slash gas-tied power rates, and ramp up network upgrades, investors are rethinking the company’s place in the grid.
- All eyes now turn to May 14—the day National Grid is set to release full-year numbers, having already warned investors to expect about a 1p drag on underlying earnings per share, which strips out certain one-off items.
National Grid plc slipped on Monday, halting its recent climb. Investors are now sizing up the UK network operator’s role in Britain’s latest clean-energy push, while also factoring in policy headwinds, interest rates, and U.S. cost concerns.
This time, it’s different: the government’s new energy package is pulling grids and storage into sharper focus for investors. London’s targeting the stubborn tie between power bills and gas prices, pitching fixed-rate contracts to older low-carbon generators, and pushing for faster grid upgrades to handle more renewable flows nationwide.
A ministerial statement released last week suggested that public land could open the door to as much as 10 gigawatts in new renewable energy, potentially supplying around 5 million homes. The announcement highlighted plans for changes to land access, network consent, and self-build grid connection rules. But even with more renewables, transmission remains a hurdle—National Grid’s role is crucial here.
National Grid shares ended at 1,293.60p, slipping 1.40p for the session. Still, the stock has gained 1.35% in the past five days and is up 20.67% over the last year, based on Investors Chronicle market data. The stock’s moves have tracked other UK utilities, as investors weigh defensive profits against large capex requirements and ongoing political uncertainties.
Morningstar flagged National Grid, SSE, and Centrica on Monday as stocks with varying exposure to the UK’s renewables transition. SSE’s fortunes rest more on wind, hydro, and solar projects. Centrica, by contrast, leans toward gas, supply, and nuclear. National Grid stands out as an infrastructure bet, with its returns tied to regulated networks, not just generation.
David Harrison, who oversees sustainability at Rathbones Asset Management, told Morningstar he sees National Grid in a “strong position” when it comes to making long-term capital allocation calls. Still, Morningstar energy analyst Tancrede Fulop cautioned that investors shouldn’t view the story as “a simple one-way trade” — inflation and high borrowing costs are putting pressure on capital-intensive assets. Morningstar
National Grid operates under a regulated model, setting it apart from power generators. Reuters calls it a UK energy group with roles in Britain’s electricity transmission and distribution, along with electricity and gas networks across New England and New York.
There’s change coming on the UK regulatory front. Ofgem’s RIIO-3 framework—standing for “Revenues = Incentives + Innovation + Outputs”—lays out the allowed returns and incentives for monopoly gas and power networks between April 2026 and March 2031. National Grid’s UK electricity transmission business will fall under this five-year price control window. Ofgem
Back in March, National Grid projected adjusted earnings per share would climb 13% to 15% by 2027, pointing to increased allowed revenue as it moved into a fresh regulatory phase. Investors have taken note, seeing the company as a key winner from stepped-up grid spending.
Still, the latest filing flagged some short-term cost pressure. On April 13, National Grid reported full-year results in line with forecasts, but also projected a roughly 1p per share reduction to underlying EPS. The main culprits: customer refunds ordered after a March 19 U.S. Federal Energy Regulatory Commission ruling on New England Transmission and unexpectedly steep U.S. storm costs. Lower finance expenses provided some relief.
The risk hasn’t disappeared. UBS reiterated its Sell call on National Grid back on April 24, sticking with a 1,160p price target—still under Monday’s close, per MarketScreener. Elsewhere, Rain Newton-Smith, who heads the CBI business group, told Reuters that “clarity and confidence are paramount” in the current energy-market turmoil. Her point: policy changes can quickly swing outcomes for investors. MarketScreener
Pulse Clean Energy CEO Trevor Wills warned New Energy World that direct market intervention often leads to “unintended outcomes.” For National Grid and similar firms, that’s the sticking point: the UK’s grid needs expansion, but profitability hinges on regulation, planning timelines, debt market conditions, and ultimately, what energy transition costs the public will tolerate. Energy Institute
Right now, there’s nothing crowding the calendar. National Grid’s results on May 14 are shaping up as a test: can the company keep its growth narrative alive while shouldering higher U.S. costs and ramping up spending on network expansion? The shares have moved beyond their reputation as a plodding utility play; they’re increasingly seen as a gauge of whether Britain’s clean energy push can actually convert grid snarls into regulated profits.
