London, March 3, 2026, 08:56 GMT — Regular session running.
- National Grid dropped roughly 2.8% at the open in London, following other utilities lower.
- Just a day before, the group raised its medium-term growth outlook and agreed to Ofgem’s RIIO‑T3 price control for UK electricity transmission.
- Next up: Investors are eyeing the full-year results on May 14 for fresh detail on delivery progress, funding, and dividends.
National Grid NG.L dropped 2.75% to 1,361.5 pence shortly after markets opened on Tuesday, slipping after Monday’s five-year outlook upgrade had boosted the stock.
Utilities dropped 2.6%, the sharpest losses across European sectors, as investors grew wary following a spike in oil prices and renewed concerns over drawn-out conflict in the Middle East. The risk-off move weighed heavily.
Timing is key for National Grid. With a new UK regulatory period starting in April, the company recently rolled out a bigger spending plan and signaled a quicker pace for earnings growth — moves that could shake up expectations for dividends, debt, and returns in a stock that investors often see as a bond substitute.
National Grid, in its Form 6-K filed Monday, mapped out what it called an “extended and upgraded” five-year plan to FY31, projecting at least £70 billion in total capital investment and targeting about 10% asset growth per year. The company is aiming for 8%-10% underlying earnings per share growth annually, using FY26 as the baseline, and said it wants to increase its dividend per share in line with the UK CPIH inflation metric. Chief executive Zoë Yujnovich described the strategy as a push for “disciplined execution, at scale.” SEC
The filing showed that National Grid has agreed to Ofgem’s RIIO‑T3 price controls for its UK Electricity Transmission arm, covering April 2026 through March 2031. These price controls dictate how much revenue and return National Grid can generate from its regulated networks. The company now targets an average return on equity north of 9% over that five-year stretch.
National Grid on Monday signaled a pickup in near-term growth, telling investors it’s now looking for underlying (adjusted) earnings per share to climb 13%-15% for FY27—a boost driven by higher allowed revenue as it transitions from the RIIO‑T2 framework to RIIO‑T3.
But these shares don’t exist in isolation. Utilities are typically quick to react to shifts in inflation and rate outlooks. With energy prices moving higher, markets have been adjusting for those risks, which has put some weight on valuations—even with better guidance coming from individual companies.
Company-specific risks also factor in. The investment plan hinges on regulatory sign-offs, demand from customers, and steady supply-chain execution. Returns under RIIO‑T3 will partly ride on meeting efficiency targets and securing incentives — variables that can swing unpredictably within a five-year stretch.
National Grid on Monday issued its standard voting rights statement, laying out details on its share capital and outstanding shares with voting rights.
Investors now turn to National Grid’s 2025/26 full-year results, due out May 14, eyeing updates on funding strategy and any clues on dividends before ex-dividend dates hit in late May.
