London, Jan 21, 2026, 08:30 GMT — Regular session
- National Grid shares edged up roughly 0.2% in early trading, hovering around 1,192 pence
- Massachusetts Gas unit in the U.S. aims for a $144 million boost in first-year revenue, targeting a 10.25% return on equity
- UK inflation ticked up to 3.4% in December, dampening expectations for rate cuts
National Grid plc shares nudged up in early London trade Wednesday, as investors sifted through a new U.S. regulatory filing. A hotter UK inflation reading tightened expectations around interest rates. The stock rose roughly 0.2% to 1,192.5 pence. (Investing)
This move is significant since National Grid operates as a regulated utility. Its profits mainly come from network assets with returns set by regulators, rather than from driving demand growth.
Rates are still driving the action. Utilities tend to behave like bond proxies — as government bond yields climb, their steady dividends face competition from a higher “risk‑free” return.
National Grid’s Massachusetts Gas unit is aiming for a $144 million boost in first-year revenue, along with a 10.25% allowed return on equity (ROE) — the profit margin regulators permit on shareholder capital. The firm warned typical residential winter bills could climb by around $24 to $25 monthly. If approved, the new rates would kick in starting Dec. 1, 2026.
UK inflation rose to 3.4% in December from 3.2% in November, slightly above economists’ forecasts, official data revealed. Services inflation edged higher to 4.5%. “For now it’s a speed-bump,” said Adam Deasy, economist at PwC, as markets still expect one or two quarter-point Bank of England rate cuts this year after the BoE lowered the Bank Rate to 3.75% in December. (Reuters)
Sentiment on gilts has grown unsettled. Bank of England governor Andrew Bailey warned lawmakers the central bank must remain “very alert” to geopolitical risks following a spike in volatility that sent long-term borrowing costs soaring. (Reuters)
There’s been little company-specific action, but some activity did surface. A regulatory filing revealed Will Serle, National Grid’s chief people officer, offloaded 21,800 shares at roughly 12.04 pounds apiece on Jan. 19. That trade comes to about 263,000 pounds. (Halifax)
National Grid runs electricity transmission and distribution across Great Britain, while managing electricity and gas networks in the northeastern United States, according to company details reported by Reuters. (Reuters)
But bulls face two clear risks here. Massachusetts regulators might cut the proposed ROE or drag their feet on cost recovery. On top of that, a fresh jump in UK yields would pressure rate-sensitive utilities, even if their earnings forecasts hold firm.
The Bank of England’s policy decision on Feb. 5 is the next key event, likely to influence the rate trajectory that supports valuations for dividend-focused stocks like National Grid. (Bankofengland)
