London, March 4, 2026, 08:38 GMT — Regular trading hours.
- National Grid edged up roughly 0.3%, clawing back a bit after dropping 3.9% in the previous session.
- Company has landed close to £3 billion in contracts tied to the Eastern Green Link 3 power connection.
- Attention shifts to RIIO-T3 execution, with full-year results due out May 14.
Shares of National Grid plc (NG.L) edged up 0.3% in early London trading Wednesday, last seen near 1,349 pence. The stock bounced between 1,339 and 1,352 pence after tumbling 3.9% the previous day.
This latest step keeps the focus on whether the power networks group can translate its fresh five-year plan into more reliable returns, especially with a new UK price-control cycle on the horizon. National Grid on Monday outlined plans for at least £70 billion in capital expenditure by FY31 and projected underlying earnings per share growth between 13% and 15% for FY27. The company is also aiming for 8%–10% compound annual growth in underlying EPS from the FY26 baseline, with dividend increases intended to track UK CPIH, the consumer inflation benchmark.
Investors are jittery over inflation and rate moves. UK stocks took their biggest dive in close to a year on Tuesday, with a spike in oil and gas sending markets lower. Traders dialed back bets on a Bank of England cut this month, sending bond yields up.
National Grid has inked nearly £3 billion in contracts for Eastern Green Link 3, a 690-km HVDC connection slated to run between Scotland and England. Hitachi Energy gets the nod for converter stations, while NKT is tapped for the subsea and underground cables. The company expects the project to chip away at so-called “constraint costs”—the fees paid out when wind power generation outpaces grid capacity and operators have to throttle output. National Grid plans to submit a planning application later this year. If the Secretary of State for Energy Security and Net Zero signs off, crews would break ground in 2028, aiming to switch on the link by 2033. Project director Mark Brackley described the contract signings as “a major milestone.” National Grid
RIIO-T3, Ofgem’s price-control regime for electricity transmission, decides how much network owners get to spend and what they’re allowed to collect from customers. For National Grid Electricity Transmission, the rules apply from April 2026 through March 2031.
National Grid is tying its 2027 earnings forecast to increased allowed revenue as it enters the new regulatory period, according to Reuters on Monday. The firm projects adjusted earnings per share to climb between 13% and 15% in 2027—a commonly watched profitability metric.
National Grid runs power and gas infrastructure across Britain and the U.S. Northeast, making it sensitive to interest rate shifts as it finances assets built to last decades. Utilities like this often hold heavier debt loads and attract investors with their steady dividends, so even minor changes in gilt yields can have an outsized impact.
Investors are watching execution closely—how fast that spending translates into returns, and if the supply chain keeps pace as expansion speeds up. Funding remains a focal point, particularly with markets still factoring in higher rates.
The risks aren’t hard to spot. Delays in planning, rising construction costs, or stepped-up political oversight on network charges could stall projects and squeeze margins. On top of that, if rates move higher, financing gets pricier.
National Grid will post full-year numbers on May 14. Ex-dividend dates for the final payout come later in May, the company’s investor calendar shows. The annual meeting lands on July 14.
