LONDON, Feb 27, 2026, 09:49 GMT — Regular session.
- National Grid shares up about 0.3% in early London trade, near the top of their 52-week range
- Investors weigh appetite for regulated UK power networks after a big sector deal
- UK debt-sale plans due March 3 sit in the background for yield-sensitive utilities
National Grid shares nudged higher on Friday, tracking a steadier tone in rate-sensitive UK stocks as investors digested fresh signals on the value of power networks. The stock was up about 0.3% at 1,390.5 pence, after closing at 1,386.0 pence. 1
The move matters because utilities often trade as “bond proxies” — a shorthand for stocks that can rise when government bond yields fall, as investors chase reliable dividends. A looming update on Britain’s debt-sales plan has traders watching gilt yields into next week. 2
Sentiment around UK grid assets also sharpened after France’s Engie agreed to buy UK Power Networks for 10.5 billion pounds, a deal it said was aimed at adding regulated earnings. Jefferies said the purchase would “transform” Engie, while CEO Catherine MacGregor told analysts it picked the UK because of its “clear commitment to decarbonisation”. 3
Engie’s price implied roughly 1.5 times UK Power Networks’ regulated asset value — a key yardstick for networks because allowed returns are set off that base. The read-across for investors: big pools of capital are still willing to pay up for stable grid cash flows, even as politics swirls around energy bills.
In Britain, Ofgem said on Feb. 25 the energy price cap for April-June will fall 7% to 1,641 pounds a year for a typical dual-fuel household paying by direct debit. That offers consumers some relief, but it also keeps scrutiny on the costs that sit in bills — including network charges that fund upgrades. 4
Broader UK equities have been buoyant. The FTSE 100 hit a record close on Thursday, helped by heavyweight gains and supported by expectations of a Bank of England rate cut, according to a Reuters market report. 5
Still, the easy story can flip. If gilt yields lurch higher, the same yield-hunters who treat utilities as a shelter can rotate out fast, and politically sensitive talk about bills can harden into tougher regulatory moods.
For now, National Grid traders head into the week watching bond markets and Westminster. Finance minister Rachel Reeves’ updated forecasts and the Debt Management Office’s 2026/27 issuance plan are due on March 3 — and Morgan Stanley’s Fabio Bassanin expects issuance to stay skewed to shorter maturities. 2
