LONDON, March 12, 2026, 20:07 GMT
- National Grid finished the day at 1,368 pence, advancing around 2.5%. The FTSE 100, by comparison, slipped about 0.4%.
- National Grid Electricity Transmission will pay £20 million into a voluntary redress fund, Ofgem said, following historic shortcomings at the Harker substation in Cumbria.
- Last week, the company outlined a capital spending plan of at least £70 billion through FY31 and raised its underlying earnings-per-share growth target for FY27, now expecting an increase of 13%-15%.
National Grid plc climbed 2.5% to 1,368 pence on Thursday, outshining a declining FTSE 100 as buyers shrugged off a new UK regulatory setback and kept piling into utility names. This followed Ofgem’s announcement a day earlier that National Grid Electricity Transmission would pay £20 million into a redress scheme after historic issues at the Harker substation in Cumbria.
The market’s looking past the Ofgem payment, seeing it as minor compared to National Grid’s sweeping growth overhaul. In its March 2 filing, the company pushed its five-year financial roadmap out to FY31, committed to at least £70 billion in capital investment, and projected a 13%-15% underlying EPS jump for FY27—right as it jumps into RIIO-T3, Ofgem’s fresh transmission framework.
Utilities picked up steam Thursday, echoing a broader sector move. UK shares slid for a second day, pressured by oil climbing near $100 per barrel again. With inflation anxiety mounting, traders pared back expectations for rate cuts from the Bank of England. Banks took the brunt of the selling.
Danni Hewson, head of financial analysis at AJ Bell, pointed out that drawn-out turmoil in energy markets just pushes energy prices, inflation and interest rates higher. That, she said, was driving demand for regulated network stocks, even with the wider market under pressure.
National Grid’s transmission arm admitted it fell short from November 2016 to November 2021, missing key steps in monitoring, maintaining and fixing certain civil assets at Harker, and dragging its feet on planning repairs—delays that pushed back some local generation hookups, according to Ofgem. “Delays and asset failures risk reliability issues,” said Cathryn Scott, Ofgem’s regulatory director for market oversight and enforcement. Ofgem
National Grid has spent the last 10 days working to bring investors back in line. In a March 2 filing, Chief Executive Zoë Yujnovich outlined plans for “disciplined execution, at scale” as the company increased its investment target to a minimum of £70 billion by FY31. Of that, about £31 billion is set aside for UK electricity transmission, while £9 billion will go toward UK distribution. SEC
That plan arrives as Britain wrestles with a backlog in its power connection queue. On Wednesday, the government announced a consultation on new powers aimed at reining in speculative applications and bumping forward projects it deems strategic—think AI data centres, EV charging networks, and key industrial hubs. That could throw a spotlight on how quickly National Grid can ramp up construction.
It wasn’t just National Grid catching a bid. SSE climbed 3.2% Thursday, Severn Trent put on 2.7%, and United Utilities tacked on 2.3%. The moves suggest investors were buying across the sector, not just chasing one-off risk.
National Grid shares climbed but still hovered roughly 4% under their 52-week top of 1,429 pence. Volume was soft, with about 6.7 million shares changing hands—below the 50-day average. That high was last touched on March 2, the day the company rolled out its upgraded framework.
What could trip things up? The investment case remains fragile. On Thursday, Goldman Sachs once more delayed its forecast for a Bank of England rate cut, citing the risk that stubbornly high energy prices will keep inflation elevated. Meanwhile, Ofgem’s latest enforcement move underscores that regulatory or operational missteps remain a real hazard for any utility trying to justify multi-year spending to shareholders.
