National Grid Expects Cadent Exit by Mid-2019
UK and northeast US infrastructure operator National Grid reported a fall in profit November 8, and said it expects to exit UK low-pressure gas distribution by mid-2019.
Profit after tax for the first half of its business year, in the six months to September 30 2018, was £429mn ($564mn), down 32% year on year, although its underlying profit was £663mn, up 1%.
Operating earnings were lower on its US and UK power and gas regulated businesses, but increased on its non-regulated ventures such as property, its Grain LNG import terminal, and power interconnectors.
CEO John Pettigrew (pictured above, courtesy of the company) said good progress had been made strategically with the decision to exercise options for the sale of NGrid’s remaining 39% share in UK gas distributor Cadent and NGrid’s final investment decision on the £850mn UK-Denmark ‘Viking’ power interconnector.
The sale of its final 39% stake in Cadent agreed in May is now expected to complete at end-June 2019 subject to regulatory approvals. NGrid though will retain Britain’s high-pressure gas transmission system.
Britain’s energy regulator Ofgem in July published its RIIO-2 price controls proposal, due to take effect from April 2021 for gas networks and NGrid's power grid. NGrid said: "We welcome the RIIO Framework Decision document that Ofgem published at the end of July, which provides a solid foundation as we move into the sector specific consultation phase later this year."
NGrid meanwhile is developing three other power interconnectors: NemoLink (to Belgium), IFA2 (a second link to France), and North Sea Link (to Norway). Commissioning of NemoLink is expected before the end of March 2019, with that of IFA2 and NSL due in 2020/21 and 2021/22 respectively.