Ofgem Approves £28 Billion RIIO-T3 Price Control for National Grid from 2026 to 2031
Ofgem has approved a £28 billion RIIO-T3 price control framework for National Grid's electricity transmission business, covering the period from April 2026 to March 2031. The plan includes a total expenditure projection of up to £35 billion and a five-year investment strategy of £60 billion, despite delays in major projects like the Eastern Green Link 3/4 until 2034. National Grid also intends to sell the Grain LNG Terminal for £1.5 billion as part of its financial restructuring efforts.
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Ofgem has finalized the RIIO-T3 price control framework, establishing financial parameters for National Grid's electricity transmission business from April 2026 to March 2031. The regulator approved a financial package of £28 billion, with a real allowed equity cost rate of 6.12% at a 60% gearing ratio.
The planned total expenditure (Totex) is projected to reach up to £35 billion for the UK transmission network, with a five-year investment plan totaling £60 billion. National Grid's net financial liabilities are approximately £41.8 billion, while its market capitalization is around £56.8 billion.
The company plans to sell the Grain LNG Terminal for £1.5 billion to Centrica/Energy Capital Partners. Major projects, such as the Eastern Green Link 3/4, have been delayed to 2034. Additional demand of up to 19 GW is expected for
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