Robert Pulleyn's questions to NATIONAL GRID (NGG) leadership • Q2 2024
Question
Asked about the impact of inflation on the ASTI CapEx estimate, questioning what the 'mid-to-high teens' figure was a year ago, and whether high inflation on infrastructure projects could force difficult capital allocation decisions between the company's various business segments.
Answer
The CEO explained the previous comparable figure for ASTI CapEx was around £12 billion from a 2021/22 consultation, and the increase to 'mid-to-high teens' reflects inflation and better cost clarity. The CFO added that capital allocation prioritizes meeting regulatory obligations in all regulated businesses and that the current business mix is comfortable, with discretionary venture investments being the main area for allocation decisions.