Latest news with #NationalGrid
The Guardian
3 days ago
- Business
- The Guardian
UK gas plants in line for large windfall payments to keep lights on this winter
More UK gas plants will be in line for windfall payments to help keep the lights on this winter after generators received multimillion-pound payouts last winter. Britain's energy system operator expects the UK's winter power supplies to reach their highest level in five years, in part due to a rising number of gas plants willing to generate electricity during the colder months. Gas plants are typically called on to generate electricity when wind and solar power are in short supply. During still winter periods when freezing temperatures drive demand for energy higher, they can often request large fees to fire up their generators. In early January this year, two gas power plants in Hertfordshire and Flintshire, north Wales, were paid a total of £17.8m to run their gas turbines between 4pm and 7pm when demand for electricity was forecast to reach its peak. The payouts, which were up to 100 times higher than normal market prices, ignited concerns within the industry that gas power plants were able to command excessive payments to generate power when renewable energy generation drops. They were particularly high because several generators extended their planned outages or scheduled new ones when demand was low during the mild Christmas period before a sharp turn in the weather drove demand up again. The higher number of gas plants available for the winter ahead does not necessarily mean that the power system will rely more heavily on gas power – or that record high payments will be paid to those which do run. The the National Energy System Operator (Neso) instructs which of the available power plants, batteries and renewable energy projects will generate on a given day in order to maintain a balance between supply and demand. In the winter ahead the UK will also have greater access to electricity imports after the launch of the Greenlink power cable connecting the UK grid to Ireland, and more battery power, according to the Neso. It said the extra power supply options would more than offset the expected rise in peak power demand forecast for the winter ahead compared to last year. Deborah Petterson, a director at Neso, said: 'Our early view of the winter ahead shows a positive outlook with sufficient margins throughout the colder winter months.' The system operator is also confident about energy supplies in Europe, which it found would be 'adequate' for the winter months. 'We will continue to monitor developments in global energy markets, remaining vigilant in our preparations to ensure that the resilience and reliability of the electricity network is maintained,' Petterson said. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Ed Miliband, the energy secretary, said on Tuesday: 'We only need to look at the events in the last few days to see that we're on this rollercoaster of fossil fuels.' The government has pledged that the UK's electricity system will run on 95% low-carbon power sources by the end of the decade, with gas plants held in reserve as backup when needed. Miliband dismissed concerns that the industry would fall short of the 2030 target. He told journalists on the sidelines of an offshore wind industry conference that the target had 'always been stretching and achievable – and it is absolutely achievable'. At the same event he warned that the government would 'win this fight' against critics of Britain's net zero plan, in part by creating more offshore wind jobs in the former industrial heartlands where Reform UK has gained support. He said: 'The forces that want to take us backwards, the forces that oppose net zero, will have to reckon not just with the government. They will have to reckon with all these companies that are creating jobs.'
BBC News
4 days ago
- Business
- BBC News
Reform UK's Lincolnshire leaders reject 'low-height' pylons plan
Reform UK leaders in Lincolnshire have pledged to use "all our local powers" to prevent the construction of a new overhead electricity Grid has announced revised plans for the 87-mile (140km) route between Grimsby and Walpole, including "low height" pylons on one stretch, amid concerns about the potential impact on the a joint statement, Lincolnshire major Dame Andrea Jenkyns, country council leader Sean Matthews and Boston and Skegness MP Richard Tice said the scheme prioritised cost over the environment and would have a "devastating impact".National Grid said it was working with communities to "shape the plans and minimise the impact on the local landscape". Under the new proposals, the height of pylons would be reduced from 50m (164ft) to 40m (131ft) along a 4.3-mile section of the route in the Lincolnshire Wolds, the Local Democracy Reporting Service said. 'Devastating impact' The Reform statement called on National Grid to halt the plan and "pursue less intrusive solutions". "Lincolnshire will not be a dumping ground for outdated and ugly infrastructure. Nor will it be a dumping ground for net-zero projects," it Grid has argued that the cost of the pylon scheme would be £1.6bn, compared with at least £4.8bn for an underground cable and £4.2bn for a subsea previous Conservative administration of Lincolnshire County Council criticised the utility company for a lack of transparency over costs and urged energy watchdog Ofgem to scrap the plans.A spokesperson for National Grid said the existing electricity network did not "have the capacity to deliver the increasing demand for electricity". The Grimsby to Walpole project would lower electricity bills and the overhead line proposal was "far cheaper than alternatives", they added.A consultation on the plans will run from June 11 to August 6. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
BBC News
5 days ago
- General
- BBC News
Kent Sea Link cables consultation enters final week
Kent residents now have a week left to have their say on plans for 90 miles (145km) of undersea electricity cables between the county and Grid's Sea Link project would see undersea cables coming ashore near Sandwich in Kent, and Thorpeness and Aldeburgh in company says the project is a "vital investment in Great Britain's energy future" but opponents say it would be damaging to the environment.A consultation on the project is due to close at 23:59 BST on Monday 23 June. The planning application, which is currently near the end of the pre-examination stage, will next be scrutinised by the Planning Inspectorate ahead of an official examination will last six months before the inspectorate will send a report to the government recommending whether to approve or reject the plans.A decision is expected in late 2026, National Grid added that, if the project is approved, construction could also begin in 2026 and be finished in 2031. 'Sensitive habitats' The proposed cable would carry renewable power from offshore wind, interconnectors and nuclear power to where it is needed.A sub-station and converter station has also been planned for Minster, near Ramsgate, Kent, and near Saxmundham in cables would transport renewable energy from generators such as the Sizewell nuclear power stationsKent Wildlife Trust previously set up its "Rethink Sea Link" campaign calling for the National Grid to consider a different route for cables which minimises the effect on Pegwell Bay, near Grid said it recognised the "sensitive habitats" in the area and has "studied the likely significant effects" of the project.
Yahoo
6 days ago
- Business
- Yahoo
3 reliable UK dividend stocks that investors own for passive income
The London Stock Exchange is filled with top-notch dividend stocks. And among British investors, three of the most popular with a reputation for reliability are British American Tobacco (LSE:BATS), Diageo (LSE:DGE), and National Grid (LSE:NG.). This reputation's well-founded. Excluding a few hiccups, all three companies have been hiking shareholder payouts for decades. Needless to say, stability and predictability are exactly what income investors like to see. So does that mean investors should rush to buy these businesses in 2025? Let's take a closer look. Operating a tobacco business in 2025 isn't easy. Increased health awareness paired with a regulatory clampdown is making life pretty difficult. Yet the addictive nature of cigarettes and other tobacco-based products has enabled price hikes to offset the decline in volumes. As such, earnings and dividends have kept flowing despite investor pessimism. Management knows that pricing power has its limits. Subsequently, it's begun diversifying its product portfolio into new, healthier categories like vapes, heated tobacco, and oral nicotine. It's still early days for many of these new offerings but, so far, growth appears to be off to a good start. The question is, can British American Tobacco transition its customers at a faster rate than declining tobacco sales? In some ways, Diageo's in a similar position as British American Tobacco. Global drinking levels are falling, resulting in lower sales volumes. And the headaches have only increased since US tariffs were thrown into the mix, which management anticipates to take a $150m hit in higher costs as a result. Weaker sentiment's driven the share price back down to 2016 levels despite cash flows remaining solid enough to maintain and expand dividends. Today, the business seems to be at a crossroads. Leadership has outlined its new strategy to focus on higher margin opportunities, allowing for continued growth even at lower volumes. But ultimately, time will tell whether this tactic will work out. Last year, National Grid decided to cut its dividend for the first time in decades, which spooked a lot of investors. But in retrospect, this decision appears to have been prudent. The British energy titan is in the middle of executing a pretty massive investment plan to modernise the UK's electrical infrastructure – a decision that already seems to be bearing fruit. In its latest results, pre-tax profits shot up by 20% to £3.65bn, offsetting a slight decline in revenue as the business reorganises and disposes of underperforming assets. With a record £9.8bn invested in its 2025 fiscal year (ending in March) and even more upcoming capital deployments, the company appears to be hitting key milestones in its overhaul. Nevertheless, with plans to invest £60bn by March 2029, it's still very early days. All three of these dividend stocks have alluring prospects. But each is also navigating through its own set of unique challenges. And just because a stock has been a reliable dividend payer in the past doesn't mean it will continue to be in the future. Personally, Diageo shows the most promise, in my opinion, and is worthy of a closer inspection. But it's up to investors to determine whether the potential return is worth the risk. The post 3 reliable UK dividend stocks that investors own for passive income appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco P.l.c., Diageo Plc, and National Grid Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Are Utilities Stocks Lagging National Grid Transco (NGG) This Year?
For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. National Grid (NGG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question. National Grid is one of 106 companies in the Utilities group. The Utilities group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. National Grid is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for NGG's full-year earnings has moved 2.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Based on the latest available data, NGG has gained about 22.6% so far this year. Meanwhile, the Utilities sector has returned an average of 8.3% on a year-to-date basis. As we can see, National Grid is performing better than its sector in the calendar year. One other Utilities stock that has outperformed the sector so far this year is Grupo Televisa (TV). The stock is up 32.7% year-to-date. Over the past three months, Grupo Televisa's consensus EPS estimate for the current year has increased 433.3%. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, National Grid belongs to the Utility - Electric Power industry, which includes 60 individual stocks and currently sits at #68 in the Zacks Industry Rank. On average, stocks in this group have gained 8.4% this year, meaning that NGG is performing better in terms of year-to-date returns. In contrast, Grupo Televisa falls under the Diversified Communication Services industry. Currently, this industry has 15 stocks and is ranked #90. Since the beginning of the year, the industry has moved +12.8%. Going forward, investors interested in Utilities stocks should continue to pay close attention to National Grid and Grupo Televisa as they could maintain their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National Grid Transco, PLC (NGG) : Free Stock Analysis Report Grupo Televisa S.A. (TV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
