National Grid : 08 Dec 2020 Ofgem's RIIO-2 Final Determination published

08 December 2020

National Grid plc

Ofgem's RIIO-2 Final Determination published

Ofgem has today published its Final Determination for the RIIO-2 framework covering our UK Electricity and Gas Transmission businesses for the period April 2021 to March 2026, as well as the Electricity System Operator.

We will now review in detail the full package contained within the Final Determination to see whether it delivers sufficient investment to maintain resilient and reliable networks, provides the flexibility required to enable the delivery of critical infrastructure to achieve the UK's net zero ambitions, and provides an appropriate overall financial package.

We expect Ofgem to publish its statutory consultation on the proposed licence modifications required to implement the Final Determination shortly. The consultation period will be followed by a period for Ofgem to consider responses, at the end of which Ofgem will publish its decision to modify the licences. Relevant parties have 20 working days from the day on which the decision to modify the licences is published to appeal any part of the proposed licence modifications to the Competition and Markets Authority. Given the current expected timeline, we anticipate that we will make any final decision on whether to accept or appeal the licence modifications implementing

Ofgem's Final Determination to the CMA no earlier than late February 2021.

CONTACTS:

Investors and Analysts

Nick Ashworth	+44 (0)	20 7004 3166	(d)	[phone] (m)
Jon Clay	+44 (0)	20 7004 3460	(d)	[phone] (m)
James Flanagan	+44 (0)	20 7004 3129	(d)	[phone] (m)
Media
Molly Neal	+44 (0)	7583 102 727	(m)
Surinder Sian	+44 (0)	7812 485153 (m)

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CAUTIONARY STATEMENT

This announcement contains certain statements that are neither reported financial results nor other historical information. These statements are forw ard-looking statements w ithin the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include

information w ith respect to National Grid's (the Company) financial condition, its results of operations and businesses,
strategy, plans and objectives. Words such as 'aims', 'anticipates', 'expects', 'should', 'intends', 'plans', 'believes',
'outlook', 'seeks', 'estimates', 'targets', 'may',	'w ill', 'continue', 'project' and similar expressions, as w ell as statemen ts
in the future tense, identify forw ard-looking	statements. These forw ard-looking statements	are not guarantees of
National Grid's future performance and are subject to assumptions, risks and uncertainties	that could cause actual
future results to differ materially from those expressed in or implied by such forw ard-looking statements. Many of these
assumptions, risks and uncertainties relate	to factors that are beyond National Grid's ability to control, predict or
estimate precisely, such as the impact of COVID-19 on its operations, employees, counterparties, funding and legal

and regulatory obligations, but also more w idely in terms of changes in law s or regulations, including any arising as a

result of the United Kingdom's	exit from the European Union; announcements from and decisions by governmental
bodies or regulators, including	those relating to the RIIO-T2 price control, as w ell as increased political and economic

uncertainty resulting from COVID-19; the timing of construction and delivery by third parties of new generation projects

requiring connection;	breaches of, or changes in, environmental,	climate	change and health and safety law s or
regulations, including	breaches or other	incidents arising from the potentially	harmful nature of its activities; netw ork
failure or interruption,	the inability to carry out critical non-netw ork operations and damage to infrastructure, due	to
adverse w eather conditions	including the impact of major storms as w ell as the results of climate change, due	to
counterparties being	unable	to deliver	physical commodities, or due to the failure of or unauthorised	access to or
deliberate breaches of National Grid's	IT systems and supporting	technology; failure to adequately	forecast and

respond to disruptions in energy supply; performance against regulatory targets and standards and against National Grid's peers w ith the aim of delivering stakeholder expectations regarding costs and efficiency savings; and customers

and counterparties (including financial institutions) failing to perform their obligations to the Company. Other factors that could cause actual results to differ materially from those described in this announcement include fluctuations in exchange rates, interest rates and commodity price indices; restrictions and conditions (including filing requirements )

in National Grid's borrow ing and debt arrangements, funding costs and access to financing; regulatory requirements for the Company to maintain financial resources in certain parts of its business and restrictions on some subsidiaries ' transactions such as paying dividends, lending or levying charges; the delayed timing of recoveries and payments in National Grid's regulated businesses and w hether aspects of its activities are contestable; the funding requirements and performance of National Grid's pension schemes and other post-retirement benefit schemes; the failure to attract,

develop and retain employees w ith the necessary competencies, including leadership and business capabilities, and

any significant disputes arising w ith National Grid's employees or the breach of law s or regulations by its employees ;

the failure to respond to	market developments, including competition	for onshore	transmission, the threats and
opportunities	presented	by emerging technology; the failure by	the	Company	to	respond to or meet its own
commitments	as a leader in relation to climate change development	activities relating to energy transition, including the
integration of distributed energy resources; and the need to grow the Company's	business to deliver its strategy, as
w ell as incorrect or unf oreseen assumptions or conclusions (including	unanticipated	costs and liabilities) relating to
business development	activity. For further details regarding these and other assumptions, risks and uncertainties that
may impact	National	Grid, please read the Strategic Report section and the 'Risk factors' on pages 227 to 230 of

National Grid's most recent Annual Report and Accounts for the year ended 31 March 2020, as updated by National Grid's unaudited half -year financial information for the six months ended 30 September 2020, published on 12 November 2020. In addition, new factors emerge from time to time and National Grid cannot assess the potential impac t of any such factor on its activities or the extent to w hich any factor, or combination of factors, may cause actual future results to differ materially from those contained in any forw ard-looking statement. Except as may be required by law or regulation, the Company undertakes no obligation to update any of its forw ard-looking statements, w hich speak only as of the date of this announcement.

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