National Grid (LON:NG) from FTSE 100 Powers UK Utilities Sector

Highlights

• National Grid plc (LON:NG) operates in the utilities sector and is a constituent of the FTSE 100

• Engages in regulated electricity and gas transmission across the UK and US

• Included in the FTSE Dividend Yield Scan due to consistent dividend history

National Grid plc (LON:NG) operates within the utilities sector, providing critical infrastructure for electricity and gas. The company is a prominent constituent of the FTSE 100, reflecting its relevance in the UK equity market. The group also appears on the FTSE Dividend Yield Scan, recognising its record of regular shareholder distributions. Its operations span the United Kingdom and northeastern United States, focusing on regulated transmission networks.

Core Business and Geographical Spread

National Grid's business model revolves around regulated energy infrastructure. In the UK, it owns and operates the high-voltage electricity transmission system for England and Wales and manages the gas transmission network. Its US operations involve delivering electricity and natural gas to customers in regions such as New York and Massachusetts. These operations are split between regulated distribution services and wholesale transmission systems.

The company maintains a diversified revenue structure by balancing its presence between UK and US regulatory environments. This cross-continental approach enables stable infrastructure  while meeting service reliability standards. It also engages in interconnectors, enabling energy exchange between the UK and continental Europe.

Grid Development and Modernisation Initiatives

National Grid undertakes extensive work to enhance and expand its energy transmission infrastructure in response to shifting energy demands. In the UK, its focus includes upgrading grid capacity to support renewable energy integration, improve system reliability, and contribute to national decarbonisation efforts. Projects involve offshore connections and high-voltage system enhancements, ensuring the grid remains adaptable to future energy needs.

In the US, the company concentrates on renewing outdated infrastructure and improving system durability. Modernisation efforts feature advanced technologies such as smart grids and include upgrades designed to strengthen networks against extreme weather events. These actions support long-term system stability and sustainable service delivery across all regions served.

Regulated Structure and Oversight

National Grid's operations function under regulatory frameworks that ensure oversight and structured performance metrics. In the UK, the Office of Gas and Electricity Markets (Ofgem) governs service quality, allowances, and pricing controls. The regulatory environment facilitates consistent performance benchmarks for electricity and gas networks.

In the US, state-level commissions oversee its operations, setting performance requirements and rate structures. These regulations create a stable operating environment and allow long-term capital planning across regulated businesses. The company also aligns its strategies with broader government policy directions on energy transition and infrastructure resilience.

Dividend Focus and Yield Inclusion

National Grid has remained consistent in providing shareholder distributions, making it part of the FTSE Dividend Yield Scan. The company’s dividend strategy aligns with its steady earnings from regulated operations and long-term capital. This inclusion highlights its approach to long-term returns and financial discipline across business segments.

Sustainability and Carbon Reduction Plans

The company has committed to reducing greenhouse gas emissions across its operations. Plans are underway to decarbonise electricity and gas networks, including supporting hydrogen initiatives and large-scale renewable integration. In the UK, projects include carbon capture, energy storage, and green grid pathways.

National Grid also collaborates with government entities and energy stakeholders to deliver energy transition infrastructure. These projects include preparing networks for electric vehicle charging, developing interconnection capacity, and digitalising infrastructure for smarter energy usage.

Recent Developments and Asset Strategy

Recent corporate activities include portfolio restructuring to concentrate on regulated assets. This includes divestments from non-core units and acquisitions aligned with grid operations. The company has prioritised operations that support decarbonisation and regulated growth.

National Grid’s strategy includes operational focus on high-value transmission networks while supporting regulatory compliance and infrastructure sustainability. The group continues to in long-term infrastructure designed to meet future energy system requirements.

Market Role and Sector Presence

As part of the FTSE 100, National Grid a key position within the utilities sector. Its focus on regulated services, infrastructure upgrades, and energy transition goals align with the sector’s evolution. Through ongoing and a steady operational framework, (LON:NG) maintains its position in the broader UK and US energy markets.