energy news

EDF: If The Prices Is Right


19th November, 2009

National Grid, owner of the UK high-voltage electricity transmission network, has said it will drop any interest in EDF's UK distribution network business if the price is artificially inflated.

 

As the firm announced a 16 per cent rise in first half year profit, Steve Lucas, National Grid's finance director, said sensible economics would be central to any potential acquisition.

 

"Would we be interested? Absolutely, provided there are decent, stable, long-term returns. If we can't see a clear way through to that, we won't invest."

 

In 2008, National Grid was linked with Germany's transmission assets, which were last week sold to Dutch state operator, Tennet. "At the time we said exactly the same thing and walked away because we weren't certain it would generate adequate returns.

 

"This is a sector that has been bid-up by the financial players. We will see if they are going to bid it up by the same sort of amounts this time around. If they do, we won't play. Frankly, we have enough growth in the portfolio without going hunting for things, and today's results underline that."

 

Pre-tax profit for the six months ended 30 September were £649 million compared to £558 million for the same period last year.



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