National Grid has forecast a strong performance in the 2009/10 financial year driven by growth in its Transmission and Electricity Distribution and Generation divisions.
In its Interim Management Statement, the group said that its current trading was in line with expectations and has raised £2.5bn of its £3.4bn investment programme.
Approval last year of the Rhode Island gas-rate case (the process through which utilities set rates for their customers) provided a return on equity of 10.5 per cent, and the company has since received approval on two further rate cases for its US gas businesses.
The company has also filed electric rate cases in Massachusetts and Rhode Island, which it hopes will benefit customers and shareholders by supporting investment and full recovery of costs. A conclusion is expected to be reached at the end of the year.
The company believes that these achievements, combined with its investment programme, means that it is on track to deliver its eight per cent dividend growth policy through to March 2012.