National Grid has reported net debts of £48bn as of 30 September, according to its latest accounts, with borrowing set to rise by another £4bn within the next six months1. The Telegraph reported the figures on 8 November, noting that much of the planned spending is driven by the government's net zero and decarbonisation targets1.
The company's chief finance officer, Andy Agg, told The Telegraph earlier this year that he expected overall net debt to keep climbing. "I'd expect my overall net debt to be growing into the £60bn to £70bn range," he said1. The report states that planned investments would push the company's underlying asset value to £115bn, and that National Grid notes its credit ratings remain high and its share price is up 11pc this year1.
The accounts follow a long upward trend in borrowing, which the report sets out year by year1:
| Period | Net debt |
|---|---|
| 2016-17 | £19.3bn |
| 2017-18 | £23bn |
| 2018-19 | £26.5bn |
| 2019-20 | £28.6bn |
| 2020-21 | £28.6bn |
| 2021-22 | £42.8bn |
| 2022-23 | £41bn |
| 2023-24 | £43.6bn |
| 2024-25 | £41.4bn |
| 2025-26 (as of March 31 2026) | £44.2bn |
The report attributes part of the earlier jump to the acquisition of Western Power Distribution, which runs regional grids across Lincolnshire, the Midlands, South Wales and the South West, taking net debt from £28.5bn in 2021 to £43bn in 20221. It also traces the longer history: debt reached £1.5bn in 1998 to fund a £768m special dividend to shareholders, rose to £2.7bn in 2000 linked to the acquisition of the New England Electric System, and hit £12bn by 2007, £18bn in 2008 and £23bn in 20091.
National Grid's chief executive, Zoe Yujnovich, disputes the framing of the borrowing as a problem, arguing that debt is the cheapest way to fund grid expansion. "We do carry significant debt … it's certainly higher than you would normally expect," she said. "The reason we have such high debt, and the reason the regulator allows us to have such high debt, is because it is the cheapest way to fund it [grid expansion]."1
"Allowing a monopoly supplier to add the costs of their debts to customer bills, while the debtor itself builds an ever bigger balance sheet and company value, is obscene."
The report says Ofgem declined to respond to those claims1. It also cites Tim Jarvis, Ofgem's director general, warning in October that domestic energy debts had surged from £1.1bn five years ago to at least £5bn, and could double within a decade1.
Why it matters for households
Network costs make up about £250 of the average £883 annual electricity bill for a dual-fuel home, which totals £1,723 when gas is factored in, according to the report1. It adds that suppliers EDF and Eon predict average bills will approach £2,400 around April1. Because the costs of servicing National Grid's borrowing are recovered through the regulated asset base model, subject to Ofgem approval, the interest on that debt ultimately sits within the network charges that bill payers fund1. The report also cites the National Energy System Operator forecasting that transmission charges will more than triple from £4.2bn in 2024/25 to £13.6bn by 2030/311. For a household, that means the cost of the wires and system sits alongside wholesale energy and policy costs in the bill, and is largely outside a home's control; the scope to reduce exposure lies in how much electricity a home draws from the grid and when, which is where on-site generation and storage come in. The national-supply hub sets out how the transmission system and its charges are organised.
What happens next
The report says net debt is set to rise by another £4bn within the next six months, and that Agg expects it to grow into the £60bn to £70bn range by 20311. The National Energy System Operator's forecast transmission charges rise each year to £13.6bn in 2030/311. No decision by Ofgem on the level of network costs or returns has been reported.
Sources1 sources
- National Grid’s near-£50bn debt pile set to push up energy bills, telegraph.co.uk