UK watchdog to review some gas and electricity transmission projects

(Updates throughout with detail, analyst comment)

LONDON, May 12 (Reuters) - Britain's electricity regulator has launched a review into some electricity and gas transmission projects planned by grid operator National Grid (LSE: NG.L - news) .

The regulator Ofgem, sets the amount of cash given to National Grid to maintain and improve the country's gas and electricity networks.

It (Other OTC: ITGL - news) said the review was needed to establish whether certain energy transmission projects were still needed and required funding.

"Following our consultation in November, Ofgem has today decided to launch a mid-period review into the 2013-2021 price controls which will be limited to National Grid Electricity Transmission and National Grid Gas Transmission," Ofgem said on Thursday.

Ofgem said since the review was targeted to a few projects it would not be re-opening the whole price control package.

"Ofgem's mid-period review announcement this morning should not concern investors, as it is focussed on reviewing 3 specific projects in Transmission," analysts at Bernsteil said in a research note.

"It is not a re-opening of the price control to change crucial aspects such as the allowed cost of capital," they added.

Gas and electricity network operator National Grid made 2.9 billion pounds ($4.5 billion) in pretax profit in the financial year ending March 31 2015.

It is due to publish its next set of results on May 19.

Analysts polled by Reuters expect on average a 5.5 percent increase in full-year core earnings (EBITDA).

Ofgem said it would consult on any potential changes relating to the projects this summer with a decision to be made in late autumn. Any changes would take effect from April 1 2017, it said. (Reporting By Susanna Twidale and Karolin Schaps, Editing by Jane Merriman and Elaine Hardcastle)