|Bid||818.40 x N/A|
|Ask||818.60 x N/A|
|Day's range||813.32 - 822.00|
|52-week range||744.50 - 895.10|
|Beta (3Y monthly)||0.97|
|PE ratio (TTM)||18.39|
|Forward dividend & yield||0.47 (5.56%)|
|1y target est||N/A|
Britain's opposition Labour Party wants to nationalise energy and water infrastructure if it can oust Prime Minister Theresa May's ruling Conservatives from power, reversing decades of pro-privatisation public policy. Despite a national election not being due until 2022, the prospect of nationalisation is worrying investors. Analysts have valued the regulated asset values of water and energy networks potentially facing nationalisation at around 125 billion pounds.
With the Labour Party proposing the nationalization of electricity and gas infrastructure, U.K. politics could pose a threat to National Grid's operations.
The risks are rising for this FTSE 100 (INDEXFTSE: UKX) dividend favourite. Royston Wild considers whether the business is still worth buying.
National Grid Plc, the U.K. gas and power network operator borne from Margaret Thatcher’s privatization drive in the 1980s, offers the same services in the densely populated area spanning New York, Massachusetts and Rhode Island. The U.S. now accounts for most of the London-based utility’s revenue and it gets the biggest share of investment. National Grid’s shifting center will come as cold comfort to a company that now has to deal with the threat of nationalization should Britain’s opposition Labour Party win the next U.K. general election.
By Muvija M and Yadarisa Shabong (Reuters) - Rallying banks and mining stocks lifted Britain's FTSE 100 on Thursday, but weak earnings hit luxury brand Burberry (BRBY.L) and Thomas Cook (TCG.L) was floored ...
Key InsightsEven if Labour does get in to power, such a plan isn’t seen to have wide political support, while state ownership could be complicated as more than half of the utility’s revenue comes from U.S. assets. It has put the high-voltage lines at the heart of its growth strategy and is continuing with projects that are already underway, amounting to a 2 billion-pound ($2.6 billion) investment in cables to France, Norway and Denmark.National Grid said it expected energy regulator Ofgem to publish on May 23 its latest consultation on proposed gas and power grid price-control levels for 2021.
"The proposals that Labour have set are very complex and from our perspective would be a massive distraction for the industry and would certainly slow down the progress in terms of things like infrastructure investments," Chief Executive John Pettigrew told Reuters on Thursday. Labour's nationalisation plan has prompted infrastructure owners to warn of damage to investment, high taxpayer costs and a slower transition to green energy.
The head of Britain's National Grid criticised the opposition Labour Party's plans to renationalise energy networks, saying it would increase costs for consumers and could prompt legal challenges, as the firm's profit fell slightly. "The proposals that Labour have set are very complex and from our perspective would be a massive distraction for the industry and would certainly slow down the progress in terms of things like infrastructure investments," Chief Executive John Pettigrew told Reuters on Thursday.
Harvey Jones says the generous National Grid plc (LON: NG) yield is now threatened by the Labour Party's nationalisation plans.
In a radical plan, the Labour leader says low-income households would benefit from the changes, which could see millions lifted out of fuel poverty. Labour says the scheme could provide free energy and save an average of £117 a year on household bills. Any unused electricity generated by the programme would be used by the National Grid, which it is claimed would raise an additional £66m a year for local authorities.
The FTSE 100 advanced 0.8% and outperformed its European peers. The FTSE 250 was roughly flat. Markets were initially upbeat after U.S. President Donald Trump said talks between Beijing and Washington had not collapsed, terming the Sino-U.S. conflict as "a little squabble".
National Grid has said plans by Labour to renationalise UK energy networks would damage investment and delay progress towards greener energy. According to the Financial Times, a paper to be set out later this week will explain how a Jeremy Corbyn government would nationalise the networks - cables and pipelines that deliver gas and electricity - soon after winning an election. National Grid said in a statement that it was one of the most reliable networks in the world and also "at the heart of the decarbonisation agenda".
Britain's opposition Labour Party intends to take energy networks back into state ownership if elected, prompting infrastructure owners to warn of damage to investment, high taxpayer costs and a slower transition to green energy. Labour's shadow business and energy secretary, Rebecca Long-Bailey, late on Tuesday published party plans via twitter to renationalise the country's 60-billion-pound energy networks and establish a National Energy Agency. Britain's energy infrastructure, such as gas pipes and electricity cables, is owned by several firms including SSE, National Grid and Iberdrola's Scottish Power.
SSE Plc to National Grid Plc led the decliners in London trading, and EON SE, a German utility with a presence in the U.K. also fell. The report in the Daily Telegraph said Labour would pay pension funds in government bonds to take into public ownership the power transmission arms of SSE, National Grid and Scottish Power, a unit of Iberdrola SA. Labour’s intention to renationalize the nation’s power and natural gas network is a central plank of the party’s agenda under Jeremy Corbyn, who took over as leader in 2015.
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Britain, the birth place of coal power, has gone seven days without electricity from coal-fired stations for the first time since its 19th century industrial revolution, the country's power grid operator said on Wednesday. Britain was home to the world's first coal-fuelled power plant in the 1880s, and coal was its dominant electric source and a major economic driver for the next century.
Royston Wild explains why he'd ignore IQE plc (LON: IQE) today and plough into this FTSE 100 (INDEXFTSE: UKX) income hero instead.
National Grid plc (LON: NG) and SSE plc (LON: SSE) share prices are already falling, so should we dump them in fear of nationalisation?
Paul Summers looks ahead to results from BT Group - Class A Common Stock (LON:BT.A) and two other market giants in May.
I believe National Grid plc’s (LON: NG) recent price slump on re-nationalisation concerns is a good opportunity to invest in a quality stock.