Grid eyes a monopoly in London as it chases EDF
NGG | Quote | Chart | News | PowerRating -- National Grid today admitted it is after an electricity and gas delivery monopoly in London as it confirmed it is in the running to make a bid for EDF's GBP4 billion power network business.
National Grid, the country's operator of the high-voltage electricity transmission network of pylons, also owns the mains gas distribution network in London.
Today it said that it is looking at making a bid for the capital's electricity distribution network, the localised, lower voltage wires and substations which deliver power into our homes.
But finance director Steve Lucas warned the Grid will not buy the EDF business at any price.
"We are interested in any business that gives us good growth prospects," he said. He added Grid has not bought an electricity distribution business in the past because the bidding has been too hot.
With the private-equity and infrastructure fund financial players laid low by the credit crunch, Grid's main rival for the EDF business is set to be Southern Electric group SSE, which also owns the gas networks south of London.
SSE's chief executive Ian Marchant has indicated that he is likely to bid aggressively for the EDF business.
EDF is selling its power networks in the South East, London and East Anglia, to pay for its expansion into nuclear.
Grid today revealed a 16 percent surge in pre-tax profits to GBP649 million in the half year to the end of September helped by lower interest rates and more connections to power plants and gas terminals.
The interim dividend is up 8 percent at 13.65p.
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