The London Stock Exchange (LSE) lists National Grid PLC under the “NG.” It is also listed on the New York Stock Exchange (NYSE) under the “NGG.” As of this post, National Grid Share Price is at 1,042.00 GBp. This went 1.14% down from its opening price of 1,048.50 GBp.
As of September 2021, National Grid PLC had a market capitalization of around £36 billion on the LSE and around $44 billion on the NYSE. The company is part of the FTSE 100 index on the LSE, a group of the 100 largest companies listed on the exchange by market capitalization.
Brief Background of National Grid PLC
Based in the United Kingdom, National Grid PLC provides electricity and gas internationally. Initially called the National Grid Company in 1990, NG privatized the UK electricity industry.
Before privatization, the UK electricity industry was operated by a state-owned entity called the Central Electricity Generating Board. In 1989, the UK government passed the Electricity Act, which created a competitive market for electricity and led to the privatization of the industry.
As part of the privatization process, the National Grid Company was created to take over the responsibility for operating the UK’s high-voltage electricity transmission network. The company was later renamed National Grid PLC and also took on responsibility for operating the gas transmission network in the UK.
Over the years, National Grid PLC has expanded its operations beyond the UK and operates electricity and gas networks in the United States. In 2002, the company acquired Niagara Mohawk Holdings, a US-based energy company, and rebranded it as National Grid USA. Today, National Grid operates in the UK and the US, providing essential energy infrastructure services to millions of customers.
Advantages of Investing in National Grid PLC
There are several advantages of investing in National Grid PLC, including:
- Steady demand. As a regulated utility company, it provides essential services for modern society’s functioning. This gives the company a relatively stable and predictable revenue stream, as demand for electricity and gas tends to be consistent over time.
- Diversification. National Grid operates in the UK and the US, providing geographic diversification for investors. This means that the company’s performance is not overly reliant on the economic conditions of a single country or region.
- Strong dividend yield. Known for paying a solid dividend, National Grid PLC makes it an attractive investment for income-seeking investors.
- Infrastructure growth. As energy demand continues to grow, National Grid is well-positioned to benefit from the need for increased investment in energy infrastructure. The company has committed to investing billions of pounds over the next several years to upgrade and expand its UK and US networks.
- Environmental focus. National Grid commits to reducing carbon emissions and has set ambitious targets to achieve net-zero emissions by 2050. This aligns with the growing trend toward sustainable investing and may make the company attractive to investors who prioritize environmental considerations.
National Grid Main Competitors
National Grid PLC operates in the regulated utility industry, which includes companies that provide essential energy infrastructure services such as electricity transmission, distribution, and gas transmission. Some of National Grid’s main competitors in this industry include:
- EDF. A French energy company that operates in the UK through its subsidiary, EDF Energy. EDF Energy is one of the UK’s largest energy suppliers and operates electricity generation facilities.
- SSE. One of the UK’s largest energy companies. The company operates in electricity generation, transmission, and gas transmission.
- Centrica. A British multinational energy company is operating in the UK and North America. The company’s operations include electricity and gas supply, energy services, and solutions.
- Iberdrola. A Spanish energy company that operates in the UK through its subsidiary, Scottish Power.
- E.ON. A German energy company that operates in the UK through its subsidiary, E.ON UK. The company operates in both electricity and gas supply, as well as energy solutions and services.
These companies are just a few examples of National Grid’s main competitors in the industry, and likely others depend on the specific market segment and region.
