Modernising and extending our transmission and distribution networks
Capital investment
Capital investment is one of the principal drivers to future growth, as the majority of the capital investment we make enables us to earn an increased financial return.
The principal measure we use to monitor organic investment is capital expenditure, which includes investment in property, plant and equipment as well as in internally created intangible assets such as software.
Our capital investment plans reflect changing energy infrastructure requirements.
The capital investment programme in our regulated businesses usually takes place within defined regulatory frameworks that permit us to earn a return on allowed investments. Capital investment in our non-regulated businesses is based on the financial return that we expect to generate.
Our planned total annual capital expenditure for 2009/10 is around £3.4 billion and we expect it to remain at around this level over the medium term.
Total capital expenditure
£m
Our total capital expenditure during 2008/09 was £3,242 million compared to £3,054 million in 2007/08 and £2,375 million in 2006/07. More detail on capital expenditure is provided in the business sections Transmission, Gas Distribution, Electricity Distribution & Generation and Non-regulated businesses and other.