Key performance indicators (KPIs)

Financial KPIs

Company strategy and objectives Financial KPIs Definitions
Sustainable growth and superior financial performance Adjusted earnings per share Adjusted earnings* divided by the weighted average number of shares
  Total shareholder return Growth in share price assuming dividends are reinvested
Delivering strong, sustainable regulatory and long-term contracts with good returns Group return on equity Adjusted earnings* with certain regulatory based adjustments divided by equity
Becoming more efficient through transforming our operating model and increasingly aligning our processes Regulated controllable operating costs Regulated controllable operating costs as a proportion of regulated assets

Our performance and the progress we have made against our strategic aims and against the objectives we have set ourselves are described below and on the following pages. Commentary on our overall financial results can be found in Financial performance, and information on the performance and financial results of each line of business is set out in Transmission, Gas Distribution, Electricity Distribution & Generation and non-regulated businesses and other.

We measure the achievement of our objectives both through the use of qualitative assessments and through the monitoring of quantitative indicators. To provide a full and rounded view of our business, we use non-financial as well as financial measures. Although all these measures are important, some are considered to be of more significance than others, and these more significant measures are designated as KPIs. Our financial and non-financial KPIs are highlighted here. KPIs are used as our primary measures of whether we are achieving our principal strategic aims of sustainable growth and superior financial performance. We also use KPIs to measure our performance against our objectives; the relationships between the objectives and the KPIs is explained above.

Adjusted earnings per share*+†

Adjusted earnings per share

See adjusted earnings

Total shareholder return

Total shareholder return

See shareholder returns

Group return on equity^

Group return on equity

See delivering strong, sustainable regulatory and long-term contracts with good returns

Regulated controllable operating cost‡

Regulated controllable operating cost

See becoming more efficient through transforming our operating model and increasingly aligning our process

*
Adjusted earnings excludes exceptional items, remeasurements and stranded cost recoveries
+
2007/08 data includes continuing operations acquired with KeySpan for the period from 24 August 2007 to 31 March 2008 or as at 31 March 2008
^
2007/08 results include KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred on 1 April 2007
†
Comparative data has been restated for the impact of the scrip dividend issues
‡
Comparative data has been restated to present information on a consistent basis with the current year

Non-financial KPIs

Company objectives Non-financial KPIs Definitions
Modernising and extending our transmission and distribution networks Network reliability targets Various definitions appropriate to the relevant line of business
Driving improvements in our safety, customer and operational performance Customer satisfaction Our position in customer satisfaction surveys
  Employee lost time injury frequency rate Number of employee lost time injuries per 100,000 hours worked on a 12 month basis
Building trust, transparency and an inclusive and engaged workforce Employee engagement index Employee engagement index calculated using responses to our annual employee survey
Positively shaping the energy and climate change agenda with our stakeholders in both regions Greenhouse gas emissions Percentage reduction in greenhouse gas emissions against our 1990 baseline

Network reliability targets

Performance Measure Target
  05/06 06/07 07/08 08/09 09/10   09/10
Electricity transmission – UK 99.9999 99.9999 99.9999 99.9999 99.9999 % 99.9999
Gas transmission – UK 100 100 100 100 100 % 100
Gas distribution – UK 99.999 99.999 99.999 99.9999 99.999 % 99.999
Electricity transmission – US 348 259 437 266 147 MWh losses <253
Electricity distribution – US 141 121 110 114 114 Mins of outage <122

See Transmission, Gas Distribution and Electricity Distribution & Generation for additional details on network reliability

Customer satisfaction

  Performance Measure Target
  08/09 09/10    
Gas Distribution – UK 4th quartile Not yet available Quartile ranking To improve
Gas Distribution – US: Residential 4th quartile 3rd quartile Quartile ranking To improve
Gas Distribution – US: Commercial 3rd quartile 2nd quartile Quartile ranking To improve
Electricity Distribution & Generation: Residential 4th quartile 4th quartile Quartile ranking To improve
Electricity Distribution & Generation: Commercial 4th quartile 3rd quartile Quartile ranking To improve

Employee lost time injury frequency rate

See driving improvements in our safety, customer
and operational performance

Employee engagement index

See employee engagement

Greenhouse gas emissions~#

See climate change

~
2007/08 restated due to improved baseline data relating to KeySpan. Previously published figure excluding KeySpan was 30%
#
Our greenhouse gas emissions for 2009/10 are not fully verified at the date of this Report. Fully verified data will be published on our website in July 2010

Back to top