Vision, strategy and objectives
Vision
Our vision is the long-term aspiration for National Grid – what we want to be in the future.
We, at National Grid, will be the foremost international electricity and gas company, delivering unparalleled safety, reliability and efficiency, vital to the wellbeing of our customers and communities.
We are committed to being an innovative leader in energy management and to safeguarding our global environment for future generations.
Strategy
Our strategy is a medium-term step in the journey to achieve the vision – what we will be doing over the next few years.
It is also the overarching principle that provides commercial context to each of the objectives.
We will build on our core UK and US, electricity and gas, regulated business base and financial discipline to deliver sustainable growth and superior financial performance.
Company objectives
The objectives are the building blocks of the strategy and are fundamental to our business – what we are doing now.
- Driving improvements in our safety, customer and operational performance
- Delivering strong, sustainable regulatory and long-term contracts with good returns
- Modernising and extending our transmission and distribution networks
- Expanding our capabilities and identifying new financeable opportunities to grow
- Becoming more efficient through transforming our operating model and increasingly aligning our processes
- Building trust, transparency and an inclusive and engaged workforce
- Developing our talent, leadership skills and capabilities
- Positively shaping the energy and climate change agenda with our external stakeholders in both regions
Line of sight
Line of sight links the vision, strategy and Company objectives to all our employees’ individual objectives – how what each of us does contributes to the success of the Company.
Our vision, strategy and Company objectives are the foundation of the annual priorities of each line of business and function.
These annual priorities form the basis of the objectives of the Executive Directors and senior managers, and then flow down the organisation to the individual objectives of every manager and employee. Consequently, the actions required to deliver the strategy are allocated and aligned with employee responsibilities.
Our aim is that every employee is able to trace their objectives through to the Company’s objectives, strategy and vision.
Delivering the future through our strategy
We recognise that the geographic areas in which we operate present different challenges, and therefore the implementation of the strategy has a different focus in the UK than in the US. The details of how we plan to deliver the strategy in each region are outlined below and the alignment of the headline priorities of each business segment is illustrated in the diagram.
In the UK, we will seek to grow through replacing and expanding our core networks and investing in other organic growth opportunities relating to climate change and security of supply. In developing the future UK and EU policy and regulatory framework, we will actively influence the energy policy agenda and endeavour to position ourselves as the go-to company for current and future governments both with regard to expert opinion on matters relating to UK energy policy and climate change, and as the company of choice for delivering large energy infrastructure projects. We will look to ensure that future price controls reflect the need for substantial and timely investments to ensure climate change targets and security of supply requirements are met, while delivering acceptable and timely rates of return.
In the US, we will focus on filing rate plans and achieving appropriate outcomes, while also addressing our cost base. We will grow through core business customer growth, and asset replacement and network reinforcement. In developing the future US policy and regulatory framework, we will continue to drive towards achieving rate plans that deliver fair rates of returns, along with operating and capital cost recovery. We will continue to push for decoupling and the extension of energy efficiency programmes. We will also seek to achieve forward-looking rate plans, together with trackers for key areas of increase and volatility such as capital expenditure, pensions and bad debts. We also aim for rate plans to include remuneration for climate change initiatives such as smart grid, solar and transmission projects to connect renewables.
UK strategy
Investment led organic growth
Transmission UK
- Delivering a step change in asset replacement of our transmission infrastructure
- Delivering major new infrastructure investment to facilitate low carbon targets in the UK
Gas Distribution UK
- Improving operating efficiency, safety and customer satisfaction through Gas Distribution front office (see becoming more efficient through transforming our operating model and increasingly aligning our processes)
- Successfully defending our position through the next price control review
Transmission US
- Delivering on regulatory agreed ageing asset renewal programmes securing improved safety and reliability in our networks
US strategy
Resetting the baseline and focus on growth from core
Gas Distribution US
- Delivering rate plans and closing performance gaps
- Delivering growth through new connections and mains replacement/reinforcement
- Delivering improving customer satisfaction
Electricity Distribution & Generation
- Delivering rate plans and closing performance gap
- Delivering new processes and cost efficiencies that benefit customers and enhance alignment across the US business
- Positioning ourselves as a utility of the future
Values
This year, we are emphasising the link between the line of sight and our values. It is important that we judge our achievements not just on what is delivered but also on how it is done. Our core values are: respect others and value their diversity; take ownership for driving performance; demonstrate integrity and openness in all relationships, and work as one team, one National Grid.
Responsibility
Our vision, strategy and Company objectives are underpinned by our commitment to corporate responsibility. We will operate to the highest standards of corporate governance and conduct our business in an ethical and sustainable manner.