National Grid boosts upgrade plans - graduate jobs

Engineering graduates will be required to help with National Grid's planned £3.2 billion upgrade to its ageing network and infrastructure.

The power provider has issued a cash-call to investors in order to fund the revised upgrade plans, taking the total investment to £22 billion over the next five years and ensuring its credit rating is kept intact while spending increases. National Grid reported a 12% increase in underlying pre-tax profits to £1.97 billion for the first quarter of 2010 as it announced the upgrade plans.

The energy company had initially targeted more than £14 billion spending over the next five years on the power lines and pylons that make up its transmission network, but this has now been increased.

The group owns and maintains electricity and natural-gas networks in the UK and the US, but said three-quarters of the new five-year investment plan will be spent in the UK and around 60% on transmission. National Grid wants to continue focusing on replacing old assets, while also ensuring its networks are able to meet new regulatory and renewable energy targets.

Steve Holliday, chief executive of National Grid, said the firm was "confident about the requirement for a step-up in UK investment" as he launched the rights issue to raise £3.3 billion, or £3.2 billion net of fees.

"The board believes it will allow the group to fund a significant increase in capital investment and continue to deliver attractive returns to shareholders, whilst maintaining single A credit ratings for our UK operating companies in a more volatile economic environment," added the group.