Opinions
Varun Anand
National Grid PLC
NGG-N
COMMENT
Oct 27, 2020
Stock price when the opinion was issued
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The British national electricity grid group. There was a big run-up in the middle of the year. All of the UK in electric utilities is a relatively safe place to be because they have a fairly transparent regulatory regime. The difficulty is that, especially with the government in the UK saying they want to introduce lots of renewable such as wind, etc. and, at the same time not pushing forward with gas stations, reliability of supply is an issue. At the moment it is not exposed to a weaker northern English economy. Reasonable yield.
This has been a problem for all UK utilities. The regulatory regime, whether for generators, distributors, etc., has been getting tougher and tougher. With the present uncertain state of UK politics, there is a possibility that Labour might be the next government, and this could get nationalized at a price well below what it is trading at now. You have to make up your mind whether BREXIT is going to be disastrous for the Conservative party or not. If you are uncertain, you might want to get out of this and come back when things are clearer.
Looking for a renewable energy play A UK utility building EV-charging stations. There are few pure-play EV-station stocks in North American, because it's early days in this fragmented industry and there's no universal standard. Instead, there are renewable energy plays in the US, namely NextEra.