Pension fund fears for National Grid Transco

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Manufacturing News, Source : TheManufacturer.com
Published : 27 Nov 2002 9:46
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National Grid Transco, which runs the UK’s gas and electricity networks, yesterday disclosed that its pension fund has a £1.5 billion shortage.

The National Grid and Lattice, the electricity and gas networks that merged last month, have a combined deficit of £1.5 billion, rising from the previous year’s £181 million, due mainly to a collapse in share prices. Fears have been raised that contributions may have to be stepped up. More than 150,000 past and present employees depend on the pension scheme but the group has tried to play down the impact of this result. “This is a big number but it is not particularly helpful. We are a long-term business and we have to think long-term about this issue,” said Roger Urwin, chief executive. “At this stage there is nothing to suggest that we can’t afford to pay out on the scheme.”