National Grid 2008 Annual Report Download - page 110

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 62901
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 14
Description: EXH 2(B).5.1
0/1493.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/493/1*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 62901
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 14 Description: EXH 2(B).5.1
0/1493.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/493/1*
RISK FACTORS
The relevant Issuer believes that the following factors may affect its ability to fulfil its obligations under Instruments issued unde
r
the Programme. All of these factors are contingencies which may or may not occur and the relevant Issuer is not in a position t
o
express a view on the likelihood of any such contingency occurring.
Factors which the relevant Issuer believes may be material for the purpose of assessing the market risks associated wit
h
Instruments issued under the Programme are also described below.
The relevant Issuer believes that the factors described below represent the principal risks inherent in investing in Instrument
s
issued under the Programme, but the relevant Issuer may be unable to pay interest, principal or other amounts on or i
n
connection with any Instruments for other reasons. If this occurs, Prospective investors may lose the value of their entir
e
investment or part of it. Prospective investors should read the detailed information set out elsewhere in this Prospectu
s
(including any documents deemed to be incorporated by reference herein) and reach their own views prior to making an
y
investment decision.
Factors that may affect National Grid’s ability to fulfil its obligations under Instruments issued under the Programme
Risks relating to National Grid and its businesses
Changes in law or regulation in the geographies in which National Grid operates could have an adverse effect on Nationa
l
Grid’s results of operations
Many of National Grid’s businesses are utilities or networks that are subject to re
g
ulation by
g
overnments and other authorities.
Consequently, chan
g
es in law or re
g
ulation in the countries or states in which National Grid operates could adversely affect the
Group. Re
g
ulatory decisions concernin
g
, for example, whether licences or approvals to operate are
g
ranted or renewed,
whether market developments have been satisfactorily implemented, whether there has been any breach of the terms of a
licence or approval, the level of permitted revenues for National Grid’s businesses and proposed business development
activities, could have an adverse impact on National Grid’s results of operations, cash flows, the financial condition of its
businesses and the ability to develop those businesses in the future.
Breaches of or changes in environmental or health and safety laws or regulations could expose National Grid to claims fo
r
financial compensation and adverse regulatory consequences as well as damaging National Grid’s reputation
Aspects of National Grid’s activities are potentially dan
g
erous, such as the operation and maintenance of electricity lines and
the transmission and distribution of natural
g
as. Electricity and
g
as utilities also typically use and
g
enerate in their operations
hazardous and potentially hazardous products and by-products. In addition, there may be other aspects of National Grid’s
operations that are not currently re
g
arded or proved to have adverse effects but could become so, for example, the effects of
electric and ma
g
netic fields. National Grid is subject to laws and re
g
ulations relatin
g
to pollution, the protection of the
environment, and how National Grid uses and disposes of hazardous substances and waste materials. National Grid is also
subject to laws and re
g
ulations
g
overnin
g
health and safety matters, protectin
g
both the public and its employees. Any breach
of these obli
g
ations, or even incidents that do not amount to a breach, could adversely affect the results of operations and
National Grid’s reputation.
14