National Grid 2008 Annual Report Download - page 357

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 3054
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 14
Description: EXH 2(B).7.1
0/1768.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/768/1*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 3054
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 14 Description: EXH 2(B).7.1
0/1768.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/768/1*
RISK FACTORS
The relevant Issuer and the Guarantor believe that the following factors may affect their ability to fulfil their obligations unde
r
Instruments issued under the Programme. All of these factors are contingencies which may or may not occur and the relevan
t
Issuer and the Guarantor are not in a position to express a view on the likelihood of any such contingency occurring.
Factors which the relevant Issuer and the Guarantor believe may be material for the purpose of assessing the market risk
s
associated with Instruments issued under the Programme are also described below.
The relevant Issuer and the Guarantor believe that the factors described below represent the principal risks inherent i
n
investing in Instruments issued under the Programme, but the relevant Issuer or the Guarantor may be unable to pay interest,
principal or other amounts on or in connection with any Instruments for other reasons and such Issuer and the Guarantor do no
t
represent that the statements below regarding the risks of holding any Instruments are exhaustive. Prospective investor
s
should also read the detailed information set out elsewhere in this Prospectus (including any documents deemed to b
e
incorporated by reference herein) and reach their own views prior to making any investment decision.
Risks relating to National Grid Gas plc and its business
Changes in law or regulation could have an adverse effect on National Grid Gas’s results of operations
National Grid Gas is subject to re
g
ulation by
g
overnmental and re
g
ulatory authorities. Consequently, chan
g
es in law or
re
g
ulation could adversely affect National Grid Gas. Chan
g
es to market structures implemented as a result of le
g
islative
developments and 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 Gas’s businesses and proposed business
development activities could have an adverse impact on National Grid Gas’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 Gas t
o
claims for financial compensation and adverse regulatory consequences and could damage National Grid Gas’
s
reputation
Aspects of National Grid Gas’s activities are potentially dan
g
erous, such as the transmission and distribution of natural
g
as.
Gas utilities also typically use and generate in their operations hazardous and potentially hazardous products and by-products.
In addition, there may be other aspects of National Grid Gas’s operations that are not currently re
g
arded as havin
g
adverse
effects that could become so. National Grid Gas is subject to laws and re
g
ulations relatin
g
to pollution, the protection of the
environment, and how National Grid Gas uses and disposes of hazardous substances and waste materials. National Grid Gas
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 relatin
g
to the environment or to health and safety that do not amount to a
breach, could adversely affect the results of operations and National Grid Gas’s reputation.
Network failure or the inability to carry out critical non-network operations may have significant adverse impacts o
n
both National Grid Gas’s financial position and its reputation
National Grid Gas may suffer a major network failure or may not be able to carry out critical non-network operations.
Operational performance could be adversely affected by a failure to maintain the health of the system or network, inadequate
forecastin
g
of demand or inadequate record keepin
g
. This could cause National Grid Gas to be in breach of a licence or
approval, and even incidents that do not amount to a breach could result in adverse re
g
ulatory action and financial
consequences, as well as harming National Grid Gas’s reputation. In addition to these risks, National Grid Gas is subject to
other risks that
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