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National Grid Gas plc Annual Report and Accounts 2009/10 9
Key performance indicators (KPIs)
Our performance and the progress we have made against the
objectives we have set ourselves are described below and on
the following pages. We measure the achievement of our
objectives both through the use of qualitative assessments
and through the monitoring of quantitative indicators. To
provide a full and rounded view of our business, we use non-
financial as well as financial measures. Although all these
measures are important, some are considered to be of more
significance than others, and these more significant measures
are designated as KPIs. Our financial and non-financial KPIs
are highlighted here. KPIs are used as our primary measures
of whether we are achieving our principal strategic aims of
sustainable growth and superior financial performance. We
also use KPIs to measure our performance against objectives;
the relationships between the objectives and the KPIs is
explained below. Details of other performance measures are
included under Performance against objectives on page 10.
Objective
KPI/performance
measure Description and performance Target
Financial KPIs
Delivering
superior financial
performance
Adjusted operating
profit
Operating profit excluding exceptional items and
remeasurements
2009/10: £1,297 million
2008/09: £1,091 million
Year on year profit increase
Gas Transmission and Gas Distribution operational
return against the target set by our regulator for the 5
year price control period
Achieve or exceed regulatory allowed
return over 5 year price control period
of:
Delivering strong
sustainable
regulatory
contracts with
good returns
Operational return
Gas Transmission
2009/10: 7.6%
2008/09: 6.9%
Gas Distribution
2009/10: 6.3%
2008/09: 5.7%
Gas Transmission 5.05%
Gas Distribution 4.94%
Non-financial KPIs
Number of employee lost time injuries
per 100,00 hours worked on a 12 month basis
Driving
improvements in
safety, customer
and operational
performance
Employee lost time
injury frequency rate
Gas Transmission
2009/10: 0.16
2008/09: 0.33
Gas Distribution
2009/10: 0.08
2008/09: 0.23
Zero
Reliability of Gas network
as a percentage against the target set by our regulator
Modernising and
extending our
transmission and
distribution
networks
Network reliability
Gas Transmission
2009/10: 100%
2008/09: 100%
Gas Distribution
2009/10: 99.999%
2008/09: 99.999%
Gas Transmission 100%
Gas Distribution 99.999%
Employee engagement index
calculated using responses to National Grid’s annual
employee survey
Year-on-year increase Building
transparency, trust
and an inclusive
and engaged
workforce
Employee
engagement index
Transmission
business:
2009/10: 77%
2008/09: 82%
Gas Distribution
business:
2009/10: 68%
2008/09: 70%
Positively shaping
the energy and
climate change
agenda
Greenhouse gas
emissions
Percentage reduction in greenhouse gas emissions
against our 1990 baseline
Year-on-year reduction %
2009/10: 15%*
2008/09: 4%
Year-on-year reduction
*Greenhouse gas emissions for 2009/10 are not fully verified at the date
of this report. Fully verified data will be published on the National Grid
plc website in July 2010.