NATIONAL GRID ELECTRICITY DISTRIBUTION (WEST MIDLANDS) PLC
Company number: 03600574
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
6 November 2025
Approved by:
Jennifer Dillon
Contracts and payments
Do any of this business's construction contracts with its suppliers include retention clauses? Yes
Payment statistics
Average time taken to pay invoices: 20 days
Total value paid:
- within 30 days: £127,401,521 (89%)
- in 31 to 60 days: £8,839,343 (6%)
- in 61 days or more: £6,419,681 (4%)
Invoices paid:
- within 30 days: 89%
- in 31 to 60 days: 7%
- in 61 days or more: 4%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £16,343,740
- payments due in the reporting period which have not been paid within the agreed period: 11%
- not made in the reporting period due to a dispute: 1%
Payment terms
Shortest standard payment periods
7 days
Longest standard payment period
61 days
Standard payment terms
National Grid Electricity Distribution do have different types of standard contracts depending on the product, service or works but the standard payment terms for the majority of our contracts is Net Monthly - this means payment will be due on the last day of the month following the one in which NGED receives a correctly rendered invoice. This also applies to purchase orders raised with no formal contract in place.
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
61 days
No further comment provided
Any other information about payment terms
For our Standard Terms & Conditions, as stated on our purchase orders, please refer to www.nationalgrid.co.uk/standard-terms-purchasing.aspx The invoice delivery address is also detailed on the purchase order. If a valid invoice is received promptly at the correct invoicing address, quoting a valid purchase order it will be processed in a timely manner to ensure the Invoice is paid on or before the invoice due date.
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
Retention clauses will be used when it is stated within the work instruction issued to the supplier that retention is to be Applied.
Does this business only use retention clauses in construction contracts above a specific contract sum?
No
Does this business use a standard percentage rate in retention clauses?
No
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
Yes:
NGED are typically the end user and as such there are no additional parties who would apply retention clauses to NGED.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Where it is stated in the Work Instruction that retention is to apply, one half of the retention money shall be certified by NGED and shall be paid to the contractor, subject to receipt by NGED of a VAT invoice for the amount of retention certified, by the end of the month following the month in which the practical completion date is achieved. The final date for payment of the remainder or the retention to be paid to the contractor is, subject always to receipt by NGED of a VAT invoice for the remainder of the retention certified, by the end of the month following the month in which NGED issues the Defects Liability Certificate
Is the money released in stages?
Yes:
50% released in the month following the month in which the practical Completion Date is achieved. The remaining 50% released by the end of the month following the month in which NGED issues the Defects Liability Certificate.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
100%
Amount retained stated as a percentage of the total construction payments made by this business
5%
Dispute resolution process
Invoice disputes and/or general enquiries regarding the status of an invoice would be dealt with by Accounts Payable initially. If the enquiry could not be resolved it would be escalated to either the person responsible for raising the order or the appropriate Business Management. For specific contractual disputes, the relevant member of the procurement team would be contacted to resolve as quickly as possible. Dispute resolution forms part of our Standard Terms & Conditions. Please refer to www.nationalgrid.co.uk/standard-terms-purchasing.aspx
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Fair Payment Code must commit to paying 95% of their invoices within 60 days.
Yes, this business has signed up to: Prompt Payment Code
Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
No
Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No