NORTHERN POWERGRID (NORTHEAST) PLC
Company number: 02906593
Reporting period:
1 January 2026 to 30 June 2026
Report filed on:
27 July 2026
Approved by:
Alexander Patrick Jones
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: 23 days
Total value paid:
- within 30 days: £112,400,000 (63%)
- in 31 to 60 days: £59,700,000 (33%)
- in 61 days or more: £6,700,000 (4%)
Invoices paid:
- within 30 days: 72%
- in 31 to 60 days: 26%
- in 61 days or more: 2%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £32,800,000
- payments due in the reporting period which have not been paid within the agreed period: 6%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
28 days
Longest standard payment period
61 days
Standard payment terms
Net monthly.
Net monthly is the standard payment term offered. This means that when an invoice is received for payment it will be paid by the end of the following month e.g. an invoice received on 31 Jan would be paid by 28 Feb (shortest duration of standard payment terms i.e. 28 days) or an invoice received on 1 Jul would be paid by 31 Aug (longest duration of standard payment terms i.e. 61 days) .
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
Any other information about payment terms
No
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
Some of our historic Construction contracts contain retention clauses of roughly 5% - 10% of the project value. This is generally used to cover the defect correction period, which is typically 12-24 months. Most of our recent tender awards do not contain retention clauses.
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?
Yes: 10%
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
No
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Where applicable, the retention is released in a lump sum against the defect retention period.
Is the money released in stages?
Yes:
If the project is milestone applicable, we would release in-line with milestone completion instead of waiting for project completion.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
10%
Amount retained stated as a percentage of the total construction payments made by this business
10%
Dispute resolution process
The Accounts Payable department will initially take responsibility for disputes relating to payment processing. Where a dispute is commercial in nature, or requires operational resolution, the case will be passed to the person responsible for raising the order for timely clearance.
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.
No, this business has not signed up to a code of conduct or standards on payment practices.
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