v3.26.1
Other operating costs
 12 Months Ended
Mar. 31, 2026
Analysis of income and expense [abstract]  
Other operating costs 4. Other operating costs
Below we have presented separately certain items included in our operating costs from
continuing operations. These include a breakdown of payroll costs (including disclosure
of amounts paid to key management personnel) and fees paid to our external auditors.
2026
2025
2024
£m
£m
£m
Depreciation, amortisation and impairment¹
2,247
2,175
2,061
Payroll costs
1,992
2,143
2,043
Purchases of electricity
1,489
1,429
1,497
Purchases of gas
2,091
1,578
1,289
Property and other taxes
1,443
1,402
1,279
UK electricity balancing costs
—
1,143
2,486
Impairment of joint venture
—
303
—
Other2
3,240
3,071
4,553
Other operating costs
12,502
13,244
15,208
Impairment losses on financial assets
243
200
179
Total operating costs from continuing operations
12,745
13,444
15,387
Operating costs from continuing operations include:
Inventory consumed
454
506
408
Research and development expenditure
38
43
32
1.Depreciation, amortisation and impairment relates to property, plant and equipment and other intangible assets. The charge is stated net
of depreciation and amortisation capitalised.
2.Included within Other are the costs incurred for the ongoing upkeep, repair, and management of infrastructure and assets necessary to
ensure reliable energy delivery and operational efficiency.
4. Other operating costs cont.
(a) Payroll costs
2026
2025
2024
£m
£m
£m
Wages and salaries1
3,515
3,497
3,206
Social security costs
313
279
256
Defined contribution scheme costs
152
144
129
Defined benefit pension costs
73
114
96
Share-based payments
45
37
37
Severance costs (excluding pension costs)
16
10
12
4,114
4,081
3,736
Less: payroll costs capitalised
(2,122)
(1,938)
(1,693)
Total payroll costs from continuing operations
1,992
2,143
2,043
1.Included within wages and salaries are US other post-retirement benefit costs of £27 million (2025: £25 million; 2024: £26 million).
For further information, refer to note 25.
(b) Number of employees
31 March
2026
Monthly
average
2026
31 March
2025
Monthly
average
2025
31 March
2024
Monthly
average
2024
UK
14,554
14,105
13,477
13,919
13,956
13,439
US
18,472
18,286
18,177
17,888
17,469
17,406
Total number
of employees
(continuing operations)
33,026
32,391
31,654
31,807
31,425
30,845
(c) Key management compensation
2026
2025
2024
£m
£m
£m
Short-term employee benefits
11
8
7
Share-based payments
7
4
5
Total key management compensation
18
12
12
Key management compensation relates to the Board, including the Executive Directors and Non-executive
Directors, for the years presented.
(d) Auditor’s remuneration
Auditor’s remuneration is presented below in accordance with the requirements of the Companies Act
2006 and the principal accountant fees and services disclosure requirements of Item 16C of Form 20-F:
2026
2025
2024
£m
£m
£m
Audit fees payable to the Parent Company’s auditor and
their associates in respect of:
Audit of the Parent Company’s individual and consolidated
financial statements1
2.6
2.8
2.8
The auditing of accounts of any associate of the Company
8.6
8.7
8.8
Other services supplied2
6.9
7.2
7.3
18.1
18.7
18.9
Total other services3
All other fees:
Other assurance services4
1.5
1.0
4.0
Other non-audit services not covered above
0.1
—
—
1.6
1.0
4.0
Total auditor’s remuneration
19.7
19.7
22.9
1.Audit fees in each year represent fees for the audit of the Company’s financial statements for the years ended 31 March 2026, 2025
and 2024.
2.Other services supplied represent fees payable for services in relation to other statutory filings or engagements that are required to be
carried out by the auditor. In particular, this includes fees for reports under section 404 of the US Public Company Accounting Reform
and Investor Protection Act of 2002 (Sarbanes-Oxley Act), audit reports on regulatory returns and the review of interim financial
statements for the six-month periods ended 30 September 2025, 2024 and 2023 respectively.
3.There were no tax compliance or tax advisory fees and no audit-related fees as described in Item 16C(b) of Form 20-F.
4.In all years, principally relates to assurance services provided in relation to comfort letters for debt issuances and reporting accountant
services. The years ended 31 March 2026 and 31 March 2025 also includes fees for ESG reporting assurance.
The Audit & Risk Committee considers and makes recommendations to the Board, to be put to
shareholders for approval at each AGM, in relation to the appointment, reappointment, removal and
oversight of the Company’s independent auditor. The Committee, under authority granted at the AGM,
also considers and approves the audit fees on behalf of the Board in accordance with the Competition
and Markets Authority Audit Order 2014.
Certain services are prohibited from being performed by the external auditor under the Sarbanes-Oxley
Act and the FRC’s 2024 Revised Ethical Standard. Of the above services, none were prohibited.