New Argie losses at National Grid

INVESTORS in National Grid are bracing themselves for more bad news from the British power network group over its interests in South America.

Weeks after writing off its £290m investments in telecoms networks in Brazil, Argentina and Chile, sending half-year results plunging £103m into the red, National Grid is privately admitting its operation of Transener, the largest power transmission company in Argentina, could also hit the company.

Responding to growing speculation among London share dealers that Transener is suffering from power bills not being paid after the collapse of the Argentine economy, a National Grid spokesman said: 'With the fluid economic situation in Argentina, we are obviously continuing to monitor the situation closely.'

He said: 'We recognise that where there are currency controls in place, there is always the possibility that payment defaults could occur. The economic situation is not yet settled enough for us to assess the financial impact on Transener.'

National Grid is believed to have sunk at least £110m into Transener and holds the operating licence for it through a 42.5% stake in Transener's majority shareholder Citelec. National Grid also has a 32% stake in troubled British telecoms group Energis.