National Grid is now turning its attention to overseas markets and is eyeing up a 'significant' acquisition in the US. It is also looking at a new joint venture in India with an Australian distribution firm.

David Jones, chief executive of National Grid, said: "We are actively looking at the USA. What we would be looking for..(is).. a significant transaction." The group said it was willing to pay more than £1bn on a new purchase.

The firm believes the outlook could be sunny overseas

David Jefferies, the group's chairman, said: "Internationally, we are focusing on significant investment opportunities that will allow us to become a major player in selected overseas electricity markets."

National Grid made a one-off profit of £107m from the successful flotation of Energis, the telecommunications system that uses its network.

National Grid has seen the value of its remaining 74% stake in Energis rocket from £600m to around £1.9bn since it was floated last year. Mr Jones said that the group had no intention of selling down its stake in the group. Sales at Energis rose 73% to £168m as the group extended its network into metropolitan areas after teaming up with Deutsche Telekom and France Telecom.

The group is looking for a successor for 64 year old Mr Jefferies, one of the few executives that have survived from the pre-privatisation era.

Mr Jefferies said that National Grid was on target to produce an ongoing 6% reduction in annual controllable costs in real terms.

The group has raised its dividend 8.4% to 12.07p on top of the £770m, 44.7p a share special dividend it announced last year.