Market sort of going side ways of late

But I'm amazed that this one has hardly moved up In the last week

30p divi due tomorrow.

Anyone else watching these?

I hope for all the pension pots that 1200 is not reached. But would not be surprised. Mainly due to petty points scoring children playing politics.

I would be buying at 1200!!!

Good point dl. I forgot about the political side of things. My case for 1200p has just been strengthened!

1370 first please!

1370 been and gone.

OFGEM PUBLISHES EQUITY MARKET RETURN GUIDANCE

17 February 2014

EQUITY MARKET RETURN CONSULTATION: REDUCING THE COST OF CAPITAL FOR ELECTRICITY DISTRIBUTION COMPANIES

· Changes to methodology put greater weight on current market evidence
· Proposed changes will lower assumed cost of equity to 6% resulting in an assumed cost of capital of 3.8% for five electricity distribution companies in 2015-16, with further falls projected in subsequent years
· Western Power Distribution, which was proposed for fast-tracking in November, will need to lower its assumed cost of equity and therefore its cost of capital if it is to remain in the fast- track process

Ofgem has today published guidance which will reduce the assumed cost of equity and cost of capital for electricity distribution companies.

The cost of equity is an important financial parameter. Changes to this affect the assumed cost of capital, which determines the return a company can earn on its investment during a price control. We are currently setting the electricity distribution companies' price controls for 2015 - 2023.

In November, we assessed the business plans from all six distribution companies. We sent five of these plans back as we considered that they could deliver more value for consumers. The companies will resubmit their plans in March. Today we are setting out our baseline assumption of 6% for their cost of equity, resulting in an estimated cost of capital at 3.8% for the first year of the price control, 2015-16. As these companies are yet to resubmit their plans, a decision cannot be finalised at this stage.

When we assessed the business plans, Western Power Distribution (WPD) was the only electricity distribution company deemed suitable to be considered for fast-tracking, as its plans demonstrated clear value for consumers. This meant that in November we consulted on accepting its plans subject to our consultation on calculating equity market returns. Today's decision means that to stay in the fast-track process, WPD will need to make an equivalent reduction in its assumed cost of equity to 6.4% resulting in an overall cost of capital estimated at 3.9% for 2015-16.

WPD now has to decide whether to accept these adjustments. If it does not, it will revert to the slow-track process and resubmit plans in March, along with the other five companies.

-Ends-

Slowly undoing Ed's 'work'.

Looking at that chart skinny, I think we should see 1460 before the next halt.

Lord Gnome - I agree, and PDQ at this rate.

skinny - 25 Sep 2013 14:22 - 162 of 179
Nice one ED!

Back to where Ed opened his mouth.

Credit Suisse Outperform 1,483.00 1,475.00 1,700.00 1,600.00 Reiterates

SSE Business Update

SSE plc will enter its close period on 31 March 2014, prior to the publication on Wednesday 21 May of its financial report for the year to 31 March 2014. This statement:

· details developments since SSE published its Interim Management Statement (IMS)
on 23 January;

· summarises SSE's expected financial results for the year to 31 March 2014, which
are forecast to be in line with the financial outlook in the IMS;

· as part of a value programme, announces a programme of planned asset and
business disposals that will secure proceeds and debt reduction estimated to total
around £1bn and simplify significantly the SSE group;

· also as part of a value programme, announces the identification of further operational efficiencies that will result in annual savings in overheads of around £100m by March 2016 but which will result in a reduction, compared with previous plans, of around 500 in the number of people employed by SSE in Great Britain;

· announces that there will be legal separation of the businesses within SSE's Retail
and Wholesale segments, planned to be completed by March 2015;

· announces that SSE will freeze at current levels its household energy prices in GB
until at least January 2016;

· sets out the conclusions of SSE's review of its offshore wind development portfolio, which will result in SSE narrowing significantly the focus of its near-term development plans to no more than 375MW of capacity in the Beatrice project;

· forecasts capital and investment expenditure by SSE of around £1.6bn in 2014/15 and then an average of up to £1.3bn (net of disposals) across the three years to March 2018;

· states that SSE expects adjusted earnings per share1 for 2014/15 to be around or
slightly greater than in 2013/14 but to be subject to greater risks in the following two
years; and

· states that SSE is targeting an increase in the full-year dividend for 2014/15 of at least RPI inflation2, with annual increases thereafter of at least RPI inflation2 also being targeted.



more....

Freezing Gas and Electricity prices until 2016. Good news for me as a customer.

You have to smile!

SSE price-freeze: Politicians rush to claim credit

The government and the Labour party have both claimed credit for a price freeze announced by UK energy supplier SSE.

Prime Minister David Cameron and Labour leader Ed Miliband said the freeze was a result of their policies.

Energy suppliers could face first anti-trust probe

(Reuters) - Britain's energy suppliers could be on track for their biggest shake up since privatisation when regulators rule on Thursday whether the industry is competitive enough following a public outcry over high prices.

Three regulators will say whether the whole industry needs to be subjected to a full-blown anti-trust investigation which could result in some of the big gas and electricity suppliers being broken up.

A referral for a monopoly review is widely expected.

more...

27 March 2014

PROPOSED GB ENERGY MARKET REFERENCE

SSE believes that the energy market in Great Britain is competitive, has brought significant benefits for customers, and that much has been done in recent years to make it more transparent and easier to understand, ranging from greater liquidity in the wholesale electricity market to simplification of tariffs in the retail markets. In addition, there has been significant investment in energy infrastructure - SSE alone has invested over GBP7bn in the last five years.

Nevertheless, many of the key features of the energy market have become politically contentious and been subject to significant change designed to achieve a mixture of objectives. Ofgem states this morning that it believes a referral offers the opportunity 'once and for all' to clear the air. SSE has demonstrated consistently its appetite for reform that is in the interests of customers and during the forthcoming consultation will argue constructively that a market reference should provide a platform for achieving greater political and regulatory stability for the GB energy market, for the benefit of customers and the investment in the country's energy system that they need.

Alistair Phillips-Davies, Chief Executive of SSE, said:

'Regulators, politicians, customers and SSE all want the same thing: an energy market that not only works for customers, but is also trusted and seen to do so.

We welcome any efforts to clear the air, and in the meantime SSE will continue with its positive agenda for customers including its price freeze until at least, 2016.'

This information is provided by RNS

Invesco Limited < 5%

Preliminary Results

The key financial results for the year to 31 March 2014 are in line with the expectations set out in the Notification of Close Period published on 26 March 2014 (comparisons with the previous year, unless otherwise stated):

· Adjusted earnings per share* rose by 4.1% to 123.4 pence;
· Adjusted profit before tax* rose by 9.6% to £1,551.1m;
· Reported profit before tax rose by 0.7% to £575.3m;
· Investment and capital expenditure increased by 6.5% to £1.583bn;
· Adjusted net debt and hybrid capital rose by £311.5m to £7.659bn; and
· Full-year dividend increased by 3.0% to 86.7 pence per share.

*Adjusted profit before tax describes profit before tax before exceptional items (£747.2m), re-measurements arising from IAS 39 (£212.0m) and after the removal of taxation on profits from jointly-controlled entities and associates (£11.6m). Following the adoption of IAS 19R, adjusted profit before tax is stated excluding interest costs on net pension scheme liabilities (£28.2m).

Finance - business-by-business operating profit
For the year to 31 March 2014 (comparisons with the previous year, unless otherwise stated); operating profit is before payment of interest and tax:

Networks - operating profit of £955.4m, up 9.3%
· Electricity Transmission operating profit rose by 47.6% to £136.7m, reflecting the major increase in investment in the asset base since 2010, resulting in higher income;
· Electricity Distribution operating profit decreased by 0.9% to £ 507.0m, reflecting the level and timing of revenue received and storm-related costs;
· SSE's share of Scotia Gas Networks' operating profit rose by 18.2% to £276.6m, reflecting efficiencies achieved and a positive start to the new Price Control that began in April 2013; and
· Other Networks operating profit fell by 2.2% to £35.1m.

Retail - operating profit of £292.0m, down 28.6%
· Energy Supply operating profit fell by 32.2% to £246.2m, reflecting lower use of energy by customers and higher costs including the cost of gas; and
· Energy-related Services operating profit fell by £0.1m to £45.8m.

Wholesale - operating profit of £634.6m, up 24.8%
· Energy Portfolio Management and Electricity Generation operating profit rose by 10.1% to £496.1m, largely reflecting increased output of energy from renewable sources;
· Gas Production operating profit rose from £39.6m to £130.2m, reflecting output from the increased asset base resulting from acquisitions, in particular the purchase of a 50% interest in the Sean gas production assets in April 2013; and
· Gas Storage operating profit fell by 54.9% to £8.3m; this business continues to be affected by the fact there are smaller seasonal differentials in gas prices.

Operations - providing the energy people need
In the year to 31 March 2014 (comparisons in brackets with the previous year, unless otherwise stated):

· Safety: SSE's Total Recordable Injury Rate was 0.12 per 100,000 hours worked (0.14);
· Networks: the number of Customer Minutes Lost in the Scottish Hydro Electric Power Distribution area was 77 (73); in the Southern Electric Power Distribution area it was 67 (65);
· Networks: SSE restored electricity supplies to customers following a record eight exceptional winter weather events affecting the Scottish Hydro Electric and Southern Electric Power Distribution areas;
· Retail: SSE's number of electricity and gas customer accounts in markets in Great Britain and Ireland fell from 9.47 million to 9.10 million;
· Retail: average consumption of electricity by SSE's household customers in Great Britain was estimated to be 3,991kWh (4,299kWh); average consumption of gas by SSE's household customers in Great Britain was estimated to be 465 therms (544 therms).
· Wholesale: total electricity output* from gas and oil fired power stations was 10.1TWh (8.7TWh); from coal-fired power stations output was 16.6TWh (20.6TWh); and
· Wholesale: total electricity output* from renewable sources (conventional and pumped storage hydro electric schemes, onshore and offshore wind farms and dedicated biomass plant) was 9.4TWh (7.6TWh), reflecting additional capacity in operation, including at Greater Gabbard, and wetter and windier weather conditions.

* Output from electricity generating plant in which SSE has an ownership interest (output based on SSE's contractual share).

Investment - maintaining, upgrading and building energy assets customers need
In the year to 31 March 2014, SSE's capital and investment expenditure totalled £1,582.5m, compared with £1,485.5m in the previous year:

· Networks: Investment in electricity networks totalled £657.5m. SSE's subsidiary Scottish Hydro Electric Transmission has made significant progress in its section of the Beauly-Denny replacement line, with almost all of the foundations laid, three quarters of the 539 towers erected and over half of the route wired.
· Retail: Investment in retail totalled £99.9m. SSE has continued to make significant investment in new systems to deliver enhanced services to customers and support the installation of smart meters in the years to 2020.
· Wholesale: Investment in electricity generation totalled £616.5m. Work is progressing well at SSE's 460MW CCGT development at Great Island in the South-East of Ireland, which is expected to be commissioned later this year.

Capital and investment in the Wholesale segment included expenditure totalling £51.5m in: Gas Production (£40.9m); and Gas Storage (£10.6m). Separately, SSE acquired a 50% stake in the Sean gas production assets for £127.6m (including working capital).

SSE's capital investment and expenditure for 2014/15 is currently forecast to total around £1.6bn and then average up to £1.3bn (net of asset/business disposals) in the years to and including 2017/18.

Undertaking a value programme to ensure SSE is well-positioned for the future
On 26 March 2014, SSE announced a value programme with two important features to help ensure it is well-positioned for the period to 2020 and beyond:

· disposing of assets and businesses which are not core to its future plans or result in a disproportionate financial burden or present opportunities to release capital to support future investment; and
· securing annual savings in overheads that will total, in the first instance, around £100m by the end of 2015/16.

The value programme is under way, and the financial outlook which it supports remains the same as set out in March.

Financial outlook
SSE uses adjusted earnings per share* to monitor financial performance over the medium term because it defines the amount of profit after tax that has been earned for each Ordinary share. It currently expects adjusted earnings per share* in 2014/15 to be around or slightly greater than that in 2013/14. In view of the wider energy sector conditions, however, SSE continues to recognise that its ability to deliver increases in adjusted earnings per share* is subject to greater risk in 2015/16 and 2016/17.

Shareholders have either invested directly in SSE or, as owners of the company, enabled it to borrow money from debt investors to finance investment in maintaining, upgrading and building energy assets that customers depend on. SSE aims to give them a return on their investment through the payment of dividends. As stated in March 2014, SSE's objective for 2014/15 and subsequent years is to deliver a full-year dividend increase of at least RPI inflation.

Working to fulfil SSE's core purpose
SSE has today (21 May) submitted and published (see sse.com) its response to Ofgem's consultation on the proposal to make a market investigation reference to the Competition and Markets Authority (CMA) in respect of the supply and acquisition of energy in Great Britain. In the event of a CMA referral, while the CMA is doing its work, SSE will continue to work with customers, politicians, regulators, investors and other stakeholders to help achieve greater political and regulatory stability for the GB energy market, for the benefit of customers and the investment in the country's energy system that they need.

It will do this while making a significant contribution to the economy in the UK and Ireland. An independent study by PwC released on 19 May and available on sse.com found that in the year to March 2013, SSE contributed £9.1bn to the UK GDP in 2012/13 and supported 112,000 jobs. These are significant economic impacts, and important to the UK economy as a whole. Also important to the UK economy is fairness in employment, and it is for this reason that SSE became, in September 2013, the first energy company and, at that time, the largest UK-listed company by market capitalisation, to become an accredited Living Wage employer. SSE's employees are committed to fulfilling the company's core purpose, which is to provide the energy people need in a reliable and sustainable way.

Ex-divi 23rd July 2014 (60.70p).

30-May-14 RBC Capital Markets Underperform 1,556.00p 1,220.00p 1,220.00p Reiteration
23-May-14 Goldman Sachs Sell 1,545.00p 1,355.00p 1,355.00p Reiteration
22-May-14 Deutsche Hold 1,542.00p 1,340.00p 1,340.00p Reiteration
22-May-14 Exane BNP Paribas Neutral 1,542.00p 1,420.00p 1,420.00p Reiteration
14-May-14 Citigroup Sell 1,536.00p 1,270.00p 1,270.00p Reiteration
09-May-14 Deutsche Hold 1,511.00p 1,360.00p 1,340.00p Reiteration

Slightly worryingly all broker targets are well below the current sp.
Nice divi to come and sp crawls it's way up, but............not sure my tenuous target of 1630p is realistic.