London, Feb 6, 2026, 09:22 GMT — Regular session underway
- SSE shares climbed roughly 1% in early London trading, pushing their gains further this week.
- Heavy network spending is ramping up, prompting the utility to flag lower full-year adjusted earnings.
- SSEN Transmission announced it has secured over £6.9 million to fund four innovation projects supported by Ofgem’s scheme.
SSE shares nudged up 0.9% to 2,503 pence on Friday, as investors absorbed a weaker earnings outlook linked to increased spending on regulated networks.
The significance lies in SSE urging investors to overlook a short-term earnings drop as it channels funds into Britain’s grid expansion—a politically charged initiative closely watched by regulators and bound by strict funding guidelines.
Rate-cut bets are shifting once more. Utilities often behave like “bond proxies” — their steady cashflows gain appeal when yields drop, but they can suffer just as quickly when yields rise.
On Wednesday, SSE projected adjusted earnings per share between 144 and 152 pence for the year ending March 2026, down from 160.9 pence last year. The company cited mixed weather and expenses tied to its five-year investment plan. Chief Financial Officer Barry O’Regan emphasized the priority on “accelerating investment” to create long-term value.
https://www.reuters.com/world/uk/uk-power-…
The company reported in its third-quarter trading update that renewables output increased 7% year-on-year in the nine months ending Dec. 31. Investment in regulated networks surged 64% to about £1.8 billion, driven by accelerating construction on key projects.
Late Thursday, another update shook the market. SSEN Transmission announced it had landed over £6.9 million in innovation funding for four projects through the Strategic Innovation Fund, a joint initiative by Ofgem and Innovate UK.
SSEN Transmission said the largest grant, £5.8 million, goes to “REVISE,” a project focused on refining overhead line rating calculations by using higher-resolution weather data and advanced modelling. Partners on the project include National Grid Electricity Transmission and the Met Office.
“Securing over £6.9 million through the latest SIF round is a significant vote of confidence,” Alan Ritchie, senior manager of innovation at SSEN Transmission, said in the statement.
Macro remains background noise for now. The Bank of England kept rates steady at 3.75% on Thursday, narrowly splitting 5-4 in the vote. It hinted at possible cuts later if inflation drops as expected. “It’s now merely a matter of timing,” said Matthew Ryan, head of market strategy at Ebury.
https://www.reuters.com/world/uk/londons-f…
Still, risks loom. SSE’s network returns and allowed revenues hinge on Ofgem’s RIIO price controls, which will reset with the next transmission period kicking off in 2026. That opens the door for stricter assumptions around costs, project delivery, or customer bills. Plus, renewable output remains vulnerable to weather swings.
According to the company’s calendar, SSE is set to issue a closed-period notification on April 2, followed by preliminary results for the year ending March 31 on May 28.
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