European utilities stocks set for best day in six months

VERBUND AG

07/09/2022 10:16

MILAN, Sept 7 (Reuters) - Europe's utilities stocks rallied
on Wednesday and were set for their best day in six months, as
investors speculated about possible regulation changes to face a
worsening energy crisis.
    By 0944 GMT, the STOXX Utilities index  .SX6P  was up more
than 3%, on track for its best day since March. Top gainers
included Verbund  VERB.VI , RWE  RWEG.DE , SSE  SSE.L  and EDP
 EDP.LS , up between 5 and 14%.
    The Financial Times reported earlier on Wednesday that
Brussels was working on a 200 euro megawatt hour limit to the
price of electricity generated by non-gas power producers.
    One trader said that the cap would benefit renewable energy
companies.
    "A leaked EU draft proposal includes an electricity price
cap on inframarginal profits... If true, we would see  it  to 
be  a  better-than-expected  outcome  for  generation 
companies," said Jefferies analysts in a note.

 (Reporting by Danilo Masoni and Samuel Indyk; editing by Dhara
Ranasinghe)
 ((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))