London, March 26, 2026, 16:56 GMT
SSE dropped on Thursday, erasing Wednesday’s 2.02% gain as pressure from rising oil prices and a wider downturn swept through London. Shares settled at 2,504 pence, off 76 pence, or 2.95%.
This is a significant issue for SSE, which is pressing ahead with its £33 billion investment strategy—roughly 80% of that targeted at its regulated electricity networks. The shares react closely to shifts in financing costs, regulatory moves, and progress on big projects.
Thursday brought little relief. Brent crude pushed past $107 a barrel, global bonds came under pressure, and traders kept betting on close to three more Bank of England rate hikes this year. Still, a Reuters economist poll pegged Bank Rate at 3.75% by the end of 2026. “The risk of hikes has increased” if the Middle East conflict drags on, said Gabriella Willis, UK economist at Santander CIB. Reuters
SSE is leaning hard on regulatory signals to support its long-term story. On March 2, its SSEN Transmission division said it had accepted the final determination from Ofgem for the RIIO-T3 period—the upcoming price-control regime setting what they can spend and earn. SSE described the agreement as “investable and deliverable overall.” SSE
According to the company, 75% of its main planning consents are locked in. Six major transmission projects have all the necessary approvals, and five are already being built. Chief Executive Martin Pibworth calls the grid revamp a “once-in-a-generation opportunity” as Britain races to tie in more renewables and handle growing electricity needs. SSE
SSE rolled out its wider strategy back in November, outlining that it aimed to cover costs using a mix of cash flow, additional debt, a 2 billion pound stock sale, plus roughly 2 billion pounds from asset disposals. “Clarity on the balance sheet and the company’s growth outlook,” was how Jefferies analyst Ahmed Farman summed up the financing plan. Reuters
National Grid has echoed that stance. Earlier this month, the company projected adjusted earnings per share growth of 13% to 15% for 2027, anticipating a boost from higher allowed revenue during the upcoming regulatory period.
SSE’s near-term earnings outlook isn’t as strong. Back in February, the company projected adjusted earnings per share for 2025/26 between 144 and 152 pence—off from last year’s 160.9 pence. Still, renewables output in the first nine months ticked up. CFO Barry O’Regan said the priority now is ramping up investment and building long-term shareholder value.
SSE shares still trade under their 52-week peak of 2,763 pence. The market’s worry is straightforward: persistent high energy prices and rising rate bets would squeeze SSE’s funding environment, especially as capex ramps up. Should Ofgem’s current settlement stick and final approvals land, the network expansion might help stabilize the stock in the months ahead.
