Goldman Sachs (NYSE:GS) has kept British gas owner Centrica and power generator SSE on its buy list after mulling over the government’s energy support package, sending shares in both higher.
PM Liz Truss has placed a limit of £2,500 a year on energy bills for the next two years from 1 October with a six-month cap for businesses.
The US bank sees three positive implications: A more regulated profile of earnings for renewable assets; lower bad debts, which would be a positive for suppliers; and if energy bills had been left to rise 80% with no intervention that would have hit regulated assets.
Centrica was a top FTSE 100 riser up 4.3% to 86.3p, while up SSE added 2% to 1,798p.