UK government eyes lower power prices. Here are the stocks seen at risk

UK ministers are working on proposals to “delink” UK electricity prices from gas, a policy move that could push wholesale power prices lower and hit utilities with UK generation exposure. Jefferies warned the change, together with the planned abolition of the Carbon Price Support from April 2028, could negatively affect merchant renewable and nuclear generators. The bank estimates a ~£5/MWh drop in power prices would reduce net income for UK generators by roughly 2–3% (Ørsted around 1%). Stocks exposed to UK generation (e.g., Centrica, SSE, RWE, Ørsted) are cited as at risk. The announcement and ensuing technical details may pressure UK-listed utilities and weigh on market sentiment for the sector, with potential implications for UK equity benchmarks focused on energy and utilities.