Finance & Economics
With the EU witnessing an enduring economic slowdown, European energy companies are currently facing an investment climate that is far from favourable. Weak electricity demand, the need to refinance debt under strained capital market conditions and more stringent analysis from financial analysts and credit agencies have obliged companies to reinforce their balance sheets by cutting costs, selling assets, increasing return on capital and reducing capital expenditure.
Despite this difficult economic context, the electricity sector urgently needs sizeable investment to adapt to the climate and renewables challenge, ensure innovation and replace ageing infrastructure. Carrying out these investments is essential for our industry to deliver on our commitment to reach carbon-neutrality by 2050.
In a context of volatile fuel prices and strong competition for capital resources, a stable investment climate and a predictable and attractive regulatory framework are paramount. To facilitate access to limited capital resources, regulation must provide adequate incentives and guarantees to capital providers.
We provide data that can help to inform such regulation and avoid market distortions. Our reports regularly assess the financial performance and investment capacity of our industry and its exposure to mainly political/regulatory but also market, credit and liquidity risks. They also address the diverse taxes and levies imposed on the sector.