European Banks Daily

Research evidence excerpt

European Banks Daily

of $95.97, this implies 36%

potential upside. We remain comfortable with our Overweight recommendation.

Investment Companies Daily:UK Power Prices, CLDN NAV, BRAI issuance permission

Christopher Brown (44-20) 7134-4722

Forward UK electricity prices - It has now been just over three weeks since the US-Iran war

ceasefire and UK forward electricity baseload prices for the next 12 months have declined 6%

compared to the prices prevailing at the day prior to the ceasefire although remain 29% higher

than the prices that prevailed prior to the outbreak of the war. UK wholesale electricity prices are

closely linked to gas prices due to gas generation being the technology that sets the clearing price

for a large proportion of the time. Forward UK gas prices for the next 12 months are down 11%

compared to the day prior to the ceasefire and 34% higher than the prices prevailing prior to the

outbreak of the war. In both cases the forward prices decline significantly if looking beyond 12

months although remain elevated compared to the pre war prices. While negative for UK

economy as a whole, and for consumers, the forward curves suggest that the renewable energy

infrastructure companies under our coverage are likely to continue to benefit from being able to

strike new fixed contracts at higher prices than at the start of 2026. For reference, the three historic

dates we show in the chart are 27/2/26, the last trading day prior to the outbreak of the US-Iran

war, 19/3/26, the peak of gas prices amid the US-Iran war and the date the US announced it would

implement a naval blockage of Iranian ports, and 11/6/26, the last trading day prior to the

announcement of the US-Iran war ceasefire. The charts show the wholesale baseload price and