UK UTILITIES : UK Politics: Answering the key questions

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UK UTILITIES : UK Politics: Answering the key questions

EQUITIES

UTILITIES & CLEAN ENERGY

UK UTILITIES

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UK Politics: Answering the key questions

15 MAY 2026 Sector Research Report Production time: 15:24* (London time)

Research Analyst & Publishing Entities

Harry Wyburd BNP Paribas London Branch (+44) 203 430 8665 harry.wyburd@uk.bnpparibas.com

UK utilities are reacting negatively, with stocks down 6-7% at time of writing, to news that left-leaning Labour

politician Andy Burnham will now be given a clear run to stand for election as an MP, significantly increasing

his chances of replacing Kier Starmer as Prime Minister. Burnham has both advocated nationalisation of

utilities and questioned whether the UK government should stay focused on controlling bond yields. Lessons

from the 2019 UK general election suggests that the fear of nationalisation alone could be enough to trigger a

prolonged multiple derating for the sector. There are however significant hurdles to nationalisation in practice,

and the extreme volatility in UK politics currently means the setup, and potentially even Burnham's stance on

bond markets and nationalisation, could change quickly. For long term investors willing to absorb volatility,

SSE stands out as a potential opportunity to gain exposure to renewables and grids at a sharp discount to

peers and past through cycle multiples, in our view.

Key incomings from clients today and our views:

– What does today’s news mean politically? Andy Burnham is currently the leading candidate in the polls to

replace Kier Starmer as Labour leader and Prime Minister, in a potential forthcoming leadership contest triggered

by poor Labour performance in recent local elections. However, Burnham is not currently a Member of