1028 GMT - SSE began underperforming around May when windfall taxes for the U.K.'s energy sector started being discussed, UBS analyst Sam Arie says in a note. At present it isn't clear where this will end up for the energy company as U.K. media says the idea of imposing a cap on merchant renewables might have been dropped already, and Prime Minister Rishi Sunak has spoken about the need for more investment in renewables, Arie says. The company has almost no floating rate debt, and there could be an upside case from regulation, Arie says. "We feel the direction of travel could be tipping favorably for SSE, which should anyway report 1H earnings about four times last year," he says.(anthony.orunagoriainoff@dowjones.com)

(END) Dow Jones Newswires

November 15, 2022 05:30 ET (10:30 GMT)

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