SSE goes big on UK power grids

A very expensive vote of confidence

SSE plc is cranking the spending dial way up, unveiling a transformational £33 billion investment plan through 2029/30. The headline move: about £27 billion is being funneled into regulated assets, especially UK electricity networks.

Why the market should care

This is not just a “we’re feeling ambitious” update. SSE is basically telling investors it wants a bigger slice of the boring-but-beautiful utility pie — the kind with regulated returns, visible cash flows, and fewer surprise plot twists than your average growth stock.

The company says that shift should support:

• a roughly 25% CAGR in regulated asset value
• 7% to 9% adjusted EPS CAGR
• earnings per share of 225 to 250 pence by 2029/30

The utility glow-up

SSE also says index-linked EBITDA will make up about 80% of group earnings. Translation: more of the business will be tied to predictable, regulated or contracted revenue streams, which tends to make investors sleep better at night.

That’s the kind of setup that can appeal to income-focused holders and long-term allocators who like their infrastructure with a side of inflation protection. Big picture: SSE is leaning harder into the “steady compounder” identity, and in a market that loves visibility almost as much as growth, that can be a pretty attractive trade.