Goldman Says EU Energy Policy Shifts to Security

Europe’s electricity prices surged, especially in Italy, the United Kingdom and Germany, prompting a policy shift from affordability to security.
Italy and the United Kingdom have capped household bills, yet Goldman expects prices to stay above the €60/MWh long‑term floor.
A €10/MWh drop could cut income 1% for Enel, RWE and Iberdrola, but up to 13% for Fortum; without hedges impacts double.
Goldman keeps buy ratings on RWE and Centrica, sees UK uncertainty affecting SSE and Centrica, and views utilities entering an earnings super‑cycle.