Pennon Upgraded at Barclays on Sector-Leading Returns, Valuation

U.K. utilities offer the possibility of higher returns if they appeal against the latest framework proposed by the energy regulator, Barclays said in a note that also upgraded water company Pennon Group Plc.

All regulated utilities are likely to appeal Ofgem’s RIIO-2 review by a March 3 deadline, analyst Dominic Nash said in a note. The Competition and Markets Authority is meanwhile set to rule by mid-month on appeals by four firms against a determination from water regulator Ofwat, he said.