Britain is turning to a new way of making sure it doesn't run out of power, one that could turn the energy market on its head: rather than paying utilities to produce more electricity, it is paying firms that guarantee to cut industrial demand. These “aggregator” firms secure commitments from businesses across the country to reduce power usage and then sell the megawatt reduction they secure to power network operator National Grid, which is increasingly favouring this "demand-side response" (DSR) method instead of paying big utilities to ramp up power generation. Aggregators pass on the revenue to the businesses, taking a cut. Aggregators, like Flexitricity, Kiwi Power or Open Energi, have gained traction in the past year after National Grid launched a promotional campaign to raise awareness among businesses about the commercial benefits of DSR and reducing energy usage. They present a threat to the revenue of big power generation firms like Centrica, SSE and EDF Energy, who are being undercut by these newcomers and losing business in Britain's 1-billion-pound ($1.5 billion) electricity balancing market.
You could be right, tailed off at the end of yesterday and ex divi today should knock another 8p+. add to that futures looking down and lack of support from divi going forward albeit temporary ..........
Now if Mr Market turned more nasty. Still the ex divi thing will be forgotten in a month so you might have to be quick
So far there is little sign that the new shares have been dumped by the institutions that hold them unless of course there is a lock in period (3M-12M?) and we are unaware of this? I was expecting sub £2 on the recent news about this fundraising but that does not seem to have happened (yet).
Gray, as you allude too any rise in interest rates will increase costs for everyone over time. Some costs are fixed so wont have an immediate effect. Higher rates also change actions, more might decide to pay off debt if it starts to cost more! In CNA's case they have to keep earnings to be able to pay down.
Anyway they can always cut the divi, issue more shares ....... the circle of financial life will continue.
I have noticed increases in the amount of voting against re-numeration packages, the 5 percents against are becoming 15's and others much bigger. I still think they have more time to milk the system, all of them not just CNA, but its starting to change.
You have to laugh sometimes! Questor he say " The possibility of an interest rate rise in the UK in 2016 would also increase the cost on some of Centrica’s £4.9bn net debt pile." Yeah sure and with the prospect of an imminent collapse in the UK housing market if the rates rise by even a fraction of 1%, that is really going to happen in 2016? These people actually get paid to come up with this claptrap!
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