RE: Very Windy out there Chaps27 Feb 2026 09:20
' Dividend Policy
Following the outcome of the Renewable Obligation (RO) Indexation Consultation, which changed the indexation basis for the RO scheme, the Company has reviewed its dividend policy.
The principal instrument from which the Company derived explicit RPI cashflow linkage was the RO scheme, which will now be indexed to CPI. The Company's CFD investments also have explicit CPI linkage. The Board therefore determined that its dividend policy will now be to aim to provide shareholders with an annual dividend that increases in line with CPI inflation and, accordingly, the Company will target a dividend of 10.70 pence per share for 2026, a 3.4 per cent increase in line with December 2025's CPI, which continues to be underpinned by our strong cashflow generation. '
Lucinda Riches C.B.E.
Chairman
25 February 2025
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The Board and Investment Manager.
The fixed revenue base means that dividend cover is robust in the face of extreme downside power price sensitivities:
-----------------------------------------2026 ------------2027-------------2028------------2029-------------2030
CPI increase (%)---------------------2.4---------------2.4---------------2.5---------------2.5---------------2.5
Dividend (pence / share)--------10.70------------10.96------------11.23------------11.51------------11.80
Dividend (£ 000)-----------------230,605---------236,139---------242,043---------248,094---------254,296
Dividend cover (x)----------------------------------------------------------------------------------------------------------------------------------------------------
Base case----------------------------1.7----------------1.6---------------1.8---------------1.9----------------2.1
In October 2025, the Government launched a consultation on the potential change to the RO scheme inflation indexation, from RPI to CPI. On 28 January 2025, the Government published the result of the consultation and from 1 April 2026, the RO scheme will now be indexed to CPI.
The Board and Investment Manager subsequently updated the Company's NAV to reflect the outcome of the RO Consultation and, given that the principal instrument that had linked the Company's cashflows to RPI is now linked to CPI, the Company has updated its dividend policy such that it will now aim to provide shareholders with an annual dividend that increases in line with CPI inflation from 2026.
Sign In
Follow the stocks
