Energy & Utilities

Centrus works with public and privately held companies in the UK and Ireland who are active in the energy sector including energy transmission and distribution, renewables, water and wastewater.

Issues facing these businesses include:

  • The pace of regulatory and government policy change and the impact that this has on the risks that companies face
  • General changes to the apportionment of risk in the recovery of the cost of pensions provision
  • Introduction of a trailing average cost of debt index by Ofgem in their price controls for energy transmission and distribution companies
  • Proposals by Ofwat to amend the index used to reflect changes in the cost of living for future price controls
  • Changes to the procurement of infrastructure assets in the UK.

Inevitably these changes, have considerable implications for the required shape, demand and structure of financing and treasury hedging strategies. Centrus is ideally positioned to help companies to analyse these implications and formulate strategies to manage new risks and opportunities. Centrus can draw on its valuation and analytical technology resources to support clients with the transparent quantification of introduce or proposed changes and the options to mitigate such risks.

In regulated utilities, Centrus supported the winning bidder of the Gas to the West project in Northern Ireland, the first competitively tendered UK greenfield investment in regulated networks. Ofgem is planning to introduce tendering of onshore electricity transmission networks in 2016/17. Our team is well placed to support bidders for these and other Energy & Utilities tenders and with our expertise in financial modelling and project finance we are able to deliver significant value to clients.

In renewable energy, Centrus has supported clients, both renewable energy project developers and financiers, to design and develop innovative financing structures to ensure the most efficient and appropriate financing is obtained on their projects.  Renewable energy is generated from a range of natural resources such as wind, wave, solar, biomass and tidal power. Recently, energy from waste, central heating projects, energy storage and energy efficiency have also been areas of growing investment.

Members of our team have structured, managed and advised upon renewable energy projects from the equity, banking and advisory perspective. This broad experience enables us to provide clients with a holistic offering across the various capital markets, ensuring access to the full range of options in delivering the financing solutions most appropriate to achieving their corporate objectives. We can assist clients with innovative funding and hedging solutions e.g. portfolio financing, electricity hedges, etc., and will draw on our team’s in-depth banking experience and strong relationships with infrastructure, pension and insurance funds to ensure financing is delivered at the most competitive pricing.