Utilities Daily UK Energy Methodology and Enel Bond Issuance

Goldman Sachs reviews Ofgem's UK energy methodology for the ED3 cycle and notes Enel's €2.5bn bond issuance. The report highlights a growing utility super cycle driven by a 280GW pipeline for European data centers.

Key Takeaways

• 1.Ofgem published its Sector Specific Methodology Decision (SSMD) for the UK Energy ED3 price control, proposing a nominal cost of debt benchmark and a midpoint cost of equity of 6.08%.
• 2.Enel successfully launched a €2.5 billion Eurobond issuance that was oversubscribed 3.5x, reflecting strong market demand.
• 3.The European utility sector is entering a 'super cycle' fueled by data center expansion, with current connection pipelines reaching 280 GW.

Table of Contents

• Research you can't miss from past two weeks
• UK Energy: Sector Specific Methodology Decision (SSMD) marks start of ED3 process
• Enel has launched a €2.5 bn bond in two tranches on the euro market
• TotalEnergies is reportedly looking to exit German offshore projects
• Other news
• Research you need to read
• Powering Up Europe: AI, data centers and energy needs: at Europe's inflection (22 October 2025)
• Disclosure Appendix

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