"We are talking about returns that are exceeding PFI - and we thought that that was a licence to print money"said an apparently surprised Jackie Doyle-Price (Cons, Thurrock)
Yes indeed - and it's not just these offshore developments, it's the whole panoply of state-mandated energy infrastructure investments. Can we all join in, please ?
Well, maybe. Some of these types of development are not always easy to invest in for the private punter: but National Grid is the biggest single listed UK company involved in the whole mad business, and Ofgem lets it - nay, forces it (kicking and protesting, I expect) - to invest huge amounts on these infrastructure projects ... at RPI-linked returns.
Now: as of last week the BoE is famously going to, ahem, *tolerate* higher RPI for a while ... and NG borrows at a tad under RPI ... and most of its other costs don't rise with RPI (labour is only 10% of its cost-base) ... did someone say 'licence to print" ?
No investment advice here, naturally; you're on your own - and one cannot but observe that NG's fortunes are riddled with regulatory risk. He who lives by the subsidy, etc etc. But it's kinda interesting for all that.