Own, sell or restructure

UK and US utilities are presently saddled with a lot of debt, thanks to overcapacity and low power prices. But what’s the best way for these firms to deal with the power plants they don’t need? By Jessica McCallin

You’d be forgiven for thinking the collapse of Enron and its aftermath marked the lowest point for the energy sector. But you’ll have to think again, particularly with regard to the UK and US markets. In both countries, energy utility companies are running into severe financial difficulties, finding themselves unable to service debt and causing a big headache for the banks and bondholders that financed their expansion in the early to mid-1990s.

There are many reasons for this. The collapse in