SP PowerAssets Ltd. (SPPA) will continue to have predictable cash flow with support from a stable regulatory rate of return on its regulated electricity transmission and distribution (T&D) assets. The company will likely increase its cash inflow further with a recovery of deferred tariff increases. We believe it will collect the outstanding amounts within its current regulatory period that will end in fiscal 2025 (March year-end). This is given Singapore's strong regulatory mechanism. Although there is no published framework on the recovery of such costs, the Singapore government has a long record of supportive regulations. SPPA will likely accelerate its annual capital spending to Singapore dollar (S$)1.1 billion-S$1.4 billion over the next two years, up from stagnant investments of S$800
