Compliance biggest concern for power and utilities companies

By Staff | April 23, 2013 | Last updated on April 23, 2013
2 min read

Responding to frequently changing regulations and managing the effect on business and stakeholders are now the biggest concerns for power and utilities executives around the world, according to an Ernst & Young survey.

And while governments and regulators continue to pursue low-carbon generation and energy efficiency, consumers are becoming increasingly price sensitive.

Read: How to survive regulatory audits “Consumers are at the heart of the complex relationship between power and utilities companies, regulators and policy-makers,” says Steve Power, partner and Canadian Power & Utilities Leader at Ernst & Young. “With electricity prices expected to increase, companies that make the most of smart technology and other innovations to shape how they interact with consumers will be better positioned for growth and profitability.”

The traditional business model of supplying, metering and billing is shifting to adapt to changing stakeholder requirements. “The focus is moving from purely providing energy, to promoting energy efficiency,” adds Power.

Read: Global growth stocks to drive 2013 growth The top 10 risks for power and utilities companies in 2013 are:

1. Compliance and regulation

2. Commodity price volatility and access to competitively priced long-term fuel supplies

3. Political intervention in power and utilities (P&U) markets

4. Uncertainty in climate policy and carbon pricing

5. Significant shifts in the cost and accessibility of capital

6. Capital project execution

7. Economic shocks and resulting short-term energy demand shocks

8. War for talent

9. Aging generation and network infrastructure

10. Managing planning and public acceptance

Read: How to play resource scarcity

And the top 10 opportunities are:

1. Rising emerging markets’ energy demand

2. Acquisitions or alliances to gain new capabilities

3. Growth in energy and ancillary service markets

4. Enhancing relationships with external regulatory and compliance bodies

5. Improving public perceptions

6. Increased focus on investor relations programs and communications

7. Integration of distributed energy resources

8. Increased investment in generation capacity and delivery infrastructure in emerging markets

9. Rising energy innovation in emerging markets

10. Improving onshore and offshore wind supply chain efficiency staff


The staff of have been covering news for financial advisors since 1998.