Power & Utilities

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Power and Utilities Assurance Services

EY is known for our strong assurance practice. We provide critical information for investors and other stakeholders, a robust and clear perspective to audit committees, and timely and constructive input to management.

Beyond our audit capabilities, our assurance professionals provide services as required by global or local regulations, including:

  • Accounting and Financial Reporting
  • Financial Accounting Advisory Services
  • Fraud Investigation and Dispute Services
  • Climate Change and Sustainability Services

Our Canadian power and utility audit clients reach from coast to coast and beyond Canadian borders. Many of our clients are highly acquisitive, with operations that include renewable energy, transformative technologies and large-scale infrastructure development. With a 19% audit market share of the power and utilities companies listed in the 2015 Fortune Global 500, EY is one of the leading auditors serving the power and utilities sector globally.

Our clients benefit from the global network of 1,400 assurance professionals in EY’s Power & Utilities practice, who have deep experience in the sector’s key risks and specific regional and subsector issues.

Over the years, this experience has enabled us to develop customized guidance that can answer many of the questions your company may have about accounting issues.

Examples include:

Procurement

  • Accounting for fuel purchase contracts
  • Accounting for green energy certificates
  • Regulatory and voluntary carbon and greenhouse gas compliance reporting and assurance

Power generation

  • Components approach for generation plants
  • Valuation of generation assets
  • Accounting for decommissioning provisions
  • Treatment of emission rights under a cap and trade mechanism
  • Accounting for arrangements containing a lease
  • Impairment of power stations

Trading and portfolio management

  • Risk management
  • Commodity hedge accounting
  • Embedded derivatives
  • Renewable Emissions Credit sales

Transmission and distribution

  • Gas in a distribution network or storage
  • Rate-regulated activities
  • Service concession arrangements

Supply

  • Connection fees
  • Customer acquisition costs

This collective knowledge enables us to carry out a detailed analysis of the key risks facing our clients and the potential accounting and reporting implications.

Climate Change and Sustainability Services

In addition to the services above, we can assist with climate change governance. Our teams have experience in assessing asset risks (e.g., stranded assets, portfolio impacts) associated with transitions in generation mix. We can develop carbon models and strategies to drive long-term optimization of your asset portfolio as we transition into a low-carbon market and provide carbon tax advisory services.

Fraud Investigation and Dispute Services

We provide forensic services tailored to the specific characteristics of the power and utilities sector, including:

  • As a key infrastructure sector with high amounts of personally identifiable information, we provide support with cybercrime response and information governance.
  • As a sector with large field labor forces, large numbers of customers, large numbers of contractors and vast physical assets, we offer support with claims management, disputes and litigation, and anti-fraud and anti-corruption efforts.
  • As a sector with extensive regulation and regulatory scrutiny, we provide support with compliance programs, rates and cost recovery, regulatory reporting and regulatory-driven investigation, including electronic discovery services and the use of forensic data analytics.

Examples include:

Forensic investigations

  • Employee, vendor or contractor fraud
  • Bribery and corruption
  • Whistleblower allegations

Forensic data analytics

  • Anti-fraud analytics
  • Anti-bribery and anti-corruption analytics
  • Major capital projects analytics
  • Travel and expense analytics

Computer forensics

  • Data mining
  • Electronic discovery, including anti-trust discovery services
  • Managed document review

Corporate compliance, anti-fraud, anti-bribery and anti-corruption

  • Fraud risk assessments under the COSO framework1
  • Forensic vendor or capital expenditure review

Commercial services

  • Anti-bribery and anti-corruption due diligence
  • Integrity (third party) due diligence
  • Quantification of damages
  • Expert witness services

Regulatory services

  • Regulatory-driven investigations (e.g., alleged waste, abuse, fraud)
  • Regulatory compliance program risk and performance assessments
  • Expert witness services

1 The Committee of Sponsoring Organizations of the Treadway Commission (COSO) updated and released its 2013 internal control framework that many organizations use to assess internal control over financial reporting to address changes in the business, operating and regulatory environment. The 2013 framework includes many enhancements and "points of focus" such as Principle 8 dealing with fraud risk assessments, which may lead organizations to challenge whether they need to enhance their processes to identify risks of financial statement fraud and design and implement controls that address those risks.

 

Contact us

EY - Gerard McInnis    Gerard McInnis
National Leader
Power & Utilities
403 206 5058
 
EY - Patrick Bossé    Patrick Bossé
Montreal
Power & Utilities
514 874 4375
 
EY - Steve Power    Steve Power
Toronto
Power & Utilities
416 943 3367
 
EY - Derek Purchase    Derek Purchase
St. John’s
Power & Utilities
709 570 8234
 

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