Power and utilities companies rank compliance and regulation as biggest concern
Risk surrounding cost and accessibility of capital has eased
(Toronto, 23 April 2013) 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 — up from 2011 — according to a new EY survey.
“For Canadian power and utilities companies, managing changing regulatory structures in different jurisdictions has been a growing challenge,” says Steve Power, partner and Canadian Power & Utilities Leader at EY. “Improving their ability to anticipate future regulatory changes, and communicate how those changes will affect their stakeholders will be critical to their success.”
Business Pulse: Exploring dual perspectives on the top 10 risks and opportunities in 2013 and beyond finds that, while governments and regulators around the globe continue to pursue low-carbon generation and energy efficiency, consumers are becoming increasingly price sensitive.
“Consumers are at the heart of the complex relationship between power and utilities companies, regulators and policy-makers,” adds Power. “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 report notes that 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,” explains Power.
According to the survey the top 10 risks and opportunities for power and utilities companies in 2013 are:
| || |
“We’re seeing Canadian power and utilities companies expand in Canada and beyond, and build out their renewable assets through acquisitions,” adds Power. “But with new markets and jurisdictions come new compliance and regulation, and other issues. P&U companies really need a robust forward-view of all the risks – and opportunities – to effectively respond to change, understand what drives cost and value and engage closely with all stakeholders.”
- 30 -
EY is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
For more information, please visit ey.com/ca.
EY refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.