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Reshaping the world’s energy markets

Energy reform and unbundling is one of the most important challenges facing the power and utilities sector today. Around the world, governments are seeking to transform their energy sectors with the aim of:

  • Reducing consumer bills
  • Improving service
  • Encouraging investment

By restructuring incumbent utilities, inviting new market entrants and introducing competition, energy reform can also help drive economic prosperity and social improvements.

“...more than 30 countries are progressing the restructuring of their energy markets...”
Matt Rennie, EY Global Energy Reform and Unbundling Leader

Navigating risk

However, success in energy reform and unbundling is not guaranteed. Huge changes generate significant risks both in execution and from the unintended consequences of market design. Navigating energy reform is complex for governments, regulators, incumbents and new entrants alike:

  • Governments must establish clear priorities, mindful of the long-term implications of the inevitable trade-offs.
  • Regulators are challenged to deliver a reformed electricity market that is efficient and fair.
  • Incumbent utilities must fundamentally change the way they do business in the face of new competition.
  • New market entrants have a one-off chance to secure a position in newly opened markets.

Realizing opportunities

EY’s team of energy reform professionals draw upon our global experience and local knowledge to help governments, regulators, incumbents and new entrants overcome a range of reform and unbundling challenges.

Government

Government
Guiding key decisions regarding timing, market design and pricing to deliver the aims of reform.

Regulator

Regulator
Developing appropriate policies and rules to ensure a fair and competitive market as well acquiring the capabilities to administer them.

Incumbent retail

Incumbent retail
Managing the separation process, developing new customer capabilities and designing the best possible strategies to prepare for competition.

Incumbent networks

Incumbent networks
Preparing for the impact of competition across the business including billing, IT and customer data management.

New generation entrant

New generation entrant
Navigating the approval process, influencing market design and securing optimal offtake agreements.

New retail entrant

New retail entrant
Assessing costs and benefits and determining the most profitable entry strategies.

 

How we can help

EY’s energy reform team brings together expertise from senior roles across every aspect of the industry, as well as government and regulators, and can draw upon the experience of implementing more than 35 reforms and unbundling projects in all regions of the world. Our global perspective, end-to-end approach and local market insights will help you reduce risk and realize the full potential of energy reform. Contact us today.