Bangkok--17 Apr--PRIMEZONE MEDIA NETWORK
The utilities industry is facing its biggest challenge in modern time accoring to the eighth annual PricewaterhouseCoopers report 'The Big Leap: Utilities Global survey 2006'.According to the report, two - thirds of the world's leading utility conpany leaders hold this view with the majority rating the changes that the industry will have to undergo as little short of revolytionary. This sentiment is felt most strongly in Europe (72%), which is grappling with conflicting vulnerbility and environmental concerns.
The industry is ready to big leap forward with nearly two thirds believing the industry needs to adopt a 10 year focus on reducing environmental damage, developing new technologies, improving customer service relationships and finding new fuel sources. however, many feel that policy-makers also have to make a leap. 80% of respondents belive political to respond to these challengers, and shock factors such as supply or environmental crises may need to occur to force change.
The report which presents the views of 116 senior executives from leadinf utilities companies in 43 countries reveals security of supply remains their primary concern as it has over the last two years, particularly in Europe where twice as many utilty leaders belive prospects for power cuts have increased rather than diminished compsred to five years ago . Many within the indutry belive the pace of change needs to be stepped up to face the challenges that lie ahead.42% , for example, said the sector is lagging behind in the development of renewable energy source . Regulatory uncertainty continues to affect investment in the sector and was cite as one of the top three concerns amongst the utilities companies polled . Meeting projected supply needs will require an investment of US$13 trillion by 2030(a)in power generation, transmission and distribution and gas - supply infrastructure yet 42% of respondents felt that government or regulatory policy restricted their ability to develop long - term plans.
Manfred Wiegand, Global Utilities Leader , PricewaterhouseCoopers said :"Our report higlights yet agin the need for the industry to work with government and investors to make the infrastructure, technological, environmental and investment leaps that need to happen to arrive at a long term sustianable solution."
looking ahead Manfrad Wiegand commented : "We can expact to see a future power and gas utilities setor that id radically different from noe . On the ownership and setor structure front, we will see many fewer and much larger super-regional generation and distribution companies , greater fusion of upstream and downstream energy and a continued move of infrastruture entities into private investment fund ownership . On the customer front , we will have the prospect of much greater end - usre invovement in both industrial-scale power projects and smaller and more medium-sized distribute power. "
Across all of the indutry , technology will be a key driver and investment in technology, particularly in clean coal generation , will be a key determinant in the extent to which greenhouse gas growth is mitigated. Coal and nuclear will play a larger part in the fuel mix. Finally , many in the industry feel there is the very real prospect of 'cap and trade' emotion control schemes being extended around the world.
The PricewaterhouseCoopers ' The Big Leap ' report also highlights other key developments in utilities sector:
--M&A activity at record levels:Both the value of toatl deals and the size of deals are at record levels. Total deal value soared to US$196 bn in 2005 from US$123bn in 2004.
--Coal tops favoured to make the supplies:Coal ranks alongside gas as the fuel expected to make the biggest contribution to meeting demand growth in the mext five years.
--Nuclear ready to step up: Half of the respondents in the Americas snd Europe and 44% of all respondents said they expect nuclear capacity to increase in their region as result of concerns about climate change.
--Technological advances: Companies are increasingly looking to technological innovation to deliver efficiencies and respond to the pincer of future demand challenges and environmental concerns.
Notes to Editor:
1. (a)According to the International Energy Agency/AECD Word Energy Outlook 2005.
2. The Big Lep: Utilities Global Survey 2006 is a major survey of boardroom opinion inside utility companies conducted annually by PricewaterhouseCoopers.
3. this year, for the first time , the survey focuses on the sector's viewpoint about the changes needed to meet the challenges ahead.The report summarises the changes that are being made or need to be made in technology, investment, M&A, efficiency, cleaner fuels and customer relationships.
4. It include data from 116 senior executives, from 98 utility and utility investor companies across 43 countries. Research covers Europe, the Americas, Asia-Pacific, Africa and the Middle East. The majority of utility participants were senior Vice Presidents and Presidents, CEOs and other senior managers.
5. The PricewaterhouseCoopers Global Energy, Utilities and Mining group( www.pwc.com/energy)is the professional services leader in the international energy, utilities and mining community, advising clients through a global network of fully dedicated industry specialists.
6. The member firms of the PricewaterhouseCoopers network ( www.pwc.com)provide industry-focused assurance, tax,and advisory services to build public trust and enhance value for its clients and their stakeholders . More than 130,00people in 148 countries across our network work collaboratively using Connected Thinking to develop fresh perspectives and practical advice. "PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
The PricewaterhourseCoopers logo is available at :
http://www.primezone.com/newsroom/prs/?pkgid=2126
CONTACT: PricewaterhouseCoopers
Manfred Wiegand
+49 201 438 1517
Kristina Blissett
+44 20 7212 5133
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