What are the main issues for utility companies?
From supplying water, gas and electricity to managing waste, utility companies carry out a wide range of activities. But according to Julhiet Sterwen, they are all being shaken up by two major trends. First, eco-friendly operations and sustainable growth have become imperatives. Second, markets have undergone radical transformation – sometimes simply by their markets being opened to competition.
Although these two issues have been at the frontline of debate for decades, they are more pressing than ever. And they are being driven by two forces: fiscal incentives and citizen awareness.
In search of sustainable development…
At the end of 2018, the European Union set an ambitious renewable energy target for 2030 of at least 32% of total energy consumption. This gives a benchmark for the transition required by the sector.
Innovation is being driven by the vital need for sustainability, as well as sustainable development at every level of organizations. As a result, utility companies are seeking to identify new opportunities and business models.
… to face increasingly fierce competition
New competition and major changes to contracts have metamorphosized the utility sector, with new business models and ways of operating. Business is shifting to new competitors, regardless of their size. In an increasingly competitive landscape, major transformations are occurring. The main challenges are:
- maintaining profitability in supply-driven markets
- raising the funds to invest in capital-hungry long-term activities
- optimizing infrastructure
- creating new products and services
- and improving the client experience