From approval of future investment plans all the way through to how energy is sold to customers, regulation plays a central part in power and utility companies’ life.
Alongside financial reporting requirements, they must respond to energy policy goals, climate change and emissions targets, price and tariff requirements and a range of minimum service obligations. Increasingly, issues such as data regulation and security are also important considerations.
Perhaps more than in any other industry, how power and utility companies shape and respond to the regulatory environment determines the value that can be returned to shareholders or other stakeholders.
Requirements are ever-changing and the volatility and complexity of energy markets themselves are increasingly the focus for regulatory attention. Market structures vary widely and are constantly evolving. Companies have a role to play in shaping that evolution alongside policy-makers.