Energy Policy and Regulation
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.
PwC can help you
- Anticipate and implement regulatory changes – When regulations are being considered, we can help you to assess the impact on your company and input to the consultation on the final shape of the regulation. We can then assist with the change projects and capital programmes that may be necessary for compliance.
- Managing rates of return – We can put in place effective systems for measuring and modeling revenues and costs and translating this into an effective dialogue with the regulator. We can advise you, whether you are preparing for a rate case or tariff review, assembling volume, investment and cost forecasts, or examining the timing and capital structure of an investment to make the most of a particular regulatory framework.
- Evaluating the impact of regulatory regimes – We have a range of evaluation and advisory tools for both companies and regulators. We can, for example, help with the analysis of different market frameworks to guide companies considering geographic expansion or regulators wanting to benchmark other regimes.
- Ensuring compliance with regulatory requirements – Whether it is financial reporting, industry regulation or meeting other requirements such as emissions or commodity market regulation, we can help your company put the internal systems in place to audit and ensure compliance.