Global utilities survey 2009: Key observations

Global utilities survey 2009: A world beyond recession

Key observations

Credit crunch clouds outlook for future targets: Two thirds(67%) of our survey respondents report that a shortage of capital is having a high or very high impact on their activities.
Investment barriers heighten: The development of new generation capacity and the renewal of existing generation plants is a priority area for most companies. 83% are seeking to make medium to large investment in new generation and 79% are seeking to do likewise in transmission and distribution.
Risk controls set to red alert: 86% of respondents indicated that reduced liquidity in energy trading markets was having an impact on their companies with 60% of all respondents rating this impact as high or very high. Customer credit risk is also identified as an area of major concern and 90% of respondents reported a high or very high impact of increased sales and retail credit risk.
Maintaining a focus on climate change: Asked if the economic recession would slow down responses to climate change, 79% felt it would with two thirds of those saying it would have a high or very high slow down impact.
Economic incentives needed to boost renewables in the mix: 59% feel that their renewable energy investment programmes are being affected by the lack of clarity from governments on renewable energy targets and financial support for renewable energy.
Technology holds the key: The importance of technology for key developments, such as energy efficiency and the expansion of nuclear power, has led many respondents to pinpoint power equipment and technology companies as a more significant competitive threat than even direct competition in the retail market by other utility company home market rivals. Technological innovation is seen as central to a range of key developments in the sector.