For better or worse, regulation now appears to be a growth industry — one that often fails to produce intended outcomes yet adds to uncertainty.
It’s not as if you don’t already face enough complexity. The geopolitical, environmental, capital markets, energy and natural resource supply and trading environment, combined with often complex stakeholder and business relationships, see to that. But when you add the thicket of often fast-changing regulations and standards governing nearly every aspect of your operations, the challenges become immense.
For their part, governments and policymakers have the difficult task of grappling with the big issues of supply availability, affordability and environmental impact. And the explosion of the domestic shale gas play is introducing a new environmental battleground which governments at the federal, state and local levels need to address. Still, the fact remains that in our Global 2013 Power and Utilities CEO Survey, 55% of participants agreed that energy policy-makers “have produced a significant amount of policy uncertainty that is undermining investment.”
Perhaps more than in any other industry, how power and utility companies respond to the regulatory environment determines how much value they can return to shareholders.
In this environment of rapid change, growing scrutiny and overall uncertainty, PwC can help:
Anticipate and implement regulatory changes – When regulations are being considered, we can help you assess their potential impact on your company — and offer input on the final shape of the regulation. We can then assist you with the change projects and capital programs that may be necessary for compliance.
Manage rates of return – We can put in place effective systems for measuring and modeling revenues and costs — and use this data to catalyze an effective dialogue with your regulators. 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, we can advise you on the strategic approach to achieving a desirable outcome.
Facilitate compliance with regulatory requirements – Whether it is financial reporting, industry-level regulation or other requirements such as emissions or commodity market regulation, we can help your company put the necessary internal systems in place to audit and help your company to facilitate compliance.
Contact us to learn more.
Power, Utilities, Renewable Energy and Emerging Technology Partner, PwC US
Sean P. Riley
US Energy, Utilities, & Mining Partner, PwC US