OW Industry: Energy

Grids & Infrastructure

Electric Transmission and Distribution

Across the industry, electric transmission and distribution organizations are facing an array of challenges. There is ongoing pressure to improve reliability and increase investment to address aging infrastructure, heightened regulator and customer sensitivity to network performance, and continued load growth.  At the same time, there are restrictions on capital availability and funding.

Oliver Wyman has assisted many companies to address T&D business challenges in the areas of:

  • Separation of assets, and operations
  • Project planning and management
  • Asset management
  • Reliability improvement
  • New business construction and operations process excellence
  • Revenue leakage / managing lost electricity
  • Work management and field force productivity
  • Lean operations
  • Back office and support effectiveness

Gas and Transmission DistributionGas local distribution companies (LDCs) are facing challenges on a number of fronts: higher and more volatile gas prices, which affect customer satisfaction, uncollectibles, and company-use gas costs; greater capital expenditure to ensure system integrity and replace aging infrastructure; significant changes in gas supply dynamics through LNG imports and new pipeline development; increased scrutiny from regulatory commissions; and investor pressure to increase profits and sustain the current rebound.

Oliver Wyman has assisted many companies in addressing these business challenges in the areas of:

  • Operations and separation of assets
  • Project planning and management
  • Acquisition targeting and assessment
  • Post-merger integration
  • Gas controls
  • Customer targeting and marketing effectiveness
  • Asset management
  • Reliability improvement
  • Revenue leakage / managing lost gas
  • Work management and field force productivity
  • Lean operations
  • Customer service optimization
  • Back office and support effectiveness
  • Storage/midstream asset utilization
  • Ancillary business strategy (e.g., appliance service

Water and Waste WaterThe evolution of the Water business model has been impacted by a set of significant industry events (changes in regulation, consolidation, technology innovation, price pressure) and external market forces (credit availability, climate change, energy costs). These have raised a number of strategic and operational issues:   

  • Planning and management of the asset base – ensuring supply security and efficiency, asset portfolio planning and investment, branding strategy
  • Delivering effective and efficient operations – executing operational improvements, field force automation, leveraging technology innovation, managing supplier effectiveness and viability, contingency planning and risk management
  • Improving customer service – customer profiling and segmentation, focused retail strategy, improved customer satisfaction
  • Targeting growth – establishing non-regulated service offerings, identifying and evaluating merger and acquisition potential
  • Organization and process alignment – optimization of corporate structures, field force management

Oliver Wyman has significant experience assisting the Water utility industry in addressing these challenges. Examples include:

  • Developing effective capital expenditure assurance programs balancing financial and operational necessity
  • Assessing and improving outsourcing strategy
  • Coping with an aging work force
  • Defining and implementing value-sourcing programs
  • Helping water utilities and water technology companies define the impact of technology on future business designs
  • Developing "first responder" and "storm" strategies
  • Defining new customer segmentation strategies and designing new offers
  • Creating non-regulated service offerings as a source of additional growth
  • Working with water utilities and private equity firms or infrastructure funds on buyer or vendor due diligence and post-merger integration
  • Restructuring corporate organizations
  • Defining working capital management programs

Grids & Infrastructure Insights