Welcome to Joules, which features articles written by Oliver Wyman’s partners in the Energy/Utilities practice that are derived from our recent work with clients around the world.
Utilities are facing several earnings challenges. Aging transmission and distribution infrastructure and generation capacity shortages are now forcing many utilities to confront a major new build-out cycle. Global competition for natural resources and tight labor markets mean this cycle will occur at a time when input costs are high and climbing. In addition there are questions about the type of build-out necessary, the technology of nextgeneration transmission and distribution, and the structure of the customer service of the future. The pressure to squeeze earnings and cash flow from existing assets in order to fund this build-out is greater than ever.
By offering a broad selection of topics, including M&A and the management challenges of an aging workforce, Joules aims to provide you with guidance on how to tackle strategic and operational challenges that will help drive increased performance and value. We hope you enjoy this first issue, and we welcome your comments for future issues.