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Biggest threat to energy utilities is political intervention

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According to an Ernst and Young report  launched today, changes to energy policies are the biggest threat to the future of utility companies.

The report surveys 110 power and utility companies from 20 countries.

Richard Postance, power and utility advisory leader at Ernst & Young, said: “Given its potential impact on everything from half-century capital planning to customer operations, political intervention is seen as a significant risk for the P&U industry, even in markets like the UK that have been considered stable and transparent.”

He added: “We are seeing a real fear amongst utilities of ending up on the wrong end of expedient, but short sighted political action.”

 

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