As lockdowns have started easing in many countries, the focus is shifting toward a safe return.
At the beginning of the COVID-19 outbreak, utilities had to resolve to meet the immediate issues posed by operating during a pandemic and then build resilience to meet immediate operational demands. The priority was to ensure the safety of their people while guaranteeing the security of supplies and addressing risks. Crisis teams had to stabilize supply chains and operations, which were disrupted by physical distancing and on-site restrictions. They also had to cope with the financial impact of the crisis. Lower industrial power demand and rising consumer defaults had hurt cash flows and balance sheets. Hence, it was crucial to stress-test financials and engage customers.
As lockdowns have started easing in many countries, the focus is shifting toward a safe return: how to bring more workers back to their jobs and to ramp up operations as demand begins to rise. At the same time, utilities need to think longer term by recognizing the operational shifts experienced in the sector as they reimagine and reform their operating environments. The priority will be to understand which of the temporary disruptions they have experienced are likely to persist. Finally, the COVID-19 crisis will have longer-term implications for the industry, and companies should take stock of the regulatory- and competitive-environment shifts to balance their future business footprints.
In this article, we describe five themes that are reshaping the utility sector and offer practical suggestions on how leaders can adapt their organizations to meet the needs of the next normal.
Click here to download this 7 page pdf market report by Mckinsey authored by Adrian Booth, Tom Carlowitz, Elizaveta Malashenko, and Jesús Rodriguez Gonzalez
COMMENTS