Switzerland

Power & Utilities 

Electricity is one of the most important commodities in our society today. As a European electricity hub, and thanks to its clear strength in innovation, Switzerland is able to compete on an international level. However, Swiss energy supply companies are caught in a tug of war between regulations, market deregulation, sustainability and supply security.
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What are the main challenges?

 

The political and corporate environment of the energy industry is faced by the following challenges:

 

Political challenges

  • Specification of realistic climate objectives
  • Establishment of a supply strategy and a sustainable energy mix
  • Incorporation of Switzerland into the European electricity supply network
  • Investment incentives for encouraging the optimization and expansion of generation capacity, the transport network and to improve energy efficiency
  • Development of market-oriented tools for promoting renewable energy sources
  • Investments in large-scale projects
  • Creation of an effective regulatory system that promotes competition
  • Establishment of market-oriented framework conditions for the political governance of energy supply companies and enabling them to exert political influence in a meaningful way

 

Strategic and market-specific challenges

  • Dealing with the change in market structures within the context of deregulation
  • Containment of client and margin erosion by identifying courses of action and with a stronger focus on market and client requirements
  • Balancing opportunities and risks when identifying new business areas
  • Increasing competitiveness and optimizing the market position by adopting a clear market strategy
  • Adjustments to and optimal organization of the business model

 

Operational challenges for energy supply companies

  • Putting strategies into operation
  • Organizational rearrangement of functions and recruitment of suitable specialists
  • Improving transparency and responsiveness
  • Regulation of the external and internal steering committees
  • Internal optimization of efficiency in order to prepare for a future incentive regulation
  • Transfer of network level 1 to the national network operator set up for this purpose
  • Ensuring the independence of the power supply network operation in order to prevent cross-subsidization between the network operation and the other fields of activity
  • Documentation requirements
  • Reporting obligations
  • Obligation to report to regulatory authorities
  • Publication obligations

 

What can KPMG do to help?

 

KPMG is a reliable partner, thanks to its global network and international experience of working on projects in the energy industry. We have a range of specific expertise at our disposal, covering areas such as:

  • Reviewing strategies
  • Linking strategies with operational implementation
  • Developing control elements; CAPEX, OPEX. Performance FTE benchmarking
  • Establishing an early warning system for identifying new, unexpected and unusual risks
  • Synchronizing risk management and strategy/budgeting processes
  • Analyzing company-specific compliance requirements and the company’s organizational structures, processes and systems
  • Identifying potential for optimization and using synergy effects to ensure compliance with internal and external specifications
  • Developing a compliance function and implementing a compliance system
  • Implementing a pragmatic, company-wide approach for the universal integration of governance, risk management, compliance and assurance
  • Providing effective monitoring and assurance via internal audit services
  • Providing advice on accounting issues relating to energy, e.g. financial instrument accounting, exploration costs, emission rights, etc.
  • Sustainability reporting
  • Planning and supervising optimal energy contracting
  • Creating financial reporting tools for cost accounting, financial reporting and regulatory accounting
  • Professional project and program management
  • (Partial) privatization of energy supply companies
  • Carrying out due diligence (financial, commercial, tax, legal, environmental)
  • Assessing companies or parts of companies
  • Financing matters for large projects

Sean Peyer

Sean Peyer

Partner, Head of Transaction Services, Head of Power & Utilities

+41 58 249 53 89

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