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
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
