The 8th Annual PricewaterhouseCoopers report "The Big Leap: Utilities Global Survey 2006" claims that in modern times, the utility industry is faced by its biggest challenge. The view that the industry needs a revolutionary change is shared by over two-thirds of the world's leading utility company leaders. Among the various nations, Europe strongly feels the need due to the various conflicting challenges it faces in fields of demand supply imbalances, infrastructure vulnerability, and environmental concerns.
The PWC report focuses on the need of adopting a 10 year target on developing innovative technologies, reducing environmental damage, finding new fuel resources, and enhancing customer service dealings. This idea is shared by over two thirds of renowned industry leaders. 80% of respondents believe that the political and regulatory factors are hindering the capability of the industries to respond to these challenges. They believe that some natural calamity or other shock factors can only force these changes.
The report caters to the views of 116 senior executives from renowned utilities companies covering 43 countries. They share concern over the lack of security of suppy that has been a cause of concern for the last two years. To overcome this problem, the pace of change is required to be stepped up. Renewable energy source is another major problem faced by the utilities industries.
"Our report highlights yet again the need for the industry to work with government and investors to make the infrastructure, technological, environmental and investment leaps that need to happen to arrive at a long term sustainable solution."- feels Manfred Wiegand, Global Utilities Leader, PricewaterhouseCoopers. The poll conducted amongst the utilities companies show regulatory uncertainty as one of the three major concerns that affect investment in the sectors.
Advanced technology is viewed as the key driver and proper investment in technology will determine the growth mitigation of greenhouse gas growth. For fuel mix, coal and nuclear will be playing a larger role. PricewaterhouseCoopers "The Big Leap" report also points out various other development areas of the utilities segment. M&A activity is at record level with the total deal value soaring from US$123bn in 2004 to US$196bn in 2005. Coal and gas will be the biggest contributors of fuel for the next five years. The utilities companies are in constant search of enhanced and improved technological innovations in order to deliver efficiencies and also to cater to future demand confrontations and environmental apprehensions. By proactively managing this report, PWC portrays the participation of Big Four firms in raising and solving concerns and challenges that is faced by the utilities industries.
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