Happy New Year!
2010 promises to be an exciting year for the energy and utilities sector with a positive outlook for interim management. There are a range of factors that will drive change throughout this year and beyond and inevitably demand for interim managers will increase. With an estimated requirement for over £200bn worth of investment in the UK’s energy infrastructure over the next 10 years I believe it will present a plethora of opportunities.
The UK nuclear strategy is slowly crystallising and projects in this area are moving ahead. Funding for renewables projects is more readily available and there has been a general increase in M&A activity within the sector. The new regulatory period starts for water utilities and is bound to present a raft of opportunities for change as they all seek to improve efficiencies and deliver new capital programmes. The energy utilities are all pushing ahead with renewed vigour to improve their operating models and reduce cost to serve. Oil and gas companies are now reviewing their business models and reversing away from cost cutting strategies as the oil price stabilises.
Here’s to a healthy and prosperous 2010!
Duncan Hoggett is Head of the Utilities Practice at Interim Partners.
