Helping you get ahead - PwC€¦ · work together 2 Global power & utilities group statement of...

Helping you get ahead

www.pwc.com/utilities

Global power & utilities statement of capabilities

Introduction 3

PwC – focused on you 4

Working together – on your issues 6

Smart energy 6

Renewable and cleaner energy 8

Nuclear energy 10

Deals 12

Capital projects and infrastructure 14

Asset management and performance improvement 16

Industry regulation 18

Financial reporting and assurance 20

Energy trading and risk management 22

What makes us different 24

On hand wherever you need us worldwide 25

Contacts 26

Contents

your priorities, ourprofessionalism...

...doing greatwork together

2 Global power & utilities group statement of capabilities

Our starting point is matching yourneeds with our power & utilities sectorknowledge, professional objectivity andrigour. We aim to have a continuingdialogue, listening to your priorities,understanding your business issues, anddelivering great work together.

IntroductionYou’ll know more than most how the power & utilities sector ischanging. PwC is at the heart of that industry change. Through ourextensive global network, we are able to help with the big challengesfacing the sector. With more than 4,000 sector specialists and offices in158 countries, we work with power and utilities companies in justabout every location that they do business. Our power and utilitiescentre of excellence is a way of delivering that expertise to you. It’s not a physical centre. It’s much more powerful than that. It’s a channel foraccessing the knowledge of all our subject experts around the globe.

Anticipating the future

The changes that lie ahead are ofgreat potential significance.Renewable energy is moving into themainstream. The role of nuclearenergy is in the balance. Companiesare facing huge capital investmentchallenges while also moving toextend their presence in high growthmarkets globally.

We anticipate a future with a muchwider range of technologies andwhere the shape of the industry willbe different. In a world ofconvergence, power and utilitiescompanies are already working withother sectors such as construction,automotive and technology to developcleaner, smarter cities and livingspaces.

And it’s not just the boundaries of theindustry and the mix of generationthat is changing. It’s how it isoptimised and what it is used for, asmore people and technologies connectwith the grid in smarter ways.

The role of electricity is expanding. It is already the power behind mostapplications in modern life and willbecome even more so as electro-mobility solutions are developed.

Global power & utilities group statement of capabilities 3

Norbert SchwietersGlobal Power & Utilities Leader

Relationships built to last

These changes make it all the moreimportant that you can team up witha professional partner that can helpyou move not just rapidly but withassurance and rigour, to deliver onyour priorities.

Our clients stay with us inrelationships that are built to last.We’ve worked with our five largestpower and utility audit clients alone,for a combined period of over 120years.

This statement of our capabilities isprepared to show how we can helpyou. Whether your company needshelp in controlling costs, improvingyour asset management andprocesses, developing a global taxstrategy, preparing strategy forentering new markets, we can help.

Speak to us now. We live and breathethis sector.

All the power and utilities expertise of PwC is brought togetherwith one focus – you the client. Our priority is on the issues thatmatter to you. PwC’s Global Power & Utilities Group providesprofessional services to companies and industry players of allsizes, across all segments of the industry. We provide industry-specific solutions in the fields of audit and assurance,transactions and tax. And with our extensive experience in thesector, we’re able to offer a much wider range of advisoryservices to meet your more specific needs.

Three out of every ten leading companiesin the sector choose us as an audit partner.We are also the partner of choice for manymedium sized and smaller companies. PwC is on hand when governments andregulatory bodies need top-level advice onreform of market structures or hands-ondelivery of the resulting changeprogrammes. At an international level, weare the funding patron of the WorldEnergy Council and a longstanding partnerand sponsor of the World Energy Congress.PwC’s Annual Global Energy, Utilities andMining Conference regularly forms part ofthe International Energy Agency’s globalroadshow to launch its annual WorldEnergy Outlook.

PwC is a member of the World NuclearAssociation and of Eurelectric. PwC andthe World Economic Forum have beenstrategic partners since the mid-1980s.PwC is a knowledge provider for theAnnual Meeting in Davos-Klosters,Switzerland, and regional summitsconducted by the World Economic Forumevery year. In many of the individualcountries in which we operate, we aremembers of leading industry associations.For example, in the US we are an activemember of the Edison Electric Institute,providing speakers for some of their majorevents and expertise as instructors for alarge number of the institute’s membertraining courses. We have similarinvolvement in industry associations incountries ranging from Brazil to Japan,from China to Chile.

PwC – focused on you

• We live and breathe the sector, understanding your issues and able to respond to your priorities.

• We have over 4,000 staff worldwide dedicated to the power & utilities sector.

• Our global coverage means we are on hand wherever you need us.

• We deliver to a single PwC global quality standard, giving you the assurance of local market insight matched with worldwide professionalism and rigour.

• We listen to you and continuously build your feedback into our work.

• Our audit projects are reviewed by a PwC partner who is not part of the project team, building independence into your feedback and appraisal of us.

• We give you the best talent from around the world. We are recognised as a number one employer of choice in many key locations.

At a glance – why PwC ?


Audit and assurancePwC audits major utility companies in keyenergy markets – gas, electricity, water,renewables and other services. Power &utilities companies want audit teams thatknow their issues and understand theirbusiness challenges. Our industry-dedicated professionals receive specialisedtraining, including regular updates onutility-specific issues. We have theknowledge and experience necessaryto help you with complex financialaccounting issues related to matters suchas valuations, pensions and share plans,listings, International Financial ReportingStandards (IFRS) conversions, andcorporate treasury and companysecretarial functions.

Advisory servicesWhether you are pursuing newopportunities, responding to events orcoping with the daily pressures of growth,we are there to help. We do this bycreating unique, value-added solutionsbased on the combination of industryknowledge, subject matter expertise andour collective experience and expertisefrom all areas of PwC.

Consulting We help you create the value you arelooking for. Our specialist consulting teamswork with yours to innovate and grow,improve operations, manage risk andregulation, and leverage talent. We areready to assist you in managing a range ofissues such as international expansion,investment in and roll-out of newtechnology, regulatory reform,commodity/fuel price volatility and pricerisk management, workforce issues,industry consolidation and asset portfoliorationalisation, outdated legacy systemsand investment in new systems, andgaining value from mergers andacquisitions. We also have significantexperience of delivering large, complexmega projects in generation, transmissionand distribution.

Working together – our starting points

DealsWe have longstanding and extensiveexpertise as advisers on mergers andacquisitions activity in the power and gasutility industries. Our experience coversthe deal continuum from strategy throughexecution to post-deal integration,including:• modelling and business planning• financial and operational due diligence• accessing capital markets and other

sources of finance• valuing all or part of a business,

including the implications and risks• managing assets amid increased

competition• negotiating and structuring deals• maximising value post-deal.

Tax servicesWe have the largest network of taxspecialists in the world, with over 30,000dedicated tax specialists in 150 countries.This means that we can support you bothlocally and globally, wherever you requiretax advice. Our tax professionals solvechallenging issues, anticipate changes thatcan impact your tax situation and financialstatements, and keep you appraised oflocal, state, foreign and international taxregulations as they relate to yourcompany’s operations. We can help youconstruct effective cross-border strategiesand manage your global structural tax rateand advise on the best tax strategy for arange of situations such as mergers andacquisitions, joint ventures and other newprojects.

Human resourcesWith more than 6,000 professionals in over150 countries, the PwC network has one ofthe world’s largest human resource (HR)advisory organisations.

Our multidisciplinary approach allows usto advise on all aspects of peoplemanagement, helping our clients to createvalue and deliver competitive advantagefor their businesses through people.

PwC’s Global Power & Utilities Centre ofExcellenceis a channel for accessing theknowledge of all our subject expertsaround the globe relevant to yourneeds. It delivers points of view andthought leadership on the future ofthe sector and provides a platform fordebate between industry stakeholders.Most important, it gives you maximumvalue from our strong team of 4,000power and utilities specialists aroundthe world. Find out more atwww.pwc.com/utilities


“We have significantexperience ofdelivering large,complex megaprojects in generation,transmission anddistribution.”

How PwC can help you

PwC can help give you momentum. Ourapproach focuses on the full lifecycle ofsmart grid initiatives and touches allaspects of what needs to be considered.

Strategy and planning – business casedevelopment, alignment of the smart gridplan to organisational strategy and overallproject management.Technology integration – selection andimplementation of technology and ITsolutions to support smart grid initiatives.Business process readiness –optimisation of critical processes to ensurethe value of smart grid investment isachieved.Compliance and risk management –validation of all compliance/contractualobligations to ensure they are achievedand managed.Regulatory and cost recovery –alignment of initiatives with market,regulatory and stimulus requirements.

Getting the right smart grid strategyand roadmap in placeCompanies need to evaluate theiroperational and regulatory landscape andhave a clear vision of the end destinationthey want to reach and what targetoperating model they want to develop.PwC can help with strategy andimplementation planning that can robustlymanage the reality and the potential ofnew interactivity across a myriad ofdifferent interfaces – between the world ofpower utilities and technology, energystorage, distributed large- and small-scalerenewable energy, electromobility,telecommunications, home and businessappliances and energy management.

Having effective programme governance and controlThere are substantial risks to the success of smart grid programmes. PwC is on handto ensure that risks are identified andunderstood up front. Getting thefoundations right through goodpreparation is key. On the capitalprogramme side, there is potential, like allcapital projects, for timescales to slip andcosts to get out of hand. We can help youput effective programme control in placeand ensure that good governance is areality.

Smart energy

Behind the hype, there is the reality. Smart energy lies at theheart of many of the changes that are to come in the powerutilities sector – the replacement of ageing infrastructure, cleanenergy, electric cars and many other challenges. But, if you arepart of delivering this future, you’ll know the transformationwon’t be easy.

Smart grids and smart metering needsubstantial capital investment. Theyrequire a complete overhaul of the gridfrom an electromechanical to a fully digitalsystem. If you are to get the full potentialof smart energy, you have to make a lothappen on many different fronts. You needto judge the timing of investment and thebest choice of technology partners. Youalso need to get the right balance betweenthe cost-benefit to your company as well asthe wider grid and society. On top of allthis, there is the big challenge of deliveringthe necessary upgrades efficiently and ontime.

Thinking about customers from the startTwo way communication lies at the heartof smart grid technology. Its effectiveness,though, relies on such communicationtranslating into behaviour change. Evenwith smart grid technology in place,customers have to be won over and thereare many trust and other barriers toovercome along the way. PwC can drawupon extensive experience of customerreaction to smart grid programmes to helpadvise on issues such as customerrelationship management, datamanagement and security and howcompanies can manage expectations andavoid the danger of negative reactions tosmart metering.

Managing multiple stakeholdersThe success of smart grid programmesrelies on a convergence of many interestsand industries. Utility companies need tobe adept at orchestrating and managingmany stakeholders for project delivery andto ensure markets will develop in responseto the opportunities a smart grid provides.This has implications for how companiesidentify, select and make the most ofcollaboration with partner companies andjudge market development. Speed, agility,reliability and commonality of vision willall be important considerations in alliancerelationships.


Working together – on your issues

Working together – Pacific Gas & Electricand PwC

ContextPacific Gas and Electric (PG&E) hadalready deployed 3.5 million gas andelectric smart meters throughoutnorthern California as part of NorthAmerica’s largest smart meter roll-out.As part of the next phase of the roll-outthey had to deliver 10.2 millionsmart meters in a $2.2bn, five-yearprogramme to 2012.

ApproachWe provided extensive consulting servicesto the project, including participation in allexecutive steering committee discussionsand contribution to eight distinct workstreams. This included key areas such asprogramme management office (PMO)processes and controls design, businessprocess design, and deployment of realtime cost and customer impact metrics. Wealso provided an integrated qualityassurance and process design team, whichreviewed PMO processes and proceduresacross nine functions.

ImpactWe leveraged our understanding of theindustry to implement processes andimprovements that fitted with the needs ofthe project and the project team. As aresult, the project has demonstrated strongPMO capability to the utility regulator, andhas been able to operate and managescope, schedule and budget to successfullymeet project goals. A collaborative projectenvironment was key to the project’ssuccess, and enabled us to effectivelyimplement the real-time process changeswhich were needed to ensure the bestoutcome for the client and their customers.

Working together – Endesa and PwC

ContextEndesa is the second largest utility inSpain with 11.6 million customers and40% of the total installed powercapacity. Its parent company Enel’sexperience in Italy already meant it hadgood knowledge of the smart meteringbusiness case. It wanted to look at smartenergy beyond smart metering,examining the costs and benefits ofdeploying a smart grid at a nationallevel.

What we didPwC provided an analysis of the costs andbenefits associated for each stakeholder inthe electricity sector. It providedquantification of the costs incurred by theDSO and an overview of the new servicesunder a smart grid. The study alsoanalysed the economics of demand sidemanagement (DSM) which result inbenefits for customers and society (interms of productivity, employment andenvironment).

ImpactThe project was very important to get aclear view of winners and losers. In thebaseline scenario, the accumulated benefitsfar outweigh the overall costs. But theformer are captured mainly by thecustomer while higher costs are incurred bythe DSO. The findings showed thatincentives must be designed to compensatethese differences and gave an indication ofthe mechanisms that will be needed torecognise DSO costs.


The delivery of cleaner and renewableenergy entails considerable investment,project and technological challenges.Developments such as the exploration ofcarbon capture technologies, large scalesolar generation and offshore wind indeepwater locations carry significant riskand uncertainty. These risks are all thegreater given the volatile market forrenewables. Companies must managefrequent demand-supply imbalancescaused by cyclical factors like oil prices andone-time events (e.g., the Japanesenuclear crisis). At the same time, theymust deal with a variable of governmentsubsidies. A significant component of theindustry’s growth, especially in solar, isdriven by politically unstable incentives.Changes can wreak havoc on companies’operational performance, particularly forvertically integrated solar and windmanufacturers aiming at an ever-movingdemand target.


Making the right investment decisionsCompanies face an array of choices aboutwhere and how best to deliver cleaner andrenewable energy. Which markets? Whichtechnologies? Which sites? Capitalexpenditure or acquisitions? PwC is onhand to give you the business planning andmarket analysis that you need. We canmap your strategic and project choices,bringing clarity to a complex array ofcurrent and future variables such as theimpact of different fuel price and carbonmarket scenarios.

Venturing into new renewable areasThe potential to harness solar energy withlarge-scale concentrating solar power inarid regions is the focus of interest by anumber of companies and organisations.PwC is a partner of the DESERTECFoundation, a non-profit foundation withthe aim of promoting the implementationof the global concept of "Clean Power fromDeserts" all over the world. We can helpcompanies investigate the viability of suchventures. For example, we recently adviseda private company developing a project inTunisia on market and institutionalframeworks in Italy and Tunisia as a firststep to evaluating project feasibility.

Managing volatility and expecting the unexpectedWe can help you craft strategic sales andoperational plans for various scenarios,giving you clearly defined scenarios withstrategic actions to implement whenspecific events or market conditions occur.We can help you integrate scenarioplanning across the value chain. Bymonitoring the most reliable leadingindicators, such as solar module andinverter channel inventory, you will beable to better understand market demand.Companies should also collaborate withdownstream partners and customers todiligently track large-scale projectinstallation schedules, including potentialchanges due to financing risks. We can alsohelp you develop a capability to rapidly re-plan and create a flexible supply chaininfrastructure, developing closecollaboration with suppliers and partnersto gain substantial visibility into inventoryand production plans.

Renewable and cleaner energyRenewable energy is coming of age. From being a marginalsource of generation it has moved to the mainstream. And whilethe investment and market support context remains complex, itis attracting considerable interest from institutional investorslooking for steady long-term returns. At the same time, there isthe quest to make fossil fuel generation cleaner and moreefficient, including the challenge and uncertainty of carboncapture and sequestration (CCS) technology.


Choosing technological partners orforming alliancesThe response to climate change is takingutility companies into new technologicalareas and new markets, requiring carefulselection of project and, in some cases,strategic partners. Electric transportation,for example, will create a new way ofconsuming electricity and, with it,different physical and pricing deliverymodels. PwC can help with contractor andpartner selection and advise on the bestframeworks for matters such as jointinvestment, project design and delivery,governance and risk management.

Making the most of tax and otherincentive regimesCompanies need to ensure they are gainingmaximum benefit from rapidly changinggrant and incentive opportunities andemissions trading markets around theworld. For example, in the US alone, thereare literally hundreds of different state andlocal tax incentives available to a companyfor renewable energy and energy efficiencyprojects at any given time – not to mentionthose available at the federal level. PwC’snetwork of tax and regulatory specialists ison hand to provide advice and guidance tohelp you understand and optimise theimpact of tax and incentive regimes.


PwC and the China Greentech Initiative

PwC is the strategic partner to the China GreentechInitiative and the annual China Greentech report. Theinitiative is designed to accelerate growth in the country’sgreentech market and provides a platform for thedevelopment of commercial partnerships and makinginformed decisions on growth opportunities.

Working together – PwC and global market analysis of thin film solar PV

ContextEWE Aktiengesellschaft, one of thebiggest utilities in Germany, wasconsidering an investment opportunityin a producer of thin-film solar PVmodules. To decide whether or not toinvest in the target company thecompany needed an up-to-date report onthe current state of the global solar PVmarket.

ApproachPwC drew upon our network of experts,bringing together individuals from ourfederal investment guarantee scheme andour project finance advisory team. Theseexperts compiled an extensive report onthe PV technologies currently available,their existing market shares and a detailedmarket outlook. The report also covered arange of technical questions, including theavailability of scarce resources and thecompetitiveness of different technologies.The report was completed through adetailed literature review, complementedby a number of in-depth expert interviews.

ImpactThe company gained a comprehensivereport on the prospects of various PVtechnologies, including thin-film, and theirrelative advantages and disadvantages. Thereport provided the information needed tosupport a decision on the possibleacquisition of shares in the target company.

Working together – PwC and infrastructure fund investment in US renewables

ContextAn infrastructure fund was looking toinvest in US renewable energy facilities,covering wind, solar and geothermalgeneration. The target had 900MW totaloperating capacity and 1,500MW underconstruction or in development. Theinvestment profile included theformation of a joint venture,contribution of existing project pipeline,operations and management function,and the infrastructure fund’s capitalinvestment to grow the investmentportfolio.


PwC is a member of the International Energy Agency’sRenewable Industry Advisory Board and WorkingParty on Renewable Energy Technologies.

DeliveryPwC’s services included financial duediligence, accounting advisory, M&A tax,structuring (including in-bound structuredevelopment), and valuation forpartnership tax allocation purposes.

ChallengeAdditionally, our client was new to theindustry. Industry experience wascritical due to the rapidly changingregulatory framework surroundingalternative energy in the US as well asthe complex accounting issues prevalentin the industry (e.g. consolidation/VIEissues, lease accounting, and tax equityfinancing structures).

PwC works with companies, governmentsand industry stakeholders in every regionof the world to assist with the decisions,planning and implementation of nuclearpower projects. Our team includes peoplewith direct hands-on experience ofplanning, building and running nuclearpower plants. We are involved in manymajor current projects and can assist in allparts of the nuclear power lifecycle – fromstrategy and financing through todecommissioning and disposal ofradioactive material.

Nuclear energyNuclear power provides a clean energy opportunity but it alsobrings immense challenges. Safety, finances, very longtimescales, skills shortages and considerable public and politicalscrutiny all add to the complexity of developing nuclear powerprojects. The 2011 Fukushima emergency in Japan intensifiedthese challenges but its aftermath has also seen a reaffirmationof many countries’ commitments to the expansion of nuclearpower.



We can provide a wide range of skills andexpertise, from engineering to businessservices, financing to IT. Collaboratingwith our clients, we focus on four key areasthat deliver value in the nuclear powerlifecycle.

Strategy and financeGenerating strategies and solutions tofinancing needs and examiningstakeholder relationships for appropriatespread of responsibilities and risk.

Contracting and deliverySupporting the engineering, procurementand construction phase of nuclear plantswith comprehensive governance structuresand control environments, leveraging newquantitative risk analysis tools that arebeing used at nuclear construction sites tohelp owners and contractors foresee andmanage risks.

Start up, operations and maintenanceImplementing an enhanced systemicapproach to guiding asset configurationand enabling long-term, reliability-centredoperations and maintenance during thehandover of a nuclear power plant fromcontractor to owner operator.

Decommissioning and disposalSupporting clients through the complexdecommissioning process associated withnuclear plants, helping to manage risks,maximise asset value and minimise costs.


• We have an experienced team of nuclear, mechanical and civil engineers, project management professionals, IT experts, lawyers, accountants, and other business service professionals with hands-on experience of nuclear facilities.

• We can help you plan ahead for the future while also drawing on pastexperience. We combine experience of current nuclear power plant construction with insight from the prior phase of projects in the 1980s.

• We offer a wide range of solutions in the areas of strategy and financing, project governance and controls, contract and regulatory compliance, risk management, and management of overall project performance.

• We can help with trouble-shooting or complex difficulties. We have experience on nuclear plant operational improvements, reliability-centred maintenance programmes, facility upgrades and complex outage-based maintenance and plant upgrade efforts. We also have experience of advising on and turning around construction delays and failures.

At a glance – PwC nuclearenergy experience


Working together –China’s Daya Bay nuclear power stationand PwC

Comment“CGNPC needed to be able todemonstrate world class businesscontrols, practices, and transparency toparticipate in world financial markets andto adhere to world nuclear safetystandards. The project was able to deliverclear and verified reporting into acomplex multitude of processes,organisations, and tools. Another systemintegrator had failed. DNMC was in theunenviable position of having a projectthat had to be restarted from thebeginning. The project included a team of PwC American ERP/EAM expertsintegrated with a team of PwC Chinaconsultants with further support from ourGlobal Development Center (GDC) inBeijing.” (PwC)

ContextDaya Bay is the largest operating nuclearcomplex in the world. PwC assisted theDaya Bay Nuclear Management Company(DNMC), and its holding company ChinaGuangdong Nuclear Power Corporation(CGNPC), to implement SAP’s ERP andEAM solution at three existing powerplants for six operating reactors. Thissolution will provide Daya Bay’smanagement full financial and enterpriseasset management, coordinatingeverything from daily plant operations,maintenance, supply chain, andfinancials.

DeliverablesThe project was completed in less than 18months. The full original project scopewas completed on time and on budget.The business scope included end to endfinance, costing, supply chainmanagement, work management, assetmanagement, plant operations andblocking, and HR time entry. The solutionis the foundation upon which CGNPC canmanage its fleet of five other nuclear sites(20+units) currently under construction.

South African nuclear power:PwC advising on advancedtechnology investment

Eskom, the South African state-ownedelectricity company, is the lead sponsorin the Pebble Bed Modular Reactor(PBMR) development consortium. Theproject is centred on an advanced fourthgeneration nuclear reactor design. PwCwas asked to advise on the viability ofthis new technology and whether furtherinvestment could be justified in thedevelopment business. We created twomodels. First, a utility operator model toevaluate and develop a set of high levelfinancial statements for a plant beingowned by a utility as operator.

Second, a PBMR business plan model,based on a range of scenarios forinternational sales of PBMR reactors.This included assessing worldwidedevelopments and opportunities innuclear power, undertaking an economicanalysis of the position of nucleargeneration in the South Africanelectricity market, and assessing thebusiness plan and undertaking modellingfor the subsidiary developing a fourthgeneration nuclear reactor.


PwC can offer you expert deal structuringand financing advice at all pointsthroughout the deal cycle. We delivervalue thorough quantitative analysis,rigorous implementation and leading edgestructuring techniques, carrying out pre-acquisition due diligence, ensuringtax-efficient deal structuring, andensuring post-deal integration. Inter-company transactions across borders aregrowing rapidly and are becoming muchmore complex. At PwC, we have a stronginternational network of dedicated transferpricing specialists with advanced trainingin economics, accounting, law and projectmanagement, ready to work with you.

Delivering deal value We help find the targets, analyse thestrengths and weaknesses, identifysynergies and potential improvementopportunities, negotiate terms, accesscapital, manage the post-deal integrationprocess, carve out non-core assets, andmake changes to realise improvements inlong-term performance.

Restructuring and recovery Our recovery professionals are valued fortheir ability to quickly identify problems,gain cooperation, develop viable solutions,and implement them with sensitivity andprecision. Our experienced teams offer afull range of advisory and implementationservices, from turnaround andrestructuring plans to optimised exitstrategies.

Effective tax planningEarly tax planning for mergers andacquisitions is essential to reduce both theactual transaction tax costs and the long-term sustainable tax rate following thetransaction.

DealsGlobalisation of the utilities sector is moving forward on anumber of fronts. Deals are crucial to many utility companystrategies and we work together with you to determine theright strategy that best suits your needs. Our goal is to helpcompanies meet their strategic priorities and growth targets sothat they deliver value for their shareholders. We are wellknown in the utilities marketplace for our experience in majordeals across key power and gas utility markets. Whether it isgaining a presence in growth markets or selling assets to fundother investments, we advise and implement to ensure themaximum value.


Mergers and acquisitionsWe provide independent valuation advicefor your business. By offering robustplanning for the parties to a transaction,we enable clients to capture the most valuepossible and implement changes to deliversynergies and improvements after the deal.

Divestitures and sell side advice Our utilities industry specialists help youcomplete and extract the maximum valuefrom your transactions. We identifyappropriate buyers and will implement asale to generate the best price for ourclient.


• financial and operational due diligence

• accessing capital markets and other sources of finance

• valuing all or part of a business, including the implications and risks

• managing assets amid increased competition

• negotiating and structuring deals

• maximising value post-deal.

Expertise right across the deal continuum

Working together – PwC and Enel Green Power IPO

ContextEnel required assistance with the initialpublic offering (IPO) of Enel GreenPower (EGP), which generated demandfor 1,260m shares from 340,000investors.

ApproachOur team of transaction experts helped toovercome a number of issues includingtiming and stock market issues, regulatoryframework uncertainty and organisationalfragmentation across different regions. Wedeployed multidisciplinary power &utilities and IPO teams in Italy andworldwide. These teams supervised theproject management activity and offeredexpert advice around regulation,commercial due diligence, managementcontrol systems, and tax.

ImpactOur team was able to complement thetraditional services provided by a financialadvisor with a strong knowledge of marketregulation and accounting skills. We werealso able to leverage our strongrelationships with other major players inthe field, including banks, lawyers,regulators and the stock exchange. Ourcapital markets & accounting advisorygroup were able to help simplify a complexIPO process, providing Enel with thebenefits that can be gained from havingone group acting in many roles.

Working together – financial and commercial analysis

ContextA municipal utility company hadstruggled financially over a prolongedperiod struggled financially due to heavydebt financing of its over-sizedcombined heat and power productionplant and poor operational performanceof several business units. The municipalowner contacted PwC to perform anindependent second opinion of theutility company to determine the needfor a capital injection to strengthen thebalance sheet and propose alternativesfor developing, or divesting, the wholeor parts of the company.


ImpactThe resulting report outlined suggestionsfor improving the core business, divestmentof non-core assets, an estimation of therequired capital injection, as well as areview of the current debt financing of thecompany and the potential for refinancingat better commercial terms. PwC identifiedseveral areas for improving the corebusiness and proposed assets suitable fordisposal. The material provided the boardof the municipal parent company with aclear basis for decision-making on thefuture strategic direction of the companyand the disposal of non-core assets.

ApproachPwC conducted a commercial andfinancial second opinion of the utility’sbusiness plans for all eight differentbusiness units.

More and more capital projects are locatedaway from OECD countries, not just in thefast growing BRIC economies but in theVISTA (Vietnam, Indonesia, Singapore,Turkey and Argentina) and similar highgrowth countries, as well as in otheremerging markets including Africa. Manyprojects in both developed and developingcountries entail substantial technologicaland construction risk as well as extensivesupport infrastructure. Deepwater offshorewind development in Europe’s North Sea,for example, is now being planned at 50metre depths with substantial shipping,port, foundations and rig requirements.


Effective project appraisalSound project definition and effectivedecision making at the outset of a capitalproject are critical to a successful outcome.The ability to influence project success andenhance value is greatest at the start ofproject evaluation and rapidly declines as aproject advances towards implementation.PwC can assist you in taking the rightactions early to avoid costly errors later.We can help with option appraisal andmodelling, and feasibility studies as well asimplement measures to assess balancesheet impact, structuring and financing,funding resources, tax and real estateimplications.

Capital projects and infrastructureThe scale of capital project investment in the utilities sector isvast. Many companies are managing the biggest capexprogrammes they’ve ever undertaken. It’s not only the scale thatis bigger but the nature of capital projects is very different fromearlier periods of capital project expansion in the sector. Betterand smarter grid infrastructure, new transmission networks tointegrate renewable energy sources, better interconnectors,replacement of ageing infrastructure are all pressing concernsquite apart from investment in new renewable, nuclear andfossil fuel generation capacity.



Deciding on the right finance and the right contractCompanies face a series of critical choicesregarding funding options, contractorselection and management, and projectand quality management arrangements.PwC can help you secure appropriatefunding and we have a range of tools tohelp you with contract design andselection issues, including assessing thebest contractual arrangement to matchyour project risks, mapping of supply chainrisk, cost modelling and design ofincentives.

Keeping projects on or ahead of courseWe can help you put in place the thingsyou need to stay on course, includingbudgeting and forecasting processes,project cost and schedule systems,reporting procedures, open book contractcontrol and project audit. Our goal is tohelp you achieve best practice in projectcontrol, risk management, schedulemanagement, and performancemanagement. We are on hand to help youconduct reviews of project controls,processes and programme management,due diligence on programmes and projectsas well as identify the lessons learntthrough post-project close-out and review.

Getting projects back on trackPwC can help with a range of preventativemeasures to avoid projects going wrong tostart with. We can identify issues earlythrough review and health checks andthen assess and select corrective options.We understand the steps that need to betaken to recover projects quickly andeffectively. Where appropriate, we canhelp you renegotiate commercial terms.We are on hand if you are facing arestructuring, contract re-let andnegotiation, transfer or disposal situationand can advise on the best course of actionto take. We also offer dispute resolutionservices.

PwC is able to deploy teams with significant ‘on the ground experience’of mega projects. This comes either directly from previous employmentin operating construction management functions with a large multi-national EPC (engineering, procurement and construction) firms,or from assessing, designing and operating mega project controlsthrough consulting experience. We have the people with the knowledgeand the experience.

“People with on the ground experience”


Hands-on execution and advisory services inengineering, procurement and constructionof a new nuclear power plant

ContextSouthern Nuclear’s US$14bn investmentin the two new Vogtle 3 and 4 units atWaynesboro, Georgia will be the firstnew nuclear plant built on US soil in 30years.

EngagementPwC’s team is providing hands-onexecution and advisory services on thebiggest, most challenging, most politicallycharged construction project the utility hadever tackled. PwC is supporting thecompany through a myriad of engineeringand construction related tasks and issuesincluding: • readiness reviews, governance and

project controls assessments• developing and implementing cost risk,

schedule, change and vendor • management processes and controls• schedule analytics to improve oversight

over the EPC consortiums schedule• development and application of a

quantitative risk assessment (QRA) in performing scenario analysis and in incorporating the project risk profile to estimation of end state cost and schedule, and

• the numerous challenges associated withmanaging contracts worth billions of dollars.

Comment"With such a long period since the previousnew build construction projects, thecontractor and owner face the challenge ofre-establishing expertise and getting backup to speed. The PwC team is able to addconsiderable controls, risk and governanceexpertise. It includes people withsubstantial engineering and projectmanagement experience, including directexperience of nuclear projects" (PwC).

Identifying and correctingproject weakenessContextOur client was a global power generationcompany running a 1200MW capacityCCGT facility. It had a £90million fixedpriced long-term service agreement tomaintain the unit over an eight-yearterm. The client was unsure whether itsmaintenance agreements weredelivering value for money and wantedan independent view.

Comment“We identified that the company was losing £12.5m, or14% of the contract value, under the current commercialarrangements. Our review pinpointed weaknesses in theprocurement approach, which resulted in value andperformance issues occurring during the contract. Theclient’s lack of historical information compromised theirability to provide a robust challenge to the costs beingproposed by the supplier and resulted in the resourceelement of the budget being over-estimated by 43%.Recommendations were made to enhance our client’sproject governance in order to strengthen its commercialposition in the event of a contract variation or extensionof time claim” (PwC).


Enterprise asset management and operational excellenceUtility companies need to deliveroperational effectiveness while managingrisk. Companies face the challenge ofmanaging ageing assets alongside theintroduction of major new generation andgrid programmes. PwC can help you acrossa wide range of enterprise assetmanagement (see graphic) as well asoperational excellence initiatives. Theseinclude the use of lean and six sigmatechniques to manage costs and thesupply chain to introducing learning fromother sectors that can lead tobreakthroughs that save time, improvequality, lower costs, and increase revenue.

Customer retention and growthThe customer relationship in the utilitiessector has evolved from the earlier era ofcaptive markets to modern, competitivemarketplaces where much deeper anddynamic relationships are needed. Amongother things, PwC can help companiesmeasure and improve the performance oftheir contact strategies and customer-facing systems and operations. We canhelp you make sure you are maximisingthe effectiveness of your customer insightand pricing strategies. We can help youprepare for the challenges of smart meterimplementation which has the potential ofbeing a ‘make or break’ moment forcustomers.

Improving financial andperformance managementPwC can help you improve managementinformation and prospective visibilitythrough alignment of financial,operational and regulatory metrics thatdrive accountabilities, decision supportand operational execution. With a focusedand proven approach, we help clients withplanning and forecasting optimisation,CPM tool deployment, dashboards,scorecards and KPI development, changemanagement and HR programmes.

Getting the most from technologyTechnology is playing a more and moreimportant role in the utilities sector, bothin terms of improving legacy environmentsand opening up new possibilities in manyareas, from generation to the customer.PwC can help companies on the bestapproach to decisions on applications andsourcing. With companies becoming moreand more regionalised across continents,we can help with rolling out technology ona regional-wide basis. We can also helpwith the transformation and culturechange challenges that come with newmarkets and operations.

Asset management and performance improvementAssets are the lifeblood of the power utilities industry. Powerstations, gas pipelines, electricity cables, substations, the listgoes on. And that is before counting all the data assets,buildings, people and other assets that are part of running amodern business. But with physical assets come the pressures ofoperating those assets, including the dilemma of maximisingutilisation rates while reducing the costs of operation. In an eraof high energy prices, the stakeholder pressure on utilitycompanies to deliver greater efficiency and operationaleffectiveness is greater than ever.



Higher input costs, stretched supply linesand the need to invest in expanded anddiversified infrastructure are puttingsignificant additional cost into the valuechain. Companies can expect continuedand, indeed, greater resistance to costsbeing passed on to end-users makinginternal efficiency and performance evenmore vital. Effective and smart assetmanagement is becoming increasinglyimportant, especially in the context ofcapital expenditure programmes at a timewhen so much infrastructure needs to bebuilt.

Billing errors are a major challenge forutility companies worldwide. Customerswitching between companies, differentcontract start dates, house or businessmoves and the reconciliation of billedpower to power purchased by the utilityare just a few of the complicating factors.Multiple billing cycles mean that unbilledrevenue is also part of the calculation.

ContextPwC was selected to provide financialbenchmarking for three Dutch gridcompanies. The companies wanted to usethe benchmarking for evidence for keyimprovement opportunities, as a guidefor transformation plans and to track theprogress of current cost reductionprogrammes.

ApproachWe approached a comprehensive range offinance processes from three perspectives– efficiency, business insight, complianceand control – and benchmarked themagainst:• Other national grid companies• A global peer group of comparable

organisations.The goal was to share better practicesacross the grid companies and to identifykey opportunities for cost reduction andperformance improvement.

Working together – financialbenchmarking for Dutch grid companies

ImpactThe companies were able to prioritise theirnext steps to fulfil their finance ambitions.Workshops enabled the three companies toshare vision and learning in the financefield. A Finance Effectiveness Assessmentidentified areas for cost cuttingopportunities. The assessment alsoidentified additional key improvementopportunities in service quality and ortime. For one client the finance benchmarkwas an evidence-based starting point tomonitor the current finance improvementplan.


Business results

Managed risk

Reduced input(expense)

Increased output(reliability/productivity)

• Business intelligence/ reporting

• EAM balanced score-card

• Dashboards and drill-down

• “Push” reporting

• Role-based metrics

• People, paradigm and skills

• Processes and structure(IPSECA, CBM, SCM etc)

• Permitting, WCM

• Data

• Systems

• Asset criticality ranking

• Reliability-based

• RCM on critical assets

• PMO/MTA on balance

• RCA, CAP on problems

F

Optimised maintenanceprogramme

Work execution Business performancemeasurement

• Accurate database and asset hierarchy

• Technical content

• Asset condition

• Asset performance

• Asset standardisation

• Asset investment planning

Asset management

Four key ways PwC can help you deliver effective asset management

Optimising rates of returnAchieving an optimal level of return oninvestment and maximising shareholdervalue depends on having effective systemsin place for measuring and modellingrevenues and costs and translating thisinto an effective dialogue with theregulator. PwC can help with a range ofsituations, whether you are preparing for arate case or tariff review, assemblingvolume, investment and cost forecasts, orexamining the timing and capital structureof an investment to make the most of aparticular regulatory framework.

Evaluating the impact of regulatoryregimesWhether you are a regulator wanting todecide on the best design for a newregulatory scheme or a company needingto understand the impact on youractivities, PwC is on hand with a range ofevaluation and advisory tools. We can, forexample, help with the analysis ofdifferent market frameworks to guidecompanies considering geographicexpansion or regulators wanting tobenchmark other regimes.

Ensuring compliance with regulatoryrequirementsUtility company activities are affected notjust by industry, financial reporting andcompetition regulation but also,increasingly, by financial and commoditymarket regulation. The compliancelandscape is ever-changing and thevolatility and complexity of energy marketsthemselves are increasingly the focus forregulatory attention. Market structuresvary widely and are constantly evolving.PwC can help your company put theinternal systems in place to fit withregulatory requirements and to audit anddemonstrate compliance.

Industry regulation

Perhaps more than in any other industry, how utility companiesshape and respond to the regulatory environment determinesthe value they can return to shareholders or other stakeholders.The compliance landscape is ever-changing and the volatilityand complexity of energy markets themselves are increasinglythe focus for regulatory attention.


Utility company activities are affected by awide range of regulatory requirements.Alongside financial reportingrequirements, they must respond to energypolicy goals, climate change and emissionstargets, price and tariff requirements and arange of minimum service obligations.Increasingly, issues such as data regulationand security are also importantconsiderations. Market structures varywidely and are constantly evolving.Companies have a role to play in shapingthat evolution alongside policy-makers.


Anticipating and implementingregulatory changesUnbundling networks or other operations,smart meter programmes, renewableenergy targets. These are just a fewexamples of regulatory obligations thatrequire major investment and changes byutility companies. PwC can help youanticipate and plan for these and otherregulatory moves. When regulations arebeing considered, we can help you toassess the impact on your company andinput to the consultation on the final shapeof the regulation. We can then help withthe change projects and capitalprogrammes that may be necessary forcompliance. For example, we haveextensive experience of advisingcompanies on smart grid and unbundlinginitiatives.

Government regulationis shaping...

... many of the key investment and acquisition decisionsthat companies make. Developments such as clean energypolicy, for example, are increasing the extent to which theprice of power assets and, in turn, M&A valuations aredetermined by regulatory frameworks.


Working together – PwC and reform of the Palestinian electricity sector

ContextPwC was asked to assist the PalestineEnergy and Natural Resources Authority(PENRA) in the re-structuring of thecountry's electricity sector, including thedevelopment of the first West Bank IPP, a200MW CCGT.


Palestinian Energy Authority (WestBank IPP) Our work included:• Preparation of a feasibility study• Defining an efficient and effective

project structure to provide timely delivery and value for money for Palestine.

• Preparation of a financial model, a Power Purchase Payment Schedule (a combination of payments for available capacity and energy) and associated calculations which translate final costs ofbuilding, owning, and operating a powerplant into payments for providing capacity and energy to the PEA

• Assisting the PEA prepare a set of contractual documents, based upon relevant international standards and procedures, to procure a developer to build, own, and operate a power plant in the north of the West Bank.

• Drafting of an Information Memorandum for potential funders/ investors and advising on the structure of the deal.

Regulatory reformOur work covered:• Support to the Palestinian Energy

Regulatory Council on setting the necessary regulations and directives.

• Structuring and capacity building of the Palestinian Energy Regulatory Council to assume its rule as a regulator to the sector and its key players.

• Restructuring of the distribution companies to reduce their impact on the net lending.

• Transferring of assets from municipalities to the restructured distribution companies and agreeing on stakeholders structures.

• Establishment of Palestine Electricity Transmission Company to assume its role as the only importer, exporter and transmitter of electricity in Palestine.

• Development of generation Master Plan to Palestine.

Working together – cost recoveryfollowing a natural disasterContextTwo severe hurricanes within a monthcaused extensive damage to the utilitiesand power company's electricitytransmission and distribution systems, aswell as several generating plants and anatural gas distribution system. In theUS, in addition to seeking recoveriesfrom their property and casualtyinsurers, utility and power companiescan seek recovery of the costs of suchevents, either as part of a traditional ratecase or as a separate case which focuseson the particular costs incurred.

DeliverablesPwC performed procedures to validate thestorm related costs, including rigorousaudits of the filed costs prior to filing withthe regulator. In some instances, weprovided formal reports on the validity ofthe costs and wrote expert testimony onthe results of our work. In performing suchreviews, we helped ‘scrub the data’.

We identified and eliminated certaincosts that were not related to the projectand produced an ‘audit trail’ of supportfor the requested costs. This type ofreview was useful by providing thecompany and regulators with anindependent review and assurance thatthe costs submitted were documentedand supported costs that were eligible forrecovery. In addition, PwC’s forensicaccountants and insurance claimsconsultants assisted the company in itsrecovery of losses through its insurancecarriers. PwC provided resources,insurance claim process expertise andstrategy, and analyses to support thecompany in its claim preparation andfiling. This resulted in maximising theirrecovery, speeding up its recovery frominsurers, all while minimising the stressthat goes along with the process for thecompany’s management.

Comment“These cases can be quite lengthy, leavingcompanies to finance the costs of therequired recovery between the time theyare incurred and when recovery begins,which can stretch from several months toeven over a year. Not only does therecovery case need to be assembled but it isthen subject to a lengthy ‘audit’ by the statepublic utility commission and otherintervening parties who are searching forcosts they can potentially disallow. PwCassisted the utilities and power company inthe case in which the company recoveredsubstantially all of the storm costsrequested. Our work also helped toaccelerate the recovery of the billion plusdollars of costs by several months” (PwC).

In turn, that gives you a uniform level ofquality in all our audits. This methodologyalso enables us to quickly organise anddeploy the kinds of multinational auditteams often required by our larger powerand utilities clients. Our member firmsaudit many of the world’s best-knowncompanies and thousands of otherorganisations both large and small. Ouraudit approach, at the leading edge of bestpractice, is tailored to suit the size andnature of your organisation and drawsupon our extensive industry knowledge.

Our deep understanding of regulation andlegislation means we can also help withcomplex reporting issues involvingSarbanes-Oxley and IFRS. Additionally, weare leaders in the development of non-financial performance reporting, helpingour clients respond to the need for greatertransparency, improved corporategovernance, and business models based onthe principles of sustainability.

Financial reporting and assurance

PwC audits power and utility companies in all the main sectors– gas, electricity, water, renewables and other services – and inall main markets around the world. We use a single, globalaudit methodology, fully compliant with International AuditingStandards and applicable national standards. Our globallyconsistent approach to audit means that regardless of location,PwC people can understand and evaluate your business using asingle language and common methods.




Insight into your sector We pride ourselves on matching our auditskills with knowledge of your sector. Oneof the big challenges of any financialreporting standard is how best to interpretand implement it in the context of aspecific company or industry.

Handling complexity We have the knowledge and experiencenecessary to help you with complexfinancial accounting issues related tomatters such as valuations, pensions andshare plans, listings, InternationalFinancial Reporting Standards (IFRS)conversions, and corporate treasury andcompany secretarial functions.

Best practice methodology We use a single, global audit methodology,fully compliant with International AuditingStandards and applicable nationalstandards. Our globally consistentapproach to audit means that regardless oflocation, PwC people can understand andevaluate your business using a singlelanguage and common methods. In turn,that gives you a uniform level of quality inall our audits.

Able to respond to your needs Our methodology also enables us toquickly organise and deploy the kinds ofmultinational audit teams often requiredby larger power & utilities companies.

Non-financial reporting We are leaders in the development of non-financial performance reporting, helpingour clients respond to the need for greatertransparency, improved corporategovernance, and business models based onthe principles of sustainability.

Now in its second edition, this highly practical handbook looks at theparticular challenges of applying International Financial ReportingStandards (IFRS) in the power and utilities sector. Drawing on ourconsiderable experience of helping companies apply IFRS effectively,we include a number of real-life examples to show how companies areresponding to the various challenges along the power and utilitiesvalue chain.

Financial reporting in thepower and utilities industry


Representative utility auditand other assurance clients

AGL Resources Inc.Allegheny Energy, Inc.Ameren CorporationAmerican Water Works CompanyBG Group plcBritish Energy PlcCalpine CorporationCentrica plcChina Power International Generation Company LimitedCLP Holdings LimitedCMS Energy CorporationConsolidated Edison Inc.Constellation Energy Group Inc.DTE Energy CorporationE.ON AGEdison InternationalEnbridge IncEnergy AustraliaExelon CorporationFederal GridHuaneng Power International, Inc.Koc Holding A.S.N.V. NuonNational Fuel Gas CompanyNational Grid plcNSTARPepco Holdings, Inc.Puget Energy, Inc.RusHydroRWE AGSouthern Union CompanySouthwest Gas CorporationTECO Energy, Inc.UniSource Energy Corporation

AES CorporationAlintaAmerican Electric Power Company Inc.Aquila, Inc.British Nuclear Fuels PlcCEMIGCommissariat à l’énergie atomique (CEA)Companhia Energetica de Minas GeraisDuke Energy CorporationDynegy Inc.Electricite de France (EDF)Electricidade de Portugal (EDP), S.A.Electricity Supply BoardEnBW AGEnel SpAEnergy Future HoldingsEntergy CorporationEskom Holdings LimitedFortum CorporationGalp Energia, S.G.P.S., S.A.GDF SUEZHydro TasmaniaIner RAO UESInternational Power plcNextEra EnergyNicor Inc.Northeast UtilitiesNorthWestern CorporationOrigin EnergyPG&E CorporationPiedmont Natural Gas Company, Inc.Progress Energy, Inc.Public Power Corporation S.A.Public Service Enterprise GroupSevern Trent PlcSouthern CompanyTata PowerUnited Utilities Group PlcVattenfallVeolia EnvironmentXCEL Energy Inc.

Representative utility advisory and tax clients

“Three out of every ten leadingcompanies* in the sector chooseus as an audit partner.”* companies with US$10bn plus revenue

“Our clients stay with us inrelationships that are builtto last. Between them, ourfive largest power andutility company auditclients alone have workedtogether with us forover 120 years.”

The increase in commodity trading inmarkets affecting power and utilitycompanies has an impact on short- andlong-term contract prices, on pricevolatility, on the choices faced by end-customers and on the regulatory landscapegoverning markets. Companies areincreasingly engaging in trading tooptimise and add more flexibility to theirasset position. Companies are involved incommodity mechanisms that are financialrather than physical in nature.

These changes are producing new types ofrisk that require a re-examination of riskstrategies and the way risk management isconducted. Companies need to understandand engage with the market environmentin ways that are consistent with theircommercial imperatives and risk appetite.Crucially, they need to be sure that theyhave the risk frameworks, controls andsystems in place to manage risks andopportunities effectively.

Energy trading and risk management

The hard-hat world of the power and utility industries and thehard-ball world of financial trading have progressively becomemore intertwined. The interplay between the two has increasedin both extent and complexity. Greater liquidity, increasedparticipation of financial players, new types of exchanges andnew types of commodities, such as emission rights, have allcontributed to the growing importance of the use of financialinstruments and, in some areas, trading.




PwC has a global expert team dealing withcommodity trading and risk managementwithin the power & utilities industries.

Setting the right strategy We can help you develop clear policies andstrategies to understand and engage withthe market environment in ways that areconsistent with your commercialimperatives and risk appetite. We can helpyou align your activities to fit with marketchanges and new developments.

Managing risk effectively We can advise on the risk frameworks,controls and systems that need to be inplace to manage risks and opportunitieseffectively.

Implementing trading processes and systems We can design and assist with theimplementation of trading processes,support selection and roll-out of the besttrading systems, improve the effectivenessand efficiency of trading execution andtest/audit trading control frameworks.

Governance, accounting and compliance We advise on a wide range of requirementsto ensure you are compliant withregulatory requirements, have effectivegovernance in place and understand andmanage the accounting and tax impact ofany trading or use of financial instruments.

Commodity risks

Currency risks

Energy risks

Interest rate risks

Integrated view of risks

Must account for risk dependencies

Need quantification and linkage to financial metrics

Gaining an integrated understanding of commodity and financial markets risk


Working together – PwC and US energymarketing and trading

ContextPwC performed a thorough review ofrisk management practices for theenergy marketing and trading operationsof a US-based utility company.

ApproachThe scope of the review included variouselements of the company's riskmanagement framework includinggovernance and oversight, policy andprocedures, market and credit riskmanagement activities, front and middleoffice processes and controls, riskmeasurement methodologies, riskreporting, and trading risk managementsystems. Review of credit risk managementactivities included areas such as credit riskpolicy, organisational structure, roles andresponsibilities, delegation of authority,counterparty review and approval, creditrisk limits, credit risk measurement andreporting, and collateral management.

ImpactThe project included a benchmarkingassessment against leading industrypractices as well as road maps with detailedrecommendations to address identifiedgaps. The road maps took intoconsideration incremental future staterequirements given the planned growth involume and complexity of the company'strading and marketing activities. Byworking closely with the organisation'sinternal audit personnel, we ensuredappropriate knowledge transfer of industryleading practices and provided valuableinsight that could be leveraged in futureinternal audits.

Working together – PwC and Dutch energy trading

ContextFollowing the trading disaster at SocietéGenerale, many companies wanted toknow whether a comparable event couldhappen to them. Among others, wehelped a major Dutch power utilitiescompany review their systems andpractices.

ApproachPwC performed data analysis procedureson the company’s trading systems. Theseprocedures were performed to provide theclient with insights on the reliability ofinformation originating from the tradefloor and the adherence to internalcontrols procedures and guidelines. Weincluded people from the company’s riskmanagement and internal auditdepartments on the team which meant thatthey were subsequently able to perform thedata analysis by themselves.

ImpactThe project helped the company build itsown self sufficiency in reviewing this issue.The reporting format chosen was well-likedas it did not provide any opinion, butinstead included top tens of results foundand possible solutions. The client is nowperforming such data analysis on a regularbasis, which also provides financial auditcomfort.

What makes us different?

We take the time to listen, question andunderstand their goals and theircompetitive and regulatoryenvironment. And then we tap into ourglobal network, deep industry expertise,and strong judgement and experience tohelp each client create the kind of valuethey are looking for.

The cornerstone of our approach is thebelief that developing strongrelationships with clients unlocks valueand meaningful results – and furtherstrengthens the capabilities of ournetwork. This is how we do business.And we believe it’s why more than 415of Fortune Global 500 companies workwith PwC.

Our people

We aim to draw out people from the verybest talent and develop them to be thevery best in our sector. Our ability toattract the best people is reflected infrequent ‘employer of choice’ awards, forexample PwC was named as the numberone in The Times Top 100 GraduateEmployers in the UK. We ensure ourpeople are immersed in local knowledgeabout the markets they serve but also gainthe global perspective that comes from aworldwide organisation.

Power Deals

2012 outlook and2011 review

Mergers and acquisitionsactivity within the globalpower utilities market

www.pwc.com/powerdeals

www.pwc.com/renewablesdeals

RenewablesDeals

2012 outlook and 2011 review

Mergers and acquisitionsactivity in renewable power and related cleantechnology

The shape ofpower to come

12th PwC Annual GlobalPower & Utilities Survey

www.pwc.com/utilities

Investment, affordability and securityin an energy-hungry world

Our reach

We can be wherever you need us to be.With a network of over 4,000 staffdedicated to the utilities industry andtwelve utilities centres of excellencecovering major regions worldwide, we areable to be where our clients most need us.We work with all types of utility companiesand industry stakeholders in all differentmarkets. Our different centres of expertiseenable us to focus on particular aspects ofthe energy market in each location, forexample nuclear power in France, andcross-fertilise that insight across ouractivities and services worldwide.

Our knowledge

Our worldwide network of industryspecialists are linked by a sophisticatedinternal knowledge management system,giving them the tools to input their insightsand draw upon the most up to dateinformation for the benefit of our clients.Our programme of ‘thought leadership’ iswidely respected. From roundtablediscussions to global surveys, we shareknowledge with our clients on industryissues. Each year, we prepare industry-dedicated reports and gather opinions onthe issues that are of key strategicimportance to our clients and thechallenges that lie ahead. Our knowledgedraws on the insight of our worldwidenetwork of industry specialists as well asthe industry itself.

Why more than 80% of Fortune Global500 companies work with PwC...


PwC – on hand wherever you need us worldwide

Smart energyAndrew Roehr [email protected]

Mohamed Larabi [email protected]

Renewable and cleaner energyPaul Nillesen [email protected]

John Gibbs [email protected]

PwC global power & utilities centre of excellence

Over

4,000 power & utilities specialists...

In

158countries...

More than

169,000people worldwide...


Global Power & Utilities Leader Norbert Schwieters [email protected]

Global Power & Utilities Assurance Leader Jeroen van Hoof [email protected]

Global Power & Utilities Advisory Leader David Etheridge [email protected]

Nuclear energyPhilippe Girault [email protected]

Chris Green [email protected]

Christopher Fynn [email protected]

DealsAndrew McCrosson [email protected]

Rob [email protected]

Capital projects & infrastructureDaryl [email protected]

Martin [email protected]

Asset management & performanceimprovement David Etheridge [email protected]

Pim [email protected]

Industry regulationKlaus Gerdes [email protected]

Alistair Bryden [email protected]

Al Felsenthal [email protected]

Jeff Balchin [email protected]

Jan Gey van Pittius [email protected]

Financial reporting & assurance Michael Reuther [email protected]

Philippe Kubisa [email protected]

Energy trading and risk managementFolker Trepte [email protected]

Vincent Le Bellac [email protected]


Norbert SchwietersGlobal Power & Utilities LeaderEnergy, Utilities & Mining Leader Germany Telephone: +49 211 981 2153 Email: [email protected]

Jeroen van HoofGlobal Power & Utilities Assurance LeaderTelephone: +31 88 792 1328Email: [email protected]

David EtheridgeGlobal Power & Utilities Advisory LeaderTelephone: +1 415 498 7168 Email: [email protected]

James KochGlobal Energy Utilities & Mining Tax LeaderTelephone: +1 713 356 4626Email: [email protected]

For further information

Olesya HatopGlobal Energy, Utilities & Mining MarketingTelephone: +49 211 981 4602 Email: [email protected]

Global contacts Territory contacts

AustraliaJock O’CallaghanTelephone: +61 3 8603 6137Email: [email protected]

Michael Shewan Telephone: +61 3 8603 6446 Email: [email protected]

AustriaMichael Sponring Telephone: +43 1 501 88 2935 Email: [email protected]

BelgiumKoen Hens Telephone: +32 2 710 72 28 Email: [email protected]

Brazil Guilherme Valle Telephone: +55 21 3232 6011 Email: [email protected]

CanadaAlistair BrydenTelephone: +1 403 509 7354Email: [email protected]

ChinaGavin ChuiTelephone: +86 10 6533 2188Email: [email protected]

DenmarkPer Timmermann Telephone: +45 3945 3945Email: [email protected]

FinlandMauri HätönenTelephone: +358 9 2280 1946 Email: [email protected]

France Philippe GiraultTelephone: +33 1 5657 8897Email: [email protected]

GermanyNorbert Schwieters Telephone: +49 211 981 2153 Email: [email protected]

GreeceSocrates Leptos-BourgiTelephone: +30 210 687 4693Email: [email protected]

Contacts


IndiaKameswara RaoTelephone: +9140 6624 6688Email: [email protected]

IrelandAnn O’ConnellTelephone: +353 1 792 8512Email: [email protected]

IsraelEitan GlazerTelephone: +972 3 795 4 664Email: [email protected]

ItalyGiovanni PoggioTelephone: +39 06 570252588Email: [email protected]

JapanKoji HaraTelephone: +81 90 1618 5601 Email: [email protected]

Latin AmericaJorge BacherTelephone: +54 11 4850 6801 Email: [email protected]

Middle EastPaul NavratilTelephone: +973 1754 0554Email: [email protected]

NetherlandsJeroen van HoofTelephone: +31 88 792 1328Email: [email protected]

New ZealandCraig RiceTelephone: +64 9 355 8641Email: [email protected]

NorwayStåle Johansen Telephone: +47 9526 0476Email: [email protected]

PolandPiotr Luba Telephone: +48 22 523 4679 Email: [email protected]

Russia & Central and Eastern EuropeMichael O’Riordan Telephone: +7 495 232 5774 Email: [email protected]

SingaporePaul CorneliusTelephone: +65 6236 3718Email: [email protected]

South AfricaStanley SubramoneyTelephone: +27 11 797 4380Email: [email protected]

Angeli Hoekstra Telephone: +27 1 1797 4162 Email: [email protected]

SpainInaki Goiriena Telephone: +34 915 684 469 Email: [email protected]

SwedenMartin GaveliusTelephone: +46 8 5553 3529Email: [email protected]

SwitzerlandMarc Schmidli Telephone: +41 58 792 1564 Email: [email protected]

TurkeyFaruk Sabuncu Telephone: +90 212 326 6082 Email: [email protected]

United KingdomSteve JenningsTelephone: +44 20 7802 1449Email: [email protected]

United StatesDavid Etheridge Telephone: +1 415 498 7168 Email: [email protected]

UruguayPatricia MarquesTelephone: +598 2916 0463Email: [email protected]

PwC firms help organisations and individuals create the valuethey’re looking for. We’re a network of firms in 158 countries withclose to 169,000 people who are committed to delivering qualityin assurance, tax and advisory services. Tell us what matters toyou and find out more by visiting us at www.pwc.com.

The Global Energy, Utilities and Mining group is the professionalservices leader in the international energy, utilities and miningcommunity, advising clients through a global network of fullydedicated specialists.

For further information, please visit:www.pwc.com/utilities

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should notact upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express orimplied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law,PricewaterhouseCoopers does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone elseacting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2012 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms ofPricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each memberfirm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients.PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professionaljudgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it controlthe exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way.

Date post:	29-Sep-2020
Category:	Documents
Upload:	others
View:	4 times
Download:	0 times

Helping you get ahead - PwC€¦ · work together 2 Global power & utilities group statement of...

Documents