Power and people: How utilities can adapt to the next normal

With economies and energy demand hit hard by the COVID-19 crisis, European and North American utilities need to rethink their operations to put themselves into position for long-term success.

 
Utilities in Europe and North America have done their jobs throughout the coronavirus crisis by keeping the lights on without interruption. But like players in other industries, they are facing challenges. McKinsey has identified five stages that businesses need to go through on the path to the next normal. Along these stages, we have seen utilities addressing a set of key themes (Exhibit 1).

At the beginning of the COVID-19 outbreak, utilities had to resolve to meet the immediate issues posed by operating during a pandemic and then build resilience to meet immediate operational demands. The priority was to ensure the safety of their people while guaranteeing the security of supplies and addressing risks. Crisis teams had to stabilize supply chains and operations, which were disrupted by physical distancing and on-site restrictions. They also had to cope with the financial impact of the crisis. Lower industrial power demand and rising consumer defaults had hurt cash flows and balance sheets. Hence, it was crucial to stress-test financials and engage customers.

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Πηγή: mckinsey