Power utility cos face challenges amid economic downturn: PwC
May, 22nd 2009
In wake of the economic downturn, power utility companies worldwide are finding it difficult to strike a balance between their capital constraints and investments required to meet future energy demand and security of supply, a PwC survey says.
"Power utility companies face a difficult challenge as they balance the constraints of the downturn with investment required to meet future energy demand, security of supply and climate change concerns," 'A World beyond Recession - Global Utilities Survey 2009' by PricewaterhouseCoopers says.
The survey reveals that "two thirds (67 per cent) of survey respondents say that a shortage of capital is having a high or very high impact on their activities."
Worries about capital shortages are widespread. There is considerable doubt whether investment will come forward in a timely manner to keep pace with future demand for power and climate change targets, it said.
"Two thirds cite problems in securing finance as a medium or high barrier to project development," the survey stated.
The PwC's annual survey was conducted among 69 senior executives of 65 utility and utility investor companies across 39 countries and covers Europe, Asia-Pacific, Africa, the Middle East and the America.