Abstract
Overview
Introduction
This brief benchmarks utilities across Europe, challenges key assumptions
about utility performance and draws comparisons between power and gas
utilities. It illustrates graphically the relative performance of 96 European
utilities on several different measures.
Scope
- An examination and illustration of the relationship between utility size
and profitability.
- A review of net trade requirements and their relationship to operating
profit margins.
- A comparison of relative performance between power, gas, and integrated
power and gas utilities.
Highlights
There is virtually no correlation between revenue and profitability (return on
sales). This correlation is -0.12, where 1 is a perfect correlation.
In spite of wholesale market volatility there is no direct relationship
between the presence or absence of a structural energy hedge (that is, a
positive or negative net trade requirement) and utility profitability.
Reasons to Purchase
- Benchmark European utilities on a range of performance measurements.
- Compare the average performance of power, gas, and integrated power and
gas utilities across Europe.
- Challenge common assumptions about the drivers behind utility
profitability.