Nick Butler: Utilities are in need of a new model. Around the world, the energy sector is suffering from chronic underperformance. Over the past 10 years, energy utilities across the world have delivered average cumulative shareholder returns of just 1 per cent. The figure comes from McKinsey which looked at 50 publicly listed utilities. Many of the companies in the survey have lost value. Centrica has seen its share price fall 50% in the past four years. France’s EDF has lost 65% since 2005. The old model of large-scale centralized power stations pumping out electricity to passive consumers is out of date. The preference for renewables leaves utilities with older assets which are needed to maintain continuous supply but are running far less than capacity quickly becoming uneconomic.
FT 18th June 2018 read more »
