Research and Markets: Utilities in the Downturn: Strategic Responses in B2B Energy Markets - Available Now

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/c86d24/utilities_in_the_d) has
announced the addition of the "Utilities in the Downturn: Strategic Responses in
B2B Energy Markets" report to their offering.

What started as a mortgage market crisis has quickly developed into what may the
most severe recession in a generation. As economies contract, utilities will see
industrial demand weaken. Attempts to mitigate the effects through tariff
reductions are self-defeating in the long run. Utilities are better served by
identifying specific risks within their portfolio and tailoring a bespoke
response.

Scope

* An overview of how the recession is affecting utilities and which of the EU
states are seeing the steepest decline in their gas & power demand.
* A risk analysis model to determine which types of clients are expected to
reduce energy demand and the manner in which that reduction will take place.
* Analysis of individual sectors and performance forecasts; with an overview of
how each sector is expected to perform.
* A set of strategies to mitigate the effects of the downturn on their revenue
streams - what utilities should look for when shaping their portfolio.

Highlights of this title

* B2B gas and power demand is contracting across Europe. For the first time
since WW2 we are witnessing a global contraction in trade and production. The
impact this is having on B2B energy demand varies across the EU. So far Eastern
Europe is seeing the sharpest contraction, on account of high energy intensity
levels and reliance on heavy industry.
* Utilities operating in B2B markets face four essential demand side risks as a
result of the recession. These can be segmented into Volume and Credit risks,
revealing not only the scale of the problem but the nature in which demand
contraction is likely to manifest itself.
* Utilities are not powerless to act; a range of weapons can be deployed to
minimise the threats to revenue arising from B2B demand contraction. Utilities
must augment their view of risk profiling to cater for the specific challenges
their clients are facing.

Key reasons to purchase this title

* Understand the implications of the downturn for the European gas and power
industry.
* Develop innovative client profiling and risk management techniques.
* Plan your strategy to not only survive the recession but to exploit the range
of opportunities which the downturn presents.

Key Topics Covered:

CATALYST

SUMMARY

ANALYSIS

* B2B demand for gas and power is contracting across Europe
* The global economy is contracting; for the first time in decades we are
witnessing a reduction in global trade
* The European economy is in recession but the contraction is expected to ease
from 2010
* Analysis of energy consumption by sector against GDP composition by country
can add additional insight into energy consumption outlook
* Utilities will not be immune to the recession; energy consumption does respond
to contractions and expansions in the economy
* Utilities operating in B2B markets are likely to find the recession more
difficult to manage than those focused on B2C
* Liquidity contraction will present M&A opportunities for the more creditworthy
market players
* Utilities have employed different tactics for raising funds as a means to
finance debt
* Utilities must augment their view of market segmentation to tailor their
response according to specific risks
* Utilities essentially face four potential demand-side risks resulting from the
economic downturn
* Utilities can assess clients according to volume risk and credit risk
* According to these risk metrics, Datamonitor scores the economic sectors on
vulnerability in a downturn
* Most sectors in the European economy will contract in 2009 but rebound in 2010

* Analysis of energy consumption by sector reveals that several of the largest
consumers carry a high degree of volume risk
* Europes steel sector is set to contract sharply through 2009, with some signs
of possible recovery in early 2010
* The struggling construction sector serves as a useful bell-weather for related
industries and concurrently for energy demand
* Europes automotive industry is struggling with the credit crunch, but remains
fundamentally viable, unlike manufacturers in the US
* The retail sector is struggling with reduced credit availability and low
consumer confidence
* Over-capacity in the UK retail market means that the contraction will be even
sharper, producing credit risk in this sector
* Different sections of the retail sector will suffer, as over supply and
falling demand force business out of the market
* Manufacturing has suffered an extremely sharp downturn, but the rate of
contraction is already slowing
* Utilities are not powerless to act; a range of weapons can be deployed to
minimize the threats to revenue arising from B2B demand contraction
* Utilities can deploy their response according to client-specific risks
* Supply of credit insurance has tightened as firms have sought to protect
themselves from bad debt by effectively out-sourcing risk management
* Margining is appropriate in sectors with many small firms whose output does
not determine energy demand, such as retail
* Credit scoring is generally of limited value, but can help in targeting stable
clients when margining revenues
* Although turbulent, the B2B market offers safe havens and opportunities
* State institutions and regulated private industry represent a safe haven for
utilities during the downturn, but account for little overall consumption
* Remedies should be deployed according to the risks that a client entails under
the current market conditions
* Utilities should shape their portfolio according to market size, and the
volume and credit risk that each sector represents
* The nature of the credit crisis means that industrial output should not
continue to suffer beyond 2010; energy demand will pick up albeit slowly
* Large utilities are in a position to make the recession work for them through
cheap acquisitions and investment in infrastructure

APPENDIX

For more information visit
http://www.researchandmarkets.com/research/c86d24/utilities_in_the_d

Source: Datamonitor

Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

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