Low commodity prices, new entrants and disruptive technologies are transforming the energy sector

Low commodity prices and disruptive technologies are transforming the energy sector

There are significant changes underway in the UK energy sector, and organisations must adapt and transform in order to survive and capitalise on the opportunities these changes present.   

Low commodity prices are causing disruption within the mining, oil, gas and chemical sectors as companies look to consolidate and find new ways to reduce costs. In order to tackle this challenge innovative solutions are emerging - from new forms of financing; to implementation of technologies such cloud and robotics; to the use of analytics; to help drive greater efficiency and competitive advantage globally. 

Technology is also having a significant impact on the power and utilities sector. As the UK looks to decarbonised its energy supply, the rise of distributed energy, energy storage and smart metering to capture real-time usage data, are presenting opportunities for new entrants from other sectors, such as telecoms, automotive, retail and media. With the market share of the existing providers shrinking, many are re-evaluating their operating models and their relationship with the customer, to ensure their long-term survival. 

Regulation and policy change in energy is complex and navigating the ever-changing landscape is challenging. From EU regulation on energy trading through to the opening up of regulated markets to competition - how do companies comply and capitalise without losing their competitive edge? 

Our goal at KPMG is helping clients understand the impact of these issues on their business and identify the opportunities.  Our team of dedicated industry experts help clients create robust, sustainable and flexible strategies, teams and operating models that can quickly adapt in a dynamically unfolding future.

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