“Utilities won’t survive as lone warriors”
Germany’s electricity industry is at the cusp of a tide of transactions and new models of cooperation, a study by consulting agency PwC has found. Due to “dwindling profits and rising cost pressure”, market conditions for both larger private and smaller municipal utilities are “more difficult than ever before”, the authors say. Utilities reacted to these changes by conducting “a variety of specific acquisitions”, with digital service providers being the main target, according to PwC. The strategic turn is the result of a changing business model, in which utilities no longer primarily perceive themselves as power producers, but rather as service providers, the authors write.