"Power demand is about 15% down on where it should be at this time of year."
In this video, I provide insights on the impact of COVID-19 on the Energy and Utilities sector.
As COVID-19 has bitten into household and business incomes, cancellations of direct debits have run at three times their normal levels for domestic suppliers, and 10 times for non-domestic suppliers. And demand for power has also fallen – down around 15 percent on where it should be at this time of year.
For many … there is an immediate issue regarding cash flow.
For many energy companies that’s presenting an issue in terms of cash flow and bad debts. And there are also operational challenges around social distancing rules. Some companies are now looking to government support – in the form of the Job Retention Scheme, for example.
In the oil and gas sector, they face a double whammy.
Oil and gas companies face the impact of COVID-19 and the collapse in the oil price. A number are cutting back on capital spending as a result.
This crisis could have fundamental impact on how the energy sector operates.
The COVID-19 crisis could change the way the sector operates, bringing with its new ways of working, new approaches to sharing data to help the most vulnerable, and new approaches to managing risk to deliver greater resilience.
For further information and guidance on COVID-19, please refer to our dedicated insights resources area.