Fuel cost are pretty volatile across globe, however the electricity tariff rates are not as elastic as the rise in fuel prices and overall as the electricity rates in most of the countries and region remains subsidized, the profit margins are getting thinner, and the only way in which utilities can keep the cost down is by cutting cost and increasing efficiencies across the operations of the organization. In early days, Power companies’ notion of fixing an ideal tariff was the only way of improving the bottom line. Cost reductions measures were never considered. Change of ownership of utilities from state to private companies and franchising the operations of utilities have also impacted the evolution of ‘Procurement’ in Power Utilities In this presentation, we will be talking about the evolving practices of material and services procurement by power utilities around the world.
In addition to the above, this briefing may answer some key questions:
•What are the procurement evolution trends on global level?
•How are utilities trying to reduce procurement costs?
•Top four challenges faced by power utilities in adhering to the best practices?
•What is the future of procurement in power utilities across the world?