Energy providers face not only increasing deregulation, privatisation, and the resulting increased competitive pressures, but also the increasing impact of green energy on their operations and economics, changing customer needs and raising costs. To meet these challenges requires ever more productive operations and capital spending.
PIP has helped many energy and utilities clients improve both their operations and their capital productiveness. We help our clients to find the best improvement opportunities and work with them to implement initiatives to achieve measurable, rapid, and sustainable results.
Along the way, our consultants help Energy and Utility clients to create high-performance cultures, and to make continuous improvement a way of life. By helping put in place simple processes and employing hands-on coaching, we ensure that the capabilities we leave behind are just as valuable as the productivity improvements we help to create.
We focus on three major levers of operational performance
Where we work in Electric Utilities
- Availability losses (planned maintenance shuts, forced outages)
- Operations and maintenance Opex
- Sustaining Capex
- Internal labour and external contractor productivity
Transmission and distribution
- Sustaining Capex
- Expansion/renewal Capex
- Field Force productivity
- Maintenance Opex
What we’ve helped our clients to achieve
- Reduced unit costs: Delivered a $140m cost reduction across three facilities through improved contractor management
- Improved reliability: Reduced downtime by 25% and maintenance costs by 16% at a power station
- Improved asset management: Delivered a $318m uplift in net present value (NPV) of an integrated coal-fired power plant
- Secured competitive fuel supplies: Optimised an integrated power system and stabilised cost base of generating assets
- Renegotiated procured spend: Delivered $38m in savings through strategic sourcing
- Reduced capital spend: Delivered a $1.6bn reduction in revised FID business case, with an additional $1.5bn in ‘stretch savings’ for a multi-billion dollar CSG/liquefied natural gas (LNG) project
- Increased construction productivity: Delivered a 25% increase in well site facilities constructed per month, and a more than 50% cost reduction in contract labour ($100m in annual cost savings) for a large CSG/liquefied natural gas (LNG) project
- Redesigned capital processes: Delivered a 19% ‘jobs complete’ increase ($147m in annual productivity increase) for a large electricity supplier
- Improved field force effectiveness: Delivered a 29% gas production increase for a large CSG/liquefied natural gas (LNG) project
- Improved accountability for performance: Enabled dozens of energy and resource clients worldwide to achieve sustained front-line and field force improvements
- Reduced operating cost: Achieved $18m of savings for a large Australian coal power generator through a combination of rapid and low-cost country sourcing, as well as maintenance optimisation
Don't ask us, ask our clients
We hired PIP to help lead an internal team charged with meeting our CEO's challenge of immediately improving our profit performance by $10m in the fiscal year. Within the first month, thanks to PIP's rapid project structuring and initiation help, we were delivering positive cash-flow results. PIP's people were experienced and energetic. In an engagement lasting just 12 weeks, PIP's work with our team produced a well-developed programme that helped us achieve sustainable revenue and cost savings results for EDL, across our worldwide operations.