Challenges for Electric Utility Industry During Pandemic

Challenges for Electric Utility Industry During Pandemic – Not long after the pandemic begins, a lot of public facilities supported by government are cut. The responsibility to ensure education, health and public safety has pushed back to individuals’ to-do list. Similar thing would happen to electric utility, too. The companies faced continuous challenges during the pandemic and the solutions are not finalized yet.
– Decreasing Electricity Demand
When the news about oil prices are showing up, soon after the electricity downfall will follow. The reason is simple; electricity requires oil to run. The first indication of decreasing demand comes from Italy and Spain. Customers require 17% less electricity for a month. This percentage is expected to keep raising until corona virus condition passes.
Similar pattern is seen in Northern part of America and several regions in Asia. Since a lot of business are closed, the demand for electricity goes down as well. To handle this situation, the electricity industry plans to bounce back gradually. They will start with low investment and goes higher as the business recovers. This trick is proven as effective by the players in casino online

– Pandemic Effects on Financial Factor
There are several scenarios that might happen as the result of coronavirus isolation. Electricity companies don’t have to calculate which one will give the least deficit. All of the scenarios will give several challenges during 2020 and beyond.

The current situation in six states shows one percent decrease of revenue. Combined together, the total loss reaches 50 to 100 million. In percentage, the number is equal to 15 to 20; all of them should be gained back in some ways. Careful planning should be made; the company might learn the trick used by online poker players to win the round.

Challenges for Electric Utility Industry During Pandemic

– Impact on Economic and Operational Policies
To cope with the new situation, there would be new arrangement to make efficient production and management. The economy demands for lower operating management whole the operational system might need to find alternatives for energy sources. A challenge to market the products with competitive price should be considered as well.

After the pandemic strikes, a lot of people lose their jobs or have less income than before. It forces them to minimize their monthly expenses and one of them is electricity bill. Similar adjustment happens in the company as well. Therefore, several changes are made on the operational and economic factors.