Energy providers face not only increasing deregulation and privatisation – and the resulting increased competitive pressures – but also the increasing impact of green energy on their operations and economics, changing customer needs and rising 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 productivities. We help our clients find the best improvement opportunities and then, more importantly, work with them to implement initiatives to achieve measureable, rapid and sustainable results.

Along the way, our consultants help our energy and utilities clients create high-performance cultures and 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 create.

Examples of what we’ve helped our clients achieve

  • Reduced unit costs: $140m cost reduction across three facilities, through improved contractor management
  • Improved reliability: 25% reduction in downtime and 16% reduction in maintenance costs at a power station
  • Improved asset management: $318m uplift in net present value (NPV) of an integrated coal-fired power plant
  • Secured competitive fuel supplies: Optimised integrated power system and stabilised cost base of generating assets
  • Renegotiated procured spend: $38m in savings through strategic sourcing
  • Reduced capital spend: $1.6bn reduction in revised FID business case with another $1.5bn in ‘stretch savings’ for a multi-billion dollar CSG/liquefied natural gas (LNG) project
  • Increased construction productivity: 25% increase in well site facilities, constructed per month, and a more than 50% cost reduction in contract labour ($100m annual cost saving) for a large CSG/liquefied natural gas (LNG) project
  • Redesigned capital processes: 19% ‘jobs complete’ increase ($147m annual productivity increase) for a large electricity supplier
  • Improved field force effectiveness: 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 achieve sustained front-line and field force improvements
  • Reduced operating cost: Achieved $18m of savings for large Australian coal power generator through a combination of Rapid and Low Cost Country sourcing, as well as maintenance optimisation

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.

Matthew Caines