Multi-Utilities: Trends; Blurring Industry Boundaries
Author: Dirk Sommer Date: 3/1/2001 (PDF, 200KB)
The prospect of cost savings, increased market share, and other competitive advantages is prompting more and more utilities to cross traditional industry lines and offer services in several sectors. The jury is still out on whether cross-sectoral strategies pursued by "multi-utilities" will increase shareholder value. Even if cross-sector strategies make sense for individual firms, what are the long term implications for consumers? This Note offers an overview of recent trends -- with particular focusing on horizontal integration. The question of how governments -- particularly in developing countries -- should respond to the emergence of private sector multi-utilities is explored in a companion Note.