Peter Garforth, Plant Services
Summary
Industry has long recognized the importance of understanding and influencing the cost and reliability of energy supplied to facilities. Most industries assign high-level resources to build relationships with local utilities to negotiate future terms – those charged with this task inevitably take on many government relations functions in the name of influencing ongoing regulation.
Traditionally, this role has prioritized utility contract negotiation, and it has frequently found a home in the procurement department. Success has been measured broadly on the negotiated price of the next utility contract. Changes happening around the world make this a role that should be re-evaluated both in scope and in performance targets. Not least to be reconsidered should be the title of the role – perhaps “Energy Policy and Utility Relations Director”?
Depending on regional, national, or even local policies, the political context for individual plants in the same company can be deeply different. As the result, policy and relationship priorities should be locally aligned. Senior management must resist the temptation to view recommendations through the lens of the prevailing policy framework in the headquarters location. In fact, the reverse should be true, with leadership demanding differentiated game plans.
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