Carve-out of integrated utility in Romania 

A complex carve-out of a large integrated utility consisting of renewable generation, electricity distribution, and energy retail was required following its sale to an investor. The client, a large, global asset investor and manager, sought support in navigating the transition steps required to set up the entity as a standalone operating entity within the 18-month transition period negotiated.

CRA’s Energy transformation consultants set up and managed a complex program to implement an operational carve out, defining a standalone operating model and strategy. The team also provided analytics and proposals for implementation for several immediate detailed topics such as trading and hedging models and customer value management.

The support also delivered a deeper look at the utility’s business model over the midterm, and answered questions such as: what should a customers’ acquisition, and/or retention strategy, look for in an incumbent retailer in a newly liberalized market?

Our support was instrumental in successfully separating the newly acquired entity from its parent company within the transition timeframe. As a result of the work we undertook, a new operating model was implemented, new Board and Executive reporting structures were put in place, new strategies were agreed upon with the shareholders for all business areas, and a new trading and hedging organization was set up.

For more information on our transaction support, see our view on driving success post deal: Large scale and complex energy deals: Five priorities to drive success post-close

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