A new alliance has been concluded between Geneva’s Industrial Utilities (SIG) and French Compagnie Nationale du Rhône (CNR) responsible for hydroelectric production in neighbouring eastern France as part of the move in the ongoing liberalisation of the electricity market. CNR is responsible for the second most important economic department in France, Rhône-Alpes) which stretches from Geneva to Lyons, France’s second city.
The purpose of the alliance is to optimise hydroelectric production on both sides of the border with the intention of sharing capacity. Both the Rhône-Alpes’ and Geneva regions are growing fast and the need for ample, reliable, cost-effective energy supplies is vital to the prosperity of both.
SIG (Geneva’s Industrial Utilities)
Traditionally responsible for managing water, gas, electricity, and thermal energy utility supplies, the SIG (Geneva’s Industrial Utilities) is increasingly taking on new roles. Energy market liberalisation is posing a major challenge to the SIG as it makes the planned transition from protected to open marketplace. At a meeting on Tuesday (22nd May), SIG’s readiness to compete on the open market was emphasised.
To help in this transition, the SIG brought in an experienced manager from private industry 18 months ago to head the changeover. Previously with US petroleum giant AMOCO in Geneva for 25 years, the new CEO, Raymond Battistella, has already made his mark though he admits his opinions have changed since his arrival: ‘I believe now that the SIG can continue to function, as it always has, as a public service and yet still compete effectively in a liberalised marketplace by building on the special strengths we have developed over the years.’
‘The Swiss approach to this market liberalisation is one of progressive opening up over a period of some six years beginning this year. The liberalisation will begin with large users and then will extend to cover all consumers. Eventually, each user will have complete freedom to choose an energy supplier.’
‘The greatest challenge facing the SIG is to become competitive from now on. Because of the SIG heritage, the SIG is not accustomed to competition or to positioning on the market. We are beginning to feel the results of the transformation we have had to undertake and we are gong to have to work hard at re-orientating the SIG to a new kind of tomorrow.’
New portfolio of services
‘The new SIG will be bringing to the market a whole portfolio of services in such a way that our customers will consider us a private enterprise and a privileged partner able to handle and advise them on all aspects of their energy requirements and able to offer solutions adapted to their needs. The strategy is to develop this portfolio of services so that consumers will no longer see the SIG as a simple supplier of traditional utilities but as a supplier of a series of services involving a number of specialist partners.’
‘At present we are limiting our activities to the Canton of Geneva, One of our strengths is being local in a market that is very targeted, homogeneous and compact. This helps us against our key competitors because they are operating over a much greater area. We know our customers, our location and the market potential very well.’
‘As a businessman first and administrator second, I recognise the ‘discipline of the marketplace’. It encourages lean efficient organisations. However, like all good businessmen, I build on what we have. We shall not risk losing our acquired position of trusted local partner. The challenge is to make the transition to private enterprise without losing consumer confidence and to offer them progressively all the advantages of a completely liberalised marketplace.’
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Article on SIG: ’Heritage from the past, symbol of the future’: Go to link
SIG web site: Go to link
