This can be achieved through a combination of short -term tactical actions and long -term changes in how public services operate.
The analysis was part of a new Strategy & Middle East report, part of the PWC network, which describes how the usefulness in the CCG could be released from obsolete assumptions and adopt leading practices to allow an effective transformation.
GCC Public Services Companies
CCG countries have implemented national national emission reduction programs and other energy -related programs to meet zero net goals.
For example, the demand for electricity in Saudi Arabia is expected to obtain 58 percent of 330 hours from Terawatt (TWH) in 2024 to more than 520 TWH by 2030, with the cost of the energy transition of the kingdom that will reach $ 235 billion by 2030.
Some countries throughout the GCC are establishing objectives through regulatory frameworks as part of the efforts to limit costs, with Saudi and the EAU embed the efficiency mandates for public services.
In Abu Dhabi, the sector has had the task of achieving efficiency improvement or 0.5 percent annually until 2026.
Since CCG is expected to play an important role in the implementation of thesis programs, they face significant pressure to remodel to surrender.
More and more, they have the task of implementing advanced implementation technologies, such as smart networks, integrating renewable energy on an unprecedented scale and implementation of digital transformation programs, all while improving reliability and continuous efficiency; Key elements to achieve national sustainability objectives.
Anthony Yammine, partner of Strategy & Middle East, said: “As energy systems evolve and the increase in the demand for electricity, CCG public service companies must redefine performance to optimize costs. Through a set of specific actions, the sector can unlock Nextet.
“This can be achieved without sacrificing the quality of the service and adopting more intelligent and agile operating forms aligned with the national transformation objectives.”
Despite this, the report finds that three common erroneous concepts surround the operating costs of public services:
- First, these costs are set and are not affected by production or change initiatives
- Second, that the reassigned resources degrade the quality of the service and the performance of the network
- Third, these unique conditions, such as network design, climate and client distribution, prevent the adoption of practices successfully used in other places elsewhere
These erroneous concepts are annoying transformation and limit progress in cost optimization.
Worldwide, the main practices suggest that the efficiency of profitability can be an cornerstone of the regulation of public services, with several models designed to balance financial sustainability with operational performance.
These models, which include an income limit, a regulation based on performance and configuration of tariffs based on the performance of public services in the upper or average market in the market, boost public services to improve efficiency while maintaining the quality of the service and profitability.
Statistics show that the quality of the service can even improve as expense is reduced, with operating expenses (OPEX) among European public service providers that fell 16-17 percent since 2005, the duration that the service was reduced by 33 percent.
To assume these challenges and adjust to the new regulatory requirements, public service companies must eliminate inefficiencies and real resources for strategic investments.
These investments include expenses to improve their infrastructure, improve digitalization and reread the workforce for the future.
In addition, the broader adoption of automation, the management of the grid driven by AI, predictive maintenance and digitized customer services can also reduce operational spending.
The report identifies nine key areas to optimize public services operations, each with a clear cost savings potential.
Among them, risk -based maintenance, excellence in acquisitions and optimization of support services could offer savings of up to 20 percent, 10 percent and 15 percent respectively.
Aditya Harneja, director of Strategy & Middle East, said: “Public service companies in the CCG have a clear opportunity to optimize operations through reengineering workflows, adopt proven practices of more mature markets and integrate the avant -garde is BOST BOST.
“A strategic allocation of resources from inherited operations to intelligent network technologies, together with a focus on cyber security and improvement of the workforce, can help the sector support growth priorities, close critical gaps and develop long -term resistance.”
In the shortest term, rapid victories can cause substantial savings without requiring extensive acceptance of multiple interested parties, with a regional public service provider in the CCC region that reaches 8-15 percent of OPEX savings, including tactical capitalization policies, vehicle optimization policies and fleet size, and adjustment of extra extra time policies.
The success of rapid victories paves the way for longer -term initiatives that imply a more extensive organizational restructuring, process improvement or digital transformation, with such more long -term strategic movements that probably capture an additional exposure of exposure.
The report indicates that in the current environment, the optimization of operating expenses is a necessity and an opportunity.
For public services, leadership in the execution of thesis strategies will determine whether they can face today’s challenges and prosper as key facilitators of their national economic and sustainability objectives.
Vlad Gheorghe, director of Strategy & Middle East, said: “Optimization of operational spending requires a structured approach that balances rapid victories with a long -term transformation. Tactical actions can create an immediate impact and generate an impulse, while leadership and programs design are key to boosting sustained performance and long -term value.”
