Strategic priorities under Swiss energy regulation : propositions from ownership structure and board of directors

Abstract

This thesis contributes to the understanding of public governance operationalization through public- and private corporate management reality. Their interface deserves special attention, as comprehending corporate strategic behavior helps to derive implications for energy transition - and enacting of climate policy in general - for the corporate world. As such, the underlying study derives propositions for the strategic response and proactivity of Swiss energy utilities under Switzerland's EnergyStrategy2050, the federation's energy regulatory greening and liberalization guidelines for energy transition. It locates its inquiry on the influence of corporate ownership and board of directors. Results confine themselves to thirty energy utilities that are active in the Swiss energy industry, covering over ninety per cent of the market in electricity sales. Most importantly, the service public nature of the Swiss energy industry impacts strategy deployment and formation. It was found that energy regulation triggers corporate strategies that are similar across the industry and meet regulation. Yet, magnitude of action for these strategic priorities differs across energy utilities - meaning, positive strategic deviance from regulatory norms is given. In line with the energy regulatory requirements, renewables-based energy generation, efficiency and ecology-enhancing investments, strengthening ties with the regulator, and perceiving energy transition as a business case are dominant strategic priorities. What is more, owner type and interest concentration may moderate positively strategic proactivity towards energy transition: Results across strategic priorities suggest that city-owned as majority-owned utilities, and diffused ownership with free float participation for minority-owned utilities are moderating positively the formation of strategic priorities pro energy transition. Finally, exploratory analyses indicate a tendency for boards composed of community influentials and left-wing politicians to moderate positively the formation of strategic priorities pro energy transition - albeit depending on owner type. Based on these findings the author implies that even though complete market liberalization and renewables-based energy efficiency measures overwhelm the Swiss energy industry, work to regulatory requirements prevails.