This has been the best of times and the worst of times. While acquisitions galore here at Direct Energy and Centrica's profits have gone ballistic, the world witnessed a quasi nuclear disaster in Japan. Of course for share hawks, this is purported as a good time to purchase the plummeted TEPCO (Tokyo Electric Power Company) stocks, given that with the healing effect of time, the electrical monopoly in Japan will spring back to its feet. Energy, by definition, is a funny industry. Not to say that Investment Banking or Hollywood isn’t funny but Goliaths of the energy industry can be humbled in no time. This effervescent nature saw BP get on its knees and many others go delinquent. DE’s growth is North America is an indicator of someone else’s fall. English, by definition, is a funny language. As they say: To rob Peter and pay Paul.
As I pen these words sitting at my desk and watching the panoramic view from my 12th floor office, it appears to me as if spring has a profound calming effect on people’s mind and business. The Second World War and the WTC episodes began on a September morning. Most nuclear events have surfaced in winter months. While logic defies such thinking as momentary lapse of reason, the poet’s eye sees otherwise. We are past the mire of Wikileaks, the Deepwater Horizon Oilspill, the Copiapó Mining Accident, eruptions of Eyjafjallajökull (The Iceland eruptions that cooled European skies for a while), the unrest in the Arab world, the bombing in Libya and finally, we’re pleasantly close to a joyous royal wedding in the City of Westminster. How times, news and energy prices change! The spring of hope has perhaps taken over the winter of despair.
The key word missing here so far has been – Sustainability. The primary target of a firm is not to make profits. Instead, it is to remain in business, which equates to Sustainability. Similarly, no one questions the Chinese or Indian growth. What people questions is sustainability of their growth? This is tough test to qualify since organisations or countries in question need to stand the test of time. But how do we measure sustainability or should the question be- What kind of sustainability are we aiming at? Energy sustainability refers to switching the focus to alternatives or renewable sources. For example, Vestas- an energy firm based in Denmark- is wholly working on championing Wind Energy across the world. Their vision sees wind placed alongside oil. The other kind of sustainability is, if this vision or rather their mission is sustainable? Their profits plummeted not long ago when their massive pitch in Britain fell on the nuclear sword. It’s another story that the events in Japan have made decision makers look at nuclear energy with jaundiced eyes. Basically, what goes round comes around.
Perhaps, sustainability is all about evolving with change whilst sticking to fundamental core values. For example, Direct Energy can still remain ‘Simple, Friendly and Direct’ whilst we fancy our chances across the various renewable and ever so willing non-renewable sources. But there is a lot more than this as you may have realised. Unfortunately, that is beyond the scope of a blog and more fitting for another platform.
This has been the best of times and the worst of times. But that has always been the case, isn’t it?
Spring greetings,
The Wordsmith
