China’s State Grid has retained the title of the most valuable utilities brand ranked globally for the seventh year in a row – according to a new report by Brand Finance, the world’s leading brand valuation consultancy. It has achieved a brand value growth of 21% this year to USD71.1 billion. In addition, State Grid also continues to be the strongest brand in the ranking, standing out as the only utilities brand with AAA rating.
Edison has the largest brand value growth this year of 118%, to USD2.3 billion. This has allowed the Italian brand to enter the top 50 and become the 31st most valuable utilities brand in our ranking. Edison is followed by EnBW and PSEG in brand value growth. EnBW saw a brand value increase of 42% to USD5.8 billion, largely due to higher congestion revenues from an electricity price differential between the brand’s locale of Germany and its neighbouring countries. PSEG recorded a brand value improvement of 26% to USD1.7 billion thanks to a prosperous financial year.
Due to rising energy prices from the Ukraine-Russia war, many brands in the utilities sector were able to double their revenue, particularly those in Europe. The strong financial performances of utilities brands ranked have resulted in the overall brand value of the top 50 rising by 12%. However, due to governmental capping of prices this year, forecasts have decelerated, combined with expectations that energy prices will drop.
Meanwhile, utilities brands from the US and France showed impressive brand growth, with the two countries being the second and third largest contributors to the total brand value of the sector in our ranking. While the sector in the US is largely driven by the rising demand and price of electric power, the French market is bolstered by the government’s support for adoption of renewable energy and infrastructure modernisation.
Richard Haigh, Managing Director of Brand Finance commented:
“Utilities brands are performing well with an overall brand value growth for the sector. However, brands also need to anticipate a possible slowdown in the upcoming year with the expected fall in energy prices.
“They also need to sustain the industry’s on-going push towards renewable energy integration, of which many brands have already taken steps towards through green energy projects.”
The 2024 Sustainability Perceptions Index finds that in the utilities sector, State Grid has the highest Sustainability Perceptions Value of USD7.7 billion while Enel has the highest positive gap value of USD132 million among brands in the rankings. A positive gap value means that brand sustainability performance is stronger than perceived: brands can add value through enhanced communication about their sustainability efforts, so that perceptions are raised to fully account for the brand’s actual sustainability performance. Enel’s gap value suggests that it could generate an additional USD132 million in potential value through enhanced communication of its impact and accomplishments in sustainability.