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Local government saves millions on investment in infrastructure

Expertise:

The challenge

A local government had to move a high-voltage power line because a new residential area was going to be built. The cost was set at a maximum of 7 million euros, which amount was confirmed by the network operator. The councillor responsible was supported by the town council. Shortly after this, the network operator suddenly and unexpectedly increased the estimated cost by 10 million euros, which meant a financial problem for the local government and a political one for the councillor. The network operator insisted on the higher amount however.

IvCB’s approach

After thorough analysis of the situation, pressure was put on the network operator via the Ministry of Finance (holder of 100% of the shares in the network operator) and the Office of Energy Regulation (the supervisor of the energy market). IvCB held several meetings with both parties. The inconsistency between the sudden increase and good corporate governance on the part of the network operator was crucial. The arguments were set out in position papers that were tailored to each individual stakeholder.

The result for the client

The desired pressure was exerted on the network operator by using the right arguments, which resulted in the increase being withdrawn. The local government was thereby able to save millions of euros.

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Contactgegevens

Zeestraat 66A
2518 AC Den Haag
Email: info@ivcb.nl
Tel: +31 (0)70 – 406 97 77

IvCB is an independent firm and is not part of the FTI Consulting Group of companies. FTI Consulting is not responsible for the acts and omissions of IvCB.

IvCB is an independent firm and is not part of the FTI Consulting Group of companies. FTI Consulting is not responsible for the acts and omissions of IvCB.

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