Brand valuation and strategy consultancy Brand Finance’s Utilities 50 2021 reveals the most valuable and strongest utilities brands of the year.
Heading up the most valuable brand ranking is China’s State Grid, with a value of $55.2 billion, marginally down from the almost $57 billion in 2020.
The utility supplies power to 1.1 billion people, almost 90% of China’s population, and also operates in countries including Philippines, Brazil, Portugal, Australia, and Italy and further acquisitions in prospect particularly in Latin America.
Enel, Engie, EDF and Kepco follow in second, third, fourth and fifth places respectively, with all of these maintaining their ranking from 2020.
Of others in the top ten, E.ON enters in seventh position from twelfth previously as the sector’s fastest growing brand. In part this is attributed to the incorporation of Innogy but also to its business adaptability and move towards renewables, according to Brand Finance.
Vattenfall also showed growth as second fastest growing, with a 36% increase to reach 14th position, largely due to growing investments in wind power.
Turning to the strongest brands, Kepco heads the pack, with Tenaga Nasional, PSEG, State Grid and WEC Energy Group following in the next four places.
David Haigh, CEO of Brand Finance writes in the foreword to the Utilities 50 report that over the last years, many famous brands have disappeared or declined and many new brands have emerged.
“Sectors have risen and fallen. Oil and gas brands are in decline while data and technology driven brands are booming. America and Europe are losing out to China and Asia,” he writes.
“But while there may be volatility, brands have never been more important for nations, companies, products and services.”
Brand Finance’s assessment of brand value is based on a complicated methodology broadly intended to measure the present value of earnings related to brand reputation. Factors include royalty payment agreements, shareholder value, activities to strengthen the brand and market share.
Brand strength is based on factors such as marketing investment, customer familiarity, staff satisfaction and corporate reputation.
Other findings in the Utilities 50 2021 study are that over the past year, the total value of the world’s top 50 most valuable utility brands declined by 7%, decreasing from $197 billion in 2020 to $183.6 billion. This is obviously attributable to the response to the COVID-19 pandemic with changing demand patterns and supply chain disruptions.
However, Brand Finance anticipates that as economies begin to bounce back, so will utility brands.
Another notable finding is the strength of Chinese brands, with the six in the ranking accounting for 36% of the total brand value. In addition to State Grid, these are CGN, GD Power Development, Datang Power, ENN and China Yangtze Power.
In contrast, with the largest number in the lineup the US’s 20 brands that feature account for 19% of the total brand value.