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UK Utilities Risk Report 2025

Marsh McLennan partners with Utility Week to share insights into the changing risk landscape faced by the UK utilities industry.

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13/03/2025 · 3 minute read

Marsh McLennan is proud to be partnering with Utility Week for the fourth consecutive year to share insights into the rapidly changing risk landscape faced by the UK utilities industry. 

This year’s survey achieved a record response rate, revealing significant challenges in the sector. The report provides valuable insights into the utility landscape, helping leaders navigate growth and resilience while balancing regulatory and customer demands. The interconnected nature of the top risks identified within the report, highlights the heightened need for risk preparedness amid a complex operating environment within Utility companies.

The evolving landscape of utility companies

The research revealed that Utility companies are increasingly concerned about digital risks, changing weather patterns, workforce issues, and supply chain vulnerabilities. This year’s findings also show a rise in worries about investor confidence, with lower expected returns and perceptions of the UK’s declining competitiveness as an investment destination.

These investor concerns also affect workforce issues, as senior leaders grapple with a challenging labour market and skills gap, particularly in specialised sectors like utilities. Ensuring a pipeline of skilled future leaders is crucial for modernising the sector and increasing capacity. Firms are also challenged by attracting and retaining talent, especially given the negative public perception of the industry.

In light of recent global events, the risk rating for geopolitical and market shocks has surged. There is heightened concern around sustainability, as utility companies face pressure to meet ambitious net zero targets. The complexity of supply chains for sourcing and distributing necessary resources demands innovative approaches to ensure agility and continued support for the UK’s economy and society.

Methodology

The report is based on a combination of an online survey and in-depth interviews. The survey sought to determine what utility companies see as the major risks facing them over the next five years. They were asked to mark risk factors across the below five potential areas of risk. These are the same five areas of risk as the previous year, but this time the risk horizon was reduced from 10 years to five.

Policy and regulatory risks

Societal risks

Environmental risks

Investment and skills risks

Digital and security risks

Download the 2025 UK Utilities Risk Report

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Carl Ratcliffe

Marsh UK Industries - Recycling, Utilities & Mining Industries Leader

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