Power utility software verification#

Below are additional recommendations from the Federal Energy Regulatory Commission (FERC): It ensures they are up-to-date on any changes in regulations that apply to their discipline. Regular training encourages employees to be consistent in their compliance obligations. Training is essential for improving compliance as it provides managers, engineers, and operators with the latest rules and requirements that apply to their specific roles. From here, the company could take a closer look at their processes to determine why the delay is occurring.Ĭonducting an audit helps companies refine their compliance efforts so that they can manage regulations better and reduce costs associated with violations. For example, a utility company might realize that they are paying excessive fines for not meeting the response time required for power restoration. Companies can use this information to review current processes and identify potential areas of improvement. This generates insights that can be used to adjust or improve current policies, procedures, processes, and training to identify and reduce potential risks. Risk assessments are routine, comprehensive reviews of a company’s operations. Typically, management will hire an internal auditor that has received proper training to perform an audit. Testing and auditing can help uncover any weaknesses in a compliance program and determine how well a company meets current rules and regulations. This information helps evaluate current programs and establish new ones, but where do we go from here? To support energy and utility companies as they take steps to reduce the risk of non-compliance, we’ve developed a list of five tips for compliance management: #1 – Compliance Audit and Risk Assessment Does the compliance program work in practice? Is the program being applied earnestly and in good faith?ģ. Is the compliance program well designed?Ģ. It provided these three fundamental questions to help companies evaluate their current practices:ġ. In 2019, the DOJ released insight into its expectations for effective compliance programs.

The Federal Energy Regulatory Commission (FERC) recommends having a compliance program to monitor current practices and reduce violations.

Power utility software verification#

Taking a holistic approach that includes automation and verification tools can help E&U companies reduce their risk of non-compliance.

New digital processes have also expanded the requirements for cyber security and data privacy – a primary focus for regulators as the need for proper collection, exchange, and storage of data becomes more prevalent.Ĭomplying with so many new and evolving requirements can be a headache, especially for companies that don’t modernize their business practices. Current environmental, legal, and financial factors have intensified strict regulations, leaving many scrambling to keep up. The energy and utilities (E&U) sector is one of the largest, most heavily regulated industries in the world.