Three Strategic Pillars for Building Cyber Resilience in Electric and Utilities

Electric and utilities (E&U) organizations face escalating cyber risks that demand constant vigilance, writes J.P. Pressley in BizTech. E&U companies operate in an environment where both cyberattacks and physical disruptions can have far-reaching consequences.

No economic sector is at greater risk of cyberattacks than E&U companies. US utilities organizations tried to counter an average of 69 cyberattacks per week in 2024, more than all other industries.

Cybersecurity experts say that resilience is not a one-time initiative, but a sustained, adaptive process integrated into an organization’s broader cybersecurity framework.

KPMG advises that resilience must align with business objectives and customer protection, while functioning as an ongoing discipline. Continuous commitment, not periodic intervention, is what distinguishes prepared organizations from those that are perpetually at risk.

This approach ensures that operational stability, customer confidence, and long-term value remain intact despite evolving digital and physical threats.

Experts point to three key pillars that define effective cyber resilience: backup technology, business continuity, and incident response planning.

Backup technologies such as microgrids, uninterruptible power supplies, and energy storage systems maintain operations when attacks or outages occur. Data backup and recovery software enable rapid system restoration when ransomware or data corruption strikes.

Business continuity ensures that critical operations continue during disruptions, supported by pre-planned contingencies that sustain performance and limit downtime.

The financial stakes are high. Industry studies estimate that downtime in the energy sector costs an average of $2.48 million per hour, far exceeding losses in other sectors.

Legal teams representing energy and utilities clients should highlight the regulatory and litigation risks associated with inadequate cyber resilience and execute careful contracting for the elements of continuity planning and coordinated response capabilities.