Industry Analysis & Industry Trends
Electricity distribution networks transport electricity from high-voltage transmission networks to households and businesses for consumption. They are built and regulated to ensure a safe and reliable supply of electricity, even during peak demand periods in summer. Over the past five years, network operators have extended their networks substantially to account for potential rises in peak electricity demand. Regulators allow industry operators to generate a return on their capital so they can pay debt and equity holders. Historically, the amount of revenue the regulators have permitted the industry to capture from users has been proportional to the size of the industry's capital base... purchase to read more
Industry Report - Industry Analysis Chapter
Electricity distribution networks are extremely expensive to build and are geographically specific, which means that they operate as natural monopolies. The industry is highly regulated due to competitive factors, and because a reliable supply of electricity for households and businesses is considered essential by governments. Revenue and capacity expansion depend on the determinations made by regulators such as the Australian Energy Market Commission (AEMC) and the Australian Energy Regulator (AER).
Over the past five years, the industry’s performance has fluctuated substantially. In the past regulatory cycle for the eastern seaboard’s National Electricity Market (NEM), regulators approved close to $36 billion of capital investment... purchase to read more