Industry Analysis & Industry Trends
Electricity distribution networks transport electricity from high-volume transmission networks to households and businesses. In the five years through 2013-14, distributors of electricity have expanded the scope of their networks. The positive relationship between the size of the industry's fixed capital formation and the industry's regulated pricing structures has created revenue growth. Revenue has increased at a compound annual rate of 7.7% over the five years through 2013-14 to $27.5 billion, with growth of 5.0% forecast for 2013-14.
Over the past five years, network investment increased to meet rises in potential peak electricity demand... purchase to read more
Industry Report - Industry Analysis Chapter
Electricity is transported from generators to substations at high voltage by transmission networks, and then on to end users at low voltage by the Electricity Distribution industry. Distribution networks are extremely expensive to build and are geographically specific. These two characteristics mean that industry operators have natural monopolies over distribution services. Consequently, the industry is heavily regulated, and revenue and expansion of capacity depend on the access determination made by regulators such as the Australian Energy Markets Commission (AEMC).
In the five years through 2013-14, both capacity and revenue have increased because of growing peak demand for electricity... purchase to read more