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 supply of electricity, even during peak demand periods in summer. In the past five years, network operators have amended and extended their networks substantially to account for potential rises in peak electricity demand. To fund capital expenditure, industry operators are allowed a return on their capital by regulators 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 Key Buyers Chapter
The industry has a medium level of market share concentration, as measured by the contribution to industry revenue of the four largest players. The four largest companies in the industry are estimated to earn 55.7% of total industry revenue during 2014-15. This is up from 56.1% during 2009-10. During that time Endeavour Energy has fallen out of the top four, replaced by Essential Energy. State and territory governments still play a large role in electricity distribution and industry businesses are structured to cater to specific geographic areas. This limits the market share any one company can hold.
The low privatisation of the industry limits trends in market share concentration, as the majority of industry assets cannot be acquired... purchase to read more