Industry Analysis & Industry Trends
Electricity distribution networks transport electricity from high-volume 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 such as summer. In the past five years, network operators have amended and extended their networks substantially to account for potential rises in peak electricity demand. More stable networks mean higher depreciation and maintenance costs and a larger industry base of fixed assets. In order to fund capital expenditure, industry operators are allowed a return on their capital by regulators, to allow them to pay debt and equity holders... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry technically has a low market share competition, as measured by the contribution to industry revenue of the four largest players. 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. Victoria and South Australia have moved to private operations of distribution networks, through the sale and lease of former state government assets... purchase to read more