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 that 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 - Starting a New Business Chapter
The industry's barriers to entry are prohibitively high and this has remained steady over the past five years. No new enterprises or establishments have entered the industry since 2008-09, which is indicative of these very high entry barriers. The industry is extremely capital-intensive and the cost of replicating networks is prohibitively expensive, which results in regional monopolies.
The industry's monopolistic structure and role in providing an essential good result in heavy regulatory oversight. Prospective companies may be able to enter the industry by acquiring the assets of an existing player. However, even this path would require substantial capital investment and ongoing operational expenses... purchase to read more