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 52.9% of total industry revenue during 2014-15, with large increases in the past five years. 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 across the industry.
Moderate industry privatisation levels limit trends in market share concentration, as a large proportion of industry assets cannot be acquired... purchase to read more