Live spark: Potential peak electricity demand has increased due to steady population growth

Operators in the Electricity Distribution industry use networks to transport electricity from high-voltage transmission networks to households and businesses. These distribution networks are built and regulated to ensure a safe and reliable supply of electricity, even during peak demand periods in summer. Network operators have extended their networks substantially over the past decade, 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 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Revenue determinations set by the Australian Energy Regulator have dictated industry revenue growth
  • Potential peak demand for electricity has grown due to rising net energy usage
  • Previous distribution network investment will need to be recaptured from consumers over time
  • 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. Enterprises or establishments have not grown since 2008-09, which is indicative of these very high entry barriers. Changes in the number of enterprises is usually a result of company's merging or being spun off, such as the merger of Ergon Energy and ENERGEX in October 2016, rather than new firms entering the industry. 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. Pro...purchase to read more.

    Additional Insights for the Electricity Distribution Industry

    IBISWorld has determined the most important Key Success Factors for the Electricity Distribution are:

  • Effective cost controls
  • Ability to negotiate successfully with regulator
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Number of households and World price of natural gas in the Electricity Distribution industry impact industry performance..

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    What's in this report

    What is the Electricity Distribution Industry?

    Industry companies operate low-voltage electricity distribution systems that deliver electricity to consumers, including lines, poles, meters and wires. Industry firms transport electricity that is sourced from upstream high-voltage transmissions networks.

    Industry Products
  • Electricity distribution
  • Streetlight operation
  • Smart meter installation
  • Industry Activities
  • Electricity distribution
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of households
  • World price of natural gas
  • Net energy consumption
  • year bond rate

  • Current Performance
  • Network expansion and use
  • Investment peaks
  • Structural effects
  • Chart: Revenue Growth

  • Industry Outlook
  • Long term trends
  • The value of reliability
  • Storage and solar
  • Smart meters and productivity
  • Table: Electricity Distribution Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electricity Distribution Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Retail Trade
  • Electricity Retailing
  • Consumers

  • Key Selling Industries
  • Electricity Transmission
  • Engineering Consulting
  • Heavy Industry and Other Non-Building Construction
  • Machinery and Scaffolding Rental

  • Products & Services
  • Electricity distribution
  • Streetlight operation
  • Smart meter installation
  • Chart: Electricity Distribution Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Households
  • Manufacturers
  • Other markets
  • Chart: Major Market Segmentation for the Electricity Distribution Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Electricity Distribution

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Distribution Industry

  • Industry Globalization
    Energy Queensland Limited, Ausgrid, Endeavour Energy, Essential Energy, Electricity Networks Corporation, Victoria Power Networks Pty Ltd,
  • Table: Energy Queensland Limited - financial performance
  • Table: Ausgrid - financial performance
  • Table: Endeavour Energy - financial performance
  • Table: Essential Energy - financial performance
  • Table: Electricity Networks Corporation - financial performance
  • Table: Victoria Power Networks Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Distribution Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Electricity Distribution Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Australian Energy Regulator (Aer)
  • The AER implements the National Electricity Rules that are set by the Australian Energy Market Commission.
  • Electricity Distribution System
  • Low-voltage power lines that carry electricity to end users.
  • National Electricity Market (Nem)
  • An interconnected wholesale market for electricity that includes Queensland, New South Wales, the Australian Capital Territory, Victoria, Tasmania and South Australia.
  • Regulated Asset Base (Rab)
  • The value of assets operated by a distributor in the NEM as accepted by the AER.
  • Substation
  • A facility that lowers the voltage of electric energy through the use of transformers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electricity Distribution market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Electricity Distribution:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Electricity Distribution market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Electricity Distribution, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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