Electric shock: New revenue determinations have caused revenue declines over recent years

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. Over the past decade, 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...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Revenue determinations set by the Australian Energy Regulator dictate industry revenue growth
  • Potential peak demand for electricity has grown due to rising net energy usage
  • Political pressure to contain price rises has mounted in the face of rising electricity bills
  • Industry Report - Industry SWOT Analysis Chapter

    The Electricity Distribution industry is in the mature stage of its economic life cycle. Electricity distribution networks provide a well-established service and have a slowly growing customer base. These trends, coupled with increasing household use of solar panels, limit the industry's growth potential. Long-term growth is closely linked to growth in the wider economy, although this can diverge greatly over the short term.Industry value added (IVA) is used to measure an industry's contribution to the overall economy. IVA is forecast to grow at an annualised 0.6% over the 10 years through 2022-23. Although IVA is growing, the industry is expected to underperform annualised real GDP growth of 2.5% over the same period. This trend is characteristic of a mature industry...purchase to read more.

    Additional Insights for the Electricity Distribution Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electricity Distribution Industry 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?

    Companies in the industry 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
  • Demand from electricity retailing

  • Current Performance
  • Investment peaks
  • Structural effects
  • Smart meter rollout and court appeals
  • Chart: Revenue Growth

  • Industry Outlook
  • Network expansion and use
  • 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
  • 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, Essential Energy, Victoria Power Networks Pty Ltd, Endeavour Energy, Electricity Networks Corporation,
  • Table: Energy Queensland Limited - financial performance
  • Table: Ausgrid - financial performance
  • Table: Essential Energy - financial performance
  • Table: Victoria Power Networks Pty Ltd - financial performance
  • Table: Endeavour Energy - financial performance
  • Table: Electricity Networks Corporation - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 within 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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