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

IBISWorld’s Electricity Distribution market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.


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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Investment Chapter

    A high level of capital intensity characterises the industry. In 2017-18, for every dollar paid as wages, an estimated $1.11 is invested in capital. Industry players are heavily reliant on infrastructure to deliver low-voltage electricity to end users such as households and businesses. Although labour is still required to complete these services, capital costs exceed total labour requirements. Over the past five years, capital intensity has increased due to several major network expansion projects under the AER’s previous revenue determination framework.

    The industry has the second-highest level of capital spending within the Electricity Supply subdivision, falling slightly below that of the Electricity Transmission industry. Cap..

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    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    Energy Queensland LimitedAusgridEssential EnergyVictoria Power Networks Pty LtdEndeavour EnergyElectricity 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

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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.
  • Why buy this report?

    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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