Electric avenue to growth: Firms increasingly vertically integrate to become gentailers

Electricity retailers facilitate the supply of electricity from generators to end users through electricity transport networks. By purchasing energy from wholesale markets, industry operators manage price volatility for end users. Several industry operators are also active in power generation industries, which provide them with a less volatile supply of electricity. The industry's revenue growth depends on rising demand from households, businesses and operators in other sectors. Revenue growth also depends on the industry's ability to pass on increases in input costs from other areas of the electricity supply chain, due to the short-term demand inelasticity of electricity...read more.

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

Industry Threats & Opportunities

  • Industry operators passed on wholesale costs to consumers, which provided a short boost to revenue
  • Vertical integration offers significant benefits to the revenue and profit margins of major players
  • The result of the next Federal Election will play a role in determining the industry’s performance
  • Industry Report - Industry Investment Chapter

    The Electricity Retailing industry displays high capital intensity. In 2018-19, for every dollar spent on wages, the industry invests an estimated $0.48 in capital. The industry is essentially a service industry, where firms collate the generation, transmission, and distribution services provided by other industries. Firms then onsell this bundle of services through retail contracts, which also include billing, customer service, and price smoothing services. As retail services rely on customer-facing sales teams and minimal equipment, wages and depreciation account for a small share of total revenue. Purchase costs dominate the cost structures of companies in the industry...purchase to read more.

    Additional Insights for the Electricity Retailing Industry

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

  • Ensuring pricing policy is appropriate
  • Prompt delivery to market
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Electricity service price in the Electricity Retailing industry impact industry performance..

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    What's in this report

    What is the Electricity Retailing Industry?

    Industry companies sell electricity through power distribution systems that are operated by other firms. The industry also includes operators that primarily provide services to the electricity market and match electricity supply and demand.

    Industry Products
  • Electricity generated using black coal
  • Electricity generated using brown coal
  • Electricity generation using natural gas
  • Electricity generated using wind and solar power
  • Electricity generated using hydropower
  • Electricity generated using other energy sources
  • Industry Activities
  • Electricity market operation
  • Electricity retailing
  • Electricity wholesaling
  • 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 businesses
  • Electricity service price
  • Net energy consumption
  • Number of households
  • Demand from electricity distribution

  • Current Performance
  • Wholesale supply and prices
  • Profit and vertical integration
  • Demand changes
  • Participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Future carbon prices
  • Vertical integration and participation
  • Competition
  • Solar substitution
  • Table: Electricity Retailing Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Electricity Distribution
  • Electricity Transmission
  • Fossil Fuel Electricity Generation
  • Hydro-Electricity Generation
  • Wind and Other Electricity Generation

  • Products & Services
  • Electricity generated using black coal
  • Electricity generation using natural gas
  • Electricity generated using brown coal
  • Electricity generated using hydropower
  • Electricity generated using wind and solar power
  • Electricity generated using other energy sources
  • Chart: Electricity Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial and services
  • Households
  • Manufacturers
  • Other
  • Chart: Major Market Segmentation for the Electricity Retailing 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 Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Retailing Industry

  • Industry Globalization
    Origin Energy Limited, AGL Energy Limited, EnergyAustralia Holdings Limited, ERM Power Limited, Electricity Generation and Retail Corporation,
  • Table: Origin Energy Limited - financial performance
  • Table: AGL Energy Limited - financial performance
  • Table: EnergyAustralia Holdings Limited - financial performance
  • Table: ERM Power Limited - financial performance
  • Table: Electricity Generation and Retail Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Retailing 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 Retailing 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 Market Operator (Aemo)
  • The AEMO operates the NEM.
  • Gentailer
  • A vertically integrated energy company, with interests in electricity generation and retailing.
  • National Electricity Market (Nem)
  • The NEM connects generators to retailers in Queensland, New South Wales, the Australian Capital Territory, Victoria, Tasmania and South Australia.
  • Transmission Network
  • High-voltage electric power transmission systems that control the transmission of electricity from generating plants to distribution centres or other electric utilities.
  • Twh
  • Terawatt hours, used as a measure of electricity energy over time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electricity Retailing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Retailing:
    • 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 Retailing 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 Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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