Shocking: High wholesale prices and policy uncertainty lead to strong revenue volatility

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 provides them with a less volatile supply of electricity.The industry’s revenue growth is contingent on rising demand from households, businesses and operators in other industries. 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. This trend has been apparent over the past five years...read more.

Industry Statistics & Market Size
Revenue
$50bn
Annual Growth 13-18
5.3%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
9,904
Businesses
246
Market Share of Companies

Industry Threats & Opportunities

  • Increasing wholesale costs are being passed on to consumers
  • The repeal of the carbon tax in July 2014 caused revenue to decline in 2014-15
  • The result of the next Federal Election will play a role in determining the industry's performance

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    Industry Report - Industry Products Chapter

    The Electricity Retailing industry sells electricity generated from a range of sources. However, to consumers and businesses, electricity is effectively a homogeneous good once it has been produced and fed into transmission and distribution systems. Fossil fuels such as coal have traditionally dominated electricity generation. However, the industry has shifted towards renewable energy sources such as wind power over the past decade due to increased investment in large-scale generation capacity.Electricity generated using black coalElectricity generated using black coal is the largest product segment in the industry. Black coal is heated to produce steam, which then powers turbines that generate electricity. Bla...purchase to read more.

    Additional Insights for the Electricity Retailing Industry

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

  • Ensuring pricing policy is appropriate
  • Ability to supply energy to meet peak demand
  • 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

    Industry Products

    What is the Electricity Retailing Industry?

    Industry companies sell electricity via 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

    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 businesses
  • Electricity service price
  • Net energy consumption
  • Number of households
  • Demand from electricity distribution

    • Current Performance
  • Carbon tax
  • Undersupply
  • 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

    • Products & Markets

    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 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
  • Chart: Electricity Retailing Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Manufacturers
  • Households
  • Businesses
  • Utility providers
  • Primary producers
  • Other
  • Chart: Major Market Segmentation for the Electricity Retailing 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 Retailing

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

    • Industry Globalization

    Major Companies

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

    • Operating Conditions

    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

    Key Statistics

    Table: Industry Data for the Electricity Retailing Industry
    Includes:
  • 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 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.
    • 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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