Fall from power: Conservative revenue determinations slow industry growth

The Electricity Transmission industry is a key player in Australia's energy network. Australia's transmission networks are used to transport high-voltage electricity from generators to distribution networks and directly to large industrial users. Transmission networks are highly regulated geographic monopolies, with only one major enterprise in each state. Queensland's, Western Australia's and Tasmania's transmission networks are state-owned, while New South Wales', South Australia's and Victoria's transmission networks are foreign-owned entities. Other industry players include the owners of interconnectors that allow electricity to flow between states...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-3.3%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
4,799
Businesses
13
Market Share of Companies

Industry Threats & Opportunities

  • New regulatory frameworks have constrained revenue growth over the past five years
  • The capital costs required to enter and operate in the industry are prohibitive to new entrants
  • Revenue is forecast to increase due to the Australian Energy Regulator’s recent determinations

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    Industry Report - Industry Investment Chapter

    The Electricity Transmission industry is extremely capital-intensive. In 2017-18, for every dollar spent as wages, an estimated $1.70 is spent on capital costs. The industry's assets include high-voltage transmission lines, poles, substations, transformers, switching stations and associated equipment. These assets all incur substantial depreciation costs as they decline in value over time. These expenses dwarf costs such as wages and purchases. The industry's capital intensity level has remained high over the past five years, due to ongoing depreciation costs and network expansion projects...purchase to read more.

    Additional Insights for the Electricity Transmission Industry

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

  • Ability to negotiate successfully with regulators
  • Effective cost controls
  • Superior financial management and debt management

    • IBISWorld analysts also discuss how external factors such as Industrial production and Number of households in the Electricity Transmission industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Electricity Transmission Industry?

    Industry companies operate high-voltage electric power transmission systems and control electricity transmission from generating plants to distribution networks and large industrial users. These transmission systems include power lines and transformer stations.

    Industry Products
  • Electricity transmission
  • Electricity transmission links
    • Industry Activities
  • High-voltage electricity transmission
  • Substation operation
    • 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
  • Industrial production
  • Number of households
  • Demand from heavy industry and other non-building construction
  • Demand from electricity distribution
  • year bond rate

    • Current Performance
  • Revenue
  • Regulation and revenue
  • Demand and pricing
  • Structure and profit
  • Chart: Revenue Growth

    • Industry Outlook
  • Revenue and participation
  • Changing demand
  • Shifting structure
  • Privatisation
  • Table: Electricity Transmission Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Manufacturing
  • Heavy Industry and Other Non-Building Construction
  • Electricity Distribution
  • Electricity Retailing

    • Key Selling Industries
  • Electrical Services
  • Heavy Industry and Other Non-Building Construction
  • Machinery and Scaffolding Rental

    • Products & Services
  • Electricity transmission
  • Electricity transmission links
  • Other
  • Chart: Electricity Transmission Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Electricity distributors and retailers
  • Large industrial energy users
  • Chart: Major Market Segmentation for the Electricity Transmission 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 Transmission

    • Basis of Competition
  • Internal competition
  • External competition

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

    • Industry Globalization

    Major Companies

    Queensland Electricity Transmission Corporation Limited, TransGrid, AusNet Services Ltd, ElectraNet Pty Ltd, Electricity Networks Corporation, Tasmanian Networks Pty Ltd,
  • Table: Queensland Electricity Transmission Corporation Limited - financial performance
  • Table: TransGrid - financial performance
  • Table: AusNet Services Ltd - financial performance
  • Table: ElectraNet Pty Ltd - financial performance
  • Table: Electricity Networks Corporation - financial performance
  • Table: Tasmanian Networks Pty Ltd - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Transmission 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 Transmission 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 Regulator (Aer)
  • The body that regulates the majority of industry enterprises, except operators in Western Australia and the Northern Territory.
    • Circuit Kilometre
  • One kilometre of electrical transmission or distribution circuitry.
    • Electricity Distribution System
  • Low-voltage power lines that carry electricity to end users.
    • Electricity Transmission
  • The bulk transfer of electrical power at voltages of 110 kilovolts or above from generators to distributors and large electricity users.
    • Monopoly Profit
  • Abnormal profit that can be generated in monopolies. Players can unfairly increase prices without the threat of rival companies undercutting them.
    • Transmission Line
  • High-voltage power lines used to transport electricity from power generators to distribution networks.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Electricity Transmission 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 Transmission:
    • 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 Transmission 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 Transmission, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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