Power trip: Industry revenue declines as downstream markets pull the plug

The Electricity Transmission industry is a key player in Australia's energy network. Transmission networks 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. Other industry players include the owners of interconnectors that allow electricity to flow between states. The Australian Energy Regulator (AER) oversees most of the industry's operations and sets revenue determinations for five-year periods for individual entities...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
-3.5%
Forecast Growth 19-24
x.x%lock
Profit
x.x%lock
Employment
4,533
Businesses
13
Market Share of Companies

Industry Threats & Opportunities

  • New regulatory frameworks have reduced industry revenue over the past five years
  • The capital costs required to enter and operate in the industry are prohibitive to new entrants
  • The Australian Energy Regulator has stated it will reduce maximum allowable regulated revenue

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    Industry Report - Industry SWOT Analysis Chapter

    The Electricity Transmission industry is in the mature stage of its economic life cycle. The industry's structure is unusual, as regulators determine revenue, investment levels and allowable returns over five-year periods for most industry participants. As a result, regulatory decisions are more influential on the industry's short-term performance than demand.Industry value added (IVA) is used to measure an industry's contribution to the overall economy. IVA is forecast to decline at an annualised 2.4% over the next 10 years, which represents an underperformance compared with annualised real GDP growth of 2.7% over the same period. While this trend is generally indicative of a declining industry, this is misrepresentative due to a high base year in 2013-14. Ind...purchase to read more.

    Additional Insights for the Electricity Transmission Industry

    IBISWorld has determined the most important Key Success Factors for the Electricity Transmission 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 players 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Transmission Industry

    • Industry Globalization

    Major Companies

    Queensland Electricity Transmission Corporation Limited, NSW Electricity Networks Operations Holdings Pty Ltd, AusNet Services Ltd, ElectraNet Pty Ltd, Electricity Networks Corporation, Tasmanian Networks Pty Ltd,
  • Table: Queensland Electricity Transmission Corporation Limited - financial performance
  • Table: NSW Electricity Networks Operations Holdings Pty Ltd - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

    • 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 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.

    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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